Entering the 2026–2030 period, Vietnam’s ready-built factory (RBF) market is forecast to undergo significant changes in both scale and quality. With advantages in deployment speed and investment cost, RBFs remain an attractive option for foreign direct investment (FDI) in Vietnam.
Competitive rental prices, strong supply growth
RBF rental prices in Vietnam are considered stable and competitive. According to Cushman & Wakefield, in Q4/2025, the average rental rate in the South was approximately USD 4.9/m²/month—slightly up from the previous quarter—while the North remained steady at around USD 5.0/m²/month. Although rental prices are projected to grow by 3–9% annually in the North and 3–7% in the South, they are still attractive compared to other countries in the region, thanks to Vietnam’s political stability, extensive FTA network, improving RBF infrastructure quality, and increasingly rigorous ESG compliance.
Cushman & Wakefield also reported that by the end of Q4/2025, total RBF supply in the South reached approximately 6.6 million m². Between 2026 and 2029, nearly 944,000 m² of new supply is expected. However, with an average occupancy rate as high as 92%—including 94% in Đồng Nai, 92% in Ho Chi Minh City, and 90% in emerging markets like Tây Ninh—new supply may still fall short of rising rental demand.
In the North, total RBF supply by the end of 2025 reached more than 5.28 million m², a 22.4% increase year-over-year. Despite rapid supply growth, the region maintains a high average occupancy rate of around 86%. Hanoi is nearly fully occupied, Hưng Yên at 95%, Ninh Bình at 90%, and Hải Phòng at 87%. From 2026 to 2029, the North is expected to add nearly one million m² of new RBF space, yet demand from FDI enterprises remains strong.
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Why FDI investors choose ready-built factories
Research from Savills Vietnam shows that around 62% of new investors prefer RBFs over leasing land to build their own factories—the highest rate since 2018. This figure reaches about 70% in the South and 56% in the North. RBF projects recorded occupancy rates exceeding 80%, primarily driven by high-tech companies and manufacturers of electronic components, circuit boards, and accessories—demonstrating highly effective utilization, especially among FDI enterprises.
This trend stems from the clear advantages of the RBF model:
- Rapid operation: RBFs allow enterprises to commence operations within just a few months, compared to one to two years for legal procedures, design, and construction if building from scratch. This time advantage enables investors to better seize market opportunities.
- Optimized cash flow: Leasing RBFs significantly reduces upfront capital investment in basic construction, allowing companies to focus financial resources on machinery, technology, and production. This is especially critical for first-time investors in Vietnam.
- Reduced legal and construction risk: Most RBF projects are equipped with basic technical infrastructure and required legal documents, helping investors avoid potential risks related to construction permitting and project execution.
- Flexible scaling: In a fluctuating market, leasing RBFs gives businesses the ability to scale up or down their production area according to development phases—without being locked into long-term fixed assets.
With stable rental prices and a positive growth outlook in 2026, Vietnam’s RBF market continues to offer numerous opportunities for FDI enterprises to establish manufacturing operations through fast, flexible, and efficient deployment solutions.
Sources: VnEconomy, Cushmanwakefield.com
