HÀ NỘI — Việt Nam’s strategic shift toward high-value industries is not only enhancing the country’s industrial capabilities but also driving knowledge and technology transfer, experts noted, saying these strategic investments are playing a pivotal role in upskilling the workforce and further integrating Việt Nam into global value chains.

Notably, this transformation in production structure is having a direct impact on the industrial real estate market. According to John Campbell, Director and Head of Industrial Services at Savills Hà Nội, Việt Nam’s industrial real estate sector is currently at a “turning point.” The country is transitioning from a low value-added manufacturing base to a more diversified and technology-driven model with long-term vision.

With its advantageous geographical location, attractive investment policies, abundant labour force, large industrial land reserves, and long-term commitments to infrastructure and human resource development, Việt Nam is not only opening its doors to investment but is also prepared to adapt to future changes.

In reality, demand for industrial land and ready-built factories in Việt Nam remains high. In 2024, the national average occupancy rate in industrial parks stood at 86 per cent.

Thanks to a solid manufacturing foundation and access to international maritime routes, the southern key economic region accounts for 70 per cent of the country’s supply of ready-built factories and logistics facilities, with an occupancy rate of 89 per cent. Meanwhile, the northern region recorded a 78 per cent occupancy rate, supported by its strategic proximity to China and Northeast Asian markets, as well as its developed logistics infrastructure.

Nationwide, the average industrial land rental price reached US$167 per square metre. In the northern region, the rate stood at $132 per square metre, while the southern region recorded $183 per square metre. The average rent for ready-built factories was $4.6 per square metre per month, reflecting sustained demand and investor confidence in the market.

In addition, the quality of industrial parks is improving, with many new projects being more comprehensively planned, incorporating logistics, R&D, and commercial spaces. Sustainability is also becoming a growing priority in the sector. Eco-industrial park models such as Deep C in Hải Phòng city and Prodexi Eco-IP in Long An province are among the pioneers in this trend.

According to Campbell, driven by robust manufacturing growth, Việt Nam’s industrial real estate market has posted strong performance in recent years, with high occupancy and rising rental rates.

The southern region benefits from its mature industrial base and access to international transport networks, while the northern region holds a strategic advantage due to its location near China and modern logistics systems. With these solid foundations, the market is expected to remain attractive to investors, backed by stable demand and favourable growth drivers.

However, Campbell also pointed to ongoing structural challenges. Despite improvements, infrastructure connectivity and deep-sea port capacity remain insufficient to fully meet demand, limiting operational efficiency.

Some 16 per cent of FDI enterprises have relocated part of their operations to other countries, while 18 per cent are considering similar moves due to infrastructure concerns. Additionally, there remains a need to develop a skilled labour supply to meet the demands of high-tech sectors, especially R&D-intensive industries like semiconductors and artificial intelligence, he noted.

The semiconductor industry is currently at the heart of Việt Nam’s industrial transformation. The government has laid out a roadmap to not only develop chip assembly capabilities but also expand into research and design.

Between 2024 and 2030, Việt Nam aims to attract foreign investment while building domestic competitiveness, targeting the training of over 50,000 engineers and the formation of 100 chip design enterprises. By 2040, the country envisions achieving autonomy in the sector, with a network of local chip manufacturing and testing facilities, aiming for regional leadership in the semiconductor industry.

To become a semiconductor production hub, Campbell recommended that Việt Nam move beyond basic assembly and engage more deeply in research and design. The country should also aim to achieve a value-added contribution of at least 25 per cent across the semiconductor production chain.

As of 2024, leading industry players including Intel, OnSemi, Hana Micron, and Amkor Technology have committed to investing over $1.07 billion in semiconductor packaging plants in Bắc Ninh.

Other notable FDI projects include a $383.33 million plant by Foxconn Circuit Precision and a $4.9 million project by Netherlands-based BE Semiconductor Industries (BESI), both slated for development in HCM City’s High-Tech Park in 2025.

These investments demonstrate how Việt Nam’s diversification strategy is helping to establish a comprehensive and balanced industrial ecosystem capable of withstanding external shocks and sustaining long-term growth.

With a solid foundation, increasing investor confidence, and strategic government support for sustainable and high-tech development, Vietnam’s industrial real estate market is well-positioned to become a regional leader in the era of sustainable prosperity. — VNS