- Transparent policies, institutional reforms, and investment incentives are strengthening investor confidence and attracting high-quality FDI.
- Upgraded transport and logistics infrastructure is enhancing regional connectivity, supporting industrial real estate development and improving operational efficiency for businesses.
- Industrial real estate supply continues to expand, with multi-storey factories and warehouses emerging as the next phase of market evolution.
Hanoi, September 2026 - According to the General Statistics Office, realized foreign direct investment (FDI) in the first eight months of 2026 is estimated at USD 17.25 billion, up 12% year-on-year and marking the highest eight-month figure recorded in the past five years. Manufacturing remained the dominant recipient, attracting USD 14.24 billion, equivalent to 82.6% of total realized FDI. Northern Vietnam alone secured approximately USD 8.63 billion in manufacturing FDI, accounting for 80.5% of the country's newly registered manufacturing investment. Within this, the computer, electronics and optical products segment led the market with more than USD 7.03 billion, representing nearly 66% of the total.
The sustained growth of FDI inflows is having a profound impact on Vietnam's industrial real estate sector while reinforcing the country's role within global supply chains. As foreign-invested enterprises in electronics, optical products, computers, high-tech manufacturing and related industries continue expanding production and supply chain operations in Vietnam, demand for industrial land, ready-built factories and warehouses is rising in tandem.
While Vietnam's competitiveness was once largely associated with labor costs, land availability and geographic location, its appeal today is increasingly driven by an industrial ecosystem capable of meeting the stringent requirements of multinational corporations. Key advantages include a supportive policy framework, continuously improving regional connectivity and a growing pipeline of high-quality industrial real estate.
POLICY: BUILDING A STRONGER FOUNDATION FOR INVESTOR CONFIDENCE
Mr. Nguyen Phuoc Thuan, Director of Industrial and Office Leasing Services at Cushman & Wakefield Vietnam, commented: “Through our ongoing discussions with Cushman & Wakefield's international clients and partners, we observe that investors today are looking beyond attractive investment opportunities and competitive commercial terms. Growing emphasis is being placed on investment transparency, policy consistency, and the ability of government authorities to coordinate and provide support throughout project implementation. These factors have a direct impact on investment timelines, operational efficiency and long-term capital allocation decisions”.
The Vietnamese Government continues to introduce measures aimed at fostering a more favorable investment and business environment for foreign-invested enterprises. Resolution No. 10-NQ/TW is widely viewed as a positive signal that reinforces international investor confidence while demonstrating the Government's commitment to supporting foreign investment.
The resolution outlines a strategic direction for attracting a new generation of FDI centered on high technology, innovation and sustainable development. It also promotes the integrated development of investment ecosystems linked to capital markets, international financial centers, free trade zones, economic zones, industrial parks and logistics infrastructure. In parallel, pilot institutional mechanisms are being explored to attract high-quality capital while maintaining effective risk management.
Alongside this, amendments to the Law on Investment and the issuance of Decree No. 96/2026/ND-CP further enhance the investment environment through greater transparency, efficiency and competitiveness. The introduction of a "special investment procedure" enables projects located in industrial parks, economic zones and high-tech parks to receive accelerated approvals based on compliance commitments, shortening project implementation timelines.
In addition, incentive policies have been expanded to strategic technology sectors, including semiconductors, artificial intelligence (AI), data centers and 5G infrastructure, as well as free trade zones and international financial centers. Proposed revisions to the Investment Law continue to ease market-access conditions, reduce compliance costs and barriers for foreign investors, while ensuring transparency, consistency and regulatory certainty.
At the local level, Hanoi has introduced a list of nine strategic technology sectors for the 2026-2035 period, covering digital technologies, semiconductors, robotics, automation, biotechnology, and advanced energy and material technologies. The initiative is expected to support the attraction of high-tech FDI aligned with the Capital City's long-term development strategy.
