The Resurgence of Vietnam’s Industrial Real Estate Market

HO CHI MINH CITY, Vietnam – Dec. 22, 2025 — Vietnam’s industrial real estate sector is making a strong comeback, primarily driven by recovering manufacturing activities, steady inflows of foreign direct investment (FDI), and expedited infrastructure development. As markets stabilize globally, recent data reveals a promising outlook for the industry.

Robust FDI Inflows

In the first eleven months of 2025, Vietnam saw registered FDI soar to nearly USD 33.7 billion, with disbursed capital hitting approximately USD 23.6 billion—the highest figures recorded in five years. This data underscores sustained investor confidence, even amid global trade fluctuations and geopolitical uncertainties. Investors are increasingly looking to Vietnam as a safe haven for their capital, highlighting the country’s resilience in the face of external pressures.

Growing Manufacturing Sentiment

The manufacturing landscape in Vietnam is showing signs of stabilization. The Purchasing Managers’ Index has improved significantly, while EuroCham’s Business Confidence Index reached a three-year high in the third quarter. Industrial developers report that tenants are reigniting lease negotiations and land handovers previously stalled due to trade tariff concerns. This renewed optimism among manufacturers bodes well for the industrial real estate market.

Steady Demand for Industrial Spaces

The demand for ready-built factories (RBF) and ready-built warehouses (RBW) remains robust. Occupancy rates are high, and rental prices are on the rise, particularly within vital industrial corridors. International property consultants are noting a trend where new supply is anticipated in both northern and southern regions, with leasing demand focusing increasingly on higher value-added sectors such as electronics, technology, and industrial components.

Advancements in Infrastructure Development

KCN Vietnam has recently launched several projects that have achieved LEED Gold certification, emphasizing a growing trend toward sustainable industrial development. Notable among these is the second phase of a 23.2-hectare ready-built project in the DEEP C Industrial Zone in Hai Phong, along with a 14.5-hectare initiative in Nhon Trach 6D Industrial Zone, Dong Nai. These developments are setting new standards for green practices in the industry.

Innovative Product Offerings

To cater to small and medium-sized enterprises, new product formats, such as two-storey factory buildings, have been introduced. Projects like KCN An Phat in Hai Phong and a new subdivision of KCN Ho Nai in Dong Nai are under construction and are expected to add approximately 100,000 square meters of factory and warehouse space by mid–second quarter of 2026. This diversification in offerings aims to attract a broader spectrum of businesses.

Investors’ Preferences

According to Mr. Hardy Diec, Chief Operating Officer at KCN Vietnam, investors are increasingly prioritizing facilities that are not only operationally ready but also meet technical and sustainability standards. This shift reflects a broader trend towards more eco-friendly industrial practices, aligning with global sustainability goals.

Future Prospects Amid Global Shifts

Analysts predict that Vietnam’s industrial property sector will continue benefiting from significant infrastructure investments, administrative restructuring, and ongoing shifts in global supply chains. This strategic positioning reinforces Vietnam’s emerging role as a regional production and logistics hub, attracting further investment into the sector.

About KCN Vietnam

Established in 2021, KCN Vietnam Group has quickly risen to prominence as a professional industrial property developer. With a diverse project portfolio that includes ten high-quality, ready-built warehouse and factory projects across key industrial zones in Southern and Northern Vietnam, the group has a land bank exceeding 300 hectares. KCN Vietnam is committed to developing and managing industrial and logistics infrastructure that meets the growing demand for high-quality real estate.

Recognition and Future Aspirations

KCN Vietnam Group aims to expand its investment portfolio further and has set its vision on becoming the leading industrial real estate platform in Vietnam. Its long-term goal focuses on becoming the prime choice for businesses, playing a significant role in Vietnam’s rise as a sustainable industrial hub on the global stage. The group has also received accolades, including being recognized as the Best Industrial Real Estate Developer by Nhip Cau Dau Tu Magazine for three consecutive years (2023-2025), and is listed among the Top 50 Sustainable Development Enterprises for 2024-2025.

With these developments, Vietnam’s industrial real estate market is poised for a dynamic and promising future, driven by recovery and innovation.