In just the first few months of 2025, foreign investment in industrial parks in Vietnam has increased sharply, reaching more than 4.33 billion USD (up 48.6% year-on-year in the first few months of 2025). Therefore, land rental prices in industrial parks, whether small or large, fluctuate unpredictably. If investors are interested in the rental cost of land in small industrial parks in Vietnam in 2025, please refer to the updated information from KTG Industrial in the article below.
Factors affecting small industrial park rental cost in Vietnam
Below are the factors that directly affect the rental price of land in industrial parks:
Geographical location
If the land for building warehouses and factories is located on a convenient traffic system to central provinces and cities, of course the rental cost will be higher than in suburban areas, far from urban areas. Along with that, investors choose land in industrial parks with prime locations (such as near the entrance and exit gates), building convenient internal roads, there is always a difference with other areas.
Location is an important factor affecting land rental prices
Infrastructure
Industrial parks with synchronous infrastructure investment, including electricity, water, Internet and wastewater treatment systems, often have higher rental prices than areas where businesses have to implement these items themselves. In addition, land rental costs also depend on the requirements for building factories and warehouses of each unit.
Area size
The larger the area of the factory or warehouse, the higher the land rental cost. In addition, when this land area can be easily expanded in the future, the rental price is different from fixed area locations that are difficult to change.
Utilities
To attract customers, some land leasing units in industrial parks can offer many incentives. For example, reducing annual rental fees when leasing land for a long time, tax exemption, tax reduction, etc. In addition, they can build more schools, hospitals, supermarkets, etc. to effectively retain investors. Therefore, land rental costs vary between industrial parks.
Preferential policies of the government
Land rental costs may fluctuate depending on the Government’s incentives. For example, the 2014 Investment Law shows that new enterprises are entitled to land rental reductions, value added tax exemptions, etc., so the initial rental cost can be reduced by half. However, in each country, the Government has different support policies to promote investment capital, so business owners should learn carefully before investing.
Industrial land rental prices may change according to state policies each year
Small industrial park rental costs in Vietnam
According to predictions from experts from real estate consulting firm CBRE Vietnam, the industrial real estate market in Vietnam will continue to grow strongly in 2024 and 2025.
Level 1 land rental price (*) averages 189 USD/m2 [1]. It is forecasted that by 2024, land rental costs will continue to increase by 3 – 5%. Specifically, in the North, the rental price is expected to be about 142 USD/m²/term (up 5% compared to 2023), while in the South it is 195 USD/m²/term (up 3%).
(*) Level 1 land is land that has been leveled and has complete infrastructure.
Below is a detailed comparison table of small industrial land rental costs in each area for investors to easily refer to:
| Area | Rent price | ||
| Industrial Land | Ready-built factory | Ready-built warehouse | |
| North | 130 USD/m²/term | 4,9 USD/m²/month | 4,6 USD/m²/month |
| Central | 50 – 90 USD/m²/term | 4,85 USD/m²/month | 30.000 – 60.000 VND/m²/month (Da Nang), 25.000 – 50.000 VND/m²/month (Quy Nhon) |
| South | 195 USD/m²/term | 4,7 USD/m²/month | 4,85 USD/m²/month |
Extra questions
Besides the rental price, are there any additional fees that must be paid when renting?
In addition to the land rent (or facility rent), the rental cost also includes service fees, taxes, insurance, interior installation costs and legal fees. In which:
- Service fee: This is the fee related to electricity, water, wifi, waste disposal, property maintenance, etc.
- Tax: This is the amount of corporate tax and value added tax. Normally, new investors do not have to pay this fee.
- Interior installation fee: If the investor needs to upgrade the interior, this amount may be added.
- Legal fee: This is the amount paid for consulting services and support to complete land lease procedures.
- Insurance: This is the cost to insure the entire building structure. If problems arise, the insurance provider can support the business owner to pay part of the cost.
- Tailoring costs: Depending on the needs, land conditions, business type, etc., business owners can add an amount for tailoring costs. This amount includes interior modifications, equipment installation, etc.
Industrial land rental fees include many expenses such as infrastructure upgrade fees, monthly service maintenance fees, legal fees, etc.
Do rental prices in Vietnam vary between regions in the country?
Yes, industrial land rental costs in the North, Central and South regions have significant differences due to many factors such as geographical location, infrastructure conditions and local policies.
The above is information on industrial land rental costs in Vietnam 2025, but it is for reference only. Because currently, competition between investment units is very high, rental prices are constantly fluctuating. Business owners should seize the opportunity to have the best facility rental fees to plan appropriate investments.
