• Real estate, labor, and electricity expenses positioned in the lowest tier
• The country retains its reputation as an attractive destination for global industrial and logistics investors
Vietnam has again been recognized as a highly cost-competitive location for industrial and logistics investment, ranking in the most affordable tier globally for rent, labor and energy.
According to a recently released 2025 Waypoint: Global Industrial Dynamics Report by real estate services firm Cushman & Wakefield, which evaluates over 120 markets worldwide, Vietnam stands out as one of the few countries to rank among the most affordable markets globally for these key site selection factors. Although industrial rents in 2025 have increased by 70% compared to 2019, actual costs remain highly attractive relative to regional peers. Average logistics real estate rents are approximately USD 6/ft²/year (equivalent to USD 5.3/m²/month) in Hanoi and USD 5/ft²/year (equivalent to USD 4.9/m²/month) in Ho Chi Minh City.
Logistics and manufacturing operations remain heavily reliant on human capital. A large, cost-effective labor force is a critical factor influencing site selection and operational strategy, from determining which processes to localize to the level of automation investment. In Vietnam, labor costs are currently less than 25% of the global median wage, placing the country among the most affordable labor markets in the Asia-Pacific region.
Meanwhile, electricity demand in modern logistics facilities is rising, driven by automation systems, smart management platforms, advanced material handling equipment, and the growing adoption of electric vehicles. As a result, operating costs are becoming an increasingly important consideration in investment decisions. Vietnam maintains its competitive edge, with industrial electricity prices among the lowest globally, only higher than Indonesia and Nigeria.
The combination of these three core cost factors, labor, energy, and real estate, has positioned Vietnam as a highly attractive destination on the global industrial map, particularly for manufacturing and logistics. To optimize production, secure supply, and efficiently distribute goods to consumers, businesses must develop a real estate strategy aligned with long-term operational goals.
Logistics Rental Levels, Q4 2024
Average Warehouse & Production Wage Position (Global Sample Median = 100)
Business Electricity Rates* (Global Sample Median = 100)
The full report, including regional breakdowns of rental levels, market conditions and vacancy projections, energy and labour cost comparisons, and analysis of demand drivers such as e-commerce and manufacturing, is available at Waypoint 2025.
Note
Global Industrial Dynamics Coordinates 2025 is a research report based on survey results from Cushman & Wakefield’s logistics and industrial market experts across 127 markets worldwide. The survey was conducted from April 7 to April 18, 2025, shortly after the Trump administration announced a 90-day suspension of most elevated tariffs, while maintaining a 10 percent tariff on nearly all global imports.
