Overcoming the tariff storm, industrial real estate is ready to welcome new capital flows

FDI capital still flows strongly into Vietnam

Despite complex tariff fluctuations around the world , foreign direct investment (FDI) continues to flow into Vietnam, showing that Vietnam is still an attractive investment destination for foreign investors.

According to the General Statistics Office ( Ministry of Finance ), in the first 7 months of 2025, the total registered foreign investment capital in Vietnam reached 24.09 billion USD, up 27.3% over the same period last year. Meanwhile, FDI disbursement reached 13.6 billion USD, up 8.4% over the same period and is the highest figure of 7 months in the past 5 years.

Source: General Statistics Office, Ministry of Finance

Source: Foreign Investment Agency - Ministry of Finance

This demonstrates that investment commitments are quickly being transformed into real production and business activities, creating jobs and contributing to economic growth.

Mr. Andrew Harker, Chief Economist at S&P Global Market Intelligence, commented that Vietnam's manufacturing industry is recovering from the disruption caused by the announcement of US tariffs.

In July, the Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose to 52.4 points, up from 48.9 points in June and above the 50-point threshold for the first time in four months. Along with that, the number of new orders increased again and at the fastest rate since November last year. This result shows an improvement in the overall health of the manufacturing sector.

Speaking to a reporter from the Finance - Investment Newspaper, Mr. Ben Gray, partner and Head of Capital Markets at Knight Frank Vietnam, analyzed that funds and investors currently operating continue to allocate capital to Vietnam.

Knight Frank Vietnam experts also said that although 30% of Vietnam's export turnover is directed to the US, real demand is still very large as companies are restructuring supply chains across Asia. The remaining 70% of Vietnam's export goods still serve other potential markets.

Observing the development of FDI capital flows into Vietnam in recent times, Ms. Van Nguyen, Senior Director of the Northern Market Transaction Division of JLL Vietnam, added that FDI flows are shifting in terms of industries, from the field of manufacturing, assembling, and manufacturing semi-finished components to some industries with higher value content or finished products such as chip manufacturing, semiconductors, energy (battery production, photovoltaic cells, silicon bars), manufacturing components, electronic products...

In addition, JLL also recorded a shift from countries with investment capital coming from EU countries, however Asian countries such as Japan, Korea and China are still the main growth drivers.

According to experts, large capital flows are still waiting to flow into Vietnam. Several large high-tech FDI investors, including Samsung, Amkor and Qualcomm, continue to demonstrate long-term investment commitments. Especially after President Trump announced a 20% tax on Vietnamese exports to the US and 40% on transit goods.

According to Cushman & Wakefield’s forecast, from 2025 to 2028, the southern industrial land market will receive about 7,000 hectares of new land. The merger taking place in the new neighboring provinces of Ho Chi Minh City such as Long An and Tay Ninh will expand the development space, improve the connectivity between industrial parks and inter-regional infrastructure. This not only increases the area of industrial land but also creates great opportunities for investors.

Quality factories are on the rise, aiming for green and sustainability

Surveying foreign investor appetite, JLL said that as many as 87% of real estate occupiers surveyed across Asia Pacific are targeting 100% green-certified portfolios by 2030, up from 4% of certified portfolios today. This sentiment is particularly evident in India, Malaysia and Thailand, with more than 95% of real estate occupiers targeting 100% green-certified portfolios.

According to JLL, more and more companies are adopting sustainability strategies such as energy audits, sustainable interiors and green leases to achieve sustainable workplaces.

From the perspective of an industrial real estate developer, Mr. Hardy Diec, CEO of Vietnam Industrial Parks, believes that to maintain the wave of foreign investment in Vietnam, developers cannot simply stop at providing warehouses and factories - but need to create a comprehensive ecosystem where businesses can establish and expand operations conveniently, safely and effectively.

Nhon Trach 6D Industrial Park, Dong Nai invests in building high-quality and sustainable pre-built warehouses, using high-grade COLORBOND® corrugated iron with AM – ACTIVATE™ technology from BlueScope as the covering material for the entire project.

“For Vietnam’s industrial parks, to achieve strict standards on sustainable development such as LEED, there are many green construction requirements throughout the entire life cycle of the project that the company needs to meet, such as: Optimizing energy efficiency through smart energy management systems, prioritizing the use of renewable energy, sustainable materials, including heat-resistant materials, well adapted to Vietnam’s tropical climate,” said Mr. Hardy.

However, many businesses expressed concern that the initial investment costs are higher than the construction costs of traditional industrial parks. Speaking to reporters, Ms. Le Phuong Anh, Director of the SBVN program - Sustainable Construction Vietnam, that, Investors should make calculations and come up with solutions right from the start for each project.

“This type of project can reduce up to 35% of electricity consumption, along with the ability to support the project to meet energy-efficient construction standards, attract high-end customers, and bring greater benefits to investors,” Ms. Phuong Anh added.

The 5th Vietnam Industrial Real Estate Forum 2025, co-organized by the Finance-Investment Newspaper and the Vietnam Industrial Real Estate Association (VIREA) under the auspices of the Ministry of Finance, will take place at the JW Marriott Saigon Hotel, Ho Chi Minh City on Wednesday (October 29, 2025).
With the theme “Strong position, welcoming the movement” , the Forum will focus on analyzing the new market context in the global movement flow; clarifying Vietnam’s current position in the investment attraction map and regional supply chain; and identifying new growth opportunities for the industrial real estate sector. The Forum will also be a place for policymakers, experts, and businesses to discuss new generation industrial park models, greening trends, digitalization, data center and logistics integration, as well as requirements in infrastructure development, institutional reform, enhancing regional competitiveness and attracting strategic capital flows.
Within the framework of the Forum, the Finance-Investment Newspaper will also continue to coordinate with VIREA to organize the "For a Green Future" Voting (VIPF Green Future Awards) . The voting aims to encourage and honor investors with strategies to develop ecological industrial parks and green industrial parks; secondary investors leasing land in industrial parks and enterprises providing green industrial solutions in the technology, energy, raw materials and green solutions sectors serving production towards sustainable development.
For more information about the Forum and the Poll, please visit: https://vipf.vir.com.vn/