Southern Vietnam logistics market posts strong Q1 absorption

Absorption exceeded 110,000sqm during the quarter.

Southern Vietnam's ready-built warehouse market started 2026 on a strong footing, with net absorption exceeding 110,000 sqm during the first quarter, according to JLL.

Demand remained resilient across manufacturing, retail and e-commerce occupiers serving both domestic and international markets. Strong leasing activity reduced the regional vacancy rate by 2.85 percentage points to 16.7%.

The market added nearly 50,000 sqm of new warehouse space in Dong Nai through a development by KCN Vietnam, increasing total regional supply to 2.5 million sqm. BWID and Mapletree remained the largest operators, accounting for more than half of existing stock.

Average rents increased 0.5% quarter-on-quarter to USD5.07 per sqm per month, supported by stronger-performing projects, while most facilities kept rents stable to support occupancy.

JLL expects a further 136,000 sqm of warehouse supply to be delivered across Dong Nai and Binh Duong during the next nine months, although geopolitical uncertainty may contribute to fluctuations in occupier demand through the remainder of the year.