Vietnam’s industrial real estate market is entering a new phase of growth, driven by strong demand, rising land rental prices, and robust foreign direct investment (FDI) inflows. Stocks of companies owning large land reserves in strategic locations—such as KBC, BCM, IDC, and SIP—are gaining investor interest for their mid- to long-term profit potential.

FDI Drives Industrial Real Estate Surge

With the residential property sector facing headwinds, industrial parks are emerging as a bright spot for investors. As of 2024, occupancy rates in industrial parks remain high—81–83% in the North and up to 92% in the South—indicating strong demand and steady cash flow for park operators.

Industrial land rental prices have continued to climb, rising 35% in the North and 67% in the South from 2020 to mid-2024. Notably, in Southern regions, rental rates increased by 10–18% in 2024 alone, underscoring resilient demand amid broader real estate challenges.

FDI remains the primary engine of growth. In the first nine months of 2024, registered FDI reached over $24.78 billion, up 11.6% year-over-year. In manufacturing alone, registered capital rose 15.7% in the first seven months, reaching $12.65 billion—highlighting persistent demand for industrial land to build factories.

Manufacturing Shift from China Accelerates

The ongoing shift of global manufacturing from China to Vietnam continues to gather momentum. In the wake of the US–China trade war and COVID-19, multinational corporations have increasingly diversified production, favoring Vietnam for its geographic advantage, skilled labor force, and stable investment climate.

Vietnamese industrial real estate stocks responded positively following the U.S. presidential election on November 6, 2024. Several tickers—KBC, SZC, SIP, VGC—hit their daily trading limits, while LHG, TIP gained over 5%, and IDC rose more than 4.5%, reflecting investor optimism about continued factory relocations into Vietnam.

Experts predict 2025 will be a breakthrough year for Vietnam’s industrial property sector. Between 2024 and 2027, the country plans to add 15,200 hectares of industrial land and 6 million square meters of warehouse space to meet investor demand—offering significant opportunities for industrial park developers.

Stock Selection Criteria for Industrial Park Investors

According to Nguyễn Anh Khoa, Head of Research at Agribank Securities (AGR), land banks and expansion potential are key valuation factors for industrial real estate stocks. Companies with large, leasable land reserves tend to have stronger long-term growth prospects and cash flow stability.

High occupancy rates and steady rental growth signal strategic location and quality infrastructure—key indicators of sustainable profitability. Meanwhile, financial health—such as cash flow, debt ratio, and management efficiency—must also be carefully assessed to minimize investment risks.

Looking Ahead to 2030

Experts expect the industrial property boom to continue through 2030, fueled by global manufacturing shifts and rising demand in second-tier provinces where land is more readily available. Next-generation FDI—involving high-tech, semiconductor, and green energy sectors—is forecast to surge, especially from partners like the U.S., China, and the EU.

This will drive the development of more specialized industrial parks with higher environmental and infrastructure standards. However, Vietnam’s sector also faces increasing competition from regional peers such as Indonesia, Thailand, and Malaysia, and must invest in sustainability, renewable energy, and waste management to remain competitive.

Investment Recommendations for Individuals

For retail investors, this is an opportune moment to consider industrial real estate stocks. Promising tickers such as KBC, IDC, BCM, SZC, and SIP offer strong mid- and long-term growth potential. However, this sector requires a long-term view and patience—it is not ideal for short-term “trading” strategies.

Investors should focus on companies with sizable land reserves, strategic locations, solid financials, and clear development plans. Monitoring macro trends such as FDI policy, foreign capital flows, and infrastructure development is essential for adjusting strategies in time

Sembcorp and its joint venture partner Becamex have announced plans to explore the development of four new Vietnam–Singapore Industrial Park (VSIP) projects in Vietnam, signaling a continued commitment to industrial growth and foreign investment cooperation.

According to a recent press release, four Memoranda of Understanding (MoUs) have been signed with local authorities to study and develop new VSIP projects in the southern province of Bình Dương and the northern regions including Hải Phòng City, and the provinces of Hưng Yên and Hải Dương. These agreements reaffirm a shared vision of creating optimized industrial zones equipped with the infrastructure and resources necessary to attract and support high-tech manufacturing operations.

In addition to the new MoUs, on March 26, Vietnamese Prime Minister Phạm Minh Chính and Singaporean Prime Minister Lawrence Wong jointly attended the groundbreaking ceremony of the VSIP Thái Bình Industrial Park. This new industrial development, located in Thụy Trường Commune, Thái Thụy District, Thái Bình Province, spans over 333 hectares. In Phase 1, 278 hectares of land will be developed by VSIP Urban and Industrial Park Development JSC, with an investment of over VND 4,932 billion (nearly USD 212 million).

VSIP Thái Bình is set to become a strategic satellite industrial park, supporting a network of manufacturers and suppliers in high-value sectors such as electronic components, precision engineering, and renewable energy. The project is expected to significantly boost investment attraction and economic growth in Thái Bình, serving as a model for high-tech and green industrial zones with strong local economic returns.

Singapore is currently Vietnam’s second-largest foreign investor, with over 4,000 projects totaling more than USD 80 billion in capital. Among these, the 20 VSIP parks have become a hallmark of long-standing, effective, and sustainable cooperation between the two governments and their business communities.

Prime Minister Phạm Minh Chính encouraged Singapore to continue expanding and upgrading existing first-generation VSIP parks, and to invest in second-generation VSIP developments. These future parks are envisioned to be sustainable ecosystems integrating science, technology, innovation, industrial production, urban planning, high-tech services, and smart infrastructure in provinces across Vietnam.

Established in 1996 through a bilateral economic cooperation initiative between the governments of Vietnam and Singapore, VSIP projects are developed through a joint venture between Vietnam’s Becamex IDC and Sembcorp Development, a subsidiary of Sembcorp Industries. Today, the VSIP Group is developing 20 urban-industrial-service complexes across Vietnam, spanning a total area of 12,000 hectares.