Surge in FDI fuels growth of ready-built factories

Ready-built factories in Le Minh Xuan 3 Industrial Park in Ho Chi Minh City. Photo: Saigon VRG

According to data from the General Statistics Office under the Ministry of Finance, in the first half of this year, total newly registered capital, adjusted capital, and capital contributions and share purchases by foreign investors stood at over $21.5 billion, up 32.6 per cent on-year.

Specifically, there were around 2,000 newly registered projects with a total capital of nearly $9.3 billion, marking a 21.7 per cent increase from the same period in 2024. Meanwhile, foreign investors engaged in more than 1,700 capital contribution and share purchase transactions, up 7.6 per cent, with the total value surpassing $3.28 billion, a 73.6 per cent surge on-year.

Disbursed foreign direct investment (FDI) reached an estimated $11.72 billion, an increase of 8.1 per cent. Adjusted capital also witnessed impressive growth, with 826 capital adjustment registrations totalling an additional $8.95 billion, 2.2 times higher than the same period last year. These figures underscore the strong confidence foreign investors have in Vietnam’s business and manufacturing environment.

According to Cushman & Wakefield’s 2025 Global Industrial Momentum Index, which tracks the industrial and logistics sectors across over 120 global markets, industrial warehouse rents in Vietnam have climbed approximately 70 per cent over the past six years.

Last year alone, rents rose by about 7 per cent, placing Vietnam among the 15 fastest-growing markets globally. Cushman & Wakefield attribute this growth to surging global demand for industrial real estate amid limited supply, pushing rental prices higher in many regions. Despite this upward trend, Vietnam’s industrial real estate, including RBFs, remains competitively priced compared to regional peers.

According to Trang Bui, country head of Cushman & Wakefield Vietnam, "The average rent for warehouses in Vietnam remains under $5 per sq.m per month, on par with markets like India, Thailand, and Nigeria. Additionally, labour costs in Vietnam are currently less than 25 per cent of the global average, making the country one of the most cost-effective labour markets in the Asia-Pacific."

The relatively low electricity costs for industrial production also provide Vietnam with a significant competitive edge according to international investors. To minimise upfront investment, save time, and accelerate operations, many firms, particularly foreign-invested ones, are increasingly opting to lease ready-built factories in industrial parks (IPs).

A survey by JLL reveals that RBFs account for over 30 per cent of new transactions in southern IPs. Experts point out that RBFs within IPs are favoured for their flexible size options, synchronised infrastructure, fire safety compliance, stable utility provision, and clear legal status, allowing tenants to commence operations swiftly.

Moreover, the rising emphasis on 'green' manufacturing and energy efficiency has made standardised RBFs in IPs a top choice for many international companies.

Le Minh Xuan 3 Industrial Park, located near downtown Ho Chi Minh City, is among the developments offering a large supply of both industrial land and ready-built factory space. The park has designated 13 hectares for modern RBFs, with flexible sizes starting from 680 square metres to meet diverse investor demands.

Designed for ventilation and high ceilings, and equipped with standard fire protection systems and full legal compliance, these RBFs are ready for immediate operation across various manufacturing sectors. Le Minh Xuan 3 is expected to deliver around 20,000 sq.m of RBF space to the market by the end of the year.

Meanwhile, in Tay Ninh province, Phuoc Dong Industrial Park is leveraging its abundant land resources to develop a versatile RBF system. According to Saigon VRG, the developer of the park, RBFs there are built to modern standards with thoughtful designs.

Each unit starts from 3,000 sq.m and comes with built-in fire safety systems, office space, and large production areas, suitable for sectors such as mechanical engineering, electronics, food processing, pharmaceuticals, and textiles. By the end of 2026, Phuoc Dong Industrial Park is expected to have provided about 35,000 sq.m of RBF space to the market.

Ready-built factories are proving to be an optimal solution that meets the rapid expansion needs of foreign investors in Vietnam. With their exceptional advantages in cost-efficiency, time savings, and operational flexibility, this segment is poised to remain a key driver in attracting and accelerating high-quality FDI inflows into the country in the years ahead.

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