Both events provided in-depth insights into Viet Nam’s industrial real estate landscape and the upcoming market cycle. Discussions focused on the role of strategic infrastructure, high-quality FDI inflows, and increasingly stringent requirements related to legal compliance and sustainable development; factors widely regarded as critical enablers for businesses to proactively adapt and optimise their investment and operational strategies over the medium to long term.

Cost Competitiveness and the Rise of the Electronics Sector

John Campbell, Head of Industrial Real Estate, Savills Vietnam, delivered the keynote address, drawing on Savills proprietary research. He illustrated that the market is undergoing a structural shift, reflected in Viet Nam’s ongoing upgrade within the global supply chain.

Campbell emphasised that the country's core competitive advantages remain firmly in place. In 2025, the recorded average manufacturing labour costs US$350/month, which is significantly lower than those in China and Thailand. Additionally, electricity costs for manufacturing remain highly competitive at around US$0.076 per kWh, compared with US$0.112 per kWh in China and US$0.150 per kWh in the Philippines.

Campbell shared, “Viet Nam’s industrial real estate market is entering a new phase of development, where growth is driven not only by expansion in scale, but increasingly by project quality, investment size and higher value-added activities, representing a long-term structural shift.”

A clear illustration of this transition can be seen in the rapid growth of the electronics sector. According to the report, the value of electronics exports in the first ten months of 2025 increased by 140% (compared to 2019), continuing to serve as a key growth engine for the market. Notably, while 62% of newly registered FDI projects are concentrated on ready-built factories (RBF), 68% of total registered capital has been allocated to land-lease transactions, highlighting a growing trend among large manufacturers to establish long-term, large-scale production facilities in Viet Nam.

Northern and Southern Regions Deliver Strong Operational Performance

Regarding market performance in key economic regions during the second half of 2025, Savills reported positive fundamentals. In the North, industrial land occupancy reached 86%, with an average land price of US$141 per sq m/lease term. The RBF segment in the region recorded an average rental rate of US$5.1 per sq m/month.

Meanwhile, the South continued to demonstrate strong market appeal, with industrial land occupancy reaching 90% and an average land price of US$191 per sq m/lease term. The RBF segment in the South achieved an impressive occupancy of 92%, with average rental levels at US$4.4 per sq m/month.

By 2026, the Southern Economic Zone will see major changes in infrastructure delivery, led by the opening of Ring Road 3 and the accelerated development of the Bien Hoa–Vung Tau Expressway, significantly improving connectivity between IPs, ports, and the new airport, Long Thanh International. This airport will be the most transformative project, with Phase 1 on track for completion in 2026, providing capacity for 25 million passengers and 1.2 million tonnes of cargo annually and establishing a new international gateway for the region.

Emerging Trends: Data Centres and Semiconductors

The Savills report also highlights the rapid emergence of next-generation industries. Viet Nam’s data centre sector is accelerating, with total designed capacity estimated at 524.7 MW in 2025, a significant increase compared with previous years, and projected to reach 950 MW by 2030, potentially.

At the same time, the forecast for the semiconductor industry predicts a market size of US$16.5 billion by 2030, alongside a national target to train 50,000 engineers to meet growing demand for high-quality talent in strategic technology sectors.

According to Savills, in the new growth cycle, investors are placing increasing emphasis on infrastructure readiness, legal transparency, ESG standards, and the long-term sustainability of projects. These factors are becoming key criteria in decisions to expand or restructure manufacturing operations.

Campbell adds, “Beyond cost advantages, factors such as connectivity infrastructure, a clear legal framework, and the ability to meet global standards are playing an increasingly decisive role in attracting and retaining high-quality FDI.”

The events also featured contributions from InCorp and Freshfields, two leading legal advisory firms. Their experts provided updates on tax policies, legal frameworks, and key regulatory changes that may directly impact businesses operating in the industrial real estate sector.

In a dedicated session, Freshfields delivered “Geopolitics, Legal Reforms and Emerging Sectors”, analysing the implications of the global geopolitical landscape, ongoing legal reforms, and the rise of new industries for corporate investment and operational strategies in Viet Nam.

Industrial Insider 2025: Shift to Scale highlights a clear market preference for large-scale, sustainable developments, including eco-industrial parks and green-certified factories, driven by demand from high-tech manufacturing sectors such as electronics, semiconductors, data centres, and logistics.

The full report will be shared with media outlets in the coming period for reference and citation.