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Vietnam ranks among the most cost-competitive locations on the global industrial map despite 70% increase in rents, according to Cushman & Wakefield

Xuan Pham • 02/07/2025

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

APAC Logistics Rental Levels Q4 2024.png

Average Warehouse & Production Wage Position (Global Sample Median = 100)

APAC Average Warehouse and Production Wage.png

Business Electricity Rates* (Global Sample Median = 100)

APAC Business Electricity Rates.png

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.

 


 

About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture.  For additional information, visit www.cushmanwakefield.com.

Media Contact

Xuan Pham
Xuan Pham

Senior Director, Head of BDS, Vietnam • Ho Chi Minh City

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