Vietnam’s industrial real estate market is undergoing a strategic transformation as global supply chains shift and sustainability becomes a top priority. In H1 2025, the sector grew 8.07%, with manufacturing and processing leading at 10.11%, supported by a surge in FDI inflows and rising demand for flexible, ESG-compliant infrastructure.
According to Savills Vietnam, global occupiers are revising leasing strategies amid economic and geopolitical risks, favouring shorter terms, expansion clauses, and early exits. Vietnam’s central location, political stability, and integration into global trade networks make it a preferred destination for diversified manufacturing.
Thomas Rooney, Associate Director at Savills Vietnam, noted:
“Vietnam is catching up with international demand for flexibility, efficiency, and sustainability. ESG integration will be key to attracting new FDI flows and strengthening Vietnam’s role in global logistics.”
Despite strong momentum, challenges persist — including limited supply outside key zones, uneven logistics infrastructure, and fragmented policy support for green industrial parks. Rooney emphasized the need to shift from quantitative to qualitative growth, urging developers to adopt energy-saving solutions, ready-built factory models, and tenant-friendly lease terms.
With FDI disbursement hitting $11.72 billion, a five-year high, and new registrations up 32.6% YoY, Vietnam is poised to become a regional leader in sustainable industrial development. Experts say accelerating administrative reforms, investing in interregional infrastructure, and promoting green zones will be critical to sustaining investor confidence and long-term growth.
