Trang Bui, country head Cushman & Wakefield Vietnam

While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries.

This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements.

Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely.

Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution.

Nguyen Thi Bich Ngoc, CEO, Sen Vang Group

When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations.

In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors.

Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart.

Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally.

Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development.

Vo Hong Thang, Investment director DKRA Group

The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented.

In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle.

In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users.

Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.