1. A new competitive landscape for industrial parks

Vietnam’s industrial real estate market is undergoing a significant transformation.

For many years, industrial parks competed mainly on the availability of land and attractive rental prices. That model is changing as higher-quality FDI becomes more selective about where capital is deployed.

According to Avison Young Vietnam, green industrial parks are no longer simply a short-term marketing trend. They are increasingly becoming a new competitive standard that can influence an industrial park’s position in attracting international investment.

This creates pressure on industrial park developers to reconsider traditional development models and move toward more sustainable production ecosystems from the earliest planning stages.

The shift reflects a broader change in market expectations. Competition is no longer simply about “having available land”, but about “providing an investment-ready ecosystem that meets international standards.”

This is the foundation on which green industrial parks are becoming a new benchmark for attracting high-quality FDI.

2. ESG is becoming an entry requirement for investment

One of the strongest drivers behind the growth of green industrial parks is the increasing importance of ESG - Environmental, Social and Governance - in the site-selection process of multinational corporations, particularly those from Europe and the United States.

Carbon emissions, renewable energy, resource management and transparency in environmental reporting are no longer optional advantages. They are becoming fundamental requirements in project due diligence.

International investors increasingly require their supply chains to align with global sustainability commitments. As a result, industrial parks in Vietnam must be able to demonstrate credible ESG performance if they want to remain on the shortlist of major multinational corporations.

For this reason, a green industrial park should not be understood simply as a development with more trees or better landscaping.

Its real value lies in how it is designed and operated to reduce environmental impacts, improve resource efficiency and give investors confidence in the long-term sustainability of their operations.

3. Infrastructure and operations are becoming key differentiators

In the past, the competitive advantage of an industrial park was often associated with large land reserves and lower rental costs.

Today, the focus is shifting toward the quality of technical infrastructure and the ability to operate that infrastructure effectively.

Investors are paying greater attention to factors such as:

• Compliant wastewater treatment systems
• Access to renewable energy
• Strong transport connectivity
• Professional industrial park management
• Reliable utility and infrastructure services

A genuinely green industrial park must be able to demonstrate efficient resource management, lower operational emissions and the ability to support tenant companies in meeting their own sustainability requirements.

This means that industrial park management capability is increasingly becoming a form of “soft infrastructure” - less visible than roads or utilities, but highly influential in investment decisions.

As a result, competition among industrial parks is gradually shifting from rental price to integrated value.

Industrial parks with stronger infrastructure, more complete services and better operational management are better positioned to attract higher-quality investment projects.

4. Intergrated industrial park are becoming the next development model 

Another defining feature of the new market is the emergence of the integrated industrial park model.

These developments are no longer simply locations for factories. They increasingly combine manufacturing with logistics, supporting services, worker amenities, digital management systems and environmental infrastructure within a coordinated masterplan.

This model can generate significantly more value than a traditional industrial park.

It allows businesses to optimise time, reduce operating costs, improve productivity and respond more effectively to the requirements of global supply chains.

At the same time, integrated developments can support more sustainable local economic growth by attracting projects with higher technological content and greater added value.

Over the long term, integrated industrial parks are closely aligned with Vietnam’s evolving development priorities: moving away from growth based purely on volume and toward a model focused on quality, sustainability and socio-economic efficiency.

5. The key to retaining high-quality FDI

Green industrial parks are becoming a new competitive benchmark not because sustainability is a temporary trend, but because high-quality investors are increasingly prioritising compliant infrastructure, professional operations and clear ESG commitments over land availability and rental cost alone.

There are three areas industrial park developers should focus on:

1. Treat ESG as an entry requirement for investment
2. Invest substantively in infrastructure and operational capability
3. Move toward integrated and sustainable industrial park models

This makes one point increasingly clear: developing green industrial parks is not simply a communications strategy or a matter of image.

It is becoming a practical competitive strategy for strengthening Vietnam’s position on the regional investment map.