M&As: Vietnam’s Industrial Real Estate Enters a New Growth Era Driven by Strategic Mergers and Acquisitions

Vietnam’s industrial real estate market is experiencing a transformational shift driven by mergers and acquisitions (M&A). As global supply chains diversify and multinational manufacturers expand production capacity in Southeast Asia, Vietnam’s industrial segment is emerging as a strategic destination for capital, occupiers, and developers alike. According to recent industry analysis, 2025 has been a landmark year for industrial property transactions, signalling robust investor confidence and long-term growth potential.

Market Resilience in the Face of Global Challenges

The industrial sector’s resilience has been tested by global geopolitical tensions, notably shifts in tariff policies that impacted investor sentiment earlier in the year. Despite an initial slowdown in investment decisions, activity rebounded strongly from the third quarter of 2025. Analysts observed that Vietnam’s diversified manufacturing base and strategic response from governmental authorities helped sustain momentum in the industrial property market.

Vietnam’s ability to navigate external shocks reflected broader market fundamentals. Unlike some global markets heavily dependent on specific manufacturing segments, Vietnam’s diversified industrial ecosystem, spanning electronics, textiles, consumer goods, and logistics, supported sustained demand for industrial space and minimized the impact of temporary disruptions.

Transaction Growth and Sector Dynamics

Data from industry sources show that total transaction volume across Vietnam’s real estate sector reached approximately $537 million in 2025, up nearly 9 percent from 2024. Much of this growth was underpinned by industrial deals, underscoring the strategic importance of M&A activity for sector expansion and investor positioning.

One notable trend was the relative outperformance of ready-built factories (RBF) compared to warehouses. RBFs commanded higher rents and significantly stronger absorption rates, highlighting occupier preference for immediate, production-ready facilities amid ongoing supply chain diversification.

Industrial park land rentals saw stable increases, with asking prices rising by 4 to 5 percent, while occupancy rates consistently remained above 80 percent. Net absorption of industrial land also grew by 30 to 40 percent, reinforcing market stability and the ongoing attractiveness of Vietnam as a regional industrial hub.

Foreign Investment and Competitive Market Drivers

Foreign direct investment (FDI) continued to play a pivotal role in shaping Vietnam’s industrial real estate market. A substantial portion of investment capital flowed into manufacturing and processing sectors, reinforcing demand for industrial space that supports global supply networks. South Korea, Singapore, and Japan were among the leading sources of capital contributing to this growth.

While traditional lease-land-and-self-build models remain prominent, the landscape is evolving. Developers and investors are increasingly prioritizing quicker-to-market products such as ready-built factories and warehousing to meet the immediate needs of multinational tenants. Market diversification has also extended to hybrid facilities and tailored build-to-suit solutions that address specific tenant requirements.

Infrastructure advancements have further bolstered the industrial real estate segment. Government investment in transportation networks, port logistics, and urban connectivity is enhancing access to industrial hubs in Ho Chi Minh City, Hanoi, Binh Duong, and Haiphong, locations with historically high occupancy and demand. These improvements are critical for supporting both domestic distribution and international export activities.

M&A, and the Road Ahead

Looking ahead to 2026, industry experts anticipate continued M&A activity, particularly among larger developers and well-capitalized international firms seeking to establish or expand footprints in Vietnam. The evolving landscape suggests that consolidation may become more common among smaller developers who face competitive pressures from larger peers with deeper balance sheets.

Emerging legal and regulatory frameworks, including updates to land use rights and land pricing transparency, are expected to influence investor behaviour and valuations. While these reforms enhance market clarity, they may also elevate entry costs for developers and prompt strategic realignments across the sector.

Sustainability is another critical factor gaining traction in investment decisions. With multinational occupiers increasingly prioritizing ESG (Environmental, Social, and Governance) standards, green building certifications and environmentally conscious development practices are becoming a differentiator in the market. Properties that meet these criteria may attract premium tenant demand and higher valuation multiples over time.

Implications for Investors and Developers

Core industrial hubs like Ho Chi Minh City will continue to draw significant interest due to their strategic location near seaports, road networks, and established manufacturing ecosystems. As supply chain diversification persists, investors are likely to prioritize assets that combine strong occupancy metrics, favourable lease structures, and proximity to key logistics infrastructure.

For developers and real estate service firms, understanding the nuanced interplay between M&A activity, product differentiation, and tenant expectations will be essential to capturing long-term value. Strategic partnerships and market intelligence will be invaluable in navigating a complex yet promising industrial property landscape.

For investors seeking to capture opportunities, Core5 Vietnam provides more than facilities , we are your strategic partner in long-term success.

Discover more About Us

Interested in expanding your business in Vietnam? Contact Core5 Vietnam today.