As foreign direct investment continues to move into higher value-added manufacturing, infrastructure, technical standards, sustainability, deployment speed and expansion potential are becoming more important in site selection.
Adapting to manufacturers' changing needs
Industrial sites were previously selected largely for land prices, location and access to markets. As supply chains have become more complex and manufacturing projects face higher technical requirements, businesses are increasingly assessing sites by their long-term operating capabilities.
John Campbell, Head of Industrial Services at Savills Vietnam, said infrastructure can put a location on an investor's shortlist, but the industrial property itself must also perform effectively. Power supply, sustainability, factory specifications, labour availability, licensing and expansion potential are increasingly considered alongside connectivity.
These requirements are particularly important for electronics, high technology, medical equipment and precision manufacturing, where companies need facilities that meet operating standards, can become operational quickly and support future expansion.
The former Long An province, now part of Tay Ninh, has developed a diverse industrial base ranging from industrial land to ready-built factories and warehouses. Savills data shows about 4,000ha of industrial land, around 3,000ha leased, for an occupancy rate of about 82%. Ready-built factories and warehouses cover around 3.2 million sq.m, with occupancy of about 80%.
The range of supply lets businesses choose models according to project scale and operating timelines. Industrial land gives more flexibility for designing and expanding production facilities, while ready-built factories and warehouses can shorten market-entry times.
New development models are also emerging in Ben Luc, Can Giuoc and Duc Hoa. The 400ha Prodezi Eco-Industrial Park in Ben Luc is being developed with green infrastructure and renewable energy for electronics, medical equipment, pharmaceuticals, logistics and data centres. The 13.4ha Phu An Thanh project offers ready-built factories and hybrid solutions for businesses seeking rapid deployment.
High-tech FDI raises market standards
The changing quality of industrial property is occurring alongside shifts in FDI flows. In the first half of 2026, registered FDI in processing and manufacturing reached 10.71 billion USD, while investment in electronics rose from about 985 million USD to 7.03 billion USD.
Projects in these sectors require higher standards for infrastructure stability, power supply, logistics, factory specifications and expansion capacity. Developers are therefore competing on product quality and suitability for specific tenant groups as well as land availability.
For businesses seeking locations in southern Vietnam, connections with manufacturing centres, labour sources and logistics infrastructure remain important. Connectivity is increasingly part of a broader package in which product quality and operating capacity determine a location's suitability.
According to Campbell, companies expanding their supply chains are seeking both well-connected locations and industrial properties that match their operating requirements. The market is shifting from competition based on land availability to competition based on solutions for day-to-day operations.
In the long term, land availability, ready-built products, operating standards and connectivity will increasingly determine the competitiveness of southern industrial markets. The former Long An, now part of Tay Ninh following the administrative merger, remains positioned to attract manufacturing, logistics and high-tech businesses.
Sources: VietnamPlus / Vietnam News Agency
