Vietnam’s strategic location, strong export economy, and maturing infrastructure have transformed it into one of Asia’s most promising hubs for manufacturing and logistics. Whether you’re launching production, scaling supply chains, or entering the ASEAN market, understanding the warehouse or factory industry in Vietnam is essential to making sound investment decisions.
This guide covers everything you need to know, from the current market landscape to regional differences, leasing versus building, and how to navigate the legal and operational complexities of Vietnam’s industrial property sector.
Why Vietnam is Becoming a Manufacturing and Logistics Powerhouse
Over the past decade, Vietnam manufacturing has become many global businesses go-to strategic choice for global supply chains. Its success is rooted in more than just cost advantages. Such as:
Strategic Location
Vietnam sits along key maritime routes in Southeast Asia, with deep-sea ports on both its northern and southern coasts. Its long land border with China provides direct overland access to one of the world’s largest manufacturing supply networks, while free trade agreements with the EU, UK, Japan, and ASEAN give exporters broad tariff advantages.
Consistent GDP Growth and FDI Inflow
Despite global economic fluctuations, Vietnam has maintained stable GDP growth, attracting consistent foreign direct investment (FDI) in manufacturing, logistics, and infrastructure. Investors are particularly focused on industrial provinces like Binh Duong, Dong Nai, Hai Phong, and Long An, where industrial parks have been upgraded to meet international standards.
Government Support
Vietnam’s government has prioritised industrialisation, offering tax incentives, simplified licensing, and infrastructure spending. This support has fueled the development of ready-built factories, high-tech zones, and modern warehouse clusters.
Understanding the Warehouse or Factory Industry in Vietnam
The industrial property sector in Vietnam can be broadly divided into two key asset types: factories for manufacturing and warehouses for storage and distribution. Both segments are growing rapidly but serve different operational needs.
Factories
Factories in Vietnam are typically used for light to medium manufacturing. These facilities range from small units (under 3,000m²) to large-scale plants (over 10,000m²). They are most common in dedicated industrial parks, where infrastructure like roads, drainage, electricity, and wastewater systems are centrally managed.
Industries that dominate factory demand include:
- Textiles and garments
- Electronics and electrical assembly
- Furniture and woodworking
- Food processing
- Automotive components
- Packaging and plastics
Warehouses
Warehousing in Vietnam has become increasingly sophisticated due to the rise in e-commerce, retail logistics, and cold chain demands. Warehouses now serve not just storage but integrated distribution functions, often equipped with racking systems, WMS platforms, and temperature control.
Key warehouse types include:
- Dry/general warehouses
- Cold storage and temperature-controlled units
- Bonded warehouses (for customs-cleared goods)
- Cross-docking and last-mile fulfilment centres
Both factories and warehouses are often available as either ready-built facilities or custom-built solutions depending on the operational model and investment strategy of the business.
Key Industrial Hubs in Vietnam
Location matters significantly in the warehouse or factory industry in Vietnam. Below is a breakdown of the country’s three main industrial regions, along with their specific advantages:
Northern Vietnam
Key provinces: Bac Ninh, Hai Phong, Hung Yen, Vinh Phuc
- Well-developed infrastructure (e.g., Lach Huyen Port, Noi Bai Airport)
- Popular for electronics, garments, and heavy industries
- Strong availability of skilled labour, especially in technical roles
Ideal for: Export-focused factories and regional distribution hubs
Central Vietnam
Key provinces: Da Nang, Quang Ngai, Binh Dinh, Thua Thien Hue
- Lower land and labour costs
- Emerging logistics corridors and industrial parks
- Close proximity to both North and South
- Increasing focus on sustainable and green manufacturing
Ideal for: Medium-scale factories and regional warehousing with lower overheads
Southern Vietnam
Key provinces: Binh Duong, Dong Nai, Long An, Ho Chi Minh City outskirts
- Mature industrial infrastructure
- Largest consumer market in Vietnam
- Access to major seaports (Cat Lai, Cai Mep) and Tan Son Nhat Airport
- Full ecosystem of suppliers, service providers, and labour
Ideal for: Large-scale production, last-mile logistics, cold chain, and e-commerce fulfilment
Leasing vs. Building: What’s Right for Your Business?
When entering the warehouse or factory industry in Vietnam, businesses often choose between leasing a ready-built facility or constructing a built-to-suit property. Each option has its pros and cons, depending on your investment horizon and operational complexity.
Leasing Ready-Built Facilities
Leasing is typically the fastest and most cost-effective way to get operational in Vietnam. Many industrial parks now offer modern, compliant spaces ranging from 500m² to over 10,000m².
