A total of 27 industrial park investment projects across Vietnam have been approved, covering an area of 8,886 hectares.

Supply Expected to Expand

In 2024, eight new industrial parks commenced operations, adding a total of 3,029 hectares—an increase of 3.3% compared to the total operational industrial park area, according to a report by the Ministry of Planning and Investment.

Reforming FDI policies is essential to attract foreign capital into targeted industries

Additionally, the Prime Minister has approved investment plans for 27 new industrial park projects nationwide, spanning 8,886 hectares, bringing the country’s total industrial land area to 18,800 hectares (a 9% year-on-year increase). These new industrial parks are expected to become operational by the end of 2025. However, there has been a notable shift from Tier-1 industrial zones to Tier-2 regions, with most new projects located in provinces such as Bac Giang, Ha Nam, Binh Phuoc, Ba Ria-Vung Tau, and Tay Ninh.

The approval process for new industrial parks is expected to accelerate in 2025. In November 2024, the National Assembly passed amendments to four key laws (Planning, Investment, Public-Private Partnerships, and Bidding). Notably, revisions to the Investment Law have delegated approval authority for industrial park investment projects from the Prime Minister to provincial People’s Committees. This change is expected to speed up the establishment of new industrial parks, benefiting companies with large land holdings, such as rubber plantation enterprises.

FDI inflows into Vietnam slowed down in 2024.

According to SSI Research (a division of SSI Securities Corporation), the conversion of rubber plantation land into industrial parks has shown positive initial results. In 2024, three new industrial parks—Hiep Thanh in Tay Ninh, Xuan Que – Song Nhan, and Bau Can – Tan Hiep in Dong Nai—secured investment approvals for conversion from rubber plantation land, covering a total of 2,495 hectares. It is projected that rubber plantation firms such as GVR, TRC, and DPR (with the expansion of Bac Dong Phu and Nam Dong Phu industrial parks) will begin generating revenue from land conversions starting in 2025.

Demand for Industrial Land Leasing May Not Recover in 2025

SSI Research predicts that the industrial land leasing market may contract in 2025 due to several key factors.

Foreign direct investment (FDI) inflows into Vietnam slowed in 2024, with total registered FDI reaching $31.4 billion—only a 1% increase compared to the same period in the previous year.

The firm identified three primary reasons for the slowdown in FDI expansion in 2024, which may extend into 2025:

1. Exchange Rate Volatility
   Fluctuations in exchange rates can significantly impact project performance, creating uncertainties for FDI enterprises operating in Vietnam.
2. FDI Policy Reforms Needed
   To attract foreign capital into targeted industries, Vietnam must enhance its investment policies. The country faces increasing competition from regional neighbors like Indonesia, which has implemented the Omnibus Law, and Thailand, which has launched a competitiveness enhancement fund and set a corporate income tax rate of 10%. Meanwhile, Vietnam has begun implementing the Global Minimum Tax (GMT) in 2024, and a new decree on the Investment Support Fund—designed to address GMT-related concerns—is expected to be issued in December.
3. Infrastructure Bottlenecks in Southern Vietnam
   Infrastructure development in the southern region remains sluggish, leading to higher logistics costs and reducing the attractiveness of industrial investments. However, Vietnam is actively enhancing infrastructure connectivity between key industrial hubs through projects such as the North-South Expressway and the China-Vietnam railway.
4. Limited Available Land in Key Industrial Zones
   The availability of industrial land in prime locations is decreasing, making site selection increasingly difficult for investors. As of Q3 2024, average industrial park occupancy rates stood at 81% in the north and 92% in the south, according to CBRE.

“We anticipate that industrial land leasing demand will not recover in 2025 due to various factors affecting major tenants from the U.S. and China,”

Analysis Center, SSI Securities Company (SSI Research).

Vietnam’s province with the highest number of industrial parks (IPs) is set to welcome even more new developments.

According to the Dong Nai Provincial e-Portal, as of the end of 2023, Dong Nai had established 33 industrial parks spanning over 10,500 hectares. With this figure, Dong Nai currently holds the record for the most industrial parks in the country.

Despite its extensive industrial land, Dong Nai reports that available space is running low, while both domestic and international businesses continue to show strong interest in investing in the province. In response, the government has approved several new industrial park projects to accommodate growing investor demand.

In 2024, the government approved additional industrial parks, including Bau Can – Tan Hiep, Xuan Que – Song Nhan, and Phuoc An. This expansion brings the total number of industrial parks in Dong Nai to 36, covering a total land area of 12,801 hectares.

Specifically, Decision No. 1005/QD-TTg, issued by the Prime Minister on September 19, 2024, approved the Bau Can – Tan Hiep Industrial Park (Phase 1) investment project. The project, developed by Tan Hiep Industrial Park JSC, spans 1,000 hectares and has a 50-year operational term from the date of approval.

Tan Hiep Industrial Park JSC plans to develop this park as a specialized industrial cluster, focusing on sectors such as supporting industries, logistics, chemicals, pharmaceuticals, metallurgy and machinery manufacturing, data centers (IDC), electricity and electronics, plastic and rubber packaging, wood and paper products, interior furnishings, construction materials, automobiles, and aerospace.

According to Le Nu Thuy Duong, General Director of Tan Hiep Industrial Park JSC, the company is working closely with provincial authorities to expedite necessary procedures and ensure the rapid establishment of a modern, large-scale industrial park. The company also hopes for government support in resolving legal procedures and accelerating the development of connecting transport infrastructure to synchronize industrial park facilities.

On December 2, 2024, Phase 1 of the Xuan Que – Song Nhan Industrial Park in Cam My District received investment approval, with Xuan Que Industrial Park JSC as the project investor. Along with Bau Can – Tan Hiep, these are now the largest industrial parks in Dong Nai.

Additionally, on August 16, 2024, Decision No. 862/QD-TTg approved adjustments to the Nhon Trach New Urban Area master plan in Dong Nai, extending its vision to 2050. This revision includes reallocating logistics and port service land to industrial use and establishing the Phuoc An Industrial Park, aligning with Nhon Trach’s urban development strategy.

Dong Nai’s industrial parks have already leased 6,072.81 hectares, reaching 86.27% of the total leasable area (7,039.67 hectares). The province has attracted investment from 44 countries and territories, totaling 2,150 projects—1,503 of which are foreign direct investment (FDI) projects with a combined capital of $30.62 billion, while 647 domestic projects have attracted VND 87.26 trillion in investment.

According to the Dong Nai Industrial Park Management Board, in 2024, FDI inflows into the province’s industrial parks reached 194% of the annual target ($700 million) and 112.6% of the previous year’s total. Investment surpassed provincial targets, reaching $1.36 billion (against a planned $700 million), with 102 new projects, including 92 FDI projects worth $753.92 million and 10 domestic projects totaling over VND 4.7 trillion.

Notably, 55 of the new projects belong to the supporting industries sector, accounting for 59.78% of new investments and attracting $354.17 million, which represents 46.97% of total new registered capital.

The average investment density for new FDI projects is $7.8 million per hectare, with an average labor employment of 92 workers per hectare. Importantly, none of the projects fall into the category of environmentally polluting industries or labor-intensive sectors.

The newly attracted projects primarily focus on semiconductor manufacturing, electronic components, precision engineering, textiles, and metal fabrication. These align with Dong Nai’s investment strategy of prioritizing high-tech and sustainable industries.

In 2024, Singapore emerged as the leading foreign investor in Dong Nai’s industrial parks, with 13 projects worth $245.73 million, accounting for 32.59% of newly attracted FDI and 14.13% of total new projects.