Southern Vietnam’s industrial real estate market is entering a more strategic phase of growth after a decade marked by strong supply expansion, rising land values and sustained manufacturing momentum, according to Cushman & Wakefield Vietnam’s latest 10-year market review. The findings suggest the region has moved beyond a purely land-led growth cycle and is increasingly being shaped by infrastructure upgrades, supply chain reconfiguration, product refinement and a stronger focus on operational efficiency.
Over the past decade, Southern Vietnam’s industrial park land market recorded 80.21% growth in total supply, while average primary prices rose by 120.5%, equivalent to a 9.18% CAGR over the period. In the ready-built segment, ready-built warehouses (RBW) recorded 141% growth in total supply over the review period, while rents rose 43.8%, equivalent to a 5.3% CAGR. Ready-built factories (RBF) saw 134% growth in supply, with rents increasing 16.7%, or 2.2% CAGR.
Industrial Park Land – Last 10- year overview
Source: Cushman & Wakefield
Analysis indicates that the market has shifted from a phase of “aggressive expansion” toward “value-added refinement”, reflecting greater emphasis on modern specifications, operational efficiency, sustainable features and higher-quality tenant solutions.
This evolution has been supported by Vietnam’s strong manufacturing fundamentals, expanding trade links and continued appeal as a production base for international investors. These structural drivers have sustained demand for industrial land and ready-built facilities across Southern Vietnam, particularly as occupiers increasingly prioritize supply chain resilience, operational efficiency and strategic location selection.
In Southern Vietnam, that demand has translated into deeper industrial clustering and a clearer regional growth structure. Across Southern Key Economic Zone (as defined by Cushman & Wakefield, including Ho Chi Minh City, Tay Ninh and Dong Nai), current industrial park land supply has reached 36,400 hectares across 161 projects. The zone also currently has approximately 6.60 million sq m of RBF space across 205 projects and 6.65 million sq m of RBW space across 189 projects.
RBF & RBW – Last 10- year overview
Source: Cushman & Wakefield
By 2036, industrial park land supply in the region is expected to rise to at least 58,557 hectares across around 250 projects, while RBF stock is projected to reach 7.76 million sq m and RBW stock is expected to increase to 7.31 million sq m. This pipeline reinforces the region’s importance as one of Vietnam’s principal manufacturing, logistics and industrial investment corridors, while suggesting that future growth will be increasingly shaped by quality, location strategy and integration with broader supply chains.
Doan Chuong, Associate Director, Leasing Agency – Industrial & Office, Cushman & Wakefield Vietnam, said:
“Southern Vietnam’s industrial market has grown substantially over the past decade, but what is increasingly clear is that the next phase will not be defined by expansion alone. The region is entering a more strategic stage, where infrastructure connectivity, product quality, operational efficiency and sustainability will play a greater role in shaping long-term value. For investors and occupiers alike, this is becoming a market of deeper specialization and stronger competitive differentiation.”
Chuong added: “The southern key economic zone continues to benefit from manufacturing depth, established logistics networks and a strong pipeline of future supply. At the same time, occupier expectations are rising. Demand is increasingly favoring better-planned industrial assets, modern ready-built formats and locations that can support both production efficiency and supply chain resilience.”
Click here for more insights from Cushman & Wakefield’s 10-year review of Vietnam’s real estate market
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