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VIỆT NAM RANKS AMONG MOST COST-COMPETITIVE LOCATIONS ON GLOBAL INDUSTRIAL MAP
Việt Nam has again been recognised as a highly cost-competitive location for industrial and logistics investment, ranking in the most affordable tier globally for rent, labour and energy.
Logistic rent levels in the last quarter of 2024. Việt Nam is a highly cost-competitive location for industrial and logistics investment. – Photo Courtesy of Cushman & Wakefield
HCM CITY – Việt Nam has again been recognised as a highly cost-competitive location for industrial and logistics investment, ranking in the most affordable tier globally for rent, labour and energy.
Highlighted in the recently published 2025 Waypoint: Global Industrial Dynamics Report by real estate services firm Cushman & Wakefield—evaluating more than 120 markets worldwide—Việt Nam emerges as one of the select countries recognised for its highly affordable environment for these critical site selection elements.
Despite an increase of 70 percent in industrial rental rates between 2019 and 2025, overall costs remain remarkably attractive in comparison to regional counterparts. The average logistics real estate rental prices are around US$5.3 per square metre per month in Hà Nội and $4.9 per square metre per month in HCM City.
Logistics and manufacturing operations remain heavily reliant on human capital. A large, cost-effective labour force is a critical factor influencing site selection and operational strategy, from determining which processes to localise to the level of automation investment.
In Việt Nam, labour costs are currently less than 25 per cent of the global median wage, placing the country among the most affordable labour markets in the Asia-Pacific region.
Meanwhile, electricity demand in modern logistics facilities is rising, driven by automation systems, smart management platforms, advanced material handling equipment, and the growing adoption of electric vehicles. As a result, operating costs are becoming an increasingly important consideration in investment decisions.
In addition, Việt Nam maintains its competitive edge, with industrial electricity prices among the lowest globally, only higher than Indonesia and Nigeria.
The combination of these three core cost factors - labour, energy, and real estate - has positioned Việt Nam as a highly attractive destination on the global industrial map, particularly for manufacturing and logistics. To optimise production, secure supply, and efficiently distribute goods to consumers, businesses must develop a real estate strategy aligned with long-term operational goals, said Cushman & Wakefield.
Global Industrial Dynamics Coordinates 2025 is a research report based on survey results from Cushman & Wakefield’s logistics and industrial market experts across 127 markets worldwide. The survey was conducted from April 7 to April 18, 2025, shortly after the Trump administration announced a 90-day suspension of most elevated tariffs, while maintaining a 10 percent tariff on nearly all global imports. – VNS
Source: VNS
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