In the first eight months of 2025, Vietnam attracted $26.14 billion in registered foreign direct investment (FDI), a 27.3% increase year-on-year, reinforcing the country’s appeal in the global supply chain. Key drivers of this FDI surge include the “China +1” strategy for supply chain diversification, a stable investment environment, tax incentives, and participation in free trade agreements such as RCEP, CPTPP, and EVFTA. Vietnam’s strategic proximity to China offers competitive labor costs while maintaining seamless regional supply chain connectivity. Additionally, the growing trend of green and high-tech FDI has further bolstered investment inflows.

Industrial real estate stocks have reaped significant benefits from robust FDI growth, driven by high demand for land leases and rising rental prices. Notable performers include KBC (up 38.46%), GEX (surging 184%), and VGC (up 39%), while stocks like SZC, BCM, IDC, and SIP saw slight declines. The sector’s average P/E ratio stands at 22.5, higher than the broader market’s 15, though its P/B ratio remains attractive compared to the five-year average.

The medium- and long-term outlook for the industrial park sector remains positive, fueled by FDI growth and sustained leasing demand. Companies such as SIP (over 1,000 hectares), KBC (Tràng Duệ Industrial Park, 687 hectares), and BCM (Cây Trường Industrial Park, 700 hectares) are highly regarded. Additionally, firms with large converted rubber land reserves, such as GVR and PHR, show promise due to steady cash flows from compensation and land leasing.

However, differentiation among industrial park companies is expected to persist due to unique advantages and challenges. Vietnam continues to maintain a competitive edge with low taxes and a strategic location, particularly as its stock market nears an upgrade to emerging market status, which is likely to attract further capital from investment funds.