Consecutive approvals of large-scale industrial infrastructure and free trade zone projects in Central Vietnam, coupled with a robust recovery in manufacturing land demand nationwide, demonstrate that Vietnam is actively expanding its capacity to absorb foreign direct investment shifting from regional markets.
Industrial and Free Trade Infrastructure Breakthrough in Da Nang
According to news from VnEconomy, the Da Nang People's Committee issued Decision No. 4602/QD-UBND granting investment policy approval and investor selection for the infrastructure construction and operation project of WHA Da Nang Industrial Park. Invested by WHA Industrial Development International (SG) Pte. Ltd., the project spans 400 ha across Thang Binh and Dong Duong communes, with total investment capital exceeding VND 2.7 trillion (around USD 105 million). Under the capital structure, the investor contributes VND 459.24 billion (accounting for 16.95%) and mobilizes nearly VND 2.25 trillion (accounting for 83.05%).
The WHA Da Nang IP project has an operational term of 50 years, with investment preparation scheduled from Q4/2026 to Q4/2027 and executed in two construction phases: Phase 1 (200 ha) from Q4/2027 to Q4/2030, and Phase 2 (200 ha) from Q1/2031 to Q1/2034. Notably, the municipal government requires the investor to allocate land for workers' housing and public service facilities supporting the labor force.
Concurrently, Da Nang also approved FTZ KITA Trung Nam Co., Ltd. to develop infrastructure for Functional Zone No. 6 within the Da Nang Free Trade Zone (FTZ) in Ba Na commune. The project spans approximately 154 ha with total investment exceeding VND 3.354 trillion (approx. USD 128 million), comprising VND 800 billion in equity and VND 2.554 trillion in mobilized capital. The project has a 70-year term and is slated for completion no later than Q4/2029. Currently, 5 out of 7 functional locations in the Da Nang Free Trade Zone (totaling approximately 1,881 ha) have secured investors, marking a significant milestone in integrating free trade zones with supporting industries.
Rebound in Industrial Land Demand and Incoming Supply
According to an SSI Research report cited by VnEconomy, Vietnam's industrial real estate sector is projected to experience strong profit growth by 2027. Following a slowdown in 2025 caused by tariff-related uncertainties, industrial land demand rebounded notably in Q2/2026. Specifically, net absorption in the North reached approximately 217 ha, the highest since Q1/2024 (when it reached 218 ha) and a notable improvement over 134 ha in Q1/2026. In the South, net absorption in Q2/2026 rose to 67 ha, surpassing 57 ha in the previous quarter and 10 ha during the same period last year.
Data from real estate consultancy CBRE indicates that average industrial land rental rates in Q2/2026 also recorded moderate increases. In the North, average asking rents stood at USD 143/m2/lease period (up 2.9% year-on-year), while rents in the South grew 3.7% to USD 185/m2/lease period.
From late 2026 through 2027, the market is forecast to welcome approximately 1,347 ha of new industrial land, including 664 ha in the North (concentrated in Bac Ninh, Thai Nguyen, Hai Phong, and Hung Yen) and 683 ha in the South (primarily in Dong Nai, Binh Duong, Long An, Tay Ninh, and Ba Ria - Vung Tau). SSI Research estimates that the volume of new leases and Memorandums of Understanding (MOUs) across studied developers will climb 18.6% year-on-year in 2027, largely propelled by expansion and facility-relocation requirements from foreign investors, with a particular appetite for Tier-2 industrial zones.
Implications for Businesses
These developments provide valuable signals and strategic insights for international manufacturing and supply chain enterprises:
- Expanded strategic location choices: The development of WHA Da Nang Industrial Park and the Da Nang Free Trade Zone offers investors high-grade infrastructure choices in Central Vietnam, reducing over-reliance on traditional industrial clusters in the North and South.
- Capitalizing on the 2026–2027 supply wave: With over 1,347 ha of industrial land entering the market, businesses can proactively carry out early site surveys to lock in optimal rental terms before the market enters an aggressive upcycle in 2027.
- Benefiting from integrated amenity ecosystems: Statutory requirements mandating worker housing and public amenities alongside industrial parks, combined with comprehensive free trade zone operations targeted for 2029–2030, will optimize workforce retention and trade logistics.
SUNINCON assists International companies in seizing investment opportunities through Industrial park surveys, Market research, and advisory on obtaining Investment licences (IRC/ERC) to establish streamlined production bases in Vietnam.
References
- VnEconomy
