Ready-built factories gain favor in southern Vietnam

Industrial parks in Ho Chi Minh City and neighboring provinces such as Dong Nai, former Binh Duong and Long An have recorded rising occupancy rates for ready-built factories since mid-2024, with some projects fully leased shortly after completion.

Consultants said the trend reflects shifts in global supply chains and growing pressure on manufacturers to bring operations online more quickly.

Savills Vietnam said the momentum accelerated in 2024 and continued through 2025. 

Southern Vietnam had about 11.6 million square meters of ready-built factories and warehouses last year, with occupancy reaching 92 percent, the firm said.

Savills added that 62 percent of the new manufacturers entering the market in 2025 chose ready-built facilities, the highest share since 2018.

Leasing ready-built mills allows companies to avoid land clearance, permitting and construction processes that can take two to three years, consultants said.

Foreign-invested firms account for most new demands, particularly manufacturers relocating or expanding production in Vietnam, according to several industrial park operators.

Vu Minh Chi, head of industrial services at Avison Young Vietnam, said manufacturers are prioritizing speed, flexibility, and operational efficiency, alongside access to bundled services such as logistics and customs support.

Neil McGregor, managing director of Savills Vietnam, said ready-built facilities allow companies to begin production within months rather than years.

Cost considerations are also a key factor. 

Cushman & Wakefield said leasing ready-built factories enables manufacturers to convert large upfront capital investment into predictable operating expenses.

The firm estimates that building a 10,000-square-meter factory typically requires an initial investment of US$10-15 million, compared with monthly lease costs of about $50,000 for a ready-built facility.

Developers are expected to add more than one million square meters of new supply, though consultants said demand may continue to outstrip availability as industrial land becomes scarcer and environmental and safety standards tighten.