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

Related News

MEMBER CORNER / PROMOTIONS

VIETNAM'S MANUFACTURING STORY HAS CHANGED IN 2026

Vietnam is no longer attracting investment solely because of its competitive costs. Today, global manufacturers are increasingly choosing Vietnam for its expanding industrial ecosystem, resilient supply chains and growing role in high-value sectors such as semiconductors, electronics and advanced manufacturing.

Jul 24, 2026

BANKING / FINANCE / INSURANCE / TAX

VIETNAM NEEDS OVER $200BN FROM STOCK MARKET IN NEXT 5 YEARS

Speaking at the event, Bui Hoang Hai, vice-chairman of the State Securities Commission of Vietnam, said total investment demand in the 2026-30 period is estimated at VND38,000 trillion ($1.4 trillion). The state budget can only provide approximately VND8,500 trillion ($323 billion), or 20 percent, leaving the remaining 80 percent to be sourced from private and international capital.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

HUNG YEN BUILDS DIGITAL FOUNDATIONS TO DRIVE LONG-TERM GROWTH

From strengthening data infrastructure to developing AI platforms, Hung Yen province is enhancing governance capacity while laying the groundwork for the growth of its digital economy. Hung Yen, about 50-60km southeast of Hanoi, has maintained steady momentum in implementing its digital transformation agenda, creating a stronger foundation for the province to advance science, technology, and innovation.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

CHINESE INVESTMENT WAVE OPENS NEW DOORS

As Chinese companies move beyond factory relocation to ecosystem-driven investment, Vietnam has a rare opportunity to evolve from a low-cost production base into a strategic node in regional value chains. When global companies first diversified supply chains, the focus was largely on relocating manufacturing capacity.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

VIỆT NAM STEPS UP EXPORT TO ACHIEVE US$550-BILLION TARGET

Việt Nam is intensifying efforts to sustain export momentum in the second half of 2026 as the country works towards its target of US$550 billion in export revenue for the year, despite continuing uncertainties in global trade. Statistics show that exports reached $266.5 billion in the first six months, meaning the economy needs to generate around $245.5 billion more during the remainder of the year to meet the annual goal.

Jul 23, 2026

VIETNAM ECONOMY INVESTMENT

ASIA POWERS VIETNAM’S SHRIMP BOOM, LEAVING THE WEST BEHIND

In the first half of 2026, Vietnam's shrimp exports surpassed the US$2.3 billion mark, driven largely by booming demand from China and a lobster craze. But behind that growth figure lies a lopsided picture: Asia is carrying the load, while the U.S. and Europe have yet to break out. These days, a container of frozen shrimp leaving a Ho Chi Minh City port is more likely to cross the East Vietnam Sea to Shanghai than the Pacific to Los Angeles.

Jul 23, 2026