Long Hau 1 Industrial Park in Can Giuoc district, Long An province. (Photo: VNA)

Hanoi – The delegation of licensing authority to localities along with newly planned and expanded industrial zones is driving the growth of the industrial real estate segment, providing a major boost for investors.

According to the approved planning schemes of 63 localities, by 2030, Vietnam will have 221 newly planned industrial zones, while 76 existing zones will be expanded and 22 have their planning adjusted.

The acceleration of legal obstacles removal in recent industrial real estate projects is creating growth opportunities for many businesses participating in this segment. Notably, this is also one of the key factors contributing to attracting investment and boosting growth for real estate in 2025.

In November 2024, the National Assembly adopted the Law on amendments and supplements to a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under Public-Private Partnership (PPP), and the Law on Bidding. Notably, the amended Law on Investment requires the delegation of investment certification for industrial zones to the provincial People’s Committees, instead of the Prime Minister. This decentralisation of industrial land management will accelerate the establishment of new industrial zones.

According to experts, the licensing procedures for the establishment of new industrial zones will be sped up this year.

For example, in January, the Kinh Bac Urban Development Corporation (KBC) made significant legal progress in key projects, such as receiving approval for the investment policy of the 687-hectare Trang Due 3 Industrial Park, the 585-hectare Trang Cat Urban Area, and Phase 1 of the Kim Thanh 2 Industrial Park covering 235 hectares. As a result, the company’s total industrial land fund has increased to 6,402 hectares, accounting for 5.1% of the national industrial land area.

Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers, stated that industrial real estate remains a “star” of the market, and is predicted to continue “carrying” the overall market’s recovery at the top tier.

Notably, not only large, well-known developers such as Kinh Bac (KBC), Viglacera (VGC), Becamex (BCM), Idico (IDC), and others who dominate the industrial real estate market, but many other companies are also being drawn into the “race” by the segment’s appeal.

Recently, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land) has announced its upcoming strategy to expand into the industrial and logistics real estate sectors in the southern market. Meanwhile, DIC Holdings, a member of DIC Corp, has also partnered with Van Thuong Industrial Park Infrastructure Development Co., Ltd. to be prioritised as the general contractor for the 400-hectare infrastructure project in Phu My township in Ba Ria-Vung Tau province.

Thomas Rooney, senior expert at Savills Hanoi, assessed that although the potential is “huge,” most industrial park projects in Vietnam are currently being developed using the traditional model.

Converting a conventional industrial park into an environmentally friendly zone is necessary. However, this is not a simple task, as it involves high costs and requires time, as well as careful consideration from the Government regarding the legal framework and incentive policies. Additionally, credit support for investors is needed to help reduce the initial cost burden.

For industrial real estate to maintain its appeal and continue to grow strongly in the future, the expert stated that infrastructure and transport systems must continue to be developed and planned in a synchronised and efficient manner. At the same time, developers and investors need to pay attention to the general trends of the industry.

In 2025, experts forecast that the growth potential of this segment will stem from the trend of shifting FDI capital into Vietnam, along with support from land rental prices and policies from the Government.

Michael Kagan, CTO of Nvidia Corporation

Michael Kagan, chief technology officer of Nvidia Corporation declared that AI was the backbone technology of the future. This is one of the most important inventions, second only to the wheel. AI will transform and completely change human life.

The CTO said that Nvidia is investing in Vietnam by setting up an office in Hanoi and expanding the Nvidia team here. “Vietnam will be the centre of talent in AI and semiconductors in a near future,” he said.

Nvidia has great confidence in the aspirations and ambitions of the Vietnamese government. This corporation believes that its strategy is very suitable for Vietnam’s AI development strategy in the next decade. Therefore, Nvidia will realise this vision with Vietnam.

“We have also seen impressive growth, which is a result of the Vietnamese government’s forward-looking policies. We see Vietnam’s transformation as very relevant to Nvidia’s mission,” Kagan said. “We forecast the growth of this market to reach $1.5 billion in the next 10 years, which is the result of Vietnam’s effective policies.”

He saw that Vietnam possessed important capabilities such as technological acumen, a rapidly growing economy, a large and young population, and the government’s commitment to encouraging innovation.

