Sector Insight

1. Update the industrial real estate situation

In 2025, tariff-related uncertainties significantly weigh on industrial land absorption across both Northern and Southern industrial parks (IPs). Entering Q1/2026, geopolitical tension continued to keep leasing demand cautious, with the North recording a sharp decline in absorption while the South saw a modest recovery. Despite weaker demand, occupancy rates remain healthy, while average rental prices in both regions continued to rise year-over-year.

Meanwhile, leasing activity for ready-built factories (RBFs) and ready-built warehouses (RBWs) recorded positive growth across both regions, reflecting a shift toward lower-risk and lower-cost asset classes amid ongoing global uncertainties.

2. FDI inflows remain positive

FDI inflows recorded strong growth despite accelerated tariff uncertainties and escalating geopolitical concerns, underscoring Vietnam's continued attractiveness as a destination for foreign enterprises. However, FDI flows have shown an increasing divergence towards high-tech industries and provinces benefiting from significant infrastructure investment.

3. Update on industrial real estate companies

Q1/2026 earnings of industrial park developers declined sharply amid geopolitical concerns, tariff uncertainties, and regulatory changes under Circular 99/2025/TT-BTC. However, the outlook for full-year 2026 remains positive, supported by expectations of sustained FDI inflows, particularly into high-tech manufacturing hubs.

Recommendation: BCM, KBC, IDC, and SZC