As Vietnam emerges as a top destination for foreign direct investment (FDI), a growing number of international manufacturers are shifting their attention to smart industrial zones — high-tech, sustainable ecosystems equipped to meet the evolving demands of global supply chains.
According to the Vietnam Industrial Real Estate Association (VIREA), over 60% of foreign-invested enterprises in Vietnam now prefer industrial zones that incorporate digital infrastructure, automation, and real-time data systems. This trend marks a shift in investor priorities — from merely considering location and cost to demanding technological integration and sustainability.
Related: Here’s how to setup a factory in Vietnam as foreign investor
Smart Zones: The Future of Manufacturing in Vietnam
Speaking at the Vietnam Industrial Zone Development Forum in Hanoi, Mr. Nguyễn Văn Tiến, Vice Chairman of VIREA, emphasized that smart industrial parks are no longer a niche concept. Instead, they are rapidly becoming the new standard. These zones deploy cutting-edge technologies like Artificial Intelligence (AI), the Internet of Things (IoT), big data, and automated systems to streamline operations, reduce costs, and minimize environmental impact.
“These zones offer a connected ecosystem where companies can enhance product quality, reduce emissions, and build resilient supply chains,” Tiến said.
Three key drivers are fueling the transition from traditional to smart zones:
- Accelerated digital transformation and Industry 4.0
- Increasing pressure from global investors
• - The need to stay competitive in global supply chains
High-Tech and Eco-Friendly Investments on the Rise
FDI into Vietnam continues to surge. In the first four months of 2025 alone, the country attracted USD 13.8 billion in registered FDI, a nearly 40% increase year-on-year. Of that, manufacturing and processing accounted for USD 3.4 billion, underscoring Vietnam’s continued appeal as a production hub.
According to Mr. Phạm Thanh Bình, Director of the Northern Investment Promotion and Support Center, foreign investors are increasingly drawn to industries that are high-tech and environmentally conscious. These investors are no longer satisfied with just low labor costs — they demand smart infrastructure, low-emission commitments, and a digitally capable workforce.
“To attract high-quality FDI, Vietnam must focus on integrated smart industrial zones that can meet both technological and environmental expectations,” Bình said.
Challenges in Transitioning to Smart Zones
Despite the strong momentum, challenges persist. Many industrial zones in Vietnam still lack adequate infrastructure, including housing for workers, green logistics, and standardized environmental systems. Over 50% of existing zones remain in the land clearance phase or underutilized due to delays and inefficiencies.
Additionally, Vietnam continues to attract FDI primarily in labor-intensive sectors with limited technological spillover. The country faces a growing shortage of skilled labor, especially in areas like automation engineering and modern production management.
The Call for Interdisciplinary Planning and Incentives
To overcome these obstacles, experts are calling for integrated planning that links industrial zones with urban areas, ports, highways, innovation hubs, and logistics centers. This approach, they argue, requires multi-sectoral coordination and collaboration across provincial boundaries.
Bình proposed the development of clear criteria for licensing and operating smart and eco-industrial zones, as well as tax and credit incentives for projects that adopt circular economy models — including waste recycling, water reuse, and renewable energy.
A Golden Window of Opportunity
Ms. Nguyễn Thi Dung, Vice Chair of VIREA, emphasized that 2025–2030 represents a “golden window” for infrastructure investors. Industrial land demand is expected to soar, with 221 newly planned zones, 74 expansion projects, and 23 zoning adjustments already on the books in addition to the 435 operational zones nationwide.
“Tomorrow’s industrial parks must be more than places to build factories — they must become integrated ecosystems powered by technology, innovation, and sustainability,” she said. “This is how Vietnam can not only compete but lead in the global FDI race.”
Conclusion
As global manufacturers look for smarter, greener, and more efficient production bases, Vietnam’s push toward smart industrial zones offers a promising path forward. By investing in digital infrastructure, fostering innovation, and embracing sustainability, the country is well-positioned to attract high-quality FDI and secure its place as a leader in the next generation of global manufacturing.
Related
Source: Vietnam Insider