Vietnam's northern region (pre-merger of cities and provinces), comprising Hanoi, Hung Yen, Hai Phong, Bac Ninh, and Hai Duong, witnessed a recovery in the ready-built warehouse (RBW) market in 2025, according to the global real estate and investment management firm Jones Lang LaSalle (JLL).
This followed a brief period of stagnation triggered by news regarding US countervailing duties. Leasing demand remained steady, with net absorption in the fourth quarter reaching 125,000 sq.m, surpassing the total absorption of the first three quarters combined.
For the full year 2025, total net absorption in the North reached 236,000 square meters, representing a 13% increase compared to the previous year. The primary growth drivers were manufacturing enterprises, further bolstered by surging demand from year-end consumer shopping activities.
However, market competition intensified as supply continued to expand with 256,000 sq.m of new warehouse space, bringing the total inventory to over 2.04 million sq.m. The trend toward developing multi-story and multi-functional flexible-lease warehouses—designed to optimize land costs for developers and better meet the diverse needs of tenants—maintained its momentum throughout the year.
Similarly, the Southern RBW market (pre-merger), encompassing Ho Chi Minh City, Binh Duong, Ba Ria – Vung Tau, Dong Nai, and Long An, experienced a stable year despite global economic fluctuations, particularly the impact of US tariff policies.
Specifically, net absorption in the fourth quarter exceeded 97,600 sq.m, bringing the total annual absorption for 2025 to 453,000 sq.m, a significant increase of over 70% compared to 2024. Leasing demand was driven by the year-end peak consumption season, with third-party logistics (3PLs) providers and domestic market-focused clients serving as the main drivers for new lease transactions.
By the end of the fourth quarter of 2025, the total supply of key ready-built warehouses in the South reached approximately 2.4 million sq.m, an 11.2% increase over 2024.
Ms. Le Thi Huyen Trang, General Manager and Head of Advisory & Research at JLL Vietnam, noted that the focus of new projects on multi-story designs and flexible usage models reflects a dynamic market that is quickly adapting to market shifts and increasingly diverse tenant requirements. Investment capital is expected to continue flowing into major industrial hubs in both regions.
For 2026, JLL Vietnam forecasts that the Southern logistics market will add 313,000 sq.m of new RBW space. Market sentiment is expected to become more vibrant during the upcoming Lunar New Year season and maintain positive growth momentum throughout the year, fueled by expectations of domestic economic development policies and Vietnam’s strengthening role within the region.
Meanwhile, the Northern market is also set for significant expansion with 683,000 sq.m of new warehouse space. Demand is projected to remain stable, with the primary leasing drivers coming from manufacturing firms and 3PL companies.
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