Southern Vietnam Factories and Warehouses in Late 2026: What FDI Tenants Prioritise

Southern Vietnam's ready-built factory and warehouse market enters late 2026 with occupancy above 90% and modest, steady rent growth. FDI in electronics, semiconductors and logistics remains the main driver. But today's FDI tenants ask about more than price: power, ESG standards, legal compliance and speed to operation matter just as much.

Key points

• In Q2 2026, southern ready-built factories totalled about 6.85 million m², around 92% occupied, with average rent of about USD 4.9/m²/month.
• Ready-built warehouses totalled about 6.6 million m², around 91.6% occupied, averaging about USD 4.6/m²/month.
• About 1.1 million m² of factories and over 680,000 m² of warehouses are expected in 2026 – 2028.
• FDI tenants prioritise fast start-up, reliable power, ESG compliance, clear legal status, connectivity and flexible leases.

The market in late 2026

Following the 1 July 2025 mergers, the southern factory market is concentrated in three localities: Ho Chi Minh City (including Binh Duong and Ba Ria – Vung Tau), Dong Nai (including Binh Phuoc) and Tay Ninh (including Long An).

• Ready-built factories: occupancy of about 94% in Dong Nai, 94% in Tay Ninh and 90% in Ho Chi Minh City. Average rents are about USD 5.1/m²/month in Ho Chi Minh City, USD 4.9 in Dong Nai and USD 4.6 in Tay Ninh.
• Ready-built warehouses: Ho Chi Minh City is almost full (about 99%), Dong Nai about 88% and Tay Ninh about 82%.
• FDI inflows: Ho Chi Minh City alone attracted about USD 17.2 billion of registered FDI by 19 September 2026, focused on semiconductors, electronics and high-tech.

According to SEE the SPACE data, asking rents for factories and warehouses are currently about USD 3.6 – 8/m²/month in Ho Chi Minh City, USD 3.6 – 7.4 in Dong Nai and USD 3.3 – 7.1 in Tay Ninh, depending on location and specification.

7 things FDI tenants prioritise

1. Speed to operation

Ready-built factories let companies start production in 1 – 3 months instead of 12 – 18 months building their own, cutting upfront capital and schedule risk. This remains the top reason FDI companies lease.

2. Reliable, sufficient power

Electronics and semiconductor projects have heavy loads and need high power quality. Tenants check transformer capacity, upgrade potential and grid redundancy. Some 110kV substations do not yet meet N-1 redundancy, so this should be asked at the very start.

3. ESG and green buildings

Multinationals increasingly require LEED or EDGE certification, rooftop solar, compliant wastewater treatment and smart operations to meet their parent companies' and customers' emissions commitments.

4. Legal status and compliance

Building permits, fire safety acceptance suited to the industry, environmental records and the landlord's right to lease are essential. One missing document can delay investment licences and production plans by months.

5. Location and connectivity

Distance to Cat Lai and Cai Mep – Thi Vai ports, Long Thanh airport, Ring Road 3 and expressways drives logistics costs. For high-value electronics, air connectivity is increasingly important.

6. The right technical specification

Clear height, floor loading, column spacing, number of docks and the ability to add cleanrooms or temperature control must match the production line. Multi-storey factories are gaining popularity for light industries such as electronics and components.

7. Flexible leases and room to grow

FDI companies often expand in phases, so rights to adjacent space, renewal options, caps on annual increases and rent-free fit-out periods are negotiated carefully.

Ho Chi Minh City, Dong Nai or Tay Ninh?

• Ho Chi Minh City: a dense supplier ecosystem near Cat Lai and Cai Mep, suited to electronics, high-tech and distribution; the highest rents in the region.
• Dong Nai: high occupancy, near Long Thanh airport, a mature industrial base; Binh Phuoc offers large land at low cost.
• Tay Ninh: fast-growing new supply and competitive rents; Long An, next to Ho Chi Minh City, suits warehousing, while the north has the Moc Bai border gate.

Advice for FDI companies

With occupancy above 90%, quality factories in major parks lease quickly. Plan 6 – 9 months ahead, check power and legal status at the shortlisting stage, and compare total cost rather than headline rent. SEE the SPACE tracks available factories and warehouses in Ho Chi Minh City, Dong Nai and Tay Ninh, prepares technical checklists, arranges site visits and supports lease negotiation, free of charge for tenants. Right Space. Right Budget.

Market figures compiled from reports published in 2026 and are indicative only.