Transport infrastructure and its role in driving Vietnam’s industrial real estate

Over the last decade, Vietnam’s transport infrastructure has emerged as a decisive factor fueling economic growth and reshaping the landscape of industrial real estate (IRE). With heavy investment in expressways, seaports, airports, and railways, Vietnam is gradually building a modern logistics backbone, which directly supports the expansion of industrial parks (IPs) and manufacturing clusters.

According to the Ministry of Planning and Investment, Vietnam currently has more than 400 industrial parks, of which nearly 300 are operational. The development and occupancy of these IPs are closely tied to the quality of transport connectivity. Global manufacturers consistently evaluate three crucial aspects before investing: logistics accessibility, transport efficiency, and cost optimization.

As Vietnam competes with regional peers like Indonesia, Thailand, and Malaysia to attract FDI, improving transport infrastructure is no longer a domestic necessity—it is a strategic weapon to position the country as a global manufacturing hub.

The Relationship between Transport Infrastructure and Industrial Real Estate

1. Connectivity – The lifeline of industrial parks

Industrial parks often focus on large-scale production, requiring the capacity to transport goods to seaports, airports and consumption centers. If the transport infrastructure is weak, businesses will have to bear additional logistics costs, reducing competitiveness.

• • Road networks: Key projects like the North–South Expressway and ring roads in Hanoi and Ho Chi Minh City significantly reduce travel time.
    
  • Seaports: International hubs such as Lach Huyen (Hai Phong) and Cai Mep–Thi Vai (Ba Ria–Vung Tau) are crucial gateways for export-oriented IPs.
    
  • Airports: Long Thanh, Noi Bai, and Tan Son Nhat offer advantages for high-value, time-sensitive cargo such as electronics and textiles.
    
  • Railways: Although underdeveloped, future upgrades to the North–South line and ICD (Inland Container Depot) connections will play a vital role in multimodal logistics.
    

See more: Metro – airport – urban connection in Vietnam

2. Lowering logistics costs – Boosting competitiveness

Vietnam’s logistics cost remains high at 16–18% of GDP, compared to the global average of 10–12%. Infrastructure upgrades directly:

• • Reduce transport expenses for IP tenants.
    
  • Ensure faster, more reliable delivery aligned with global “just-in-time” supply chains.
    
  • Enhance Vietnam’s attractiveness for FDI, especially in manufacturing sectors like electronics, textiles, and automotive.
    

See more: Impact of railways on logistics & freight transport

3. Spillover impact on IRE values

Proximity to transport infrastructure significantly increases industrial land value. Research shows rental prices in IPs located near highways or seaports are 15–25% higher, with occupancy rates often exceeding 85–90%. This reinforces the direct correlation between infrastructure quality and IRE performance.

Investment Trends in Transport-Linked Industrial Parks

1. Global supply chain shift

The “China+1” strategy has encouraged multinational corporations to diversify operations into Vietnam. These firms prioritize industrial parks with strategic connectivity to highways, seaports, and airports, ensuring efficient logistics while reducing risks from geopolitical uncertainty.

2. Green logistics and sustainable development

Sustainability has become a decisive criterion for FDI, particularly from Europe and Japan. Investors seek IPs integrated with rail logistics, ICDs, and renewable energy solutions to reduce carbon footprints and comply with global ESG standards.

3. Industrial TOD (Transit-Oriented Development)

Inspired by TOD in urban planning, Vietnam is developing industrial clusters combining production, housing, and services around transport hubs. This model enhances logistics efficiency while attracting skilled labor with modern living environments.

4. Policy momentum

Vietnam is allocating over USD 20 billion annually for public infrastructure. Local governments are also introducing incentives—tax exemptions, land rent reductions, and streamlined procedures—to foster IPs closely linked with transport infrastructure.

A-Connection and Its Role in Industrial Park Infrastructure

As a leading player in MEP (Mechanical, Electrical, Plumbing) and fire protection systems, A-Connection is actively contributing to the modernization of Vietnam’s industrial infrastructure:

• • Infrastructure construction: Roads, utilities, and logistics facilities within IPs.
    
  • MEP & fire safety solutions: Ensuring safe and efficient operations for factories and warehouses.
    
  • FDI partnership: Collaborating with global investors to deliver world-class industrial facilities.
    
  • Green innovation: Applying energy-efficient technologies and eco-friendly materials aligned with Vietnam’s Net Zero 2050 commitments.
    

See more:FDI opportunities in Vietnam’s railway infrastructure

Vietnam’s transport infrastructure is the backbone of its industrial real estate boom. The synergy between infrastructure, logistics, and industrial parks is creating a self-reinforcing growth cycle that positions Vietnam as one of Asia’s most attractive destinations for global manufacturers.

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