Production and logistics continue to lay the foundation for real estate demand
According to Savills, Vietnam continues to record positive international capital flows in 2026. In the first half of the year, total registered FDI capital reached about 34.65 billion USD, an increase of 61% compared to the same period last year, while realized FDI capital reached about 13.03 billion USD, the highest level in 5 years for the first six months of the year. Capital continues to be associated with many economic activities, from production and logistics to technology and digital infrastructure.
Accordingly, manufacturing is still one of the main drivers of FDI capital flows into Vietnam. Along with the shift and diversification of supply chains in Asia, demand for industrial land, pre-built factories and on-demand production facilities continues to be maintained in many markets.
Location selection decisions are increasingly being considered based on many factors, from power sources, human resource quality, logistics connectivity and ESG standards to expansion capacity and the speed of putting assets into operation. In the first half of 2026, about 2/3 of new registered production capital is associated with projects that choose factories instead of land leasing. This is one of the changes taking place in the way businesses access land when operating speed is also becoming a factor of concern, especially for industries with high technical requirements.
Along with production, logistics is becoming an increasingly important part of the real estate ecosystem serving the supply chain. The development of e-commerce, faster delivery requirements and increasingly complex production networks are creating more demand for modern logistics and locations capable of connecting with seaports, airports, expressways and consumer centers.
Technology is creating more demand for new types of assets
The shift to high-tech industries is also changing the requirements for real estate. Industries such as electronics, semiconductors, data centers, and high-tech manufacturing activities often require higher standards of power supply, data connection, technical infrastructure, and operational capabilities. This may create demand for specialized assets rather than simply expanding the area of industrial real estate.
According to Savills Vietnam’s Industrial Outlook 2026, the total designed operating capacity of data centers in Vietnam will reach about 524.7 MW in 2025 and is forecast to increase to 950 MW by 2030, equivalent to an increase of about 81%. This increase is not only related to land area. Data centers need stable power supply, telecommunications connection, technical standards and continuous operation capacity. Therefore, the digitalization process is creating an additional group of real estate needs that are different from traditional industrial types.
The development of these industries is also taking place in the context of Vietnam's infrastructure network being expanded. Expressways, deep-water ports, airports and logistics networks are improving connectivity between production centers and consumer markets.
In the North, Hai Phong, Bac Ninh, Hung Yen, Quang Ninh and neighboring areas are forming a production and logistics network with higher connectivity. In the South, Ho Chi Minh City and areas around Long Thanh continue to benefit from large-scale infrastructure projects.
According to Mr. Matthew Powell - Director of Savills Hanoi, infrastructure development is simultaneously creating more room for real estate supply and expanding the geographical scope of investment activities.
Currently, Vietnam has infrastructure, which is opening up vast lands as well as connecting different provinces and cities by taking full advantage of investments in this infrastructure," said Mr. Matthew Powell.
This assessment also puts real estate demand in a broader context, as connectivity infrastructure is improved, access to new areas may change, thereby creating conditions for real estate production and development activities in previously little noticed locations.