In the future, Nvidia will carry out support initiatives on AI and semiconductor education. Nvidia is collaborating with more than 65 universities in Vietnam to integrate AI and semiconductor training programmes into schools and institutes. They also work with Vietnamese partners to create a platform to build an AI innovation ecosystem in Vietnam.

Infrastructure is also critical and essential for AI development. The Group is committed to supporting Vietnam in developing infrastructure by partnering with FPT Group. This continuous investment cooperation will enable Vietnam to become one of the largest AI and semiconductor R&D centres in the world.

“We want to become a long-term partner of Vietnam. We are here to support innovation and empower Vietnamese talent,” Kagan emphasised.

He believes this cooperation will build an infrastructure for Vietnam to master AI, data, and seize value from AI. From then, Vietnam will become an important centre in the region and rise to the top and pioneering innovation.

Truong Gia Binh, FPT Corporation’s chairman

Truong Gia Binh, FPT Corporation’s chairman said that Vietnam had one million IT engineers, half of whom are software engineers who can be moved to AI, and is proceeding with the target of one million AI experts. If this happens, Vietnam will be at the top of the list in terms of developed countries in this area.

“Many years ago, Vietnam was almost unknown on the world IT map. Today, it has become a hub for high-quality human resources. Investors can consider Vietnam as a large talent centre, where people with aspirations and a strong spirit of progress are gathered,” he said.

With the current goals, FPT commits to transforming and training AI capacity for 500,000 people. Vietnam aims to train 50,000 semiconductor engineers by 2030 and will move towards hundreds of thousands of workers in the future. In the context of global investment in training semiconductor workers, FPT has committed to training 5,000 people by the end of this decade, including 1,600 students studying semiconductors.

In the past, more than a dozen leading universities have quickly opened training programmes on AI and semiconductors. FPT has prepared a force for a new generation of experts, integrating into the global technology flow. This is a gold mine waiting for international businesses to exploit.

Moreover, the Party and state leaders have issued affirmations of Vietnam’s determination to choose innovation and sci-tech, including AI and semiconductors, as the roadmap for future development.

“We are mobilising the participation of the whole of society in digital transformation activities, and technology adoption in daily life,” Binh said.

Christopher Nguyen, CEO and founder of Aitomatic spoke about the compatibility of Vietnam’s semiconductor and AI development with global trends. “Technological autonomy is the key to the strong development of Vietnam’s digital economy,” he said.

Vietnam is aiming for a new position in the international arena, opening up strategic cooperation opportunities, creating a solid foundation for the digital transformation process, grasping and mastering technologies, and achieving the goal of rapid and sustainable development in the future. This is an important step for scientists and international partners to work with Vietnamese partners to build a new era for Vietnam’s digital economy.

Minister of Finance Nguyen Van Thang received an Airbus delegation led by Wouter van Wersch. Photo: Duc Minh

“Vietnam hopes that Airbus will continue to invest in areas of its strength such as aerospace, and cooperate with Vietnamese partners in researching and evaluating aircraft so that they can select suitable planes and conduct highly effective flights,” the minister said.

He suggested that Airbus research and invest in component manufacturing factories and participate in developing Vietnam’s aviation industrial ecosystem.

In addition, he called on the company to encourage French enterprises and Airbus partners to increase their investments in Vietnam and develop supporting industries.

The MoF leader said he hoped that Airbus will continue to promote activities with Vietnamese agencies, ministries, and sectors, especially in new areas of cooperation such as aerospace, science and technology, and aviation training.

He said Vietnam is committed to creating favourable conditions for French investors to do business effectively and sustainably in Vietnam.

Vietnamese Minister of Finance Nguyen Van Thang. Photo: Duc Minh

Speaking at the reception, Wersch thanked Thang for taking the time to meet him and for informing him about the policies and proposals for Airbus to expand in Vietnam.

Wouter van Wersch shared Airbus’ industry development strategy. Photo: Duc Minh

Wouter van Wersch shared Airbus’ industry development strategy with the minister, and solutions for developing space technology in Vietnam, especially Earth observation satellites and low-orbit satellites, and solutions for developing helicopter production in Vietnam.

The minister wished the group further success, contributing to technology transformation, digital transformation, and diversification of global supply chains with Vietnam.

Photo: Duc Minh