Net Zero - 'Ticket' to welcome new wave of FDI into Vietnam

In the context of global corporations restructuring their supply chains and tightening emission standards, new-generation FDI capital flows are no longer looking for cheap places, but for "green" places. According to Ms. Trang Le, General Director and Senior Director of Research and Consulting Division of JLL Vietnam, Net Zero has become a mandatory condition if Vietnam wants to maintain its position as a manufacturing hub and continue to attract high-quality FDI projects.

Record capital flows affirm strategic position

Speaking at the Vietnam Industrial Real Estate Forum 2025 (VIPF 2025), Ms. Trang Le said that although the world economy is still affected by the "uncertainty" trend, Vietnam is still maintaining an impressive growth rate. Specifically, Vietnam's GDP in the third quarter of 2025 reached 6.5%, the industrial production index (IIP) increased by 9.8%. Notably, registered FDI capital in the first 9 months of 2025 exceeded 25 billion USD, up 18.1% over the same period. This is a clear demonstration of Vietnam's attractiveness.

Net Zero - 'Ticket' to welcome new FDI wave into Vietnam. Photo: DN

According to JLL, investment flows are shifting in the right direction as the Government desires, which is to focus on high-tech, high value-added and environmentally friendly projects. This reflects Vietnam’s strategic vision in shifting the global supply chain to sustainable manufacturing centers.

Ms. Trang Le commented that Vietnam's industrial real estate market is entering the second stage of development - capital and technology intensive, similar to China 20 years ago. "The development cycle of industrial real estate consists of three stages: labor intensive, capital intensive and research and development (R&D). Vietnam is currently moving from stage 1 to stage 2 - a stage that requires large capital, modern technology and high-quality human resources," Ms. Trang Le analyzed.

According to JLL’s report, the Asia- Pacific region is becoming the focus of four new-generation manufacturing industries: Semiconductors, automobiles, pharmaceuticals - biotechnology and renewable energy. In particular, Vietnam is in the group of three out of four sectors prioritized by international investors, including semiconductors, automobiles and renewable energy, showing an increasingly clear position in the global production chain.

In addition, the market also has a clear market differentiation between two key economic regions. In the North, the advantage of being close to China helps this region continue to lead in attracting FDI in the field of electronic components and computers. Land rental prices have increased steadily by 6-8% compared to the previous year, while the occupancy rate in Bac Ninh, Bac Giang, and Hai Phong reached over 90%. New capital flows are gradually shifting to Hung Yen, Hai Duong, and some central provinces.

Meanwhile, the South - the earliest developing region - is moving into a capital-intensive and high-tech phase, with special emphasis on green criteria and sustainable development. Land rental prices increased by 8 - 12% over the same period, with occupancy rates in Binh Duong, Dong Nai and Ho Chi Minh City reaching 85 - 90%.

“Demand is strongly focused on ready-built factories and high-quality logistics warehouses, especially around Cai Mep port and the future Long Thanh airport,” said Ms. Trang Le.

The Central region, although smaller in scale, is emerging as a “new transit point” thanks to its advantages in logistics and supporting industries.

Net Zero - mandatory criteria in global supply chains

According to Ms. Trang Le, the Net Zero trend is reshaping investment standards. “Sustainable development is no longer an option but a mandatory requirement. Global manufacturers are committed to Net Zero and only choose green and smart industrial parks to participate in the global supply chain.”

Ms. Trang Le, General Director and Senior Director of Research and Consulting, JLL Vietnam, shared at the Vietnam Industrial Real Estate Forum 2025 (VIPF 2025).

To maintain its attractiveness, Vietnam needs to accelerate the localization of the supply chain, help domestic enterprises participate more deeply, and improve labor productivity and ESG governance capacity. Ms. Trang Le emphasized that green and smart development has become a "passport" for high-quality FDI projects.

When comparing countries in the region, JLL ranked Vietnam fourth in overall competitiveness, after India, Thailand and Malaysia. This index is based on two groups of factors: Financial with land prices, labor costs, electricity, water, logistics. Non-financial: investment environment, infrastructure, information transparency, administrative procedures.

“Vietnam is still among the most competitive in terms of cost, but there is still room for improvement in non-financial factors. To maintain our position, we need to improve the quality of the investment environment, infrastructure and support services,” said Ms. Trang Le, predicting that Vietnam’s industrial real estate prices will continue to increase in the coming time, reflecting improvements in product value and quality. However, the core is to focus on “intangible values”, including labor quality, productivity, support services and a transparent investment environment.

“Attracting high-quality FDI does not only depend on land prices or incentives, but on how Vietnam creates a modern, transparent and sustainable business environment,” Ms. Trang Le emphasized.

From JLL’s perspective, Vietnam’s industrial real estate is entering an important transition phase, from breadth to depth, where “green, smart and Net Zero” become mandatory standards. This is also the path that helps Vietnam not only maintain its position as a regional manufacturing hub but also rise up to become a strategic destination of the global value chain in the next decade.

Source: https://baotintuc.vn/kinh-te/net-zero-tam-ve-don-song-fdi-moi-vao-viet-nam-20251029205150570.htm