Amid global disruption, logistics occupiers are focusing on flexibility, cost control, and resilience to adapt real estate strategies to shifting geopolitical, economic, and climate risks. Against this backdrop of global shifts, Viet Nam is emerging as a strategic destination, but to sustain and elevate its position, the country must navigate a series of significant challenges.

Leasing in uncertain times: Cautiously flexible and cost-conscious 

1. Rethinking Leasing and Investment Decisions

According to Savills Impacts 2025, the most common response to recent geopolitical uncertainty is a delay in leasing decisions, cited by over 80% of respondents across 54 markets, reflecting a cautious mood, as businesses consider their options amid policy uncertainty and unpredictable demand. For those signing leases now, flexibility is essential. Across all regions, occupiers are adopting lease structures that offer greater agility, including short-term commitments, break clauses, and expansion rights.

Occupiers are also reevaluating capital expenditure decisions. In Asia Pacific, 40% of respondents report that planned capital investment projects are being delayed. This underscores the extent to which geopolitical uncertainty is not only affecting leasing behaviour but also curbs broader strategic initiatives.

2. Global Disruptions Reshaping Supply Chain Strategies

The shifting geopolitical landscape, characterised by changing tariff regimes, trade restrictions, and regional conflicts, is forcing industrial and logistics businesses to reassess their real estate strategies. While tariffs grab headlines, risks to trade routes, constraints on critical materials, the increasing risk of cyberattacks on port and logistics infrastructure and changing weather patterns also strain supply chains.

In response to these shifts, many are adopting the China Plus One or “friend-shoring” model to diversify risk, while others are weighing the relocation of production to preferential trade zones. This reconfiguration may necessitate the establishment of new warehousing and logistics hubs in strategic locations, with ripple effects on real estate demand.

3. Viet Nam’s Strategic Role in the New Landscape

In this context, Viet Nam is emerging as an attractive destination. With political stability, a prime location at the heart of Southeast Asia, competitive labour costs, deep integration into global supply chains, and a strong commitment to infrastructure development, Viet Nam meets many of the key criteria sought by the new generation of industrial occupiers.

Thomas Rooney, Associate Director, Industrial Services, Savills Ha Noi says:

“In Viet Nam, we observe these global trends reflected in local market behaviour. Occupiers are increasingly prioritising flexible lease terms and adaptable facilities to accommodate rapid business changes. Strategies like “China Plus One” or “friend-shoring’ are likely to benefit Viet Nam significantly by increasing foreign direct investment and creating demand for modern industrial spaces. They may also accelerate the development of supply chains within Viet Nam, fostering innovation and competitiveness. However, they necessitate improvements in infrastructure, technology, and skilled labour to capitalise on this opportunity fully”.

Viet Nam: From Strategic Destination to Sustainable Industrial Hub   

1. Strong Growth Signals Investor Readiness

Macroeconomic indicators further reinforce Viet Nam’s appeal. According to recent data from the General Statistics Office (Ministry of Finance), the value added by the country’s industrial sector grew by 8.07% in the first half of 2025, the second-highest rate in the 2020–2025 period, surpassed only by 2022. The main driver of this growth was the manufacturing and processing sector, which recorded a strong increase of 10.11%, accounting for nearly all the industrial sector’s overall growth.

The Industrial Production Index (IIP) also rose by 9.2% during the same period. Within this, manufacturing grew by 11.1%, and the water supply and waste treatment sector expanded by 11.3%. These figures not only signal a robust post-pandemic recovery but also point to the expanding scale and complexity of Viet Nam’s industrial base, one that is increasingly ready to welcome new investors.

“These indicators are clear evidence of Viet Nam’s industrial strength,” says Rooney. “They also reflect the nation’s rapid economic maturity and its growing position as a leading market for industrial real estate in the region.”

2. Bottlenecks in Supply and Infrastructure Remain

However, to fully realise its potential and maintain its appeal in the eyes of global investors, Viet Nam must swiftly address the bottlenecks hindering the market’s qualitative transformation. Despite rising demand, the current supply remains insufficient, particularly in areas beyond traditional industrial hubs. In addition, supporting infrastructure has yet to develop evenly across provinces, impacting connectivity and the overall efficiency of supply chain operations.

3. ESG and Green Development: Opportunities and Gaps

In addition, ESG and green energy, two increasingly influential factors in global occupier decision-making, have gained more attention yet still lack consistency in Viet Nam. The cost of developing green-certified buildings remains high, while current incentive schemes and policy support are insufficient to encourage widespread adoption among developers. However, this gap also presents a clear opportunity for forward-thinking real estate players to capitalise on. Rooney mentions that “While initial costs can be higher for green-certified assets, the long-term savings and reputational benefits often outweigh the expenses. This is the time for the market to shift from focusing on quantity to prioritising quality”.

4. Adapting to New Tenant Demands and Market Transformation

To meet the demands of the new generation of occupiers, Viet Nam’s industrial real estate market must proactively adapt and transform. Developers need to proactively invest in smart infrastructure, ESG-integrated industrial parks, flexible ready-built models, and lease agreements that align with the demands of new occupiers. At the same time, authorities at all levels should continue to push for administrative reforms, support green transition efforts, and ensure inter-regional connectivity in infrastructure development.

5. A Strategic Vision for Sustainable Growth

In an increasingly uncertain world, countries that can anticipate trends early, build strong internal capabilities, and maintain flexibility will be prioritised as investment destinations. Viet Nam holds key advantages, but to turn these into sustainable outcomes, a consistent strategy and close public-private collaboration are essential.