Vietnam’s industrial real estate sector is poised for significant growth, with experts predicting a substantial boom in 2025. This optimism follows a period of steady but slower activity in 2024. The National Industrial Real Estate Forum 2024, hosted by Vietnam Investment Consulting (VNIC) on September 19 in Hanoi, underscored the expected resurgence and the factors driving this growth.
Event Overview and Key Participants
The forum attracted over 300 infrastructure investors, consulting firms, and more than 50 foreign direct investment (FDI) companies interested in Vietnam’s industrial sector. Notable attendees included Trent Iliffe and Glenn Hughes from LOGOS, an international leader in infrastructure development, as well as representatives from Amber Industrial, Gilimex Industrial, Andes E&C, BIDV, HPS Logistics, and Jiaxin Industrial Vietnam.
The event offered a comprehensive overview of the current state of Vietnam’s industrial real estate market and provided insights into emerging trends and future projections.
Current Market Conditions
Despite a slowdown in 2024, Vietnam’s industrial real estate market exhibits promising data. As of August 2024, the country added 4,750 hectares of industrial land, marking a 5% increase compared to the previous year. Industrial park occupancy rates have risen to 75%, a 2.6% increase from 2023.
Rental prices have also seen a steady rise. The average land rental price reached $156 per square meter in 2024, up by 6% from the previous year. The industrial warehouse market also shows strong performance, with a national occupancy rate of 77% and rising rental rates. In major cities like Hanoi and Ho Chi Minh City, warehouse rents have increased to $6.50 and $5.50-$6.50 per square meter per month, respectively.
Impact of Global Factors
The forum highlighted that while the industrial real estate market in Vietnam remains optimistic, global economic and political uncertainties have caused some investment stagnation. Do Hong Quan, CEO of VNIC, attributed this pause to the broader global context.
Niu Qiang, CEO of China Chuhai Group, noted that businesses are currently awaiting clearer signals from the global political landscape. However, he anticipated a surge in manufacturing shifts from China to Vietnam in late 2024 and 2025, bolstering Vietnam’s attractiveness as an investment destination.
Forecast for 2025
Looking ahead, Vietnam’s industrial real estate market is expected to experience a robust boom in 2025. The country is projected to add approximately 15,200 hectares of industrial land and over 6,000,000 square meters of warehouse space between 2024 and 2027. This growth reflects an ongoing demand for industrial space driven by both domestic expansion and international investment.
Glenn Hughes, CEO of LOGOS Vietnam, emphasized that LOGOS is committed to delivering high-quality warehouse solutions that integrate environmental, social, and governance practices. This commitment is aimed at meeting the burgeoning demand and ensuring a high-quality customer experience.
Strategic Partnerships and Future Outlook
A significant outcome of the forum was the strategic partnership agreement between VNIC and LOGOS. This collaboration is set to enhance investment consulting and industrial real estate leasing in Vietnam, further improving the investment environment and attracting both domestic and international businesses.
The partnership between VNIC and LOGOS aims to leverage their respective strengths—investment consulting expertise from VNIC and infrastructure development capabilities from LOGOS—to provide comprehensive and effective solutions for investors and partners.
Conclusion
Vietnam’s industrial real estate sector is on the cusp of a major boom in 2025. With significant planned expansions and a strong market outlook, the sector is expected to attract increased foreign direct investment and support domestic production growth. The strategic partnership between VNIC and LOGOS further underscores the sector’s potential, promising enhanced investment opportunities and continued development in Vietnam’s industrial real estate market.
