Industrial real estate, data center market hot spots in Vietnam: NAI Global
Multinationals’ supply chain diversification via a “China+1” strategy and developing data centers as an emerging support segment can be noted as current bright colors in Vietnam’s real estate industry. Tony Picon, Vietnam executive director for commercial real estate brokerage firm NAI Global, explains the trends to The Investor.

What do you think about Vietnam’s current attractiveness to industrial real estate investors?
Many companies in China are currently expanding new operations out of the country rather than simply relocating. This is a long-term trend exacerbated by trade tensions between China and the U.S. as well as China’s Covid restrictions. Sometimes it is the suppliers’ clients who are demanding a China+1 strategy for diversification.
Vietnam offers one of the best alternatives with its proximity to China along with low labor costs and a stable political and economic environment further enhanced by a wide range of free trade agreements, including the one with the European Union. However, one cannot underestimate China’s role.
Therefore Vietnam is already benefitting from the longer-term regional changes although further improvements need to be made over the coming years.
Do you see a trend in which industrial real estate investment flows are shifting to northern Vietnam from the south, from both Vietnamese and foreign investors? If yes, how is it happening?
Northern Vietnam has made significant strides in its industrial real estate development, so many companies are attracted to setting up there, especially where supply chains with China become more integrated. However, the south remains a key location due to its large population and also being near the food basket of the Mekong Delta. The problem for the south is that industrial land is becoming limited so in many ways it is a victim of its success.
In addition, lower wages in central Vietnam are also a magnet for some companies, especially in the garment sector.
The data center market in Vietnam has in recent years become busier with new developments among both domestic and foreign investors. How do you assess the trend? Can Vietnam meet the human resource need in the sector?
The market for data centers has been positively impacted by the global development of hyperscale cloud providers over the past 10 years as well as with Vietnam’s Cybersecurity Law that confines data storage by Vietnamese users within the country.
Vietnamese players currently dominate the market but foreign companies are now taking a greater share. Overall, data centers are part of the push for Vietnam to develop as a digital hub, and finding skilled staff will likely be a constant challenge for most countries embracing rapidly changing technology. Given the rapid increase in digital start-ups in Vietnam, servicing this sector is underpinned by a strong foundation of vibrancy and entrepreneurism but more work needs to be done on training.

The Hanoi headquarters of Viettel, a leader in data center development in Vietnam. Photo courtesy of Viettel.
What are the latest developments in Vietnam’s industrial real estate sector?
The pandemic situation has meant reduced investment activity over the past couple of years due to investors being unable to inspect locations. This is now changing, so we are seeing an increase in inquiries. One of the most significant trends is the development of ready-built warehouses and factories in many industrial parks in Vietnam. This provides more flexibility and reduced capital outlay as manufacturers and logistics companies are testing the market.
I think the limited supply of industrial estate in some areas in the south could hamper future progress.
What is NAI Global’s assessment of the Vietnamese retail real estate sector in 2023 and what are some business opportunities the sector can offer?
There are two countervailing long-term trends in Vietnam in the retail sector. One is the dramatic growth of discretionary spending that means greater potential outlay in modern retail centers. However, the surge in e-commerce means a growing proportion of products ordered online.
Food and beverage and other entertainment options will continue to be in demand but general retailing for shopping items like clothes and IT products will be challenging. While there has been significant improvement in mass retail offerings over the past 10 ten years, a lot needs to be done to improve the overall experience of many of the centers in order to compete successfully with e-commerce. Retailers should look at Thailand as an example of impressive retail centers that appeal to the mid-market segment.
At present, shopping centers are largely disconnected from each other in Ho Chi Minh City, so there is no successful shopping destination like Siam/Rama I Road in Bangkok. That’s why megamalls are so successful in Vietnam where visitors can spend half a day or more. Retailers must therefore always think of the overall experience visitors have rather than just shopping.
- Read More
Vietnam’s army-backed construction firm proposes 14 offshore wind power projects
Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.
Energy - Thu, August 7, 2025 | 5:07 pm GMT+7
Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure
Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.
Companies - Thu, August 7, 2025 | 4:31 pm GMT+7
Northern Vietnam province accelerates $2.2 bln LNG-to-power project
Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.
Energy - Thu, August 7, 2025 | 4:17 pm GMT+7
Vietnam's seafood firms ride profit wave ahead of US tariff hike
Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.
Economy - Thu, August 7, 2025 | 2:21 pm GMT+7
Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC
Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.
Companies - Thu, August 7, 2025 | 2:01 pm GMT+7
Indonesia, Malaysia, Thailand expand local currency transaction network
Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.
Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7
ASEAN to sign MoU on regional power grid implementation
ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.
Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7
Vietnam overtakes Thailand to become world's second-largest rice exporter
Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.
Companies - Thu, August 7, 2025 | 12:41 pm GMT+7
Vietnam posts trade surplus of $10.18 bln in 7 months
Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.
Economy - Thu, August 7, 2025 | 12:19 pm GMT+7
Malaysia pledges big purchases, investments with US
Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.
Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7
Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt
Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.
Companies - Thu, August 7, 2025 | 10:11 am GMT+7
Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil
Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.
Economy - Thu, August 7, 2025 | 9:57 am GMT+7
Malaysia steps up efforts to explore nuclear energy potential
Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.
Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7
Indonesia's economy grows faster than expected
Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).
Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7
Philippine energy group eyes investment in Vietnam’s power sector
AboitizPower wants to invest in Vietnam’s electricity industry, especially in transmission infrastructure, said Danel Aboitiz, executive director of the corporation.
Energy - Wed, August 6, 2025 | 11:11 pm GMT+7
Vietnam seeks 8.3-8.5% economic expansion for 2025
The Government has requested the State Bank of Vietnam to proactively adjust the credit growth aim for this year in line with a GDP expansion target of 8.3-8.5%.
Economy - Wed, August 6, 2025 | 10:41 pm GMT+7