FDI SURGE FUELS INDUSTRIAL REAL ESTATE BOOM IN DONG NAI’S ADJACENT AREAS

FDI Inflows Fuel Industrial Real Estate Boom

A surge of foreign direct investment (FDI) is driving Vietnam’s industrial real estate sector to new heights. Ready-built factories near Dong Nai are emerging as prime investment opportunities, offering competitive rental prices, vast land reserves, and superior infrastructure—aided significantly by the development of the Long Thanh International Airport. This is a golden opportunity for investors to capitalize on this growing trend.

FDI Influx: A Strong Catalyst for Industrial Real Estate

According to Dr. Ngo Thi Phuong Thao, Vietnam is benefiting from the global supply chain shift, particularly through the China+1 strategy. Multinational corporations are seeking new markets to diversify risks, and Vietnam stands out with its competitive labor costs, strategic location, and multiple free trade agreements (FTAs).

According to the General Statistics Office, in the first 10 months of 2024, registered FDI inflows into Vietnam reached nearly USD 27.26 billion, marking a 1.9% year-on-year increase. Among 76 investing countries and territories, Singapore led with USD 4.98 billion (32.7%), followed by South Korea (USD 2.08 billion, 13.7%), and China (USD 2.07 billion, 13.6%).

These robust FDI flows are providing a solid foundation for Vietnam’s industrial real estate boom. According to Shinhan Securities, Vietnam’s industrial park (IP) market is witnessing record-high occupancy rates, particularly in the northern and southern key economic zones. In the first half of 2024, the occupancy rate in the north reached 83%, while the south hit 89%. This heightened demand has exerted upward pressure on rental rates, with average land rental costs increasing 7.8% year-on-year in the north to USD 134/m² per lease cycle, while in the south, it reached USD 173/m², up 2.4%.

As demand for industrial land surges, land shortages in tier-1 markets such as Binh Duong, Long An, and Dong Nai are driving investors toward adjacent regions—which offer similar advantages at more affordable land costs and greater availability.

Industrial Real Estate Demand Grows in Adjacent Regions

With FDI inflows accelerating, investment expansion into tier-2 markets in southern Vietnam is becoming increasingly evident. Industrial zones adjacent to Dong Nai are particularly attractive due to their strategic location, providing easy access to both urban centers and international seaports. Long Thanh International Airport (LTIA) is at the heart of this transformation.

LTIA is designed to become Vietnam’s largest airport, serving as a regional gateway connecting Southeast Asia to global markets. It is expected to rival leading airports such as Changi (Singapore), Suvarnabhumi (Thailand), and Kuala Lumpur (Malaysia). Phase 1 of the project, set for completion in 2026, is projected to boost industrial growth, especially in areas adjacent to Dong Nai.

With a design capacity of 100 million passengers and 25 million tons of cargo annually, LTIA will be the largest airport in Vietnam upon completion.

Moreover, Vietnam’s national seaport master plan prioritizes major developments such as the Cai Mep - Thi Vai deep-sea port and the Can Gio international transshipment port, further enhancing logistics connectivity and unlocking new investment opportunities.

Ready-Built Factories Near Dong Nai: A Prime FDI Magnet

The FDI wave is not only boosting demand for industrial land but also driving the growth of supporting services, including ready-built factories , warehouses, logistics hubs, and worker accommodations. This is not only an investment opportunity but also a step toward enhancing Vietnam’s position in the regional and global supply chains.

Trends in Ready-Built Factories:

• Cost-effective solutions: Ready-built factories enable businesses to reduce initial investment costs, shorten setup time, and scale operations flexibly.
• Smart & green facilities: The demand for high-tech, eco-friendly factories certified with LEED or EDGE is on the rise, as global firms prioritize sustainable and efficient operations.

Competitive Rental Advantage in Adjacent Areas

Rental prices for ready-built factories near Dong Nai, such as those in Duc Linh (Binh Thuan), offer a 15% to 40% cost advantage over prime locations like Long Khanh or Dau Giay. These areas benefit from ample land reserves and are well-connected via key transportation projects, including:

• Long Thanh - Dau Giay Expressway
• Dau Giay - Phan Thiet Expressway
• National Highway 1A

Attracting Multinational Enterprises

With enhanced infrastructure, regions like Duc Linh have already attracted global corporations such as Intermac and Eul Sung VINA. This positive momentum reinforces the area’s potential for mid-to-large-scale manufacturing and processing industries. The presence of foreign investors also generates a ripple effect, stimulating demand for labor, housing, and auxiliary services, thus fostering sustainable regional development.

Opportunities for Domestic Investors

The rising demand for ready-built factories presents lucrative opportunities for domestic investors. By developing internationally compliant, technology-integrated, and eco-friendly factories, Vietnamese firms can gain a competitive edge while meeting the stringent requirements of FDI partners.

Conclusion: A Thriving Industrial Real Estate Market

The FDI boom and the accompanying demand for industrial services are not only driving the growth of Vietnam’s industrial real estate sector but also fueling economic expansion across supporting industries. This transformation positions Vietnam as a leading industrial hub in the region, creating unparalleled opportunities for investors, enterprises, and the broader economy.

HLI ECOHUB NAM HA READY-BUILT FACTORY

• Location: Dong Ha Commune, Duc Linh District, Binh Thuan Province
• Hotline: 0964 582 346
• Email: contact@hoalonginvest.com
• Address: 19 Tran Quy Kien, Binh Trung Tay Ward, Thu Duc City, HCMC