In Viet Nam, occupiers are no longer looking solely at rental costs, and are increasingly considering total operating costs, multi-point distribution strategies, and the long-term benefits of green-certified facilities. As global supply chains remain under pressure from the pandemic’s aftershocks and ongoing geopolitical tensions, businesses in Viet Nam are adjusting their logistics strategies to enhance flexibility and resilience.

According to John Campbell, Director, Industrial Services at Savills Viet Nam: “Flexibility and strategic accessibility have become key criteria in site selection. Many companies are expanding into provinces such as Tay Ninh, Quang Ninh, and Hung Yen, rather than focusing only on traditional hubs like Binh Duong or Bac Ninh. In addition, the trend of building dual distribution centres, one in the North to serve China and one in the South targeting ASEAN, is becoming increasingly common.”

At the same time, demand for short-term and flexible leases are surging, particularly in sectors such as e-commerce, last-mile delivery, and third-party logistics (3PL). New entrants from China, Korea, and Europe also favour these contracts to test the market. However, Campbell emphasizes, “Multinational corporations or large manufacturers still prioritise long-term leases or build-to-suit models to secure space and control costs.” A prime example is the pair of Logicross Nam Thuan projects in Tay Ninh - high-spec, ready-built warehouses strategically designed to meet the large-scale leasing needs of e-commerce and express delivery businesses.

Although base rents in Viet Nam remain competitive, many occupiers now place greater focus on evaluating total cost of ownership (TCO), which includes service fees, utilities, maintenance, and delivery expenses amid traffic congestion, especially critical for energy-intensive cold storage. Beyond costs, ESG considerations and green building standards such as LEED and EDGE are becoming increasingly influential in leasing decisions. Campbell notes that many multinational corporations and major retailers now require facilities with green certification, and features such as solar energy, LED lighting, and water recycling systems are emerging as competitive advantages.

Globally, Savills latest data reveals logistics costs increased by 3.6% over the past year, marking the third consecutive year of slower growth. This suggests the market is entering a more stable phase following the sharp volatility of Covid-19. In the first half of 2024, global industrial and logistics real estate transactions totaled US$78 billion, increasing more than 9% compared to the 2015–2019 average. Dedicated funds also raised US$41.5 billion, a 30% increase from pre-pandemic levels. Notably, international capital has returned strongly, with cross-border investors emerging as the primary net buyers in 2024.

This trajectory mirrors developments in Viet Nam. While the global market is stabilising, Viet Nam is attracting strong international investor interest thanks to cost advantages and its strategic location. Yet, Campbell cautions, “Cost advantages alone are not enough. Modern, efficient facilities allow better cost control in the long run.” This advice reflects a broader reality, globally and domestically, where businesses are paying closer attention to operational efficiency, scalability, and sustainability. A good example of this shift is the increasing number of ready-built warehouse (“RBW”) projects achieving LEED Certifcations such as Logicross Nam Thuan, Lo-Goi Bac Ninh, BW Xuyen A Logistics, KCN Tan Vu, Core5 Hai Phong, and SLP Industrial Park.

Furthermore, global logistics take-up has remained robust, reaching 34 million sq ft in the first half of 2025, a 24.5% increase YoY. This underscores the sector’s resilience despite wider macroeconomic uncertainties. In Viet Nam, the shortage of high-quality logistics facilities in key provinces highlights the importance of early planning to capture demand.

Overall, Viet Nam’s logistics and warehousing sector is moving in tandem with global trends: stabilising costs but rising operational pressures, stronger demand for flexibility, ESG as a mandatory requirement, and the resurgence of international capital. The interplay of these factors positions Viet Nam as a potential bright spot in the global logistics landscape -provided businesses strike the right balance between cost, quality, and long-term vision.