Vietnam South to see nearly 164,000sqm of new prime industrial stock by end-2025

The new supply will be located in Dong Nai and Long An provinces.

In a report, JLL said Vietnam South is poised for further prime logistics expansion throughout the remainder of 2025, with nearly 164,000 sqm of new modern space scheduled to launch in Dong Nai and Long An provinces. Existing players, KCN Vietnam and BWID, are contributors to these upcoming developments.

“Impact of U.S. reciprocal tariffs on market sentiment is expected to be more evident from mid-2025, though the extent remains contingent on bilateral trade negotiation outcomes. Market players have maintained a wait-and-see stance towards investment and expansion plans,” the report added.

Here’s more from JLL:

Despite looming uncertainties following the U.S. reciprocal tariffs announcement, the logistics market in H1 2025 remained relatively resilient. Net absorption reached roughly 260,000 sqm, surpassing the H2 2024 figure by 6% and approaching the full-year 2024 total.

RBW demand was primarily supported by domestic consumption and Chinese businesses expanding operations to Vietnam to diversify supply chains and mitigate risks. The market experienced buoyant leasing activities, with vacancy rate declining to 22.3% as of Q2 2025.

HCMC (Binh Duong) and Tay Ninh (Long An) welcome new supply

The Southern RBW market continued its expansion momentum with the addition of nearly 79,000 sqm of Modern space. As of Q2 2025, total prime Modern supply scaled up to 2.2 million sqm, representing a 3.6% h-o-h and 16.0% y-o-y increase.

Of this growth, BWID contributed nearly 19,000 sqm through a redeveloped project at Dong An 1 in IP HCMC (Binh Duong). MEA marked the official presence in the South by introducing its first 60,000 sqm-scale logistics park – MEA Logicross Nam Thuan in Tay Ninh (Long An).

Average asking rent exhibits modest growth, while market yield has remained stable

Average asking rents exhibited modest growth of 1.6% h-o-h and 2.2% y-o-y, standing at USD 4.98 per sqm per month. This positive uptick was attributed to premium rental rates from high-quality new supply and improved-performance projects.

Capital value, estimated based on gross asking rents, continued its upward trajectory, albeit at a slow pace. The overall market yield has remained stable at around 8.0% amidst prevailing uncertainties in the global trade environment.