HCMC, 29th Jan 2026 – Cushman & Wakefield announced its Q4 2025 Southern Vietnam Industrial MarketBeat Report, highlighting a clear recovery phase after tariff pressures, supported by resilient demand across industrial land, ready-built factories (RBF), and ready-built warehouses (RBW). Total supply of industrial land increased 28% year-on-year - one of the sharpest expansions in recent years, while both RBF and RBW segments showed strong occupancy at over 90%.
“After a period of adjustment driven by tariff pressures and global trade uncertainty, Southern Vietnam’s industrial market is clearly entering a recovery phase,” said Doan Chuong, Senior Manager, Industrial Leasing, Cushman & Wakefield Vietnam. “While occupiers remain cautious in the short term, demand fundamentals are strengthening, particularly for well-located industrial land, ready-built factories, and modern logistics facilities that enable faster market entry and operational efficiency. This renewed activity reflects how manufacturers are recalibrating supply chains, prioritising flexibility, cost optimisation, and ESG compliance, and positioning Vietnam as a long-term production and logistics hub within regional and global networks.”
Industrial Land Market: strong expansion
In Q4 2025, the market recorded an impressive entry of new supply with 2,000 ha from Phase 1 of two large-scale projects in Dong Nai: Bau Can - Tan Hiep IP and Xuan Que - Song Nhan IP. This strategic addition raised the total accumulated existing industrial land supply in the Southern Key Economic Zone to 36,400 ha, reflecting a 5.8% increase compared to the previous quarter and a sharp rise of nearly 28% compared to the same period in 2024.
Regarding market structure, Ho Chi Minh City maintained its leading position with a 45% share, while Dong Nai rose strongly to account for 33% thanks to the new supply, reaffirming its role as a key industrial hub alongside Tay Ninh, which holds a 22% market share.
EXISTING INDUSTRIAL LAND SUPPLY, Q4 2025
Source: Cushman & Wakefield
Note: The average primary industrial park rental rate refers to the asking price directly from Industrial Park Developers, excluding Management Fees and Value Added Tax (VAT).
The USD/VND exchange rate in Q4 2025 = 26,500
The overall market occupancy rate in Q4 2025 adjusted to 74%. This decline in the actual occupancy rate reflects the massive influx of new supply entering the market, outstripping current absorption speeds. Net absorption was modest at only 45 ha, indicating that businesses are remaining very cautious about expanding their scale or leasing new land funds during this period.
MARKET PERFORMANCE, Q4 2025
Source: Cushman & Wakefield
Note: The average primary industrial park rental rate refers to the asking price directly from Industrial Park Developers, excluding Management Fees and Value Added Tax (VAT).
The USD/VND exchange rate in Q4 2025 = 26,500
In terms of local performance, HCMC continued to prove its appeal as a key market by maintaining the highest occupancy rate at 84.37%. Meanwhile, satellite markets showed a significant gap: Dong Nai held a fair average of 71.62%, while Tay Ninh currently faces a large supply surplus with an average occupancy rate of only 58.23%.
Despite the abundant supply, the average asking rent for industrial land in the Southern Key Economic Zone continued to increase, reaching 185 USD/sqm/lease term. This price represents a 2.78% increase compared to the previous quarter and a 5.11% increase compared to the same period in 2024.
The Southern industrial land market for the 2026–2029 period is on the threshold of a powerful breakthrough with the formation of green industrial "mega-urban" models, deeply integrating ESG standards to attract high-quality FDI. With a total projected supply boom of nearly 3,800 ha, in which HCMC plays the core role with nearly 2,600 ha, the region is transforming from pure manufacturing zones into modern industrial-service ecosystems. The combination of Research and Development (R&D) capabilities in the city center and green manufacturing clusters in satellite areas will not only optimize the value chain but also fully meet the strict emission reduction requirements of multinational corporations, turning Vietnam into a leading high-tech manufacturing "stronghold" in Southeast Asia.
The medium-term vision is further bolstered by the "dual momentum" of strategic transport infrastructure, featuring a network of expressways, ring roads, and Long Thành International Airport directly connecting to the Cai Mep-Thi Vai port system. This seamless regional connectivity will dissolve geographical barriers, turning potential land funds in Tay Ninh or Dong Nai into vital logistics links, significantly reducing supply chain costs. The synchronized development of transport infrastructure and next-generation industrial parks will create a bountiful and sustainable supply map, meeting not only the demand for space but also creating outstanding value-added for the entire Southern Key Economic Zone in the near future.
RBF Market: strong demand from high-value manufacturing tenants
In Q4 2025, the total accumulated supply of RBF in the Southern Key Economic Zone reached approximately 6.6 million sqm of Net Leasable Area (NLA). The market recorded an additional 34,000 sqm of leasable area in Tay Ninh.
Regarding supply distribution, while Ho Chi Minh City and Dong Nai maintained stability with total areas of approximately 3.1 million sqm and 2.1 million sqm respectively, Tay Ninh recorded a growth of 2.58% compared to the previous quarter. This increased the total supply in this area to 1.3 million sqm of leasable area.
EXISTING RBF SUPPLY, Q4 2025
Source: Cushman & Wakefield
Note: All rental rates for RBF/RBW are inclusive of service charges (SC) but exclusive of VAT. The USD/VND exchange rate in Q4 2025 = 26,500.
