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In the context of globalization and drastic changes in the global supply chain, industrial parks in Vietnam have emerged as a strategic choice and attractive destination for both domestic and foreign investors. From geographical advantages, competitive costs to increasingly improved investment attraction policies – all these factors have contributed to making the industrial park model the focus of attracting FDI capital flows. This article analyzes the reasons why industrial parks attract investors, along with the challenges and development orientations in the near future.
I. Why have industrial parks become attractive destinations?
1. Strategic locations and good connectivity
Vietnam enjoys a favorable geographic location in the Asia–Pacific region, with seaports, international airports, and a transportation network that is being rapidly upgraded. Industrial parks located near logistics hubs, seaports or airports quickly become attractive to investors because they reduce transportation costs and increase competitiveness.
Furthermore, many new industrial parks are being planned in key economic zones – which further strengthens the appeal of industrial parks to both domestic and foreign investors.
2. Competitive costs and abundant labor supply
One of the key reasons industrial parks are popular is that labor and operating costs are much lower than in many countries in the region. For example, studies show that labor costs in Vietnam can be less than 25% of the global average.
In addition, many industrial areas have a large labor supply and improving labor productivity, enabling manufacturers to quickly expand production capacity by locating factories in multiple industrial parks.
3. Investment-attracting policies and an improved business environment
The Vietnamese government has been improving the legal framework and investment procedures, offering numerous incentives for companies establishing a presence in industrial parks. According to reports, foreign direct investment (FDI) continues to grow steadily, and industrial parks remain one of the most effective channels for attracting capital.
Policies on land, taxation, infrastructure use, and coordination between industrial parks and development zones are being prioritized, creating a more transparent and investor-friendly environment.
4. Shifts in production – opportunities for industrial parks
Facing global supply-chain disruptions, many companies are seeking alternative locations or expanding outside China. In this context, Vietnam’s industrial parks have emerged as attractive alternatives because of their geographic advantages and cost competitiveness.
Moreover, as production shifts “closer to home” to reduce supply-chain risks, many companies are choosing to lease land or rent factory space within Vietnam’s industrial parks.
II. Numbers that demonstrate the appeal of industrial parks
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According to data, in the first half of 2025, realized FDI in Vietnam reached about USD 11.72 billion, a significant increase, with much of the investment directed to industrial parks or industrial real estate.
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Rental prices for land and factory space in key industrial parks remain competitive: in the South, land rents in industrial parks average about USD 180–200 per m² per lease cycle; in the North, about USD 90–180 per m².
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The industrial real estate market in industrial parks has also seen strong revenue growth: in Q2/2025, revenues for related companies rose by approximately 20% year-on-year.
These figures clearly show the “heat” around the industrial park model and why it has become a top choice for investors.
III. Leasing land and factory space in industrial parks — a growing trend
When investing in industrial parks, many companies today do not simply buy land; they choose to lease land in industrial parks or rent factory space in industrial parks to save on initial capital expenditure and to gain operational flexibility.
Leasing land or renting factory space in industrial parks offers clear advantages: faster project deployment, simpler procedures, and often complementary support services from park developers such as infrastructure, logistics, wastewater treatment and labor supply.
This means industrial parks that already have available land or factory space for lease will attract more investors — especially manufacturers that want to establish operations in Vietnam without large upfront investments.
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IV. The green industrial park model – an inevitable trend
Beyond cost and location, industrial parks today are transforming toward “green and sustainable” models to meet growing demand from international investors. The green industrial park model is becoming a new standard and is highly valued by companies.
A green industrial park typically includes: wastewater treatment systems, energy-saving measures, use of renewable energy, abundant greenery within the park, and environmentally friendly logistics — together these create a new competitive advantage for industrial parks.
Implementing the green industrial park model not only enhances the project’s image but also meets ESG criteria — a factor that investors increasingly consider when deciding where to locate factories.
V. Thách thức và điều kiện để khai thác tối đa tiềm năng
1. Limited land supply and competitive pressure
Although demand for industrial parks is strong, the supply of clean land in many key industrial regions is increasingly limited. For example, many industrial parks in the North already have very high occupancy rates. Limited land supply will push rental and purchase prices up, increasing investment costs and posing a challenge for investors considering industrial parks.
2. Rising input costs and competition from other countries
Labor costs, construction costs, material costs and energy prices are trending upward — making it harder to maintain the cost-competitiveness of industrial parks. At the same time, regional competitors such as Thailand, Malaysia and Indonesia are also stepping up efforts to attract investment and improve infrastructure, forcing Vietnam’s industrial parks to continuously upgrade in order to retain their appeal.
3. Higher requirements for infrastructure, environment and services
Large investors today care not only about rental prices but also about the quality of infrastructure (power, water, logistics), supply-chain connectivity and environmental and occupational safety standards. Industrial park developers must meet these higher standards to become preferred choices.
VI. Directions and opportunities for investing in industrial parks
1. Investing in industrial parks located in key regions
Industrial parks in provinces within major economic zones such as Bac Ninh, Hai Phong, Dong Nai, Binh Duong and Ba Ria–Vung Tau are highly rated. Examples of promising industrial parks in 2025 include VSIP Bac Ninh and DEEP C (Dinh Vu) in Hai Phong, among others.
Investors can consider locating in industrial parks with strong connectivity, proximity to ports or airports, and robust industrial logistics services.
2. Prioritizing leased land or ready-to-use factory space in parks with existing infrastructure
With the desire to deploy quickly and keep initial capital expenditure low, many companies choose to lease land or rent ready factory space in industrial parks instead of building from scratch. Industrial park developers that offer good infrastructure and support services will be the preferred choice.
3. Transitioning to green and smart industrial park models
Savvy developers and companies are moving toward green and smart industrial park models. Investing in green infrastructure, energy efficiency and smart logistics will help industrial parks attract high-tech and clean production investors.
Investors choosing such industrial parks will gain dual benefits: improved production efficiency and enhanced brand value while meeting ESG requirements.
4. Cooperation among developers, local authorities and businesses to build capacity
A successful industrial park depends not only on location or cost, but also on close coordination between local government, park developers and enterprises – from fast investment approvals and integrated infrastructure to labor supply and support services. This helps make industrial parks easier to enter and faster to operate for investors.
VII. Conclusion
Overall, industrial parks in Vietnam are currently at a “golden” moment to attract investment – thanks to favorable location, competitive costs, abundant labor and an increasingly improved investment environment. With the rising popularity of leasing land and factory space in industrial parks and the growing adoption of green industrial park models, investors have more flexible and suitable options.
However, to fully exploit the potential of industrial parks, both developers and enterprises must thoroughly understand the market and consider factors such as land supply, input costs, infrastructure and service requirements, environmental standards and production trends. Only by meeting these criteria can an industrial park truly become an attractive and sustainable destination for long-term investors.
If you are a company or investor considering entering Vietnam’s industrial market, selecting an industrial park with a strategic location, professional services and a green model will be a strategic move toward success. Carefully survey the market, perform on-site diligence, and leverage available advantages to reap the rewards from the industrial park model that is opening up significant opportunities.
