Vietnam South set for 313,000sqm prime logistics supply boost in 2026

Sembcorp will establish its first presence in the region with a hybrid development.

The Vietnam South industrial market is set to expand in 2026 as new supply enters the pipeline and market sentiment gradually improves, according to JLL.

The firm expects nearly 313,000 square metres of new net lettable area to be completed this year. JLL noted that Sembcorp is also set to establish its first presence in the South through a ready-built hybrid development scheduled for completion by the end of 2026.

Here’s more from JLL:

The logistics market demonstrated resilience throughout the year despite prevailing global challenges, particularly those related to U.S. tariffs. Q4 net absorption reached over 97,600 sqm, pushing 2025’s total more than 70% above 2024 levels.

Leasing activities accelerated towards the year-end—typically the most dynamic season—driven by heightened consumer demand. Domestic market-focused tenants, especially the 3PL group, remained the key demand drivers during the quarter.

New supply has been introduced in the former Long An province

The Southern RBW market concluded 2025 with the launch of a large-scale project developed by BWID at Thuan Dao IP, formerly Long An province. The new facility offers approximately 120,000 sqm of NLA and features a two-storey design with ramp access.

By the end of Q4 2025, total prime warehouse supply had reached roughly 2.4 million sqm, marking an 11.2% y-o-y increase. BWID and Mapletree retained their leading positions, accounting for 36.9% and 16.7% of total existing stock, respectively.

Average asking rent records a modest uptick, while market yield follows a sideways trajectory

Average asking rent rose modestly to USD 5.04 per sqm per month, up 0.3% q-o-q and 2.7% y-o-y.

This upward trend was mainly supported by premium rates at improved-performance projects. However, net effective rents remained competitive as landlords continued offering substantial incentives to attract tenants.