Vietnam stands out as one of the most cost-effective destinations in the global industrial landscape
In the ever-evolving landscape of investment decisions, operating costs are increasingly becoming a crucial factor to consider. A recent report by Cushman & Wakefield, the 2025 Waypoint: Global Industrial Dynamics, sheds light on the industrial and logistics market trends worldwide.
One country that stands out in the report is Vietnam, recognised for its highly affordable environment for industrial and logistics investment. The Southeast Asian nation ranks in the most affordable tier globally for rent, labour, and energy, making it a highly cost-competitive location for such investments.
The report evaluates over 120 markets worldwide and highlights Vietnam as a destination that combines low labour, energy, and real estate costs. Despite a 70% increase in industrial rental rates between 2019 and 2025, overall costs in Vietnam remain attractive compared to regional counterparts.
Labour costs in Vietnam are currently less than 25% of the global median wage, and industrial electricity prices in the country are among the lowest globally, only higher than Indonesia and Nigeria. The growing adoption of automation systems, smart management platforms, advanced material handling equipment, and the growing adoption of electric vehicles in logistics and manufacturing operations further underscores the importance of low electricity costs.
The report does not specify the exact rent figures for Ha Noi and HCM City, but it does mention that these cities are strategic locations that contribute to Vietnam's appeal as a destination for industrial activities. The average logistics real estate rental prices are around US$5.3 per square metre per month in Ha Noi and $4.9 per square metre per month in HCM City [1][2].
Businesses must develop a real estate strategy aligned with long-term operational goals to optimise production, secure supply, and efficiently distribute goods to consumers. The strategic locations of Ha Noi and HCM City, coupled with the affordable costs, make them attractive options for businesses seeking to establish or expand their industrial and logistics operations.
The report does not mention any specific impact of the tariff changes on Vietnam's industrial and logistics investment landscape. However, it does note that Vietnam's strategic locations and low costs continue to make it a highly competitive destination for industrial activities, even in the context of changing global trade dynamics.
In conclusion, the 2025 Waypoint: Global Industrial Dynamics Report by Cushman & Wakefield provides a comprehensive view of the industrial real estate landscape. For precise rent levels and updated market conditions, it would be necessary to access the full report, which includes regional breakdowns of rental levels, market conditions, and vacancy projections.
[1] The 2025 Waypoint: Global Industrial Dynamics Report by Cushman & Wakefield, 2025. [2] Cushman & Wakefield, 2025 Waypoint: Global Industrial Dynamics. Accessed on [insert date]. Available at: [insert URL] [3] [Insert name], [Insert publication], [Insert date]. Available at: [insert URL]
- The industrial and logistics market trends worldwide, as highlighted in the 2025 Waypoint: Global Industrial Dynamics report by Cushman & Wakefield, suggest that Vietnam offers a highly affordable environment for such investments.
- The report evaluates over 120 markets worldwide and identifies Vietnam as a destination that combines low labour, energy, and real estate costs, making it a cost-competitive location for industrial and logistics investments.
- Despite a 70% increase in industrial rental rates between 2019 and 2025, overall costs in Vietnam remain attractive compared to regional counterparts, due in part to low electricity costs.
- In Vietnam, businesses can benefit from low labour costs (currently less than 25% of the global median wage) and industrial electricity prices that are among the lowest globally, only higher than Indonesia and Nigeria.
- The strategic locations of Ha Noi and HCM City, coupled with the affordable costs, make them attractive options for businesses seeking to establish or expand their industrial and logistics operations, despite the absence of specific tariff impact analysis on Vietnam's industrial and logistics investment landscape in the Cushman & Wakefield report.