Benefits include:
- Quick move-in time
- Lower capital investment
- Park-managed utilities and infrastructure
- Flexibility for early-stage or short-term projects
Challenges:
- Limited customisation
- Shared facilities (which may affect noise or logistics operations)
- Potential restrictions on usage or modifications
Building Your Own Factory or Warehouse
For larger or more complex operations, building your own facility provides full control over layout, machinery installation, and compliance.
Benefits include:
- Custom-built design to match workflow
- Long-term investment control
- Stronger property rights and asset value
Challenges:
- Longer setup time (typically 12–24 months)
- More complex legal procedures
- Higher upfront investment and land acquisition costs
Legal and Regulatory Considerations
Foreign investors in Vietnam must comply with several legal requirements to lease or build a warehouse or factory.
Business and Investment Licences
You’ll need to obtain:
- Investment Registration Certificate (IRC) – outlines your investment scope
- Business Registration Certificate (BRC) – legalises your company in Vietnam
These certificates are typically issued by the Department of Planning and Investment in the province where you’ll operate.
Land Use Rights and Leasing Contracts
For built-to-suit projects, you must acquire land use rights, either through long-term lease or sublease agreements in industrial zones. For leasing, ensure the contract clearly defines duration, handover conditions, and responsibilities for maintenance or repairs.
Environmental and Fire Safety Compliance
Vietnam enforces strict regulations for environmental protection and fire prevention. Before starting operations, your facility must pass inspections for:
- Fire prevention (PCCC certification)
- Environmental impact assessment (EIA or registration of environmental protection plans)
- Construction and building permits if customising or expanding facilities
Working with an experienced local consultant, such as VALO Vietnam, helps streamline the licensing and compliance process, especially for foreign investors unfamiliar with local processes.
Current Trends in the Warehouse or Factory Industry in Vietnam
Vietnam’s industrial property market is evolving quickly to meet global standards. Here are a few key trends shaping the future:
Digitalisation and Smart Factories
The rise of smart manufacturing, integrating IoT, automation, and real-time data systems, is pushing demand for power-stable, connectivity-ready factories. Southern Vietnam, in particular, is emerging as a leader in this transformation.
E-Commerce Logistics and Last-Mile Warehousing
The e-commerce boom, led by platforms like Shopee, Lazada, and TikTok Shop, is driving demand for strategically located last-mile warehouses near major cities like Ho Chi Minh and Hanoi. Speed and accessibility are now top priorities.
Cold Chain and Temperature-Controlled Logistics
Food, pharmaceuticals, and retail distribution chains are investing heavily in cold storage infrastructure. Cold warehouses require specialised design, consistent energy supply, and proximity to dense population areas, factors increasingly available in Vietnam’s industrial zones.
Green Warehousing and Sustainable Manufacturing
Environmental regulations and corporate ESG policies are pushing businesses toward greener facilities. Solar power, smart energy meters, water recycling systems, and low-emission construction materials are becoming standard in new developments.
How to Choose the Right Warehouse or Factory in Vietnam
When selecting a facility, consider the following key factors:
Location and Accessibility
Ensure the site is close to suppliers, customers, or export hubs. Check road quality, flood risk, and travel time to seaports or airports.
Infrastructure Readiness
Confirm that electricity (3-phase), water supply, internet, and wastewater treatment systems meet your operational requirements. If you’re operating heavy machinery, check for stable voltage and transformer capacity.
Layout and Customisation
Assess floor load capacity, ceiling height, column spacing, and whether the space supports your equipment, storage systems, and logistics flow.
Legal Clarity and Compliance
Only lease or buy from verified developers with all legal permits. Request copies of land use rights, building completion certificates, and compliance documents to avoid delays or legal risk.
Expansion Potential
Choose a location where you can scale operations if needed. Many businesses underestimate future growth, leasing adjacent units or planning future phases early can save major disruption down the line.
Read more: Your Ultimate Guide to Finding a Factory in Vietnam
Looking for the Right Warehouse or Factory in Vietnam?
Vietnam is rapidly emerging as one of Asia’s most dynamic destinations for industrial investment. With its combination of cost-efficiency, infrastructure upgrades, and strategic trade access, the country offers both manufacturers and logistics providers real opportunities for growth.
But navigating the warehouse or factory industry in Vietnam requires more than just a location, it requires the right strategy, the right facility, and the right support.
At VALO Vietnam, we help businesses identify, evaluate, and secure the ideal suppliers of various industries here in Vietnam.
Ready to take the next step? Let VALO Vietnam connect you with a range of reliable suppliers in Vietnam, so you can start growing your business with no hesitation.