Foreign Capital Flows Into Industrial Real Estate

Industrial real estate continues to attract FDI as foreign investors expand land banks and develop new projects.

In mid-Q2, Avery Dennison Worldon Vietnam—a joint venture between U.S.-based Avery Dennison and China’s Shenzhou Group—opened a new plant at Dong Nam Industrial Park, Cu Chi, Ho Chi Minh City. Built on nearly 4,000 sqm with a total investment of USD 4.7 million, this is the company’s third factory in Vietnam, following facilities in Bac Ninh and Tay Ninh.

In Da Nang, several electronics and high-tech firms from South Korea and China are actively seeking land for R&D centers and manufacturing plants. The Da Nang High-Tech Park Management Board reported that in June, the city signed MOUs with four investors—Amata Vietnam, Green i-Park, GuogGuoguang Electric, and European Plastic—on exploring investment in the free trade zone. GuogGuoguang Electric plans to establish an electronic components factory in Lien Chieu by year-end.

At the end of August, during a meeting with the Hung Yen provincial government, CTP, an industrial park developer from the Netherlands, announced plans to invest about EUR 1 billion in Vietnam. The company is particularly interested in Hung Yen and Gia Lai for developing economic zones and high-tech, environmentally friendly industrial parks.

According to the General Statistics Office, in the first eight months of the year, total registered FDI into Vietnam reached USD 26.1 billion, up over 27% year-on-year. In the form of capital contributions and share purchases, investment in manufacturing accounted for 37% of total FDI, at nearly USD 1.7 billion. Michael Piro, CEO of Indochina Capital, observed that Vietnam’s industrial real estate market continues to prove highly attractive to FDI. He noted that in August, the industrial production index rose 8.9% year-on-year, with impressive growth in sectors such as motor vehicles, rubber and plastic products, and garments.

According to Mr. Piro, Vietnam is emerging as a priority destination for global manufacturers and logistics players thanks to its strategic location—serving as both a bridge between Asia and Europe and a gateway along the busy international maritime route in the East Sea. The “China+1” strategy is also driving multinational corporations to shift production to Vietnam to diversify supply chains. Major infrastructure projects—such as the Tu Lien, Tran Hung Dao, and Ngoc Hoi bridges (Hanoi linking to Bac Ninh and Hung Yen), Gia Binh International Airport (Bac Ninh), and the Lao Cai – Hanoi – Hai Phong – Quang Ninh high-speed railway—are being accelerated, enhancing both regional and international connectivity. Administrative reforms and delegated local approvals have also significantly shortened project timelines.

He pointed out that Indochina Kajima, the joint venture, has developed six Core5 ready-built factories in just three years at strategic locations in Quang Ninh, Hung Yen, Hai Phong, and Phu Tho. Strong foreign capital inflows have also pushed rental prices higher. In the north, CBRE reported that average rents in Tier-1 markets such as Hanoi, Bac Ninh, Hung Yen, and Hai Phong reached USD 139 per sqm, up nearly 4% year-on-year. Similarly in the south, Cushman & Wakefield stated that average industrial land asking rents rose slightly to USD 179 per sqm.

Trang Bui, CEO of Cushman & Wakefield Vietnam, noted that Vietnam has now become a strategic destination for many leading global corporations in technology—such as Samsung, Intel, LG, Foxconn, Amkor Technology, NVIDIA, and Toyota—as well as in fast-moving consumer goods (FMCG), including Unilever and P&G, and contract manufacturing for Nike, Adidas, Puma, and Decathlon.

The presence of these industry giants not only generates tens of thousands of high-quality jobs but also drives the rapid expansion of supporting industrial ecosystems. At the same time, demand for green factories is growing, with many ESG- and LEED-certified projects favored by foreign investors. For example, Core5 Quang Ninh has already reached full occupancy, while Core5 Hung Yen reached 80% within just nine months of operation. Earlier this year, Core5 attracted additional Japanese investment through a joint venture with Hulic in Quang Ninh and Hung Yen.

Experts note that Vietnam’s industrial real estate sector is undergoing a strong transformation—not only in scale but also in quality and sustainability orientation. Both domestic and international developers are closely tracking manufacturers’ needs to build more flexible and efficient facilities.

“With the support of professional advisors and the ESG commitments of developers, Vietnam is steadily affirming its position as an attractive destination for global industrial investors,” Ms. Bui concluded.

Read more ICC interview (Vietnamese version) on Vnexpress: https://vnexpress.net/von-ngoai-do-vao-bat-dong-san-cong-nghiep-4936213.html