Over the past two decades, global supply chains have faced a series of major disruptions—from financial crises and the COVID-19 pandemic to extreme weather events and protectionist trade policies, such as the unilateral tariffs imposed during President Trump’s administration. These shocks have exposed the vulnerabilities of complex logistics systems that span multiple countries.
Trang Bui, Country Head of Cushman & Wakefield Vietnam, said: “While the outcome of the latest tariff tension remains uncertain, Vietnam has received positive indications, with the most favorable scenario suggesting an actual tax rate of around 20%. This would enable Vietnamese goods to maintain a competitive edge over China, and even some other countries in the region. We believe that Vietnam continues to benefit significantly as global manufacturers seek to diversify and build more resilient supply chains.”
In this context, industrial real estate has emerged as a strategic pillar, playing a crucial role in maintaining global production and distribution. Notably, the “green transition” led by industrial developers is becoming a key competitive advantage, as more global enterprises prioritize infrastructure that aligns with ESG standards.
A survey by Cushman & Wakefield reveals that “sustainability” now ranks among the top three priorities for businesses when selecting commercial real estate. Over 70% of respondents are willing to pay a rental premium—ranging from 7% to 10%—to occupy green-certified buildings, as part of their emissions reduction goals. Companies are no longer just seeking efficient production spaces; they are also looking for infrastructure that supports their long-term sustainability commitments.
Vietnam is emerging as one of the few countries that offer a comprehensive set of competitive advantages in this regard. Although industrial rental prices in 2025 have increased by 70% compared to 2019, the average rate remains attractive relative to other regional markets, ranging from USD 4 to 7 per square meter per month. The total supply of industrial space has surpassed 11 million square meters—an increase of approximately 113% since 2019—with occupancy rates hovering between 85% and 90%. Labor costs in Vietnam are currently only about 25% of the global median wage, placing the country among the lowest-cost labor markets in the Asia-Pacific region. Additionally, Vietnam ranks third globally for the lowest industrial electricity prices.
APAC Logistics Rental Levels, Q4 2024
Source: Cushman & Wakefield Research
Beyond cost advantages, Vietnam is also benefiting from the “China+1” strategy and the trend of nearshoring—bringing production closer to end markets while reducing reliance on a single geographic region. Foreign investors are actively seeking land banks, partnering with local developers, or leasing existing assets to accelerate their operations.
Vietnam’s strong commitment to sustainable development was clearly demonstrated at COP26, where the Prime Minister pledged to achieve net-zero emissions by 2050. Since then, several key policies have been enacted, including Decree 06/2022/ND-CP and Decision 280/QD-TTg, aimed at promoting energy efficiency and conservation. The initial goal was to reach 150 green-certified buildings by 2030, but by 2025, this number had already surpassed 250—placing Vietnam 28th globally in terms of buildings certified by the U.S. Green Building Council (USGBC).
Notably, around 75% of LEED-certified buildings in Vietnam fall within the industrial and office segments, accounting for 80% of total certified floor area. While LEED certification previously focused on green materials and construction techniques, today’s developers are integrating smart design, energy-saving technologies, and healthier work environments from the earliest stages of strategic planning.
A recent standout example is the ready-built factory project KTG Industrial at VSIP Bac Ninh 2, which was designed and developed with a clear ESG orientation and in alignment with LEED Gold certification standards from the strategic planning stage. This reflects the strong commitment of industrial developers to long-term operational efficiency and environmental impact.
KTG Industrial VSIP Bac Ninh 2, source: KTG Industrial
Mr. Dang Trong Duc, CEO at KTG Industrial said: “We made a conscious effort to incorporate the project’s sustainability vision from the outset - not only to uphold quality standards but also to deliver tangible benefits to manufacturers. KTG Industrial factories are designed to support safer and healthier working environments and align with evolving carbon reduction standards globally.
The 14-hectare project is equipped with LED lighting systems, water-saving fixtures, skylights to maximize natural daylight, and rooftops ready for solar panel installation. Green spaces are thoughtfully integrated to improve air quality and comfort. The wide-span column design allows for flexible production line layouts. The initial power capacity of 100W/m² can be upgraded to 200W/m² to meet growing energy demands, including automation systems, smart management, and advanced material handling equipment.
Over the past five years, Vietnam has attracted a substantial volume of foreign direct investment (FDI), with total registered capital reaching nearly USD 164.15 billion, according to the Foreign Investment Agency under the Ministry of Planning and Investment. From 2021 to May 2025 alone, Vietnam approved 12,225 new FDI projects. The realized FDI in the first five months of 2025 reached the highest level in five years, signaling a strong recovery and positive growth momentum. Free trade agreements have also played a key role in driving this growth.
As of 2025, Vietnam has become a strategic destination for many of the world’s leading corporations in technology—such as Samsung, Intel, LG, Foxconn, Amkor Technology, NVIDIA, and Toyota—as well as in fast-moving consumer goods like Unilever and P&G, and contract manufacturers for Nike, Adidas, Puma, and Decathlon. The presence of these “Queen Bees” has not only created tens of thousands of high-quality jobs but also spurred the rapid development of a supporting industrial ecosystem—from component and equipment manufacturing to technical services and logistics. At the same time, these global corporations are under increasing pressure from partners and investors to comply with ESG standards.
Many multinational companies now require their suppliers—including those in packaging, raw materials, and logistics—to obtain green certifications such as LEED, EDGE, or ISO 14001, ensuring that the entire supply chain aligns with net-zero commitments. This has significantly driven up demand for green industrial facilities in Vietnam, particularly among small and medium-sized enterprises (SMEs) and supporting industries. Notably, multinational firms expanding from China to Vietnam are also seeking infrastructure that matches the quality and compatibility they are accustomed to.
Ms. Trang Bui noted: “Today’s investors plan short-term investments based on an overarching asset strategy, while also aiming for long-term goals. Assets with a clear carbon history and a sustainable development roadmap will always be more attractive than those lacking medium- or long-term direction.”
Vietnam’s industrial real estate market is undergoing a profound transformation—not only in scale but also in quality and sustainability orientation. Both domestic and international developers are closely monitoring manufacturers’ evolving needs to build flexible and efficient facilities. With the support of consulting firms and strong ESG commitments from developers, Vietnam is steadily affirming its position as a premier destination for global industrial investors.
