Over the past two decades, global supply chains have faced a myriad of significant disruptions—from financial crises and the COVID-19 pandemic to extreme weather events and protectionist trade policies, such as the unilateral tariffs imposed during President Trump’s administration. These hurdles have laid bare the vulnerabilities of complex logistics systems that traverse multiple countries. Each disruption has prompted businesses to rethink their strategies and seek more resilient supply chain solutions.
Trang Bui, Country Head of Cushman & Wakefield Vietnam, stated: “While the outcome of the latest tariff tension remains uncertain, Vietnam has received positive indications, with the most favorable scenario suggesting an actual tax rate of around 20%. This would enable Vietnamese goods to maintain a competitive edge over China, and even some other countries in the region. We believe that Vietnam continues to benefit significantly as global manufacturers seek to diversify and build more resilient supply chains.”
In this context, industrial real estate has emerged as a strategic pillar, crucial for sustaining global production and distribution. The “green transition” championed by industrial developers is rapidly becoming a key competitive advantage, with more global enterprises prioritizing infrastructure that aligns with Environmental, Social, and Governance (ESG) standards. This reflects a growing recognition that sustainability is not just a trend, but an imperative for business success.
A survey by Cushman & Wakefield reveals that “sustainability” now ranks among the top three priorities for businesses when selecting commercial real estate. Over 70% of respondents are willing to pay a rental premium—ranging from 7% to 10%—to occupy green-certified buildings, a commitment directly linked to their emissions reduction goals. Companies are not merely seeking efficient production spaces; they specifically seek infrastructure that aligns with their long-term sustainability commitments.
Vietnam is emerging as one of the limited countries offering a comprehensive set of competitive advantages in this industrious landscape. Though industrial rental prices in 2025 have surged by 70% compared to 2019, the average rate remains attractive relative to other regional markets, ranging from USD 4 to 7 per square meter per month. The total supply of industrial space has eclipsed 11 million square meters—an impressive 113% increase since 2019—with occupancy rates hovering between 85% and 90%. Labor costs in Vietnam currently represent only about 25% of the global median wage, positioning the country among the lowest-cost labor markets in the Asia-Pacific region. Additionally, Vietnam ranks third globally for the lowest industrial electricity prices, further enhancing its appeal.
APAC Logistics Rental Levels, Q4 2024
Source: Cushman & Wakefield Research
Beyond cost advantages, Vietnam is capitalizing on the “China+1” strategy and the trend of nearshoring—bringing production closer to end markets while minimizing reliance on a single geographic region. Foreign investors are enthusiastically seeking land banks, partnering with local developers, or leasing existing assets to expedite their operations.
Vietnam’s robust commitment to sustainable development was prominently showcased at COP26, where the Prime Minister pledged to achieve net-zero emissions by 2050. Following this proclamation, several critical policies, including Decree 06/2022/ND-CP and Decision 280/QD-TTg, were implemented to promote energy efficiency and conservation. The initial target to establish 150 green-certified buildings by 2030 has already been surpassed by 2025, achieving over 250 certifications—placing Vietnam 28th globally in terms of buildings certified by the U.S. Green Building Council (USGBC).
Remarkably, around 75% of LEED-certified buildings in Vietnam are situated in the industrial and office segments, representing 80% of the total certified floor area. While earlier LEED certifications emphasized green materials and construction techniques, contemporary developers are incorporating smart design, energy-saving technologies, and healthier work environments from the outset of strategic planning.
A standout illustration of this trend is the ready-built factory project KTG Industrial at VSIP Bac Ninh 2, designed with a clear ESG orientation and adhering to LEED Gold certification standards from the planning stage. This commitment reflects the dedication of industrial developers to long-term operational efficiency and minimal environmental impact.
KTG Industrial VSIP Bac Ninh 2, source: KTG Industrial
Mr. Dang Trong Duc, CEO at KTG Industrial explained: “We made a conscious effort to incorporate the project’s sustainability vision from the outset—not just to uphold quality standards but also to deliver tangible benefits to manufacturers. KTG Industrial factories are engineered to foster safer and healthier working environments, aligning with evolving carbon reduction standards on a global scale.”
The 14-hectare project is outfitted with LED lighting systems, water-saving fixtures, and skylights to maximize natural daylight, all while integrating green spaces to enhance air quality and comfort. The wide-span column design allows for flexible production line layouts. The initial power capacity of 100W/m² is scalable to 200W/m² to accommodate increasing energy demands, including smart management and advanced material handling systems.
In the past five years, Vietnam has attracted substantial foreign direct investment (FDI), with total registered capital nearing USD 164.15 billion, as reported by the Foreign Investment Agency under the Ministry of Planning and Investment. From 2021 to May 2025 alone, Vietnam approved 12,225 new FDI projects. The realized FDI in the first five months of 2025 marked the highest level in five years, indicative of a robust recovery and positive growth trajectory. Free trade agreements have further catalyzed this expansion.
As of 2025, Vietnam has become a strategic destination for some of the world’s foremost corporations in technology—such as Samsung, Intel, LG, Foxconn, Amkor Technology, NVIDIA, and Toyota—as well as in fast-moving consumer goods like Unilever and P&G, alongside contract manufacturers for Nike, Adidas, Puma, and Decathlon. The presence of these “Queen Bees” has not only generated tens of thousands of high-quality jobs but has also accelerated the rapid development of a supporting industrial ecosystem—from component manufacturing to logistics and technical services. Concurrently, these global corporations face mounting pressure from partners and investors to adhere to stringent ESG standards.
Numerous multinational companies now mandate their suppliers—including those in packaging, raw materials, and logistics—to obtain green certifications such as LEED, EDGE, or ISO 14001, ensuring that the entire supply chain aligns with commitments to net-zero emissions. This trend has spurred a dramatic increase in demand for green industrial facilities in Vietnam, especially among small and medium-sized enterprises (SMEs) and supporting industries. Multinational firms transitioning from China to Vietnam also prioritize infrastructure that matches the quality and compatibility to which they are accustomed.
Ms. Trang Bui remarked: “Today’s investors plan short-term investments based on an overarching asset strategy while also pursuing long-term goals. Assets with a clear carbon history and a sustainable development trajectory will always be more enticing than those lacking medium- or long-term direction.”
Vietnam’s industrial real estate market is on the cusp of a profound transformation—not merely in scale but in quality and sustainability orientation. Both domestic and international developers are closely attuned to manufacturers’ evolving requirements to erect flexible and efficient facilities. With consulting firms’ support and a strong commitment to ESG from developers, Vietnam is steadily solidifying its position as a premier destination for global industrial investors.