The RBF market in Q4 2025 continued to witness robust demand, with total net absorption reaching approximately 73,122 sqm. Regional occupancy rates were maintained at high levels: Dong Nai reached the highest at 94%, and HCMC reached 92%. Even in the emerging market of Tay Ninh, the occupancy rate hit the 90% mark.
The primary growth drivers this quarter came from multinational manufacturing enterprises in the fields of precision engineering and interior equipment. Investors choosing modern factory segments to produce metal components, fixing systems, and construction materials indicates a trend of prioritizing ready-built facilities to optimize costs and shorten the time to commencement of operations. The presence of major corporations from the US and Europe continues to reaffirm the Southern Key Economic Zone's position in the global supply chain.
The average rental rate for RBF in Q4 2025 recorded a slight increase, reaching 4.9 USD/sqm/month. Compared to the 4.8 USD in the previous quarter and the same period in 2024, the rent rose by approximately 2.1%. This price adjustment reflects the high demand for high-quality standard factories in favorable locations.
MARKET PERFORMANCE
Source: Cushman & Wakefield
Note: All rental rates for RBF/RBW are inclusive of service charges (SC) but exclusive of VAT. The USD/VND exchange rate in Q4 2025 = 26,500.
The 2026–2029 period is expected to be a turning point in scale as the market welcomes approximately 944,000 sqm of new RBF supply. Among this, HCMC continues to play the core role with more than 800,000 sqm of floor area expected to enter the market. This strong increase not only addresses the shortage of space in core areas but also reflects a strategic pivot by developers from warehouses to modern factories to anticipate high-quality FDI inflows in the high-tech and semiconductor sectors.
Demand in the coming years is forecasted to maintain positive growth, benefiting from key infrastructure projects such as Ring Road 3, Ring Road 4, and the gradually forming Long Thanh International Airport. Furthermore, the simplification of administrative procedures through regional digitalization will shorten market entry time for Small and Medium Enterprises (SMEs). In particular, projects achieving green building standards (ESG) will become top priorities, helping the Southern Key Economic Zone become not just a cost-effective destination but a sustainable manufacturing hub, attracting multinational corporations on their global carbon-neutrality roadmaps.
RBW Market: mounting pressure on last-mile logistics capacity
In Q4 2025, the total accumulated supply of RBW across the region reached approximately 6.6 million sqm, with no new projects recorded entering the market this quarter. Compared to the 6.3 million sqm in Q4 2024, the market scale recorded a growth of 4.7% YoY.
Ho Chi Minh City continues to hold its position as the primary distribution hub with a 45% market share, followed by Dong Nai with 32%. The absence of new supply indicates that developers are prioritizing the optimization of existing occupancy rates and upgrading operational quality rather than expanding in quantity.
EXISTING RBW SUPPLY, Q4 2025
Source: Cushman & Wakefield
Note: All rental rates for RBF/RBW are inclusive of service charges (SC) but exclusive of VAT. The USD/VND exchange rate in Q4 2025 = 26,500.
The RBW market in Q4 2025 continued to record stability, with total net absorption reaching 57,282 sqm. The average regional occupancy rate remained high at 90.72%, marking a remarkable growth compared to the 77% in the same period of 2024. New leasing demand primarily stemmed from e-commerce enterprises and fast-moving consumer goods (confectionery, food, and beverages).
The occupancy rate in HCMC reached its peak at 98%. This creates pressure to shift demand toward satellite localities, helping Dong Nai reach an occupancy rate of 87.4% and Tay Ninh reach 78.9%. The rapid filling of neighboring areas confirms the effectiveness of the satellite distribution center model in optimizing logistics networks and reducing the load on the core area.
The average rental rate for RBW in Q4 2025 remained steady at 4.6 USD/sqm/month, unchanged from the previous quarter. Compared to the same period in 2024 (4.5 USD), the rent recorded a slight growth of approximately 2.2% YoY.
MARKET PERFORMANCE
Source: Cushman & Wakefield
Note: All rental rates for RBF/RBW are inclusive of service charges (SC) but exclusive of VAT. The USD/VND exchange rate in Q4 2025 = 26,500.
The RBW market is expected to continue its strong growth momentum, with future supply reaching approximately 622,000 sqm of floor area entering the market during the 2026–2029 period. This abundant supply is mainly focused on high technical standards to meet the stringent demands of e-commerce, pharmaceuticals, and fast-moving consumer goods (FMCG) sectors, which are actively pushing last-mile delivery strategies. The emergence of modern warehouses integrated with automation technology and green standards (ESG) is expected to create a significant competitive advantage, helping businesses optimize order processing speeds and operational costs within global supply chains.
Strategic transport infrastructure will be the "catalyst" transforming peripheral areas into ideal logistics gateways. Accelerating key projects such as Ring Road 3, Ring Road 4, and Long Thanh International Airport will not only shorten transportation times but also allow investors to establish more effective distribution and satellite center models. The synchronization of planning following provincial mergers, along with modern seaport infrastructure, will turn the Southern Key Economic Zone into an integrated logistics network, attracting world-leading supply chain operators and consolidating the region's role as a future transshipment hub.
