Brian Jeffrey
Industry analysts have identified four significant obstacles that are hindering companies from unlocking capital tied up in underused industrial park infrastructure projects, adversely affecting investment efficacy and expansion.
At the Vietnam Industrial Park Development Forum 2025 held on May 29, Nguyen Thi Dung, Vice President of the Vietnam Industrial Real Estate Association (VIREA), highlighted that as the country enters a new stage of development, investing in industrial park infrastructure is both crucial and promising.
Despite a general decline in global investment trends, Vietnam is successfully attracting foreign direct investment (FDI), particularly in the real estate sector, which received USD 2.63 billion, indicating a rising demand for industrial land and necessary infrastructure.
However, Dung pointed out four main challenges in the development of industrial infrastructure: complicated administrative processes, the absence of long-term and coherent infrastructure planning, difficulties in land clearance and relocation, and uneven infrastructure connectivity.
“These challenges are locking up business funds and reducing investment efficiency. Land clearance problems delay necessary inspections and final approvals, and in certain situations, roads constructed years ago remain unused due to poor connectivity,” she noted.
Pham Thanh Binh, Director of the Center for Promotion, Information and Investment Support (Northern Region) under the Ministry of Finance’s Foreign Investment Agency, revealed that Vietnam has 416 industrial parks spanning nearly 129,000 hectares. Still, only six have been initiated as eco-industrial parks with support from UNIDO in Ninh Binh, Da Nang, Can Tho, and Ho Chi Minh City.
Binh noted that many industrial parks continue to follow traditional models with disjointed utility networks, and they lack integration with logistics, innovation, and training services, leading to inefficient use of land and energy.
A report by the Ministry of Science and Technology indicates that merely about 15% of firms in industrial zones are capable of utilizing advanced technology or engaging in global supply chains.
Nguyen Van Tien, Vice President of VIREA, pointed out that Vietnam mainly attracts FDI in labor-intensive and low value-added sectors, which results in minimal technology transfer. Thus, advanced models like eco-industrial parks, high-tech zones, and integrated industrial parks are still scarce. Additionally, the demand for high-quality labor, particularly in automation and modern production management, is increasingly critical.
In light of these issues, Pham Thanh Binh underscored the need for a shift towards more intelligent and sustainable industrial parks—such as eco-parks and those incorporating technological services, green logistics, and innovation centers—in order to keep Vietnam competitive for quality investments.
He contended that industrial areas must operate in conjunction with urban planning, seaports, highways, educational institutions, and innovation hubs, necessitating a cooperative approach across sectors and stronger collaboration among provinces.
He also suggested the establishment of specific criteria for the licensing and operation of smart and eco-industrial parks, along with advocating for tax and credit incentives for projects that implement water recycling, waste reuse, and clean energy systems, promoting circular industrial models.
On the subject of industrial real estate trends, Nguyen Thi Dung reported that under the national master plan for 2030, Vietnam anticipates the addition of 221 new projects, the expansion of 74 existing ones, revision of plans for 23 zones, and the establishment of 299 new parks when conditions allow.
She believes that this extensive development is fostering favorable conditions for companies involved in industrial infrastructure. Presently, the demand for land is shifting towards second-tier provinces and cities due to growing scarcity in central areas.