INFRASTRUCTURE: COMPREHENSIVE UPGRADES TO REGIONAL CONNECTIVITY
Infrastructure and transportation networks are undergoing extensive planning and upgrades nationwide, improving regional connectivity and logistics capabilities, both of which are key enablers of industrial real estate growth.
In Southern Vietnam, the Ho Chi Minh City People's Committee is currently gathering feedback on the city's master plan for 2025-2050, with a 100-year vision. Transportation infrastructure serves as a central pillar for connecting the expanded metropolitan area and strengthening regional integration through a multimodal network of expressways, strategic ring roads (including Ring Road 3, Ring Road 4, Ben Luc-Long Thanh and Ho Chi Minh City-Moc Bai expressways), national and high-speed railways connecting industrial clusters, ports and airports, as well as integrated seaports, inland container depots and logistics hubs. These developments are expected to create a more efficient operating environment for industrial projects.
In Northern Vietnam, the districts of Dong Anh, Me Linh and Soc Son are being positioned as new growth centers for international integration, services, trade, logistics and high-tech industries associated with Noi Bai International Airport. Major metro lines (Lines 2, 10 and 14) are progressing alongside the completion of Ring Road 4 and expansion plans for Noi Bai Airport, supported by logistics hubs and international free trade facilities. Together, these projects are expected to strengthen Northern Vietnam's role within the country's manufacturing and logistics landscape.
EXPANDING SUPPLY AND THE RISE OF MULTI-STOREY INDUSTRIAL FACILITIES
Supported by favorable policies and infrastructure investment, industrial real estate supply continues to grow.
As of Q2 2026, Northern Vietnam's cumulative industrial land bank exceeded 25,200 hectares, up 15.7% year-on-year. More than 1,200 hectares of new supply were introduced during the first half of the year through six industrial park developments in Hai Phong, Bac Ninh and Ninh Binh.
The region's ready-built factory (RBF) stock reached approximately 5.8 million sq m, representing annual growth of 16.9%, while ready-built warehouse (RBW) supply totaled around 3.6 million sq m. Bac Ninh, Hai Phong and Hung Yen remain the leading markets.
In Southern Vietnam, no new industrial land projects were recorded in Q2 2026 as Ho Chi Minh City, Dong Nai and Tay Ninh continue to finalize planning procedures and investment approvals following administrative boundary adjustments. Nevertheless, total industrial land supply still increased 4.6% year-on-year due to projects that commenced operations previously.
Ready-built warehouse supply added approximately 56,000 sq m in Tay Ninh, bringing total stock to 6.85 million sq m, highlighting a more balanced and geographically diversified development pattern across the region.
As land availability becomes increasingly constrained in certain key industrial markets, the development of modern multi-storey factories and warehouses is emerging as a natural solution to maximize land-use efficiency.
According to Mr. Thuan, this trend aligns closely with the objectives of Resolution 10-NQ/TW, as Vietnam gradually shifts from attracting capital volume alone toward higher-value investments characterized by advanced technology, greater value-added production and enhanced operational quality.
Multi-storey factories are particularly suitable for high-tech industries such as electronics, semiconductors, medical devices and research and development (R&D) activities. Meanwhile, multi-storey warehouses provide effective solutions for logistics, e-commerce and cold storage operations located near major consumption centers and transportation hubs.
“Over the long term, the growth of multi-storey warehouses and factories will not only address land constraints but also contribute to upgrading the overall quality of Vietnam's industrial real estate supply”, Mr. Thuan noted.
Rather than undertaking large-scale redevelopment of existing industrial parks, many of which have only been operating for 20 to 30 years, developers are increasingly focusing on expanding into new provinces to capitalize on emerging infrastructure networks and new investment flows. This trend reflects the relatively early stage of Vietnam's industrial market development compared with regional peers.
From a technical perspective, multi-storey industrial projects require significantly higher design standards, including enhanced floor loading capacity, greater clear heights, vertical cargo-handling systems and wider column spacing to maximize contiguous floor space. These specifications must be supported by integrated infrastructure systems to ensure efficient and sustainable long-term operations.
