Presenting Cushman & Wakefield report at the Finance - Real Estate Forum 2025 held in Ho Chi Minh City on May 8, Trang noted despite rising concerns about policy instability, particularly a potential return of protectionist trade policies under a "Trump 2.0" scenario, Asia-Pacific (APAC) continues to show resilience. The region’s GDP grew by 3.9% in Q1 2025, returning to pre-2016 levels. Over the past five years, APAC created nearly 68 million jobs, with over 16 million in the office sector, driven by rapid urbanisation and a growing middle class.

Vietnam has outperformed many of its peers in terms of real GDP growth, positioning itself as a regional economic engine. The country’s industrial real estate sector has also seen robust growth, fuelled by a shift in global supply chains and rising demand for diversified manufacturing hubs outside of China.

With global trade tensions and tariff uncertainties denting investment confidence in traditional markets, emerging economies like Vietnam have gained from capital inflows. By the end of 2024, Vietnam had approximately 20,000 hectares of industrial land available, with average primary land prices rising by 60% over recent years, equating to a compound annual growth rate (CAGR) of 10%.

Foreign investment has surged across various sectors. While traditional industries like textiles and furniture continue to thrive, Vietnam is also attracting investors in high-tech, electronics, and data centre development. In the first nine months of 2024, the majority of industrial land leasing came from Chinese investors, followed by those from the US, Germany, Switzerland, and other advanced economies.

Pham Thuy Duong, senior analyst at Dragon Capital, noted Vietnam’s transition from a hub for labour-intensive industries to a more sophisticated manufacturing destination. Major tech firms like Samsung and Apple have increased their footprint in the country, signaling Vietnam's elevated status in global supply chains.

As global trade patterns evolve and new tariff barriers emerge, experts underscored the need for Vietnam to shift its FDI focus from quantity to quality. This includes investing in high-tech sectors that require skilled labour and enhanced infrastructure.

Lim Dyi Chang, head of Commercial Banking at UOB Vietnam, echoed this sentiment, stressing that low labour costs, once Vietnam’s key advantage, are no longer enough. Today’s investors are more concerned about long-term stability, transparent regulations, streamlined bureaucracy, and strategic access to regional and global markets.

Vietnam’s proximity to major supply chains, combined with strong government support and political stability, continues to reinforce its appeal as a preferred destination for foreign investors in the industrial real estate sector.

Enhancing the quality of FDI inflows

VOV.VN - Vietnam aims to attract high-quality FDI that enhances competitiveness, boosts sustainable growth, and supports long-term economic autonomy.