Vietnam’s industrial land market maintained stable performance during the first quarter of 2026 despite evolving global economic conditions. Supported by continued foreign direct investment (FDI), expanding industrial land supply, and steady rental growth, both Northern and Southern Vietnam continued to demonstrate healthy market fundamentals. These trends reinforce the long-term outlook for logistics industrial land Vietnam as manufacturers and logistics operators continue to expand across the country.
Strong Demand Continues to Support Market Activity
Industrial land demand remained resilient across Vietnam during Q1 2026. Northern Vietnam recorded 150 hectares of net absorption, equivalent to nearly one-third of the total absorption achieved during 2025, reflecting sustained leasing activity throughout the quarter. In Southern Vietnam, the market also maintained positive momentum with 87 hectares of newly absorbed industrial land despite additional supply entering the market.
The continued expansion of foreign investment remained an important driver of market demand. Registered FDI in Northern Vietnam increased by 42.9% year-on-year, with the manufacturing and processing sector accounting for the largest share of investment. Strong manufacturing activity continued to support industrial land absorption while reinforcing Vietnam’s attractiveness as a regional production destination.
Although Southern Vietnam experienced a slight decline in overall occupancy following the launch of new industrial land supply, market demand remained healthy across major industrial provinces. The introduction of additional industrial projects expanded leasing opportunities without weakening overall investor confidence, demonstrating the market’s ability to absorb new supply while maintaining stable fundamentals.
Supply Expansion and Rental Growth Reflect Market Confidence
Industrial land supply continued to expand across both regions during the first quarter. Total industrial land supply reached approximately 12,900 hectares in Northern Vietnam following the introduction of new leasing activities, while Southern Vietnam’s industrial land inventory increased to approximately 28,088 hectares after new projects entered the market. These additions continue to strengthen Vietnam’s industrial land pipeline while supporting future investment demand.
Rental rates also maintained an upward trend during Q1 2026. Northern Vietnam recorded an average gross asking rent of USD 170.2 per square meter per lease term, representing a 2.9% quarter-on-quarter increase and 5.6% year-on-year growth. Southern Vietnam reached an average asking rent of USD 210.1 per square meter per lease term, increasing 2.3% quarter-on-quarter and 2.6% year-on-year. Continued demand together with infrastructure improvements remained important factors supporting rental growth across both markets.
Occupancy conditions remained relatively stable despite ongoing supply expansion. Vacancy rates stood at 18.4% in Northern Vietnam and 16% in Southern Vietnam. While new supply created slight adjustments in occupancy, both markets continued to demonstrate healthy leasing conditions supported by sustained industrial demand.
Positive Outlook for Logistics Industrial Land Vietnam
Looking ahead, both regional markets are expected to benefit from continued industrial development. In Northern Vietnam, local authorities are accelerating land preparation to support future industrial expansion, while average asking rents are projected to continue increasing over the next five years. Although prime industrial locations are expected to record stronger rental appreciation, additional supply in emerging markets is anticipated to moderate the overall pace of rental growth.
Southern Vietnam is also expected to maintain healthy market activity as additional industrial land enters the market. A stronger development pipeline, together with proactive investment promotion by industrial park developers, is expected to support continued absorption throughout 2026 despite temporary supply constraints experienced during the first quarter.
Both reports note that geopolitical developments emerging toward the end of Q1 2026 had not yet produced observable impacts on Vietnam’s industrial land market during the reporting period. As investment promotion continues and new industrial land becomes available, the market is expected to maintain positive momentum while responding to future economic developments.
Overall, Vietnam’s industrial land market entered 2026 with resilient demand, expanding supply, and continued rental growth across both Northern and Southern regions. Supported by strong manufacturing investment, improving industrial land availability, and sustained leasing activity, logistics industrial land Vietnam continues to demonstrate solid market fundamentals. While additional supply and external economic factors will continue to shape future market performance, the Q1 2026 results indicate that Vietnam remains well positioned for continued industrial development in the years ahead.
Source: JLL