### The Rise of Việt Nam’s Industrial Property Market
Việt Nam’s industrial property market is experiencing unprecedented growth as foreign investors pour in billions into factories, warehouses, and ready-built facilities. This surge is driven by significant shifts in global supply chains and an influx of capital, making the country an attractive destination for international manufacturing.
### A Surge in Foreign Direct Investment
In the first eight months of this year, foreign direct investment (FDI) into Việt Nam reached a staggering $26.1 billion, marking a year-on-year increase of over 27%. The manufacturing sector has been a major beneficiary, drawing nearly $12 billion, as companies seek ready-built factories to reduce costs and speed up production timelines. This trend highlights Việt Nam’s strategic importance in the global marketplace.
### Major Developments in Key Cities
Cities like HCM City are seeing substantial industrial developments. A notable example is the recent inauguration of a $4.7 million plant by Avery Dennison Worldon Vietnam, a collaboration between the US and China. Meanwhile, Đà Nẵng is also emerging as a significant player with agreements signed with various companies to develop projects in its free-trade zones. GuogGuoguang Electric, a Chinese electronics firm, is set to commence construction on a component plant in Liên Chiểu by the end of this year.
### Attractive Ready-Built Factories
The demand for ready-built factories has skyrocketed, with the total supply reaching 11 million square meters nationwide and an occupancy rate exceeding 85%. HCM City, Đồng Nai, Bắc Ninh, and Hải Phòng are leading the charge, offering competitive rental rates between $4-$7 per square meter. This option allows companies to scale operations quickly without the hefty financial burden of constructing new facilities from scratch.
“Speed and flexibility are crucial in today’s global supply chains,” explains Trang Bùi, the general director of Cushman & Wakefield Vietnam. Ready-built factories provide an immediate solution for firms looking to enhance production agility.
### Infrastructure Development Boosts Potential
The Vietnamese government is actively investing in major infrastructure projects, such as new bridges in Hà Nội and the proposed Gia Bình International Airport. These developments, alongside administrative reforms, are making it easier for foreign businesses to thrive. Michael Piro, CEO of Indochina Capital, highlights this shift, noting the efficiency improvements that make Việt Nam a priority for global manufacturers.
### Rising Rents and Enhanced Demand for Quality
As foreign capital flows into the industrial sector, industrial land rents are on the rise. Recent reports from CBRE indicate that average rates in Hà Nội, Bắc Ninh, and Hưng Yên have increased nearly 4% year-on-year. In the south, rentals can reach as high as $179 per square meter, reflecting the growing demand for high-quality facilities.
With investors increasingly seeking environmentally friendly and visually appealing projects, many newer developments, like those by Core5, have achieved near-full occupancy shortly after completion.
### Navigating the “China+1” Strategy
Việt Nam is cementing its position as a crucial alternative within the “China+1” business strategy, especially in light of new US tariff regulations. This strategy encourages companies to diversify their manufacturing bases, averting pitfalls associated with dependence on China. Tech and consumer giants such as Samsung, Intel, and Toyota have already established a substantial presence, contributing to job creation and the deepening of supporting industries.
### Việt Nam’s Growing Global Appeal
As highlighted by Matthew Powell, director at Savills Hanoi, Việt Nam’s strategic location, competitive costs, and modern facilities continue to attract foreign investors. With each passing year, the nation is crafting its narrative as a formidable player on the global industrial stage.