Ready-Built Factories Outpace Industrial Land, Attracting More Than USD 7 Billion In New Manufacturing FDI To Vietnam

The shift in manufacturing FDI into Vietnam during the first half of 2026 is reflected not only in the scale of investment, but also in the changing way investors approach industrial real estate.

According to Savills Vietnam, ready-built factories continued to account for a significant share of both the number of projects and the newly registered manufacturing FDI capital in Vietnam during the first six months of 2026.

Of the 468 newly registered manufacturing FDI projects nationwide, 266 projects involved ready-built factories, accounting for 56.84% of the total. In terms of investment value, ready-built factory projects attracted approximately USD 7.09 billion, equivalent to 66.24% of total newly registered manufacturing FDI. Meanwhile, 202 projects involving industrial land attracted approximately USD 3.62 billion, representing 33.76% of total new investment capital.

The higher share of ready-built factories in both project numbers and investment value highlights a notable shift in investor demand. In the past, industrial land typically accounted for a larger proportion of total investment capital, supported by its long-term development potential and the scale of greenfield projects. Today, however, in addition to land availability, the ability to shorten project implementation timelines is increasingly becoming a key consideration from the earliest stage of site selection.

John Campbell, Director and Head of Industrial Services at Savills Vietnam, noted: “As global supply chains continue to restructure, speed of implementation is increasingly becoming a critical competitive factor. For many businesses, bringing a factory into operation even a few months earlier can create significant advantages in terms of costs, orders and the ability to participate in global supply chains.”

According to Savills, this trend is driving growing interest in ready-built factory solutions, particularly among industries that require rapid deployment, including electronics, components, high-tech manufacturing and production activities serving global supply chains.

While ready-built factories were previously viewed primarily as a solution enabling businesses to enter the market quickly before developing their own manufacturing facilities, the model is now increasingly being considered from the initial investment stage.

Northern Vietnam Leads The Trend

The trend is particularly evident in Northern Vietnam, which continues to lead the country in attracting manufacturing FDI.

During the first half of 2026, ready-built factories accounted for 54% of newly registered manufacturing FDI projects in Northern Vietnam, but attracted as much as 73% of total investment capital, equivalent to approximately USD 6.3 billion. By comparison, industrial land projects represented 46% of projects and 27% of total investment capital.

According to Campbell, this structure indicates that large-scale projects in sectors such as electronics, semiconductors and high-tech manufacturing are increasingly prioritizing shorter implementation timelines and fewer initial development steps.

“If investors previously tended to seek land on which to develop purpose-built factories, more businesses are now prioritizing manufacturing facilities that are already operationally ready. This reflects a shift in investment strategies, as the time required to move from licensing to production becomes one of the key criteria in site selection.”

A similar trend has also been observed in Southern Vietnam. Ready-built factories accounted for approximately 63% of newly registered manufacturing FDI projects in the region. Although the two segments were relatively balanced in terms of investment value, the project structure indicates increasingly clear demand for models that can support faster deployment.

From Industrial Land To Ready-To-Operate Production Platforms

Savills expects the continued development of the electronics, semiconductor and high-tech manufacturing sectors to provide further momentum for the ready-built factory segment in the coming years.

As FDI increasingly flows into higher-value and more specialized projects, the ability to provide suitable production space that is ready for operation will become an increasingly important competitive advantage in Vietnam’s industrial real estate market.

However, this trend does not mean that industrial land is losing its importance. Greenfield projects, large-scale expansion plans and long-term manufacturing investments will continue to generate demand for high-quality industrial land.

The market is instead moving toward a more diversified structure, where demand is no longer focused solely on industrial land supply but is increasingly expanding toward integrated production and logistics platforms that better meet investors’ requirements for speed, flexibility and operational efficiency.

Alongside established brands such as BW Industrial, Frasers Property, KTG Industrial, Core5, SLP and Mapletree, the market has also welcomed the entry of Logicross, the logistics brand of Japan’s Mitsubishi Estate.

Its first two projects in Vietnam, Logicross Nam Thuận and Logicross Hải Phòng, are adding new ready-built warehouse supply to the market, further demonstrating the growing diversity of industrial real estate models serving manufacturing and logistics demand.

“The market’s question today is no longer simply how much industrial land remains available for development. Investors are increasingly asking how quickly they can begin operations. This will be one of the key factors shaping Vietnam’s industrial real estate market in the next phase,” Campbell said.