The real estate market in Vietnam has been quietly finding its rhythm again in 2025. After a period of adjustments and uncertainties, signs of recovery are starting to emerge, carried by a mix of optimism and cautious confidence. Some segments are still regaining their footing, while others are showing fresh energy and momentum. Among these, industrial real estate continues to stand out – not just as a bright spot for growth, but as a reflection of Vietnam’s enduring appeal in the regional and global economic landscape.
Industrial Real Estate – The Bright Spot
According to the Vietnam Association of Realtors (VARS), industrial real estate remained a highlight in Q2/2025, with high occupancy rates across key industrial hubs in the north and south. These hubs include both long-established zones and newly developed industrial parks, each benefiting from improved connectivity and infrastructure upgrades. This growth is underpinned by:
- Vietnam’s strategic location in regional logistics routes, enabling efficient access to major Asian markets within just a few hours of flight or a few days of shipping.
- Competitive production costs and abundant workforce, which continue to attract global manufacturers seeking to diversify their supply chains.
- An extensive network of new-generation free trade agreements (FTAs) that help reduce tariffs and improve market access for goods produced in Vietnam.
- Increasingly complete industrial infrastructure, including upgraded ports, highways, and energy supply systems, which together reduce operational bottlenecks for investors.
FDI commitments into manufacturing and logistics facilities have strengthened demand for ready-built factories, warehouses, and industrial land. Many developers are now expanding their land banks in anticipation of rising demand, while tenants are actively securing space ahead of time to lock in favorable terms. This positive momentum is expected to continue in the second half of 2025, particularly in provinces with large industrial parks near major transportation nodes. For these areas, the combination of proximity to ports, skilled labor availability, and policy support forms a compelling case for sustained growth.
Capital Shifts and Outlook for H2 2025
Capital flow is shifting towards suburban and outlying areas where land is more affordable and infrastructure is improving. These locations not only provide cost advantages but also offer larger land parcels, allowing for more flexible development plans. This trend benefits both industrial parks and residential projects outside city centers, creating new growth nodes that complement existing urban cores.
With regulatory bottlenecks being gradually removed, credit conditions easing, and infrastructure investment progressing, H2/2025 is forecast to see more robust recovery. In this landscape, industrial real estate is expected to remain the anchor of growth, providing a stable foundation for the market as a whole. Other segments, while not as fast-moving, are likely to follow at a moderate pace as economic fundamentals continue to strengthen. The combined effect is a more balanced and diversified real estate market, which bodes well for Vietnam’s long-term development trajectory.
Looking ahead, Vietnam’s real estate market appears poised for a new cycle of growth, with industrial real estate continuing to serve as a powerful engine. As global manufacturers and investors seek reliable, cost-efficient, and strategically located destinations, Vietnam stands ready to capture these opportunities. With ongoing infrastructure upgrades, supportive government policies, and an increasingly skilled workforce, the country is not just recovering — it is preparing to rise to a new position in the regional and global real estate landscape.
Source: Cafe F