Industrial Real Estate 2025: Ready-built factories dominate the market
With the rapid expansion of industrial zones, strong infrastructure development and attractive investment incentives, industrial real estate is an important channel to attract foreign direct investment (FDI) and promote domestic production.
Factories in industrial parks are dominant
Data from real estate consultants shows that from the second half of 2023 until now, the demand for factory rental has increased sharply thanks to the recovery of the industrial production sector and the trend of large enterprises moving to Vietnam.
According to CBRE Vietnam, in the third quarter of 2024, the occupancy rate of ready-built factories reached 84%, an increase of 3% over the previous quarter, and the average occupancy rate of warehouses reached 68%, an increase of 7% over the previous quarter.
In the first 9 months of 2024, the Southern Tier 1 market has leased nearly 420,000 m2 of warehouses and more than 540,000 m2 of factories, nearly double the same period last year. Ho Chi Minh City and neighboring areas such as Binh Duong, Dong Nai, Ba Ria - Vung Tau, Long An , Tay Ninh, ... are provinces and cities recorded to have a vibrant market and good growth in the Southern region.
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| Ready-built factories in industrial parks are the preferred choice of investors. Photo: Le Minh Xuan 3 Industrial Park (Binh Chanh) |
Meanwhile, in industrial parks in the Northern region, the average asking rent for ready-built factories reached USD 5/m2/month in the past three quarters, up 0.6% quarter-on-quarter and 3.4% year-on-year.
Diverse quality sources
To meet the increasing demand for factory rental, industrial parks are actively implementing project construction to increase quality supply.
According to Cushman & Wakefield's estimates, by 2027, Vietnam will have about 6 million square meters of warehouses put into operation. Most of the factory area is concentrated in key economic regions, where there is great potential to attract high-quality FDI.
However, industrial real estate has recorded uneven growth. Factories in industrial parks (IPs) have developed more rapidly than factories outside. According to analysis by market research units, most small factories outside IPs do not ensure legality, fire safety, are built on land with the wrong function, wrong area, lack infrastructure, utilities, etc., so it is difficult to attract investment.
On the contrary, factories for rent in industrial parks are increasing in attraction due to their many advantages such as ensuring compliance with planning, meeting legal and environmental conditions, meeting land standards, fire prevention and fighting systems, security systems and providing full industrial infrastructure.
Saigon Investment Company (VRG), the investor of Phuoc Dong Industrial Park ( Tay Ninh ), said that pre-built factories in the industrial park are the preferred choice of investors thanks to their diverse areas, quick production operation time, saving time and costs. In addition, investors also enjoy good incentive policies from the industrial park and locality.
According to the representative of Phuoc Dong Industrial Park, in the past, most businesses rented land to build and implement projects themselves. However, recently, investors have been more interested in pre-built factory products. In 2024, more than 50,000 m2 of pre-built warehouses in the Industrial Park were absorbed. Therefore, in the upcoming planning and development strategy, Phuoc Dong Industrial Park will promote the construction of a modern pre-built warehouse system with diverse areas to promptly meet the needs of investors.
It is expected that in 2025, Phuoc Dong Industrial Park will continue to supply the market with about 30,000 m2 of ready-built warehouses. The factories are designed to suit many different industries with diverse areas from 3,000 - 7,000 m2.
According to the Management Board of Phuoc Dong Industrial Park, when handed over to the investor, the factory has ensured legal factors, fire prevention and fighting safety, met environmental standards and is fully equipped with infrastructure, and can go into production immediately.
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| The factory at Phuoc Dong Industrial Park is equipped with a fire protection system, 2-storey office, and industrial infrastructure. Photo: Phuoc Dong Industrial Park |
In addition, to increase competitive advantage and welcome new capital flows moving into Vietnam, Phuoc Dong Industrial Park has a strategy to innovate and diversify products.
In addition to industrial land and pre-built warehouses, Phuoc Dong Industrial Park also provides factory construction services according to customers' requirements. This is also the form chosen by many investors in Phuoc Dong Industrial Park because it meets specific criteria on structure, fast construction time and is a suitable financial solution for each enterprise.
With positive signals, experts predict that the industrial real estate market will continue to develop in 2025. Investor confidence is increasing, product supply is also diversified, infrastructure is improved and preferential policies will play a key role in attracting FDI and promoting economic growth in the coming time.
![[Photo] Prime Minister Pham Minh Chinh chairs a meeting of the Government Standing Committee to remove obstacles for projects.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/10/06/1759768638313_dsc-9023-jpg.webp)
![[Photo] Prime Minister Pham Minh Chinh chaired a meeting of the Steering Committee on the arrangement of public service units under ministries, branches and localities.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/10/06/1759767137532_dsc-8743-jpg.webp)
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