Industrial real estate in a new cycle: Perspectives from a long-term financial investor

At the 2025 Finance - Real Estate Forum hosted by Saigon Times under the theme “Laying Foundation for New Growth Cycle”, over 150 experts, business leaders, and financial institutions gathered to reassess the long-term growth prospects of Vietnam’s industrial real estate, a critical infrastructure backbone for the next phase of global supply chain realignment.

Finance - Real Estate Forum 2025

Mr. Lim Dyi Chang, Country Head of Commercial Banking, UOB Vietnam, shared strategic insights on FDI shifts, the evolving role of industrial real estate, and the key conditions Vietnam must meet to sustain its investment attractiveness in the coming decade.

The UOB View: Long-term fundamentals as the true decision driver

According to Mr. Lim, foreign investors no longer view Vietnam as a low-cost destination. Investment decisions today are shaped through a long-term lens, factoring in political stability, a reforming administrative apparatus, transparent investment policies, ongoing infrastructure upgrades, and most importantly, the potential to elevate workforce quality.

UOB’s commitment to building a new head office and increasing our charter capital in Vietnam reflects a strong, long-term conviction, the kind of strategic move that would not be made based on short-term fluctuations.

From market observations: A shift from volume to value

According to Cushman & Wakefield, Vietnam continues to attract high-quality FDI, with industrial real estate emerging as a standout. As of end-2024, total industrial land supply reached around 20,000 hectares, with average primary land prices growing at a compound annual rate of 10%.

In the first nine months of 2024, investment flows expanded beyond labor-intensive sectors like textiles and furniture into high-tech industries, electronics, and data centers, signaling Vietnam’s move up the value chain in global manufacturing.

To sustain this momentum, Vietnam must intensify efforts to upskill its workforce, a factor Mr. Lim identified as “critical and urgent” to stay competitive in next-generation industries.

Supply chain restructuring: Short-term shocks, long-term opportunities

Mr. Lim Dyi Chang spoke during Panel Discussion 2 at the forum

Mr. Lim acknowledged that global trade disruptions, including renewed tariff barriers and the possibility of “Trump 2.0”, are creating near-term volatility. However, these shifts also offer Vietnam an opportunity to reinforce its strategic role in global supply chains.

He noted, “Costs may go up, but global big buyers are not sitting still. Together with their suppliers, they are finding ways to optimize costs and protect market share. That is why we remain confident that free trade flows will persist, and Vietnam stands to benefit over the medium term”. 

Green finance - A mainstream, irreversible trend

Another highlight in Mr. Lim’s remarks was the rise of sustainable finance. He observed that the global capital shift toward sustainability is now well underway, no longer limited to foreign banks, but increasingly embraced by domestic financial institutions as well.

He praised Vietnam’s “astonishing progress” in renewable energy and emphasized that funding for green transition has now become a mainstream financial trend, no longer a niche product for a select few.

However, Mr. Lim also cautioned that balancing high GDP growth (targeted at 8-10% annually) with a net-zero emissions commitment by 2050 is a formidable challenge. Addressing this will require not only consistent policy, but also a financial ecosystem fully equipped to support businesses in transition.

Unleashing internal capacity while maintaining strategic balance

Panelists of Discussion 2 gather for a commemorative photo on stage

During the discussion session titled “Balancing growth and Unlocking domestic potential”, participants agreed that industrial real estate is not only benefiting from supply chain shifts but also serves as a litmus test for a country’s internal capacity, spanning infrastructure, talent, and governance.

From a financial investor’s perspective, Mr. Lim concluded that Vietnam has the right foundations to enter a new growth cycle, if it can maintain a careful equilibrium between growth velocity and long-term investment standards such as ESG compliance, operational efficiency, and capital quality.