Vietnam ranks among most cost-competitive locations on global industrial map

Vietnam has again been recognised as a highly cost-competitive location for industrial and logistics investment, ranking in the most affordable tier globally for rent, labour, and energy.

Vietnam has again been recognised as a highly cost-competitive location for industrial and logistics investment

According to a report themed “Waypoint: Global Industrial Dynamics" released by Cushman & Wakefield in mid-June, which evaluates over 120 markets worldwide, Vietnam stands out as one of the few countries to rank among the most affordable markets globally for these key site selection factors.

Although industrial rents in 2025 increased by 70 per cent compared to 2019, actual costs remain highly attractive relative to regional peers. Average logistics real estate rents are approximately $5.3 per square metre per month in Hanoi and $4.9 per sq.m per month in Ho Chi Minh City.

Logistics and manufacturing operations remain heavily reliant on human capital. A large, cost-effective labour force is a critical factor influencing site selection and operational strategy, from determining which processes to localise to the level of automation investment. In Vietnam, labour costs are currently less than 25 per cent of the global median wage, placing the country among the most affordable labour markets in Asia-Pacific.

Meanwhile, electricity demand in modern logistics facilities is rising, driven by automation systems, smart management platforms, advanced material handling equipment, and the growing adoption of electric vehicles. As a result, operating costs are becoming an increasingly important consideration in decisions. Vietnam maintains its competitive edge, with industrial electricity prices among the lowest globally, only higher than Indonesia and Nigeria.

“The combination of these three core cost factors, labour, energy, and real estate, has positioned Vietnam as a highly attractive destination on the global industrial map, particularly for manufacturing and logistics,” said Bui Trang, country director for Cushman & Wakefield Vietnam.

“Foreign investors are seeking land, cooperating with local developers, or re-leasing existing assets for their future operation. To optimise production, secure supply, and efficiently distribute goods to consumers, businesses must develop a real estate strategy aligned with long-term operational goals,” added Trang.

Industrial property rental prices set to rise CBRE Vietnam forecasts that industrial land rental prices are expected to increase by 4-8 per cent per year in the north and 3-7 per cent per year in the south in the next three years.

Industrial property market gains as global supply chains shift Landlords stand to benefit as logistics hubs adapt to changing regional trade dynamics.

Resilient industrial system within reach A new focus on private sector development should create the best conditions for businesses in industrial real estate and eco-industrial parks to grow more sustainably.