INDUSTRIAL PARK (IP) LAND
SUPPLY: NO NEW SUPPLY RECORDED
Compared to Q4 2024, the total supply of new Industrial Park (IP) supply has remained unchanged and is currently approximately 28,500 hectares, stable QoQ and up 1.6% YoY. Leading the supply are Binh Duong province with 27.6% and Dong Nai province with 26.1%.
DEMAND: DEMAND FOR INDUSTRIAL LAND INCREASED SIGNIFICANTLY
In Q1 2025, the total net absorption area reached approximately 80 hectares, an increase of 25.0% compared to the previous quarter and 11.11% compared to the same period last year. Long An saw a significant increase, accounting for 60.5% of the total net absorption rate. This substantial increase in Long An can be attributed to its large land reserves and the ongoing development and upgrading of infrastructure to attract investment. Projects such as the Ben Luc - Long Thanh Expressway, Ring Road 4, and the expansion and upgrading of roads connecting to Ho Chi Minh City have facilitated businesses in choosing Long An as an investment destination.
PRICE: INDUSTRIAL LAND PRICE GREW SLIGHTLY, ALMOST UNCHANGED
The average primary asking price of IP land reached US$177/sq.m/lease term, increased slightly QoQ and up 3.51% YoY.
OUTLOOK
From 2025 to 2028, the total market supply will receive approximately 7,274 hectares of industrial park land supply. Binh Duong province has proposed a plan to develop large industrial parks in Bau Bang district with a scale of up to 1,500 hectares, including Lai Hung, Bau Bang 3, 4, and Dau Tieng 4 industrial parks. In Ba Ria - Vung Tau, the Provincial People's Committee has planned four industrial parks with a total area of over 3,800 hectares, including Bac Chau Duc and Chau Duc 1, 2, 3. With the proposal to merge provinces and invest in transportation infrastructure systems connecting Binh Duong, Ho Chi Minh City, and Ba Ria - Vung Tau, such as Ring Road 3, Ring Road 4, and the Bien Hoa - Vung Tau Expressway directly connecting to Long Thanh International Airport and Cai Mep Port, the future of industrial parks in these localities will greatly benefit.
READY-BUILT FACTORY (RBF)
SUPPLY: THREE NEW PROJECTS ENTERING INTO THE MARKET
At the beginning of 2025, the market welcomed an additional ready-built factory project in Long An and two projects in Dong Nai, adding approximately 80,000 sq.m to the existing supply. The total current supply has exceeded 6.4 million sq.m, an increase of 1.2% compared to Q4 2024 and 14.13% compared to the same period last year.
DEMAND: BINH DUONG LEADS, LONG AN RISES
The total net absorption area of ready-built factories (RBF) this quarter was recorded at 223,000 sq.m, a decrease of 1.32% compared to the previous quarter and an increase of 1.56 times compared to the same period last year. Binh Duong accounted for 65.5%, leading in net absorption area. In Q1 2025, Long An rose in net absorption rate, reaching 19.5%, which is 1.3 times that of Dong Nai. The growth of Long An is supported by projects expanding road networks and upgrading prominent infrastructure, such as the opening of several sections of the Ben Luc - Long Thanh Expressway.
RENT: MAINTAINED STABILITY, SLIGHT INCREASE YOY
At the beginning of 2025, the average rental price of ready-built factories (RBF) was recorded at 4.8 US$/sq.m/month, unchanged from the previous quarter and up 2.13% YoY.
OUTLOOK: MARKET EXPANSION DRIVEN BY INFRASTRUCTURE DEVELOPMENT
Over the next three years, as the ring road systems 3 and 4 are completed, connecting with expanded highways such as the Bien Hoa - Vung Tau Expressway, the Ben Luc - Long Thanh Expressway, and the expanded Long Thanh - Dau Giay Expressway, along with a large supply of industrial park land entering the market, the ready-built factory (RBF) model is expected to be a focus of development. Particularly, the Southern Key Economic Zone (SKEZ) will become a focal point due to its long-standing industrial center status and strong infrastructure development.
The merging of provinces brings many prospects for the ready-built factory market, such as enhancing the workforce in remote areas, improving infrastructure connectivity, simplifying administrative procedures, and increasing management accessibility through technology. These factors create favorable conditions for industrial development and attract investors.
READY-BUILT WAREHOUSE (RBW)
SUPPLY: MARKET ABSORPTION OF AVAILABLE SPACE
In Q1 2025, no new supply was recorded, and the total supply of ready-built warehouses (RBW) in the Southern Key Economic Zone (SKEZ) remained stable at 6.3 million sq.m, an increase of 16.67% compared to the same period last year. Dong Nai and Binh Duong provinces led the supply with rates of 34.74% and 27.97%, respectively.
DEMAND: MARKET RECOVERY
At the beginning of 2025, the market recorded a net absorption rate of 160,000 sq.m, indicating a strong recovery in the ready-built warehouse (RBW) market, increasing 3.5 times compared to Q4 2024 and the same period last year. The occupancy rates of projects in Ho Chi Minh City and Binh Duong have consistently remained high at 94% and 90.7%, respectively. Following are Ba Ria - Vung Tau and Dong Nai provinces with occupancy rates of 86.85% and 77.72%, and finally Long An at 54.66%. Notably, all provinces have seen an increase in occupancy rates compared to the previous quarter. This growth reflects the increasing demand for ready-built warehouses, particularly in the context of the recovering and developing manufacturing-export sector. These areas continue to attract investment due to their strategic positions and strong infrastructure development.
RENT: WAREHOUSE RENTS STABLE
The average rent for RBW was recorded at US$ 4.5/sq.m/month, remaining stable both QoQ and YoY. This indicates strong competition in the market from investors, as the supply from existing projects has not yet been fully absorbed.
OUTLOOK
Between 2025 and 2027, the market is expected to receive an additional supply of over 1.2 million sq.m of ready-built warehouses (RBW). Long An and Dong Nai will lead in future supply, accounting for 42% and 38%, respectively. Rental prices are expected to remain stable next year, reflecting market competition. The consolidation of provinces brings many prospects for the ready-built warehouse market, such as enhancing the workforce, improving infrastructure connectivity, simplifying administrative procedures, and increasing management accessibility through technology. These factors create favorable conditions for industrial development and attract investors.
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