Industrial property remains promising segment this year

Industrial real estate has become a magnet for both domestic and foreign investors, which is reflected through a series of projects nationwide.

The sentiment is predicted to flourish in 2025 and beyond.

According to Pham Thi Mien, Deputy Head of Market Research and Investment Promotion Consulting from the Vietnam Association of Realtors (VARS), the supply of industrial land is expected to increase, driven by new industrial parks (IPs) and expansions of existing infrastructure projects.

Vietnam is expected to have about 15,200 hectares of industrial land and more than six million square meters of total warehouse supply by 2027. 

As supply increases, demand is also expected to rise significantly, mainly focusing on manufacturing, logistics, and high-tech sectors, with a growing emphasis on green transformation in industrial infrastructure development.

Major industrial investments approved nationwide

Deputy Prime Minister Bui Thanh Son has recently approved an investment plan for WHA Industrial Zone 2 at an investment of VND1.2 trillion (US$46.9 million) and covering 183 ha in the central province of Nghe An.

Deputy Prime Minister Tran Hong Ha endorsed the investment plan for the second phase of the 540-hectare Vinh Thanh Industrial Park, costing VND7.85 trillion ($307 million) in the Mekong Delta City of Cantho.

Meanwhile, large-scale IPs are also being approved, including the second phase of the 197-hectare Nomura IP in the northern city of Haiphong and Phu Xuan IP in the central highlands province of Dak Lak.

Vinh Loc-Ben Luc Industrial Investment JSC has proposed a 500-hectare industrial park project in the southern province of Dong Nai. Well-known companies such as Japan's Sojitz and Sovico, and Vietnam's Saigon Tel are also considering investments in the region.

Statistics from the Ministry of Finance (formerly the Ministry of Planning and Investment) show that foreign investment in industrial real estate has reached nearly $31.4 billion in the first 11 months of 2024. Vietnam currently has 443 IPs covering 138,900 hectares. By 2025, the number of IPs is expected to increase by 384% to more than 1,700. 

Vietnam attracts high-quality FDI, boosting industrial real estate

Tran Quang Trung, Business Development Director at OneHousing, said Vietnam attracts significant and high-quality foreign direct investment (FDI) that motivates large corporations to invest in the country and leads to the growth of supporting businesses.

Trung mentioned that many of his friends developing small and medium-sized IPs in the northern provinces of Hai Duong, Hung Yen, and Bac Giang said that these spaces are quickly taken by foreign partners thanks to favorable rental rates. "This is a positive sign, as the growth of industrial real estate creates jobs and increases income."

Besides residential and commercial real estate, Trung believes the industrial sector is particularly promising, especially as the government aims to increase per capita income by 2025 and 2030.

In the latest report issued by CBRE, Senior Director of CBRE Vietnam Hanoi Branch Nguyen Hoai An note that this year is expected to bring many challenges amid geopolitical fluctuations. In addition, the government is in the process of streamlining its bureaucracy and implementing new laws.

Domestic economic growth momentum, together with FDI and increased infrastructure investment, is expected to provide a solid foundation for future development.

An predicted that industrial land rental will increase by 4%-8% annually in the North and 3%-7% each year in the South over the next three years.