The Rise of Ready-Built Factories in Vietnam: A Strategic Shift in Industrial Real Estate

Understanding the Investment Relocation Trend

Investment relocation is emerging as a compelling trend in Vietnam’s industrial real estate, particularly in the ready-built factory sector. Companies are seeking stable environments to avoid risks associated with tariffs and geopolitical uncertainties. The “China +1” strategy—a significant shift in production to countries like Vietnam—is a key driver behind this movement. This strategy encourages businesses to diversify their manufacturing locations, with many international firms, especially in the export, logistics, and food and beverage sectors, increasingly looking to Vietnam.

Capitalizing on Shifts in Production

As businesses pivot away from China, they are significantly boosting investments in ready-built factories. Investment funds are capitalizing on this trend, expanding their portfolios to seize new opportunities within this burgeoning market. RSL Group has observed that many small- and medium-sized enterprises (SMEs) are relocating production from Chinese-speaking regions, aiming to reduce time and investment costs. This shift has led these companies to opt for multi-functional, ready-built factory models, tailored for immediate use.

Advantages of Ready-Built Factories

Ready-built factories come pre-designed and constructed, ready for lease or purchase without the burden of initial construction investments. Equipped with essential amenities—such as electricity, water supply, and security—these factories provide significant time and cost savings, making them an attractive option for investors.

In a rapidly changing global supply chain landscape, ready-built factories demonstrate notable advantages. By opting to lease these facilities, businesses can save several months, even years compared to traditional methods that involve purchasing land, securing permits, and managing construction. This model allows for a remarkable reduction in implementation time, enhancing businesses’ ability to respond to fast-paced market demands.

Flexibility and Scalability

One of the standout features of ready-built factories is the flexibility they offer. Businesses can choose from various factory sizes and project durations. They also benefit from professional management that streamlines legal procedures, adding to the overall appeal. Located within industrial parks with convenient transportation routes, these factories facilitate efficient goods transport, crucial for maintaining dynamic and adaptable supply chains.

Such facilities are particularly beneficial for industries requiring rapid market entry, including electronics, automotive parts, and medical equipment. As a result, occupancy rates in this segment remain high, with rising rental prices reflecting increased demand despite more supply being available.

Current Market Landscape

As of the second quarter of 2025, Vietnam boasts approximately 11 million square meters of ready-built factory space, with an impressive occupancy rate of over 85%. Key industrial regions include Ho Chi Minh City, Dong Nai, Bac Ninh, and Haiphong, all of which are experiencing substantial demand growth. In the southern region, around 260,000 square meters of warehouse and factory space were absorbed in early 2025, marking an increase from the previous year.

Conversely, the northern region is also witnessing a surge in ready-built factory supply. Industrial hubs like Haiphong and Bac Ninh are expanding rapidly, with significant contributions from major players such as Capital Land and other prominent developers in the area.

Tailored Solutions for Diverse Needs

According to Dao The Anh, chairman of RSL Group, businesses selecting ready-built factories have specific criteria guiding their decisions. For instance, the electronics sector often prefers multi-story factories to maximize space and operational efficiency, particularly in areas with limited land availability. Conversely, industries focusing on mechanics and consumer goods typically lean toward single-story factories designed for higher load capacities.

Regionally, the suitable sectors for leasing ready-built factories also vary. Production projects in electronics and automotive sectors are concentrated in areas like Bac Ninh, while sectors such as mechanical and can manufacturing are more prominent in regions like Thai Binh.

Emerging Opportunities

With traditional industrial hubs facing land scarcity, RSL Group predicts the newly merged Ninh Binh province—encompassing Ha Nam, Nam Dinh, and Ninh Binh—will become an attractive investment destination. This is evidenced by the influx of electronics and components manufacturers into industrial parks like Kim Bang 1, which has attracted major players, including vendors from SpaceX.

RSL Group’s Role in Shaping the Market

RSL Group is positioning itself as a leader in Vietnam’s industrial real estate landscape by focusing on comprehensive development. Starting as an investment consulting firm, RSL is now building an ecosystem that includes ready-built factories, logistics warehouses, and tailored solutions for businesses.

The company helps investors access suitable projects through its extensive network and relationships with industrial park developers. While ready-built factories offer quick solutions, RSL’s built-to-suit options cater to businesses requiring customized spaces, albeit with a longer lead time.

Competitive Advantage through Customer-Centric Solutions

RSL’s competitive edge lies in its ability to transform customer-designed factory concepts into reality on a tight timeline, typically within six to eight months. The firm manages every aspect of the process, including investment licensing and construction, ensuring an efficient experience for clients. They primarily serve businesses making investments under $100 million, with many clients stemming from Taiwan, China, Finland, and the U.S. focused on high-tech components, such as electronic chips.

With a dedicated and knowledgeable team, RSL has successfully facilitated nearly 300 projects for both domestic and international businesses, significantly contributing to Vietnam’s transformation in industrial real estate.

Vision for the Future

RSL Group continues to innovate within the industrial real estate sector, offering tailored solutions designed to meet client needs. Their commitment to professionalism and excellence positions them as a trusted partner for investors aiming to navigate Vietnam’s dynamic market landscape.

By focusing on unique solutions and delivering comprehensive services, RSL aims to leave a marked impact on the industry while ensuring absolute satisfaction for its clients.