Dong Nai experiences shifting expectations and new industrial cycle

Dong Nai experiences shifting expectations and new industrial cycle

Dong Nai is witnessing a significant shift in investment capital flows, as both domestic and foreign investors raise their expectations around technology, environmental performance, and operational efficiency.

This shift is pushing the industrial real estate market to adapt more rapidly, accelerating the development of ready-built warehouses and factories that meet international green and sustainability standards.

Following the country’s administrative reform last year, the province has officially become home to the largest industrial park (IP) area in Vietnam. This expanded scale not only strengthens Dong Nai’s long-term development capacity but also enhances its attractiveness to multinational corporations and large-scale projects.

According to Dong Nai Economic and Industrial Zones Management Authority (DNIEZA), investment figures for 2025 reflect this momentum. The province attracted around $6.6 billion in domestic investment and over $3.3 billion in foreign direct investment (FDI), significantly exceeding annual targets. Notably, IPs alone accounted for over $2.7 billion in FDI, exceeding the planned figure by more than 144 per cent.

Beyond investment volume, a notable shift in investment quality has also emerged. According to representatives of the DNIEZA, recent FDI inflows have increasingly focused on high-tech manufacturing, supporting industries, smart logistics, and low environmental-risk projects, reflecting a gradual transition towards higher-value and more sustainable industrial development.

This direction aligns with Dong Nai’s long-standing development strategy, which prioritises green growth, modern infrastructure, and higher value creation.

As a result, new demands are emerging for the industrial real estate market. To meet the expectations of increasingly selective investors, industrial facilities must be planned in a more systematic manner, with greater attention to operational efficiency, environmental performance, and long-term compliance with international standards from the initial design and development stages.

To maintain its competitive edge and capture ongoing supply chain shifts, Vietnam’s industrial real estate market has seen a growing number of modern, high-specification infrastructure projects.

Within this context, ready-built warehouse and factory models have attracted strong interest from foreign investors.

By offering pre-designed, operationally ready facilities, these formats enable manufacturers to shorten deployment timelines and enter the market more efficiently, while reducing the risks and uncertainties typically associated with traditional construction.

Importantly, the market is no longer driven solely by foreign developers. Domestic developers are also playing an increasingly active role, delivering well-invested projects that meet international operational and environmental benchmarks.

One such example is the KCN Nhon Trach 6D ready-built warehouse project, developed by KCN Vietnam.

Covering approximately 14.5 hectares, the project is located in Dong Nai’s established industrial cluster and benefits from strong regional connectivity. Its proximity to Long Thanh International Airport, along with key southern seaports including Cat Lai Port, Hiep Phuoc Port, and Phuoc An Port, supports efficient access to major logistics corridors.

These location advantages contribute to improved supply chain efficiency and help tenants manage transportation costs more effectively, particularly as manufacturers continue to optimise regional distribution networks.

Developments such as KCN Nhon Trach 6D are increasingly viewed as strategic choices by international investors

Specifically, Nhon Trach 6D has achieved LEED Gold certification, ensuring high energy efficiency and compliance with internationally recognised green building criteria.

For multinational corporations, locating production facilities within a LEED-certified development can help optimise operating costs while aligning with increasingly stringent sustainability requirements in export markets such as Europe and the United States.

Alongside the project in Nhon Trach VI IP, KCN Vietnam is also developing the KCN Ho Nai ready-built warehouse and factory in Dong Nai. A new phase is nearing completion and is expected to deliver more than 50,000 square metres of ready-built factory space to the market in the first quarter of 2026, contributing to the expansion of high-quality industrial supply in the province

“Dong Nai remains a key industrial hub in southern Vietnam, with strong long-term potential,” said Hardy Diec, COO of KCN Vietnam. “Our projects are designed to support the province’s direction of attracting higher-quality foreign direct investment through sustainable, internationally aligned industrial facilities.”

From a longer-term perspective, the upgrading of industrial infrastructure in Dong Nai reflects a broader shift towards higher standards as global capital increasingly prioritises sustainability and operational efficiency.

The alignment between transparent local investment policies and developers' capacity to deliver internationally compliant infrastructure is expected to remain a key factor shaping the province’s industrial development trajectory, Diec added.

VIR