Industrial property sector report

The outlook for the Industrial Property sector remains positive thanks to the Government’s supportive policies for attracting FDI, geopolitical advantages, production cost efficiencies, and international trade cooperation. FDI continued to experience robust growth in the first half of 2026 (Registered FDI reached USD34.65 bn (+61% YoY) and disbursed FDI reached over USD13 bn (+11% YoY)). Among these, Thai Nguyen province emerged as the country’s leader, attracting over USD 8 bn mainly thanks to two Samsung projects with a total investment of USD5.2 bn.

However, the sector’s greatest challenges remain the risks of Section 301 investigations leading to tariff sanctions from the US, war, political instability, and economic recession, which cause tenants to hesitate in making decisions regarding investment expansion or diversifying their production bases overseas.

Land, warehouse, and factory leasing activities continue to grow steadily, with occupancy rates moving sideways and rental prices growing by approximately 3-5% per year. The number of newly established industrial parks (IPs) peaked in the first half of 2025, then began to decline to an average of about 6-7 newly established IPs per quarter.

Resolution 10 on FDI development sets out specific targets for attracting FDI in the 2026-2030 period and the contribution rate of the FDI sector to the economy by 2045, focusing on high-tech industries, AI, etc., and encouraging technology transfer, developing domestic suppliers, and human resources training. However, the solutions to achieve the set targets remain broad; therefore, it is necessary to wait for more specific guiding documents on investment incentive measures, policies, etc., to assess the exact impact of this Resolution. Reputable IP enterprises with large land banks, good infrastructure connectivity, and readiness to meet eco-industrial park requirements (e.g. KBC, BCM, IDC, VGC, …) will benefit from this Resolution.

The sector’s 2026 revenue is estimated to reach VND72.4 trn (+14% YoY) and NPATMI is estimated at nearly VND22 trn (+56% YoY), primarily driven by growth from the rubber companies which IPs converted from rubber plantations. The rubber group, including PHR, GVR, etc., is projected to grow strongly in 2026 on expectations that rubber prices will continue to rise during the 2026-2030 period given demand outstripping supply, volatile oil prices caused by the war in the Middle East, and weather conditions in major producing countries being affected by El Nino. Additionally, these companies will receive significant compensation from converting rubber land into IP land and highway construction. For the plain IP group such as IDC, SIP, BCM, KBC, NTC, SZC, etc., their 2026 forecast is expected to move sideways or decline YoY (except for KBC) due to a reduction in newly signed IP areas in 2025 caused by the impact of US tariffs and the effects of Circular 99 regarding the accounting of IP lease revenues, which forced some companies like SZC and NTC to switch their recognition method from one-time to annual allocation.