Ready-built facilities gain favour as industrial competition evolves

Ready-built facilities gain favour as industrial competition evolves

Vietnam’s industrial market is shifting from competing primarily on cost to speed, quality, infrastructure, and sustainability, as foreign investors are pivoting towards ready-built and “plug-and-play” facilities.

Hoang Vinh Tuan, head of Marketing & Leasing at Soilbuild International Vietnam. Photo: Le Toan

On September 29, the sixth Vietnam Industrial Property Forum 2026 (VIPF 2026), jointly organised by VIR and the Vietnam Industrial Real Estate Association, under the auspices of the Ministry of Finance, took place in Ho Chi Minh City.

Speaking at the forum, Hoang Vinh Tuan, head of Marketing & Leasing at Soilbuild International Vietnam, said, “Global investment flows are entering a phase of fundamental restructuring, driving a shift in how enterprises select production locations. The question for investors is no longer simply ‘where should we invest?’, but rather how quickly an investment can become operational and how effectively and sustainably it can perform over the long term.”

Against this backdrop, the role of industrial infrastructure, particularly in northern Vietnam, is being redefined. Vietnam continues to emerge as a strategic destination thanks to strong foreign direct investment (FDI) inflows, an expanding manufacturing base, and the development of industrial and infrastructure ecosystems.

In northern Vietnam, the process of manufacturing relocation is reshaping supply chains, driving increased demand for ready-built factories and workshopsm particularly from the electronics and advanced manufacturing sectors.

Based on his experience, Tuan said, “Vietnam remains an attractive destination for manufacturers and businesses across supply chains. However, in light of the evolving tenant mix, key considerations for selecting locations expand beyond costs. Businesses are increasingly looking for locations with the combination of connectivity, infrastructure, and quality industrial space.”

Tuan highlighted the shift from an own-and-build model to ready-built and “plug-and-play” facilities, where a quicker time to market helps businesses lower their upfront expansion costs and provides greater flexibility to respond to changes in the business environment.

More attention is also paid to the quality of ready-built facilities. Companies are no longer simply looking for available space for the factories. Companies are increasingly focusing on the specifications, infrastructure reliability, sustainability, operational efficiency, and the user experience.

In particular, environmental, social, and governance (ESG) requirements are becoming increasingly prominent among international enterprises, as environmental and sustainable development goals are established at the corporate level and extend throughout the entire supply chain.

“Speed to market, infrastructure reliability, flexibility, operational efficiency, and sustainability are becoming increasingly important considerations for companies looking for industrial space in Vietnam,” Tuan said.

These are also Soilbuild Vietnam’s key focus areas when developing its Spectrum projects in the country.

In addition, one of the top concerns for foreign manufacturers is the reliability of power and utility supplies. For a manufacturing plant, disruptions to electricity, water, or essential infrastructure can directly impact operations and the supply chain.

From an ESG perspective, international companies are increasingly seeking facilities that can support their sustainability objectives. Soilbuild said it is incorporating features such as energy-efficient design, renewable energy readiness, and green-building standards into its projects.

Meanwhile, ready-built and “plug-and-play” models allow companies to shorten the time to establish operations while providing greater flexibility to adjust space in line with evolving production demands.

“Beyond the physical space, investors are increasingly considering the overall operating environment and level of support,” Tuan said.

Accordingly, Soilbuild is pursuing a one-stop service model that combines customer support with professional property management and an integrated industrial environment. The approach aims to reduce some of the administrative and operational requirements for companies when entering or expanding their operations in Vietnam.

Tuan said, “The investment appetite of tenants has become increasingly selective. Previously, cost and location were among the top criteria. Today, companies are taking a broader view of the operating environment, including building specifications, infrastructure reliability, sustainability, connectivity, and expansion potential.”

There is an increasing demand for higher-tech, higher value industries. As Vietnam develops into a manufacturing hub, activities such as technology transfer, research and development, localisation, and supporting industries are playing an increasingly important role.

“This means companies need more than just a factory. They need access to reliable infrastructure, skilled labour, suppliers, logistics, and supporting industries,” Tuan said, adding that building in-depth industrial ecosystems has become increasingly important.

After years of attracting FDI companies, Vietnam has established relatively strong industrial ecosystems, creating deeper supply chains and broader networks of manufacturers and supporting businesses.

In the next phase, the potential lies in expanding the scale of industrial parks while also upgrading the quality of the manufacturing environment.

Greener, more people-oriented industrial parks are gaining attention, incorporating elements such as greenery, natural light, and biophilic design to create a more convenient and pleasant workplace.

From Soilbuild’s perspective, stronger ecosystems, advanced manufacturing, sustainability, and user experience will increasingly become important factors in light of the development of Vietnam’s industrial real estate market.

For foreign enterprises expanding into Vietnam for the first time, Tuan suggests that they should look at rental rates while also assessing the overall value and the operating environment when selecting a production facility.

First, companies should consider location and connectivity to customers, suppliers, logistics networks, and supporting industries. They should then assess the technical specifications of the facility, including floor loading, clear height, modular unit sizes, and expansion potential.

“Companies should carefully examine the technical specifications of the facility. These factors should meet the company’s current requirements along with its future needs,” Tuan recommended.

Electricity supply, utilities, logistics, and sustainability certifications should also be considered from the beginning. This is particularly true as ESG requirements are increasingly being incorporated into location-selection criteria by international companies.

Tuan also explained, “It is vital to select a long-term partner who understands the needs of international businesses and provides support beyond simply handing over a facility. This can make the establishment and operation process smoother.”

According to Tuan, Soilbuild brings international best practices to the Vietnamese market. Soilbuild has 50 years of experience in Singapore and an international track record across markets including Myanmar, Australia, and the UK.

Through its Spectrum projects in Vietnam, Soilbuild is bringing international experience while adapting them to the needs of the Vietnamese market and customers.

“The right industrial partner can support a business through different stages of its development,” Tuan said.

As FDI flows undergo restructuring and supply chains continue to shift, competition among industrial markets may no longer be determined by land availability or costs. Readiness, speed to operation, infrastructure quality, sustainability, and the level of support provided throughout the project lifecycle are becoming increasingly important considerations for manufacturing companies.

VIR