Vietnam's industrial property forecast to enjoy growth

Vietnam has attracted companies renting industrial property due to low cost as well as strategic location, strong economic growth and development of the middle-class, according to JLL Vietnam.
Industrial parks and other industrial properties are sparse and major industries are not gathered for development on a regional basis (Photo: tapchitaichinh.vn)

Industrial parks and other industrial properties are sparse and major industries are not gathered for development on a regional basis (Photo: tapchitaichinh.vn)

The industrial property market in Vietnam, including industrial land, ready-built factories, warehouses and other logistics properties, is in the nascent stages of development.

Given the country’s improving market fundamentals, Vietnam stands a good chance of winning the market share as its regional peers shift towards more mature industrial development, according to Trang Le, manager, research and consultancy, JLL Vietnam.

There are several notable advantages that make Vietnam an attractive destination for industrial development.

One of the main reasons is the country’s strategic location. Vietnam's advantageous geographical position, with access to the world’s major seaborne trade routes, has offered the country huge opportunities to develop its maritime transport, particularly logistics services.

In addition to this, the country’s proximity to China makes it a worthy option for manufacturers looking at alternative locations in the South East Asia region because the operating cost in China has been continuously increasing in recent years.

Moreover, Vietnam has gained strong economic growth over the past few years. The key drivers of this growth are urbanisation, foreign direct investment, growth in the manufacturing sector and growth in the middle-income population. These factors have created a spillover effect, driving the country’s demand for international transport and logistics services.

As the domestic economy moves from agriculture to manufacturing and services, household income is likely to increase. Vietnam’s General Statistics Office has shown that the country is experiencing a “golden population structure”, with the average working age ranging from 20 to 50, with a median age of some 30 in 2016. A young population coupled with growth in average income will support purchasing power and help the country remain an attractive destination for both local and foreign investors.

Meanwhile, Vietnam has become more attractive to foreign manufacturers, their associated suppliers and supporting industries, thanks to its existing variety of tax incentives and low labour costs. This in turn will allow further potential growth in the industrial sector, particularly in logistics services.

However, according to Trang, industrial parks and other industrial properties in Vietnam are now competing mainly on location, rather than on standards of infrastructure, buildings and services.

Industrial parks and other industrial properties are sparse and major industries are not gathered for development on a regional basis.

Major occupiers are predominantly from labour-intensive industries, including textiles and garments, food products, wood products and furniture and rubber and plastics products. The contribution of the value-added sector is still insignificant.

VNA

Other News

Vietnamese enterprises renew growth model to move up global value chains

Vietnamese enterprises renew growth model to move up global value chains

The resolution identifies enterprises as the centre of the renewal process, urging them to shift from cost-based competition to productivity, technology, quality and market responsiveness; from operating independently to joining industrial ecosystems; and from participating in value chains to mastering and eventually leading them.

Khanh Hoa province explores Halal ecosystem development

Khanh Hoa province explores Halal ecosystem development

Khanh Hoa aims to estabish itself as a Halal-friendly destination while supporting businesses in expanding export markets, attracting strategic partners and investors, and drawing projects from countries with strong Halal logistics, tourism, manufacturing, processing and agriculture sectors.

Data-driven land valuation to curb speculation: Experts

Data-driven land valuation to curb speculation: Experts

From a property-market perspective, Do Thi Thu Giang, National Director of Valuation and Advisory at Savills Vietnam, said the orientations under Resolution No. 21-NQ/TW could make the market more transparent and efficient, with property values increasingly tied to actual development and use potential.

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Science and technology, innovation, digital transformation and AI must be translated into higher productivity rather than pursued as ends in themselves. At the same time, people should be placed at the centre of development, not merely viewed as a resource but as the ultimate objective of development policies.

Expo to open door for Vietnamese suppliers to enter US market

Expo to open door for Vietnamese suppliers to enter US market

US retail giant Target is seeking Vietnamese suppliers of household goods, home textiles, children’s products, personal care and beauty products, with a focus on companies capable of manufacturing and developing products that meet requirements on quality, design and supply chain management.

2026 Banking Sector Digital Transformation to open in Hanoi

2026 Banking Sector Digital Transformation to open in Hanoi

The annual event, which will be held on August 18-19, 2026, at the ICE International Exhibition Centre, 91 Tran Hung Dao Street, Hanoi, is expected to attract around 324 delegates and feature 21 booths representing credit institutions, payment intermediary service providers, and technology companies.

Vietnam – one of most attractive destinations for leading US semiconductor companies: expert

Vietnam – one of most attractive destinations for leading US semiconductor companies: expert

Vietnam has built a solid semiconductor and electronics industry before joining ITSI, attracting major US semiconductor companies. Intel Products Vietnam is one of Intel's largest assembly and testing facilities worldwide, while chip design companies such as Synopsys, Cadence, Marvell and Qualcomm have established engineering and research centres in the Southeast Asian country.

Vietnam targets higher-quality FDI under Resolution 10

Vietnam targets higher-quality FDI under Resolution 10

During the first seven months of 2026, Vietnam attracted more than 38 billion USD in registered FDI, up nearly 58% year-on-year. More importantly, the increase was driven by large-scale, high-tech projects rather than a surge in the number of new investments, signalling a significant improvement in the quality of capital inflows.

Manufacturing, engineering drive hiring growth in H1: report

Manufacturing, engineering drive hiring growth in H1: report

Manufacturing and engineering posted the strongest recruitment growth, with hiring demand surging 70% year-on-year, driven by production expansion, supply chain restructuring and sustained investment inflows in high-tech manufacturing.

Government proposes special mechanisms to unblock APEC 2027 projects in Phu Quoc

Government proposes special mechanisms to unblock APEC 2027 projects in Phu Quoc

The projects in Phu Quoc have been implemented under tight deadlines. Since May 2025, the Prime Minister has directed preparations for APEC 2027, including accelerated infrastructure development on the special zone. An Giang province and investors have subsequently launched a number of major projects involving complex technical requirements and demanding construction schedules.

Financial market reform plan targets high, sustained growth through 2045

Financial market reform plan targets high, sustained growth through 2045

The plan seeks to develop a balanced and modern financial market that is closely integrated with regional and global markets, strengthens the mobilisation and allocation of domestic and foreign capital, and enhances the market’s role as a key provider of medium- and long-term capital for the economy and as a major driver of sustained high economic growth.

An Giang aims to become leading maritime economic hub

An Giang aims to become leading maritime economic hub

Under the province's master plan for 2021–2030 with a vision to 2050, An Giang will prioritise investment in five strategic sectors: strategic infrastructure; processing industries and clean energy; trade, services, logistics and border-gate economy; high-quality tourism; and high-tech agriculture, ecological development and the circular economy.