Industrial Real Estate M&A in Vietnam: Riding the Wave of Expansion

A Booming Market

Vietnam’s industrial real estate landscape is witnessing a significant transformation. According to the Vietnam Real Estate Association, the supply of industrial land is projected to expand by over 108,000 hectares through 2030. This increase would elevate the total industrial land supply to approximately 168,355 hectares, corresponding to a compound annual growth rate of 23-25%. Such robust growth reflects the country’s evolving role in the global supply chain.

Strong Demand Dynamics

On the demand side, industrial property occupancy rates have remained resilient. During the years 2022 to 2024, the average absorption hovered around 80%. Even in the first nine months of 2025, while occupancy dipped slightly to 72%, net absorption still totaled 7,180 hectares. This indicates that demand for industrial space is robust, driven largely by key sectors such as manufacturing and logistics.

Global Supply Chains and Local Opportunities

Vietnam is entering a new growth cycle for industrial real estate, fueled by global shifts in supply chains and targeted infrastructure development. The government is heavily investing in essential infrastructure, paving the way for enhanced manufacturing capabilities and attracting foreign investors. Despite challenges posed by geopolitical factors and U.S. tariff adjustments, Vietnam’s appeal remains strong. In fact, registered foreign direct investment (FDI) reached an impressive $28.54 billion in the first nine months of 2025, marking the highest levels since 2020.

Sector-Specific Investments

The dispensed FDI has largely focused on specific sectors. Manufacturing comprises roughly 82.8% of the disbursements, amounting to about $15.56 billion, while the real estate sector accounted for approximately 7.3%, translating to around $1.37 billion. This signals a trend toward investment in production capacities, which directly correlates with a growing need for industrial space.

Diversifying Investment Models

Vietnam’s industrial real estate market is diversifying in terms of product offerings and investment strategies. The traditional lease-land-and-self-build model is giving way to innovative frameworks. Since 2018, the market has welcomed various solutions like ready-built factories, hybrid warehouses, and cold storage facilities, catering to specialized needs from manufacturers and logistics operators. This diversification allows for more tailored solutions, improving flexibility for businesses.

Surge in M&A Activities

Mergers and acquisitions (M&A) in the industrial sector have accelerated markedly. Grant Thornton’s analysis shows that in the first nine months of 2025 alone, the market recorded 24 real estate transactions with a disclosed value of approximately $1.8 billion. Industrial real estate transactions constituted a notable 55% of this figure, demonstrating heightened activity in this sector. This is a stark contrast to 2024, which saw only seven such deals valued at around $90 million.

Innovative Transactions

Investment strategies are becoming increasingly varied, encompassing equity fundraising, project-company share purchases, and asset transfers. One prominent example is the acquisition made by Mapletree Logistics Trust of two logistics assets in Vietnam-Singapore IP II and Hung Yen. This $53 million transaction showcases an extendable approach to growth, expanding a portfolio of income-generating assets.

Similarly, in early 2025, Nha Rong Investment and Nova Rivergate completed a significant acquisition of 51% in Amata Service City Long Thanh for approximately $46.5 million, illustrating ongoing confidence in Vietnam’s industrial landscape.

New Market Entry Strategies

Companies are also utilizing the acquire-and-expand model to enter the market quickly and efficiently. For instance, Sembcorp Development secured a warehouse at Dinh Vu IP in Haiphong and planned to develop five additional warehouses at the same location. This strategy allows for speedy market entry while enhancing operational efficiency.

Domestic Players Raising Capital

In addition to foreign investments, local firms are aggressively raising capital to fund new projects. Notable efforts include Kinh Bac City’s near $160 million private raising and Becamex IDC’s plans to auction 300 million new shares aiming for approximately $820 million. Such initiatives reflect a growing confidence among domestic players to capitalize on the burgeoning industrial real estate market.

Continued Investment Outlook

The outlook for M&A activity in Vietnam’s industrial real estate sector remains promising. Several structural drivers are fueling this growth. High levels of manufacturing FDI continue, while the global supply-chain reconfiguration shows no signs of slowing. These dynamics are pivotal in driving demand for industrial land, ready-built factories, and supporting logistics facilities.

Furthermore, the Vietnamese government’s commitment to enhancing national infrastructure—such as expressways and logistics networks—provides a solid foundation for the development of new industrial parks. Investors are increasingly favoring brownfield and acquire-and-expand strategies, which not only shorten delivery timelines but also enhance operational capabilities.

Sustainable Investments on the Rise

Finally, the trend towards environmental, social, and governance (ESG) compliance in investment practices can’t be overlooked. Institutional investors are directing their capital towards ESG-friendly industrial assets, including green ready-built facilities and cold-chain solutions, reflecting a broader global movement towards sustainability in real estate development.

In summary, the industrial real estate sector in Vietnam is not only witnessing rapid expansion but is also adapting swiftly to meet emerging demands and opportunities. With strong investments supporting infrastructure and innovative strategies prevailing, the future appears bright for this dynamic market.