The warehouse rental market in Vietnam has shown steady growth and resilience, even amid global economic volatility. Data from recent industry reports reveal expansion in both the total supply and leasing demand for modern ready-built warehouse facilities across the country, marking Vietnam as an increasingly attractive logistics and storage hub in Southeast Asia.
Supply Growth in Northern and Southern Regions
In 2025, the total supply of ready-built warehouse space in Vietnam reached approximately 4.4 million square metres, reflecting continued expansion in both the northern and southern markets. This growth highlights the ongoing interest in modern logistics facilities, and new projects are being announced regularly to meet evolving business needs. Even smaller industrial areas are gradually upgrading to attract potential tenants.
In northern Vietnam, new warehouse developments contributed around 256,000 sq.m of additional space, bringing total inventory to over 2.04 million sq.m. This region is benefiting from trends toward multi-story and flexible warehouse designs, which help optimize land use and better serve tenants with diverse operational needs. Many smaller projects also experiment with modular layouts, giving businesses more options for expansion and customization.
Meanwhile, the southern warehouse rental market ended the year with a prime supply of about 2.4 million sq.m, up 11.2% year-on-year. Notably, new developments such as two-story warehouse projects are expanding available capacity, and further supply of 313,000 sq.m is planned for 2026 in provinces like Dong Nai and Binh Duong. These rising stock levels indicate strong developer confidence in long-term leasing demand, and rental rates remain competitive to attract new tenants. In addition, the southern market continues to adapt to new logistics trends, which may influence design and service offerings in the future.
Leasing Demand and Rental Performance
Leasing demand in Vietnam’s warehouse rental segment remained stable and resilient throughout 2025. Net absorption in the northern region reached 236,000 sq.m for the full year, a 13% increase year-on-year, driven primarily by manufacturing firms and supported by higher consumer spending at year-end. This steady growth reflects the region’s attractiveness for both new and expanding tenants, while smaller businesses are also increasingly entering the market. In the fourth quarter alone, northern net absorption hit 125,000 sq.m, surpassing the combined absorption of the first three quarters. Such strong quarterly performance indicates that tenant confidence remains high despite global economic fluctuations.
In the south, total absorption for the year reached 453,000 sq.m, surpassing 2024 levels by more than 70%, largely due to strong interest from third-party logistics (3PL) providers and businesses serving domestic markets during peak season. The surge also highlights the south’s role as a logistics and distribution hub, with companies benefiting from proximity to major ports and transport networks. Some smaller enterprises are gradually seeking shared or flexible spaces to meet short-term operational needs.
Rental rates have also shown gradual upward movement. In Q4 2025, average asking rents reached US$4.93 per sq.m per month in the north and US$5.04 per sq.m per month in the south, with both regions posting modest quarter-on-quarter and year-on-year increases. Despite these increases, net effective rents remain competitive, as flexible leasing incentives help support occupancy amid rising supply. Many warehouse operators also offer additional services such as on-site security or logistics support to attract and retain tenants.
Future Prospects and Market Drivers
Looking ahead, the outlook for warehouse rental Vietnam remains positive. In 2026, the northern region is projected to add approximately 683,000 sq.m of new warehouse space, particularly in industrial hubs. This expansion reflects ongoing investor confidence and the strategic importance of northern provinces for manufacturing and logistics activities. Continued demand from manufacturing companies and 3PL operators is expected to sustain stable leasing activity in these areas. Smaller tenants are also expected to benefit from the availability of new flexible spaces that can accommodate diverse operational needs.
Similarly, the southern warehouse rental market will benefit from planned supply increases and the introduction of hybrid facility models, which blend traditional warehouse use with flexible operational functions. These hybrid solutions help companies optimize space usage and reduce operational costs, especially for seasonal or fluctuating demands. Industry experts note that the strong adaptability shown in both the northern and southern regions over recent years reflects a maturing logistics ecosystem that can support Vietnam’s expanding role in global supply chains. Overall, this continued evolution signals long-term growth potential for both developers and tenants in the warehouse rental sector.
Overall, warehouse rental Vietnam continues to demonstrate stable growth supported by rising supply, solid leasing demand, and competitive rental rates. With substantial new space planned for 2026 and strong underlying drivers from manufacturing and logistics sectors, the market is well positioned to attract further investment and tenant activity in the years ahead.
Source: Vietnam News