Southern Vietnam leasable logistics stock stable at 2.5m sqm

Nearly 136,000sqm of additional space is expected in the second half of 2026.

Southern Vietnam's ready-built warehouse market maintained stable demand in the second quarter of 2026, with infrastructure development expected to unlock new logistics opportunities even as investors remain cautious, according to JLL.

The market recorded positive net absorption of 60,800 sqm in Q2, supported by manufacturing and logistics demand, with the garment sector generating particularly significant leasing activity. JLL said large new leases offset space returned by tenants from other industries.

Absorption slowed slightly from the exceptionally strong levels recorded in previous quarters, when demand was boosted by manufacturing-related warehousing requirements and seasonal activity. Nevertheless, JLL characterised underlying demand as stable.

No new ready-built warehouse supply was recorded in Q2, leaving total regional stock at approximately 2.5 million sqm of leasable space. BWID and Mapletree maintained their leading market positions, while both developers continued preparing projects expected to come online towards the end of 2026, JLL said.

The market is expected to receive nearly 136,000 sqm of additional warehouse space during the second half of 2026 in the former Dong Nai and Binh Duong provinces. JLL said the pipeline, together with major infrastructure projects, could create new demand drivers.

The approaching completion of Long Thanh Airport is expected to support further development in the region. JLL said infrastructure improvements should strengthen the logistics market, although cautious sentiment is likely to persist amid global economic and geopolitical uncertainty.

Average gross asking rent remained broadly unchanged at USD 5.07 per sqm per month, with quarterly movement of less than 0.1%. JLL said developers continued to maintain initial pricing strategies to preserve competitiveness amid the modest softening in demand.

Capital value, estimated using gross asking rents, also remained stable at USD 761 per sqm. JLL said growth slowed in Q2, with no material quarter-on-quarter change.

Looking towards the end of 2026, JLL expects domestic-focused logistics and manufacturing demand to remain pivotal, while the combination of new infrastructure and additional warehouse supply could broaden the market's growth drivers.