Unlocking Vietnam’s Industrial Real Estate Boom: The Advantage of Core5 Vietnam

Vietnam’s industrial real estate market is at a turning point. With record levels of foreign direct investment (FDI) pouring into the country, demand for high-quality, ESG-compliant industrial parks is stronger than ever. For global investors seeking sustainable, strategically located assets, Core5 Vietnam stands out as a partner of choice. This article unpacks the surge in foreign capital, the factors driving investor confidence, and why Core5 is uniquely positioned to lead Vietnam’s industrial real estate boom.

Rising FDI in Vietnam’s Industrial Real Estate

The momentum is undeniable. In the first eight months of 2025, Vietnam attracted USD 26.1 billion in FDI, up 27% compared to the same period last year. Of this, manufacturing and industrial real estate accounted for nearly USD 1.7 billion, reflecting the sector’s central role in Vietnam’s growth strategy.

Notable recent deals include a USD 4.7 million joint venture factory by Avery Dennison (US) and Shenzhou (China) in Ho Chi Minh City. Meanwhile, in Hung Yen, a Dutch investor has announced plans for a EUR 1 billion project, further signaling international confidence in Vietnam’s industrial real estate.

Why Investors Are Targeting Vietnam

Strategic Location & Supply Chain Shifts

Vietnam is a central player in the China+1 strategy, as multinational corporations diversify their manufacturing bases. Its geographic location—bridging East Asia and Southeast Asia—offers a gateway to key global trade routes.

Infrastructure Expansion

Ongoing infrastructure upgrades are transforming connectivity. The construction of the Tu Lien and Tran Hung Dao bridges, the Ngoc Hoi interchange, Gia Binh Airport, and the planned high-speed railway are making northern industrial hubs more accessible than ever. At the same time, government efforts to streamline administrative procedures are helping projects move forward faster.

Sustainability & ESG Demand

Modern investors increasingly prioritize green-certified industrial spaces. Here, Core5 VN has a clear advantage: our industrial parks are designed to meet international ESG and LEED standards. This aligns directly with the expectations of multinationals looking to strengthen their sustainable supply chains.

Rental Market Trends: North vs. South

Vietnam’s industrial rental market is experiencing steady growth:

• Northern Vietnam: Average rents rose nearly 4% to USD 139/m², driven by strong demand in Hanoi, Bac Ninh, Hung Yen, and Hai Phong.
• Southern Vietnam: Rents remain higher at an average of USD 179/m², reflecting the maturity and scale of the southern industrial hubs.

This pricing dynamic offers investors strategic options, with Core5 Hung Yen providing cost-effective access to northern logistics corridors, while Core5 Quang Ninh benefits from proximity to cross-border trade routes.

SG-Aligned Industrial Parks

Core5 VN: Positioned to Capture the FDI Wave

Core5 is one of the few developers in Vietnam that fully integrates ESG principles into industrial park design. From energy-efficient warehouses to modern layouts, our spaces are built for long-term sustainability.

Strategic Locations with High Occupancy

Our projects in Hung Yen and Quang Ninh have achieved occupancy rates of 80–100% within months of launch. This reflects not only strong tenant demand but also the strategic foresight of Core5 in selecting prime growth corridors.

Backed by Global Investors

Core5 VN is powered by Indochina Kajima, a joint venture between Indochina Capital and Kajima Corporation of Japan. As Michael Piro, CEO of Indochina Capital, emphasized: “Vietnam is becoming a priority destination in the global supply chain.” In just three years, Indochina Kajima has developed six Core5 industrial parks, setting a benchmark for speed and quality in Vietnam’s industrial market.

Vietnam’s industrial real estate boom shows no signs of slowing. Rising FDI, infrastructure upgrades, and global sustainability commitments are converging to create unprecedented opportunities. For investors and tenants alike, Core5 VN delivers the right mix of ESG-driven solutions, prime locations, and reliable global backing.

As demand continues to climb, Core5 remains committed to building modern, future-ready industrial parks that meet the needs of global supply chains while supporting Vietnam’s sustainable growth.