Vietnam’s industrial parks (IPs) are poised for remarkable expansion in 2025, fueled by rising foreign direct investment (FDI), enhanced infrastructure, and favorable government policies. With its strategic location, young workforce, and improving business environment, Vietnam continues to position itself as a leading destination for manufacturing and industrial investment in Southeast Asia.
Favorable Investment Climate Accelerates Growth
Vietnam’s ongoing economic reforms and investor-friendly policies have contributed significantly to the positive outlook for industrial real estate. This country has demonstrated consistent improvements in ease of doing business, transparency, and logistics infrastructure—all of which are vital for the growth of industrial zones. (1)
In particular, the Vietnamese government has approved numerous provincial master plans for the 2021–2030 period, aiming to streamline procedures, clear land for development, and expand industrial zones. These regulatory updates are expected to enhance investor confidence and attract long-term capital.
Strong FDI Inflows Fuel Demand for Industrial Land
Vietnam’s strong performance as a manufacturing hub is reflected in the surge of FDI, particularly in high-tech and electronics industries. Investors from the US, Japan, South Korea, and Europe continue to relocate or expand production in Vietnam, diversifying supply chains away from China. This shift has intensified the demand for industrial land, warehouses, and ready-built factories (RBFs).
In 2024 alone, several new industrial parks were launched or expanded, with more than 400 hectares of land absorbed in northern provinces such as Bac Ninh and Hai Phong.(2)
Regional Hubs and Emerging Locations Show Strong Potential
While traditional hubs like Binh Duong, Dong Nai, and Bac Ninh remain highly competitive, secondary provinces are now emerging as attractive alternatives due to lower land costs and improved infrastructure. These include:
- Ba Ria – Vung Tau
- Tay Ninh
- Binh Phuoc
- Quang Ninh
- Thanh Hoa
Investors are increasingly eyeing these areas for expansion due to new expressways, upgraded ports, and airport connectivity. The development of the Long Thanh International Airport and North-South Expressway, for example, is set to drastically improve logistics efficiency across regions.
Modernization and Sustainability Trends Drive the Sector
Vietnam is not only expanding its industrial footprint but also modernizing it. Developers are investing in smart and green industrial parks that meet international ESG (Environmental, Social, and Governance) standards. New projects are integrating solar power systems, water recycling technologies, and digital infrastructure to support sustainable development.
Rising Demand for Ready-Built Factories and Warehousing in Vietnam
Vietnam’s ready-built factory (RBF) and warehouse market has witnessed significant momentum, fueled by growing interest from small and medium-sized enterprises (SMEs) and foreign investors aiming for rapid operational deployment. Occupancy rates for RBFs climbed to 88% in the northern region and 89% in the southern region by the end of 2024. This strong demand has prompted major developers such as Frasers Property, BW Industrial, and Logos to announce new expansion plans for 2025, aiming to capitalize on the rising need for modern, move-in-ready industrial spaces.(3)
Outlook for 2025 and Beyond
Looking ahead, Vietnam’s industrial parks are projected to maintain strong momentum through 2025 and into the next decade. The total area of industrial land nationwide surpassed 38,200 hectares across 203 active parks in 2024, with more parks in the pipeline.
The government’s focus on infrastructure development, improved legal frameworks, and continued FDI attraction strategies will be key enablers for growth.
Moreover, strategic moves like NVIDIA’s plan to establish an R&D center in Vietnam signal the increasing interest of global tech giants in Vietnam’s industrial real estate market (2).
In conclusions, Vietnam’s industrial parks are set for significant growth in 2025, driven by solid fundamentals, forward-looking policy support, and global supply chain trends. With a clear national vision and strong investor appetite, Vietnam is becoming one of the most promising industrial real estate markets in Asia.
Source:
(1). Vietnam-Briefing
(2). VietnamPlus
(3). VIR