In an era of deep globalization, businesses are actively seeking new destinations to expand or build their warehousing and factory footprints, and Vietnam is emerging as a highly attractive choice due to a powerful combination of competitive advantages.

Economically, Vietnam maintains a competitive edge. With a US reciprocal tariff rate of 20 per cent imposed on Vietnamese goods to be imported to the U.S., albeite higher than pre-2025 levels, this rate is widely considered "manageable," allowing businesses to sustain production plans and helping to restore investor confidence.

Furthermore, the trend of diversifying production away from China is well-established. For over a decade, the "China Plus One" strategy has shaped the decisions of multinational corporations seeking to reduce their reliance on the "world's factory".

In this context, Vietnam has carved out a distinct position thanks to its lower labor costs compared to many regional peers, competitive manufacturing and logistics expenses, and a strategic geographic location. Moreover, the country's stable political environment is a significant advantage in the eyes of global investors.

Ms. Trang Bui, CEO of Cushman & Wakefield Vietnam, observes that the trend now extends beyond final-stage assembly. "Many companies are planning to move their entire supply chains to Vietnam to leverage its policy stability," she says. This shift is creating a powerful impetus for the high-end, ready-built factory (RBF) market, which is considered a strategic segment of Vietnam's industrial real estate sector.

A core driver of this supply chain relocation wave is the technical capability and construction standards of Vietnam's facilities. Technically, ready-built factories in Vietnam now meet uniform standards suitable for the production needs of most light and medium industries.

A report from Cushman & Wakefield shows that the supply of ready-built factories has grown significantly since the first facility was constructed in 2017, reaching approximately 11 million square meters with a high occupancy rate of over 85%, as of the second quarter of 2025.

Adding to this momentum is a clear trend towards "green" factories, according to Mr. Tran Quang Trung, Director of Project Development at KTG Industrial.

He said that in industrial parks, the use of low-carbon materials, solar panel installations, water recycling, and the optimization of natural lighting have become mandatory requirements. The growing prevalence of green factories built to international standards is increasingly enabling Vietnam to meet the stringent demands of global corporations.)