VIỆT NAM'S WAREHOUSES DELIVER STEADY GROWTH AMID GLOBAL SLOWDOWN

In HCM City, prime warehouse rents average around US$5.3 per square metre per month, while in Hà Nội, rates are slightly higher at $5.5. Supported by a steady supply of new facilities and cost-conscious tenants, Việt Nam avoids the steep price spikes seen elsewhere.

A view of Hải Phòng seaport which is one of important part at Việt Nam logistics system. Photo chinhphu.vn

HÀ NỘI — While major logistics hubs like London, Sydney and Dubai face soaring costs and slowing rental growth, Việt Nam is emerging as a standout market for warehouse investment. Offering reasonable rental rates and strong long-term potential, the country is carving out a crucial role in regional supply chains.

A recent global report from real estate consultancy Savills reveals that prime warehouse rents worldwide rose by only 1.1 per cent in the first half of 2025 - the slowest growth in three years. This follows a surge between 2020 and 2022, driven by the pandemic-fuelled e-commerce boom.

Economic uncertainty, rising interest rates and geopolitical tensions have cooled momentum globally, pushing tenants to reconsider costs and supply chain strategies amid an oversupply of warehouses. Yet Việt Nam bucks this trend, maintaining moderate and sustainable rental increases.

In HCM City, prime warehouse rents average around US$5.3 per square metre per month, while in Hà Nội, rates are slightly higher at $5.5. Supported by a steady supply of new facilities and cost-conscious tenants, Việt Nam avoids the steep price spikes seen elsewhere.

John Campbell, Head of Industrial Services at Savills Viet Nam, comments, “Việt Nam reflects the regional trend of stability seen across Asia-Pacific. With consistent supply and tenants who manage costs strategically, the market has maintained reasonable rent levels and avoided the dramatic surges experienced in other global hotspots.”

Beyond affordability, Việt Nam benefits from low land and construction costs compared with established logistics markets such as Japan and Singapore. Government efforts to boost investment in logistics infrastructure also help keep operational expenses manageable.

Strategically located in Southeast Asia, with a growing consumer market and political stability, Việt Nam attracts international logistics providers and manufacturers aiming to diversify supply chains. Infrastructure projects - including expressway expansions, port modernisations, and aviation logistics hubs - are further strengthening its logistics network.

Many global players now prefer Build-to-Suit warehouses in Việt Nam, offering tailored solutions that enhance flexibility and long-term savings.

Campbell notes, “We are seeing a clear trend toward long-term supply chain control. Tenants are prioritising scalability, ESG compliance, and operational control, which is why long-term land leases and custom-built warehouses are becoming more common.”

Locations near residential areas, seaports, or major transport nodes are receiving heightened interest from international investors. These strategic moves not only help reduce logistics costs but also provide businesses with greater flexibility to navigate market volatility.

To cement its status as a regional logistics hub, Việt Nam must advance multimodal transport integration, streamline customs, develop digital platforms, and invest in green logistics and skilled labour, especially in automation and technology.

With continued investment and policy support, Việt Nam is poised to evolve from a low-cost warehouse market into a fully integrated and sustainable logistics powerhouse in Asia-Pacific. — VNS

Source: VNS