US giant Coherent expands business in Vietnam

On June 24, Savills Vietnam announced that it has successfully advised Coherent, a global leader in advanced materials, networking, and photonics technologies, to lease 30,000 square metres of ready-built factory (RBF) space at KTG Industrial Nhon Trach 2, managed by BKIM in Dong Nai.

The plot is for the second plant of Coherent in Dong Nai city. The first was opened in July 2025 with the investment of $127 million in Nhon Trach Industrial Park.

The transaction marks a significant milestone in the company’s continued expansion in Vietnam, with the project becoming its second in Dong Nai. This strengthens Vietnam’s position as a key manufacturing and innovation hub within its global network.

The lease of ready-built factory space in Dong Nai is one of the market’s notable transactions but also reflects a broader shift in investment preferences towards industrial parks that offer completed infrastructure and immediate operational readiness.

John Campbell, director and head of Industrial Services at Savills Vietnam, commented that while the north remains Vietnam's traditional electronics manufacturing hub, a growing number of electronics and advanced manufacturing companies evaluating opportunities in the wider southern market is seen.

“Coherent's expansion mirrors the confidence of Dong Nai as a destination for sophisticated manufacturing, supported by a skilled workforce, an established industrial ecosystem, and transformative infrastructure projects including Long Thanh International Airport and Ring Road 3,” said Campbell.

Located within the Southern Key Economic Region, KTG Industrial Nhon Trach 2, managed by Boustead & KTG Industrial Management (BKIM), offers high-quality RBF solutions supported by modern infrastructure and excellent regional connectivity, including access to Ho Chi Minh City, Cat Lai Port, and the future Long Thanh International Airport.

This strategic location, combined with increasingly competitive industrial fundamentals, continues to position Dong Nai as a preferred destination for high-value manufacturing investment.

Tran Quang Trung, head of Project Development at Boustead and KTG Industrial Management (BKIM), said that Coherent brings world-class standards and highly specialised engineering requirements to its manufacturing facilities.

“Having met these stringent requirements, KTG Industrial is proud to be the trusted sub-developer delivering a premium around 30,000 sq.m RBF for its immediate setup in Dong Nai. We are excited to support the company in fast-tracking production and commencing operations as soon as possible,” Trung said.

Vietnam continues to draw in strong interest from global technology manufacturers, driven by its competitive operating costs, stable investment environment, and integration into global supply chains. Recent expansion plans from high-tech investors highlight a structural shift towards long-term manufacturing commitments rather than short-term opportunistic investment.

Coherent’s latest expansion aligns with this forward-looking vision, particularly across the semiconductor, photonics, and advanced materials ecosystem.

As the country continues to strengthen its position within global production networks, the company’s growing presence in Dong Nai further highlights the province as a destination for technology-driven manufacturing investment.

Coherent Corporation was founded in 1971, originally focusing on materials and optics for industrial lasers. With a long-standing legacy as a vertically integrated manufacturer, Coherent boasts world-class innovation capabilities, products, and clients. Its global footprint spans 130 locations across 24 countries.

Coherent entered Vietnam in 2005, establishing its first factory at VSIP1 Industrial Park in former Binh Duong province, specialising in thermoelectric coolers, technical ceramics, wafers, advanced optics, and laser services.

In the late 2010s, Coherent expanded to the north, and in 2019 inaugurated a facility at Yen Phong Industrial Park (IP) in Bac Ninh province.

In July 2025, the company opened the third plant with the investment of $127 million in Nhon Trach Industrial Park in Dong Nai city.

Coherent is a technology group operating in 20+ countries, delivering advanced components and materials to industries including semiconductors, communications, and industrial manufacturing. The company is listed on the NYSE with a market capitalisation of $74 billion to $82 billion. The company’s valuation surged significantly, driven by a massive boost in AI data centre hardware demand, including optical networking partnerships and a $2 billion equity investment from Nvidia.

KTG Industrial Nhon Trach 2, managed by BKIM in Dong Nai city. Photo: Savills Vietnam

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