Vietnam is better than Singapore and China because of "low price advantage", there is one issue to note

(Dan Tri) - According to experts, Vietnam still maintains an advantage over many countries in the region such as China and Singapore in terms of land prices, labor costs, electricity and water... However, this advantage may not last forever.

Big investors coming to Vietnam are no longer focusing too much on low prices but are demanding more on green and smart infrastructure. The above comments were made by experts at the Vietnam Industrial Real Estate Forum 2025 (VIPF 2025) held this afternoon (October 29) in Ho Chi Minh City.

The sustainability and smart story is shifting very quickly.

From a business perspective, Mr. Truong Khac Nguyen Minh, Deputy General Director of Prodezi Long An Joint Stock Company, said that high-tech enterprises are currently very interested in ESG criteria (Environment - Society - Governance), renewable energy and emission solutions. This is a mandatory requirement to ensure the achievement of the Net Zero target (net zero emissions) according to the strict strategy of the parent corporation.

In addition, investors cannot simply do business and lease industrial infrastructure anymore. Instead, they must develop additional value-added services to support customers, help leasing businesses offset costs, shorten time and improve investment efficiency.

Sharing the same view, Ms. Trang Le, General Director and Senior Director of Research and Consulting at JLL Vietnam, further analyzed that in terms of financial aspects such as land prices, labor costs or electricity and water, Vietnam still maintains an advantage over many countries in the region such as China or Singapore. However, she said that this advantage may not last forever.

According to her, Vietnam cannot continue to rely mainly on low costs to compete. Instead, the market needs to pay more attention to non-financial factors such as the quality of logistics infrastructure, a stable investment environment, information transparency and smooth administrative procedures to improve long-term competitiveness.

Leaders attended the Forum (Photo: Organizing Committee).

Besides, Vietnam also needs to standardize processes, strengthen coordination mechanisms between ministries, departments and branches; unify legal procedures nationwide; set a maximum time to process and approve documents...

“In particular, the story of sustainability and smartness is moving very quickly and faster than we thought. In all discussions and investment strategies, sustainable development is a must-have factor, otherwise it will no longer be on the list of consideration of manufacturers,” Ms. Trang Le emphasized.

Ms. Cao Thi Phi Van, Deputy Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), also said that in the period of 2025-2030, export processing zones and industrial parks in Ho Chi Minh City aim to attract about 21 billion USD in investment capital. The focus is on areas with high knowledge and technology content such as AI, semiconductors, biotechnology, smart cities and green and sustainable energy.

Expectations that the "super city" Ho Chi Minh City will attract high-quality capital for smart manufacturing

Vietnam still emerged as a bright spot in regional growth, with an increase of 8.23% in the third quarter and 7.85% in the past nine months. Foreign investment flows continue to be an important driving force of the economy .

In the first 9 months, Vietnam attracted 28.5 billion USD of registered FDI capital, up 15.2% over the same period; disbursed capital reached 18.8 billion USD, up 8.5%. Along with that, many large corporations such as Qualcomm, Nvidia, Lego, Syre... have expanded their investments, established supply chains and research and development (R&D) centers in Vietnam.

The domestic business sector also recorded positive signals with more than 231,000 newly registered or resuming operations in the first 9 months, an increase of more than 26% over the same period last year. The industrial real estate sector is considered the “hard infrastructure” of economic growth.

In addition, we have many advantages in being located in the center of Southeast Asia, helping us take advantage of the dynamic growth of the region, thereby promoting the economy and development process. Vietnam is also a strategic production gateway of ASEAN, connecting global industry with outstanding competitive advantages.

Besides, Vietnam has the ability to access a huge global market with 4.87 billion consumers, 55 countries and about 80% of global GDP through free trade agreements.

Internally, Vietnam is promoting the development of its transport infrastructure system, contributing to improving national connectivity, optimizing supply chains and opening up growth opportunities for new industrial zones.

Among them, many large-scale projects are receiving attention such as Lao Cai - Hanoi - Hai Phong railway, Ho Chi Minh City Ring Road 3, Hanoi Ring Road 4, Long Thanh International Airport, North - South Expressway project, Cai Mep Ha logistics center...

Experts expect the new “super city” of Ho Chi Minh City to witness new growth in the industrial real estate sector based not only on the expansion of administrative boundaries, but also on the city’s determination to focus on attracting high-quality investment capital flows into technology and smart manufacturing industries.

Source: https://dantri.com.vn/kinh-doanh/viet-nam-hon-singapore-trung-quoc-vi-loi-the-gia-re-co-mot-van-de-luu-y-20251029184427162.htm