Vietnam has established itself as a strategic destination for many global corporations by 2025, . However, increasing pressure to comply with ESG (Environmental, Social, and Governance) standards is compelling these corporations to require their supply chains to obtain green certifications. This reality is, in turn, fueling the demand for green factory rentals in Vietnam.

According to Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, while the outcome of new tariff adjustments is not yet fully determined, Vietnam has received positive signals.

This helps Vietnamese goods maintain a competitive edge over some other countries in the region. Consequently, Vietnam remains a high-potential country for global manufacturers seeking to build more diverse and sustainable supply chains.

In this context, industrial real estate has emerged as a strategic pillar, playing a key role in sustaining global manufacturing and distribution. Notably, the "greening" trend among developers is becoming a significant competitive advantage, as a growing number of global enterprises prioritize infrastructure that complies with ESG  standards—a trio of criteria used to measure a company's sustainability and community impact.

A survey by Cushman & Wakefield reveals that "sustainability" is now among the top three criteria for businesses when selecting commercial real estate.

Over 70% are willing to pay a higher rental premium of 7% to 10% for green buildings to achieve their emission reduction targets. Businesses are no longer just looking for efficient production space; they also expect infrastructure that helps them realize their sustainable development commitments.

In light of this trend, Vietnam stands out as one of the few countries that possess a full range of competitive advantages. Although factory rental prices in 2025 have increased by 70% compared to 2019, the average price remains attractive compared to other markets in the region, ranging from $4 - 7/sq.m/month.

Notably, labor costs in Vietnam are currently among the lowest in the Asia-Pacific region. The price of electricity for industrial production also ranks as the third lowest globally.

Furthermore, Vietnam's strong commitment to sustainable development was clearly demonstrated at the 26th conference of the parties to the United Nations Climate Convention (COP26), where Prime Minister Pham Minh Chinh announced the goal of achieving net-zero emissions by 2050.

Since then, many related policies have been enacted. While the initial goal was to have 150 green buildings by 2030, by 2025, this number has already surpassed 250, ranking Vietnam 28th globally in the number of projects certified by the US Green Building Council.