Premium warehousing rental rates globally are slowing down, reflecting shifts in supply and demand across regions. Yet, Viet Nam stands out with competitive pricing and long-term investment trends from domestic and international occupiers.

The first half of 2025 saw a notable adjustment in the global warehousing market. While major logistics hubs like London, Sydney, and Dubai continue to face high operational costs and slower rental growth, specific Asia-Pacific markets, including Viet Nam, are maintaining stable and more optimistic trajectories.

According to Savills' global report, prime warehouse rents increased by just 1% in the first six months of the year, the lowest growth rate in the past three years. Previously, during the pandemic, rents had surged due to the e-commerce boom. However, current economic pressures and geopolitical tensions have curbed this momentum. This deceleration reflects a mix of rising new supply and cautious sentiment from tenants, as supply chains continue to feel the impact of high operating costs, interest rates, and global uncertainties.

Amid this backdrop, Viet Nam’s market distinguishes itself through a balanced supply-demand dynamic, competitive rental levels, and growing interest from long-term investors locally and internationally.

Stable Rents Backed by Strong Fundamentals

In Viet Nam, prime warehouse rents have remained relatively stable, in contrast to post-COVID spikes seen in other markets. This is thanks to a continuous new supply and a cost-sensitive tenant base. Savills’ data show that in HCMC, premium warehouse rents average around US$5.3 per m²/month, while in Ha Noi the figure is US$5.5 per m²/month.

John Campbell, Head of Industrial Services at Savills Viet Nam, comments, “Viet Nam reflects the regional trend of stability seen across Asia-Pacific. With consistent supply and tenants who manage costs strategically, the market has maintained reasonable rent levels and avoided the dramatic surges experienced in other global hotspots.”

Beyond supply, Viet Nam’s land and construction costs remain significantly lower than those of more mature logistics markets, such as Japan, South Korea, or Singapore. Government policies encouraging infrastructure and logistics investment have also played a key role in keeping operational expenses in check, while fostering a supportive ecosystem for manufacturing and distribution.

Viet Nam: More Than Just a "Low-Cost" Option

Viet Nam's strategic location, access to broad markets, and political stability have solidified its role in many global firms’ supply chain restructuring strategies.

As multinational corporations diversify away from China, Viet Nam stands out for its proximity to international shipping lanes, borders with major consumer markets, and participation in critical free trade agreements such as the EVFTA, CPTPP, and RCEP. These factors help businesses minimise tariff costs and expand their export reach.

Viet Nam is also rapidly improving its logistics infrastructure. From expanding the North-South expressway and upgrading key seaports, such as Cai Mep – Thi Vai and Hai Phong, to developing air logistics hubs like Long Thanh and Noi Bai, the country is reinforcing every link in the supply chain.

At present, Binh Duong and Long An have emerged as key logistics hubs in southern Vietnam, leveraging their proximity to Ho Chi Minh City and the presence of well-developed industrial zones. The region is also supported by a growing network of modern warehouse facilities, such as Logicross Nam Thuan, which provides around 61,200 m² of leasable space - meeting the operational needs of sectors with high storage demands, including e-commerce and express delivery. Meanwhile, Bac Ninh and Hai Phong lead the activity in the north, with emerging hubs in Quang Ninh and Da Nang poised to support multimodal logistics models that integrate ports, roads, and airports.

Long-Term Leases and Self-Operated Facilities on the Rise

Market indicators are not the only signs of stability; tenant behaviour is shifting as well. In Viet Nam, many international logistics firms, particularly e-commerce platforms and global suppliers, are increasingly seeking self-operated or build-to-suit warehouse models.

Campbell notes, “We are seeing a clear trend toward long-term supply chain control. Tenants are prioritising scalability, ESG compliance, and operational control, which is why long-term land leases and custom-built warehouses are becoming more common.”

Locations near residential areas, seaports, or major transport nodes are receiving heightened interest from international investors. These strategic moves not only help reduce logistics costs but also provide businesses with greater flexibility to navigate market volatility.

Looking Ahead: Priorities for the Next 3–5 Years

To strengthen its competitive edge and move further up the regional supply chain, Viet Nam must focus on several key priorities, such as integrating multimodal transport (rail – port – airport – expressway), modernising customs and warehousing permit processes, building comprehensive digital logistics platforms, promoting green logistics, and investing in workforce development with a focus on technology and automation.

With its combination of natural advantages and sound strategic direction, Viet Nam is transforming from a “cost-effective location” into an integrated, sustainable, and high-potential logistics regional hub.