INDUSTRIAL PARK (IP) LAND
SUPPLY: OVER 100 HA OF NEW INDUSTRIAL LAND SUPPLY
In the third quarter of 2025, the landscape of the Southern Key Economic Region underwent a notable transformation following the Government’s administrative boundary consolidation. The total accumulated industrial land supply surged to approximately 34,400 ha of leasable area, marking a significant 17% increase compared to the pre-merger status. The quarter was particularly vibrant with the groundbreaking of the Thu Thua Industrial Park in Tay Ninh, contributing over 100 ha of new leasable land. Ho Chi Minh City emerged as the leading player in this expansion, responsible for 47% of the total industrial land supply, thereby solidifying its reputation as the dominant industrial hub in the region.
DEMAND: OCCUPANCY RATE DECLINED AMID A SURGE IN SUPPLY
In contrast to the burgeoning supply, the average occupancy rate for industrial parks in Q3 2025 experienced a dip, settling at 75%. This decrease was primarily driven by the influx of newly available spaces and lower occupancy figures in provinces like Binh Phuoc. Despite this, tenant demand remains diverse and robust, encompassing fast-growing sectors such as electronic components and printed circuit board manufacturing, alongside traditional industries like plastics and steel. This rich variety signals a strong long-term absorption potential for the market, indicating resilience amidst shifting dynamics.
RENT: A SLIGHT INCREASE
Interestingly, despite the increase in available supply, average asking rents for industrial land across the Southern Key Economic Region edged upward to 180 USD/sqm per lease term during Q3 2025. This reflects a modest growth of 0.076% quarter-on-quarter and 0.55% year-on-year, suggesting that the demand for industrial space persists even in the face of new supply.
MARKET OUTLOOK
Looking ahead, the Southern Key Economic Region is poised to welcome an estimated 7,300 ha of new industrial land over the next three years. The provincial mergers not only boost the overall land bank but also redefine the region into a mega-hub for industrial and service-oriented activities. Improved administrative management systems are anticipated to enhance resource allocation and increase production efficiency, facilitating a seamless value chain from R&D and finance in Ho Chi Minh City to specialized manufacturing clusters in Binh Duong and Dong Nai, along with logistics and port services in Ba Ria–Vung Tau and Long An. With an expanded market scale and a wealth of obtainable supply, the region is well-positioned to attract fresh waves of foreign direct investment (FDI), especially from high-tech sectors seeking strategic footholds in Southeast Asia. Furthermore, significant infrastructure projects, including Ring Road 3, Ring Road 4, Long Thanh International Airport, and Cai Mep–Thi Vai Port, are set to enhance inter-regional connectivity and optimize supply chain efficiencies, cementing the region’s competitiveness for future investors.
READY-BUILT FACTORY (RBF)
SUPPLY: OVER 20,000 SQM OF NEW RBF SPACE ENTERED THE MARKET
Following the administrative boundary consolidation, the supply of ready-built factories (RBF) in the Southern Key Economic Region reached approximately 6.5 million sqm of leasable space, an increase of about 2% from previous levels. Notably, Q3 2025 saw the introduction of 20,000 sqm of new RBF space in the Binh Chieu area of Ho Chi Minh City, reinforcing its position as the leading market for RBFs with a 47% share of the total supply.
DEMAND: OCCUPANCY RATE REMAINS HIGH
Despite the increase in RBF stock, the occupancy rate for these factories in Q3 2025 held firm at an impressive 92%, demonstrating strong demand and efficient absorption of the new supply. Key localities such as Dong Nai (93%), Tay Ninh (91%), and Ho Chi Minh City (90%) experienced high occupancy, largely driven by industries seeking high-tech and value-added infrastructure, such as those producing electronic components and printed circuit boards that require speedy operational timelines.
RENT: STABLE READY-BUILT FACTORY RENTS, REFLECTING A HEALTHY MARKET
The average asking rent for RBF space remained stable at 4.8 USD/sqm/month in Q3 2025, unchanged from the previous quarter. Despite some economic turbulence and tariff-related uncertainties, there was a modest year-on-year rental increase of approximately 1%, demonstrating enduring investor confidence and market resilience.
MARKET OUTLOOK
Over the next three years, the Southern Key Economic Region is predicted to add more than 1 million sqm of new RBF supply; nevertheless, this may still fall short of meeting the anticipated wave of investment demand. Current trends indicate a strategic shift among developers from ready-built warehouses (RBWs) to RBFs, reflecting the rising appeal of RBFs particularly among SMEs and manufacturers aiming for rapid deployment. The provincial merger further enhances inter-regional connectivity, allowing RBF tenants to tap into local labor pools while establishing logistics pathways connecting Ho Chi Minh City with Dong Nai and Ba Ria–Vung Tau. Additionally, the merger aids in streamlining and modernizing administrative procedures, optimizing the core advantages of RBFs—including reduced transit times and lower upfront costs—positioning them as a prime solution for foreign investors eager to quickly establish production bases in a well-planned market.
READY-BUILT WAREHOUSES (RBW) & MIXED-USE FACTORIES (RBH)
SUPPLY: NO NEW PROJECTS ENTERING THE MARKET
In Q3 2025, the ready-built warehouse (RBW) segment did not witness any new project launches, with total accumulated stock climbing to approximately 6.6 million sqm of leasable area primarily as a result of the consolidation of newly integrated provinces. Ho Chi Minh City continues to hold the largest share of this total stock at 45%, while Dong Nai maintains its position as a key logistics and warehousing gateway, representing 32% of the market.
DEMAND: HIGH OCCUPANCY RATE, GROWING DEMAND FOR PEAK SEASON
The RBW market showcased an impressive occupancy rate of around 89% during this period. There’s notable momentum in demand attributed to sectors such as consumer goods, pharmaceuticals, and construction materials, all closely tied to consumer behavior during year-end peaks. Specifically, Ho Chi Minh City reported a striking occupancy rate of about 96%, emphasizing strong local demand, while the surrounding regions like Dong Nai and Tay Ninh saw occupancy rates of 87% and 76%, respectively, as businesses sought expansion options.
RENT: INCREASING IN LINE WITH MARKET DEMAND
In Q3 2025, the average rental rate for ready-built warehouses rose to 4.6 USD/sqm/month, reflecting a 4% increase both compared to the previous quarter and the same time last year. This uptick indicates a responsive market adapting to increasing demands for industrial storage solutions.
MARKET OUTLOOK
The RBW market is forecasted to continue its growth trajectory, with more than 1.2 million sqm of new supply projected for 2025-2027. This influx is expected to cater to the rising demand from fast-moving consumer goods, pharmaceuticals, and particularly, the booming e-commerce sector which is refining its last-mile delivery logistics strategy. The optimization of distribution networks is enhanced through provincial merger policies and accelerated transport infrastructure projects, enabling logistics investors to create efficient hub-and-spoke distribution models. As strategic infrastructure projects, like Ring Road 3, Ring Road 4, and Long Thanh Airport, come to fruition, peripheral areas are set to become hotbeds for logistics operations, creating ideal conditions for leading regional and global supply chain operators.