• Real estate, labor, and electricity expenses positioned in the lowest tier
• The country retains its reputation as an attractive destination for global industrial and logistics investors
Vietnam has once again cemented its status as a highly competitive location for industrial and logistics investment, being recognized as one of the most affordable markets globally for key factors like rent, labor, and energy costs. This enduring appeal has made the nation a beacon for investors seeking cost-effective solutions in their operations.
According to the recently published 2025 Waypoint: Global Industrial Dynamics Report by Cushman & Wakefield, which scrutinizes over 120 global markets, Vietnam shines as an affordable option for these essential considerations. Despite a significant 70% spike in industrial rents from 2019 to 2025, the costs remain comparatively attractive when contrasted with regional counterparts. In cities like Hanoi and Ho Chi Minh City, average logistics real estate rents hover around USD 6/ft²/year (approximately USD 5.3/m²/month) and USD 5/ft²/year (around USD 4.9/m²/month), respectively, making them highly competitive locales for businesses.
At the heart of logistics and manufacturing operations lies the indispensable human capital. The availability of a substantial, cost-effective workforce significantly influences site selection and operational strategy. In Vietnam, labor costs are currently less than 25% of the global median wage, positioning the nation among the most affordable labor markets within the Asia-Pacific region. This workforce advantage allows businesses to optimize costs while maximizing productivity, further enhancing Vietnam’s attractiveness as an investment hub.
In parallel, the demand for electricity in modern logistics facilities is on the rise, propelled by advancements in automation systems, smart management platforms, cutting-edge material handling equipment, and an increased adoption of electric vehicles. With this growing demand, operating expenses have become increasingly crucial in shaping investment decisions. Here, Vietnam retains its competitive edge, boasting industrial electricity prices that are among the lowest globally—only trailing behind Indonesia and Nigeria. This combination of low energy costs and operational efficiency is a vital draw for companies looking to establish or expand their logistics foothold.
The interplay of these three pivotal cost factors—labor, energy, and real estate—firmly establishes Vietnam as a desirable destination on the global industrial landscape. To navigate the complexities of supply chain management, businesses must formulate a real estate strategy that aligns with their long-term operational objectives. Effective site selection can assure optimized production workflows and seamless distribution channels for a diverse range of goods and services.
Logistics Rental Levels, Q4 2024
Average Warehouse & Production Wage Position (Global Sample Median = 100)
Business Electricity Rates* (Global Sample Median = 100)
For an in-depth look at regional breakdowns, market conditions, vacancy projections, energy and labor cost comparisons, and insights into demand drivers like e-commerce and manufacturing, the full report is available at Waypoint 2025.
Note
The Global Industrial Dynamics Coordinates 2025 research report is based on surveys from Cushman & Wakefield’s logistics and industrial market experts spanning 127 markets worldwide. The survey was conducted between April 7 and April 18, 2025, shortly after a 90-day suspension of most elevated tariffs by the Trump administration while maintaining a 10% tariff on nearly all global imports.