The year 2025 is expected to bring significant changes in the factory fitout sector, including an increase in supply, adjustments in rental prices, and streamlined investment procedures for certain manufacturing industries.
Increased supply of rental factories
Rental factories are becoming increasingly popular among investors due to their compliance with Vietnamese fire safety regulations, planning, and legal requirements. These factors help investors save time on administrative procedures and reduce infrastructure development costs.
The supply of ready-built factories and warehouses is expected to continue growing strongly during 2024 – 2025 to meet market demand. According to a report from Savills, by the end of 2024, the total supply of ready-built warehouses and factories in Vietnam is projected to reach 15.1 million m², marking a 31% increase compared to the previous year. In the Southern region, the total area of ready-built warehouses and factories reached 10.6 million m², with 49% for factories and 51% for warehouses. Meanwhile, in the Northern region, the total supply reached 4.5 million m², accounting for 30% of the national total, with 61% for factories and 39% percent for warehouses.
The increased supply of rental factories provides investors with a wider selection of locations, factory sizes, and production layouts while also optimizing rental costs and fitout solutions.
Factory rental prices to increase slightly by 2 – 4%
With a diverse supply available, factory rental costs in Vietnam are forecasted to remain stable or see only a slight increase. According to CBRE, during the 2025 – 2027 period, rental prices in the Northern region may rise by 0-4%, while the Southern region could see an increase of 2 – 4%.
Additionally, in 2025, landlords will continue to develop high-quality rental factories and warehouses, including those in eco-industrial parks. These facilities will meet international standards such as LEED Gold and LEED Silver, ensuring high service quality. This makes them an attractive option for businesses seeking serious investment opportunities and aiming for sustainable development.
Simplified investment procedures for Technology and Semiconductor component investors
Starting in 2025, the Vietnamese government will officially implement Special Investment Procedures under Law No. 57/2024/QH15, simplifying and expediting investment procedures for high-tech and semiconductor component enterprises. While supporting legal documents and circulars are still being finalized, the Special Investment Procedures are expected to significantly shorten the time and costs required for obtaining fire safety permits, environmental permits, and other regulatory approvals—by up to nine months. This will enable technology businesses to quickly proceed with factory fitout or construction, accelerating investment project timelines and facilitating faster production and business operations in Vietnam.
Smart MEP systems and green development
The integration of smart mechanical, electrical, and plumbing (MEP) systems in factory fitouts is becoming increasingly popular. These advanced solutions optimize operational costs and improve efficiency by leveraging cutting-edge technologies such as IoT (Internet of Things), AI (Artificial Intelligence), smart factories, and automation. Beyond cost savings, these technologies also enable real-time system monitoring and predictive maintenance, reducing risks and operational expenses.
Additionally, investors are paying greater attention to sustainable MEP systems that comply with new standards for greenhouse gas emissions, wastewater management, and resource efficiency. Many new factories are adopting renewable energy solutions such as rooftop solar panels, water recycling systems, and eco-friendly construction materials. These innovations not only help enterprises meet Vietnam’s stringent environmental regulations and reduce carbon emissions but also enhance brand reputation and attract partners committed to sustainable development.
See more: Industrial land rental prices in Hanoi reach 220 USD/m²
See more: Important updates on fire safety regulations in factory construction
See more: Should you build or rent a factory? Factors to consider
