Why industrial real estate in Viet Nam is booming?

Why industrial real estate in Viet Nam is booming?

Why industrial real estate in Viet Nam is booming?

Vietnam’s industrial real estate is strongly attractive to foreign investors who want to shift their production from other countries to Vietnam. Viet Nam is the most attractive place to invest in South East  Asia. The reasons behind this are:

  1. Low production cost, just under 1 USD per hour, the lowest in ASEAN and even lower than China.
  2. Stable politics.
  3. The population reachs almost 100 million (by 2020) and with high rate of young population.And the average population increase rate is 1.14%/year.
  4. Low cost for construction fee, land .
  5. Viet Nam has more than 3000 km of coast that is an advantage for transportation.
  6. Logistic increases 20% each year.
  7. European-Vietnam Free Trade Agreement (EVFTA) signed,along with FTA,CPTPP etc.
  8. Preferential tariff, Preferential income tax: along with above advantages,recent years the gorvernment of Viet Nam always tries to attract FDI flow by reduce tax,tariff and lower the land price etc. And depend on each province the local gorvernment will add some more advantages to promote the development of that province.(If client wants to know detail about the advantage in a specific location please leave comment in Chatbox or email : contact@vnclearview.com).


Foreign investment has continued to be poured into Vietnam recently, creating a driving force for industrial property development in 2019. A strong increase in foreign direct investment, along with a shift in the value chain, has opened up a bright future for the industrial property market in Vietnam and  The supporting industry also  boosted the development of Vietnam’s industrial real estate market in 2019.

Industrial property developers can now open ready-built factories focusing on support industries, along with the application of technology in industrial property management.

As the number of foreign-invested enterprises in Vietnam is increasing, resulting in rising demand for specific workshops to meet technical requirements and maximise utility. By 2019, Vietnam had 100,000 hectares of land for industrial zone development, mostly in the northern, central and southern key economic regions.

All of these advantages are creating momentum for Vietnam’s industrial real estate market to expect a booming development in the close future.