Vietnam’s Investment: A Strong Start, but the Big Shift Is Yet to Come

At the recently held Vietnam Industrial Property Forum 2025 (VIPF 2025), industry stakeholders under the aegis of the Vietnam Industrial Real Estate Association (VIREA) observed that what we are witnessing now may well be Stage 1 of a larger structural investment wave in Vietnam. According to VIREA’s Vice-Chairman and Secretary-General, Truong Gia Bao, while occupancy rates in warehouse and factory space are climbing, much of this uptick reflects short-term reactions to supply-chain shifts rather than the full-scale reallocation of production footprints.

The guest commentary emphasized that Vietnam is benefiting from rising global demand for logistics, warehousing, and flexible production space as multinational firms seek alternatives to traditional hubs. However, despite the strong performance to date, the scale of investment seen thus far is regarded as a precursor, a smaller wave, before a more substantial shift toward large-scale manufacturing, advanced technology deployment, and long-term value-chain repositioning takes shape.

Vietnam’s Competitive Position in ASEAN and Beyond

In the context of regional competition for foreign direct investment (FDI), Vietnam is steadily asserting itself. According to the article, Vietnam currently ranks third in ASEAN for FDI-attractiveness, trailing only Singapore and Indonesia. One of Vietnam’s key competitive advantages lies not only in tax incentives, but more crucially in political stability, a transparent investment environment, and adaptability to global trends.

Importantly, the investor base is broadening. The article notes that beyond traditional Asian capital, more firms from Europe and North America are now considering Vietnam for both real-estate logistics and direct manufacturing investment. This diversification underscores the expanding global confidence in Vietnam’s industrial ecosystem.

The Next Frontier: From Warehousing to Manufacturing & High-Value Chains

While demand for logistics and ready-built industrial real-estate has surged, many experts believe the transformative investment wave will involve:

• Scaling up manufacturing facilities rather than mere storage or assembly hubs
• Attracting high-technology production, knowledge transfer and value-adding activities
• Developing large-scale industrial complexes tailored for long-term operations

The opportunity for Vietnam lies in upgrading the quality of FDI, attracting projects tied to knowledge transfer and higher value-added production, instead of purely labor-intensive manufacturing.

Key constraints remain, however: energy supply and infrastructure quality top the list. The article draws attention to parallels with Indonesia, which leveraged deep-processing industries and resource-based to accelerate industrial growth. Vietnam is encouraged to follow suit, utilizing its resources, improving infrastructure, embracing higher-value manufacturing.

Furthermore, according to national planning, the real estate industrial output, including industrial park development, is expected to double in the 2025-2030 window, signaling the scale of what lies ahead.

Implications for Industrial Real-Estate Developers & Tenants

Emphasis on Readiness and Up-scaling: Existing logistics and warehouse assets are performing well, but the next wave will require facilities built for manufacturing scale, advanced automation, and green/ESG-compliance. Early movers adapting to these demands are likely to capture disproportionate benefits.

Location & Infrastructure Are Critical: As manufacturing investments grow, proximity to ports, airports, expressways, utilities and workforce clusters will become ever more important. Regions that can offer ready connectivity + reliable energy + industrial ecosystem will attract the deeper shifts.

Partnering and Capability Matters: In a market where the investor base is diversifying and competition within ASEAN for FDI is intensifying, local or regional partners who can support speed, regulatory alignment, and agile adaptations will be a differentiator.

Prepare for the Long Game: While the immediate demand surge is real, the full investment wave may take a few years to fully materialized. Stakeholders should position themselves for the long-term transition, from warehousing/logistics into manufacturing/advanced value-chain ecosystems.

Where Core5 Vietnam Fits In

While the broader market is evolving, Core5 Vietnam is one of the players aligning with this shift. With a focus on modern industrial facilities and strategic logistics corridors in Northern Vietnam, Core5 is preparing to address both current demand for ready-built space and the anticipated larger wave of manufacturing/tech investment ahead.

In doing so, Core5 is aligning with the industry’s view that Vietnam is not only a destination for logistics but is increasingly positioning to become a manufacturing and value-chain hub.

What’s next:

Vietnam’s industrial real-estate sector is on a solid footing thanks to supply-chain relocation, rising warehousing demand and expanding investor interest. Yet experts emphasise that what the market has seen so far is only the opening act. The real opportunity lies ahead—in deep manufacturing operations, high-technology production, value-added investment and large-scale industrial ecosystems.

Stakeholders who recognise this trajectory, adapt to the next wave of requirements and position thoughtfully between logistics today and manufacturing tomorrow will shape the future of Vietnam’s industrial landscape.

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

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