Vietnam continues to solidify its position as one of the most cost-competitive global destinations for industrial and logistics investment, thanks to three key advantages: real estate leasing costs, labor costs, and energy.

Industrial real estate leasing prices in Vietnam have increased by 70% since 2019. However, the actual rates are still considered highly competitive compared to other markets in the region.

According to the "Global Industrial Momentum Coordinates 2025" report on the logistics and industrial sectors across more than 120 markets worldwide, strong demand for industrial real estate amid limited supply has pushed rental prices up in many regions in recent years. Some markets have recorded record-high prices, with some even witnessing rental rates more than double in just five years.

However, for Vietnam, despite the rent increases, prices are still considered attractive compared to other countries in the region. Specifically, the average rental price in Hanoi is around $5.3/m2/month, and in Ho Chi Minh City, $4.9/m2/month.

Furthermore, logistics and manufacturing operations still rely heavily on the human factor. An abundant labor supply and affordable labor costs are key factors influencing decisions on facility location and operational strategy—from determining which processes to perform on-site to the level of investment in automation.

In Vietnam, labor costs are currently less than 25% of the global median wage, placing the country among those with the lowest labor costs in the Asia-Pacific region.