Surge in Foreign Direct Investment Fuels Growth of Ready-Built Factories in Vietnam

Photo: Saigon VRG

Overview of Recent Foreign Investment Trends

As Vietnam continues to capture the attention of global investors, foreign direct investment (FDI) has surged significantly. According to data from the General Statistics Office under the Ministry of Finance, the first half of this year saw foreign investment skyrocket to over $21.5 billion, marking an impressive 32.6% increase year-on-year.

This growth is fueled by approximately 2,000 newly registered projects, totaling nearly $9.3 billion—a 21.7% increase compared to the same period last year. Additionally, over 1,700 capital contribution and share purchase transactions were recorded, surpassing $3.28 billion, which represents a remarkable 73.6% surge from the previous year.

Disbursement and Adjustments: A Sign of Confidence

Disbursed FDI reached an estimated $11.72 billion, reflecting an 8.1% increase. Moreover, adjusted capital saw significant growth, with 826 registrations totaling an additional $8.95 billion—this amount is 2.2 times higher than the same period last year. Such numbers indicate robust foreign investor confidence in Vietnam’s evolving business landscape.

Industrial Warehousing: A Rising Demand

Supporting this influx of investments is the growing demand for industrial real estate. According to Cushman & Wakefield’s 2025 Global Industrial Momentum Index, which evaluates the industrial and logistics sectors across over 120 global markets, Vietnam has experienced a sharp increase in industrial warehouse rents—approximately 70% over the past six years. Last year alone, rents surged by about 7%, positioning Vietnam as one of the 15 fastest-growing markets globally.

Cushman & Wakefield attributes this trend to the global demand for industrial space amidst limited supply. Despite these rising costs, Vietnam’s industrial real estate, including ready-built factories (RBFs), remains competitively priced compared to regional counterparts.

Competitive Labor and Operational Costs

According to Trang Bui, the country head of Cushman & Wakefield Vietnam, the average rent for warehouses in the country is still under $5 per square meter per month, aligning Vietnam with similar markets like India, Thailand, and Nigeria. Furthermore, labor costs in Vietnam are currently less than 25% of the global average, making it one of the most cost-effective labor markets in the Asia-Pacific.

Additionally, the relatively low electricity costs for industrial production provide Vietnam with a significant edge, particularly in attracting foreign investors. Many firms, especially those with foreign investments, are increasingly opting for leasing ready-built factories to minimize upfront costs, save time, and accelerate operations.

The Growing Popularity of Ready-Built Factories

A recent survey by JLL indicates that ready-built factories account for over 30% of new transactions in southern industrial parks (IPs). This preference is attributed to several advantages RBFs offer, including flexible size options, synchronized infrastructure, compliance with fire safety standards, stable utility provision, and straightforward legal status. These factors enable tenants to commence operations swiftly, an attractive prospect for many businesses.

The rising emphasis on ‘green’ manufacturing and energy efficiency further cements the appeal of standardized RBFs in IPs. As international companies align their operations with sustainability goals, the demand for such factories is expected to grow.

Spotlight on Le Minh Xuan 3 Industrial Park

Located centrally near downtown Ho Chi Minh City, Le Minh Xuan 3 Industrial Park presents a substantial supply of industrial land and ready-built factory space. The park has set aside 13 hectares specifically for modern RBFs with flexible sizes starting from 680 square meters to cater to diverse investor needs.

Designed for optimal ventilation and featuring high ceilings, Le Minh Xuan 3’s RBFs are equipped with standard fire protection systems and comply with all legal requirements, allowing for immediate operations across various manufacturing sectors. By the end of the year, the park is expected to deliver around 20,000 square meters of RBF space to the market.

Development in Tay Ninh: Phuoc Dong Industrial Park

In Tay Ninh province, Phuoc Dong Industrial Park is leveraging its abundant land resources to develop a versatile RBF system. As reported by Saigon VRG, the developer constructed RBFs meeting modern standards with thoughtful designs.

Units at Phuoc Dong start from 3,000 square meters and include built-in fire safety systems, office spaces, and expansive production areas. They are particularly suited for sectors such as mechanical engineering, electronics, food processing, pharmaceuticals, and textiles. By the end of 2026, this industrial park anticipates providing about 35,000 square meters of RBF space to the market.

Ready-Built Factories: A Strategic Solution

Ready-built factories are increasingly recognized as an optimal solution for the rapid expansion needs of foreign investors in Vietnam. Their inherent advantages such as cost-efficiency, time savings, and operational flexibility position RBFs as a crucial catalyst in attracting and accelerating high-quality FDI inflows into the country in the coming years.

As the landscape of industrial investment continues to evolve, the demand for ready-built factories is expected to remain robust, marking a promising trend for Vietnam’s economic growth.