VOV.VN - Vietnamese Consul General in Perth Pham Hai Anh on May 28 received David Morgan, Chairman of the Western Australia Vietnam Business Council (WAVBC), at the Consulate General headquarters in Perth.

During the meeting, the two sides discussed measures to deepen cooperation between Vietnam and Western Australia in key areas including trade, investment, science and technology, tourism and people-to-people exchanges.

Pham Hai Anh stressed that the strong political relationship between Vietnam and Australia should continue to be translated into substantive and effective economic and investment cooperation programmes commensurate with the potential and needs of both sides.

Appreciating WAVBC’s role as a bridge in promoting economic and trade links between Vietnam and Western Australia, the consul general called for closer coordination to step up information sharing on investment opportunities and support business connectivity.

Priority areas include science and technology, strategic minerals and high-tech agriculture, alongside stronger promotion of cooperation potential through tourism, cultural activities and people-to-people exchanges.

Congratulating Pham Hai Anh on officially assuming his post in Western Australia, David Morgan said the state holds considerable cooperation potential but remains relatively little known in Vietnam. Likewise, the Australian business community still lacks sufficient information about the capabilities of Vietnamese partners.

WAVBC’s priority in the coming period is to strengthen business connectivity, particularly among small and medium-sized enterprises, Morgan told his guest.

He added that the council places special emphasis on younger entrepreneurs in order to build a solid foundation for future cooperation.

Morgan also noted that technology, innovation, artificial intelligence (AI) and automation will be priority areas for cooperation in the coming period.

At the end of the meeting, the two sides agreed to maintain close coordination in implementing the above directions while further boost locality-to-locality cooperation, particularly business connectivity between Ho Chi Minh City and Perth through representative organisations.

They also concurred to intensify delegation exchanges, networking activities and regular information sharing.

Industrial real estate has proven to be robust in recent times, with upwards momentum continuing in the first quarter amid myriad global headwinds.

The latest report from the Ministry of Construction indicates that Vietnam’s industrial real estate market maintained its positive momentum in the opening quarter of 2026, with both rental prices and occupancy rates remaining high. In northern Vietnam, industrial land rents ranged from $90 to $250 per sq m per lease term, with occupancy rates above 80 per cent. Rents in the central region stood at $70 to $120 per sq m, while those in southern Vietnam ranged from $185 to over $280 per sq m, with occupancy exceeding 90 per cent.

Nationwide, rents for ready-built factories and warehouses also edged upwards. Data from DTJ Industrial showed that industrial real estate rents increased by 3-6 per cent year-on-year in the first quarter.

Rising supply, rising rents

According to JLL, the market is expanding in both scale and value. Northern Vietnam currently has nearly 13,000 ha of industrial land across more than 70 operational industrial parks, with new supply in the first quarter exceeding 100 ha. Occupancy stood at 82 per cent, and the cumulative leased area rose to 10,400 ha, up 5 per cent year-on-year. Leading developers, including Kinh Bac City, Deep C, Viglacera, Rox iPark, and VSIP, account for nearly half of developed land.

The ready-built factory segment reached more than 3.6 million sq m across 91 projects, up 14 per cent compared with a year earlier. New supply in the first quarter totaled 159,000 sq m, while occupancy stood at 87 per cent, with leasing activity concentrated in Bac Ninh province and Hai Phong in Vietnam’s north. Rental rates ranged from $4 to $7.1 per sq m per month, reflecting a 4 per cent increase year-on-year.

Modern ready-built warehouses in the north reached a total supply of 2.2 million sq m, representing a 1.7-fold increase year-on-year. The market recorded an additional 162,000 sq m of new warehouse space in the first quarter, including the entry of South Korea’s JIEL Group through the JEIL Logistics Hai Phong project. Average rents climbed to $5.1 per sq m per month, up 10 per cent year-on-year and marking the strongest growth among the three segments.

In the south, the ready-built warehouse segment also posted a positive start to the year. Nearly 50,000 sq m of new supply entered the market in the first quarter, primarily in Dong Nai province, bringing total supply to some 2.5 million sq m. Rental levels rose 0.5 per cent quarter-on-quarter, to $5.07 per sq m per month. Growth was mainly driven by high-quality projects with strong occupancy, while most of the market remained stable or adopted flexible pricing strategies to optimize leasing performance.

Demand continues to come from a diverse range of tenants, including manufacturers, retailers, and e-commerce companies serving both the domestic and export markets. However, occupiers are becoming more selective, prioritizing logistics facilities with strong connectivity, completed infrastructure, and high operating standards in order to optimize costs and improve supply chain efficiency. This shift reflects a growing focus on quality assets and strategic locations, particularly in established industrial parks linked to Ho Chi Minh City and key seaports.

Strategic manufacturing and logistics hub

Despite the global uncertainties, Vietnam remains a strategic destination for manufacturing and logistics. Industrial real estate activity continues to be supported by stable macro-economic conditions, expanding FDI, and ongoing improvements in infrastructure.

Ms. Nguyen Hong Van, Head of Transactions at JLL Vietnam, said geopolitical tensions have not weakened the market but have created short-term pressure through rising logistics costs, which in turn are influencing site selection decisions. Locations with well-developed infrastructure and strong connectivity are increasingly favored, while ready-built industrial properties are emerging as a cost-efficient solution.

Vietnam’s industrial and logistics market is also benefiting from global supply chain diversification and a sustained shift toward ready-built facilities. Investors from South Korea, Singapore, China, Japan, and Europe continue to expand operations, particularly in electronics, semiconductors, automotive components, and high-tech industries. “The availability of diverse real estate solutions, from industrial land to ready-built and build-to-suit facilities, allows manufacturers to enter the market at different scales and expand over time,” Ms. Van said.

According to Mr. Nguyen Quoc Khanh, Chairman of DTJ, several structural drivers are reinforcing market growth. Newly-registered FDI surged in the first quarter of 2026, with capital continuing to flow into manufacturing and processing.

At the same time, Vietnam is piloting next-generation free economic and trade zone models designed to attract high-quality investment through institutional innovation rather than traditional tax incentives. The Hung Yen Free Economic Zone, with a planned scale of 30,538 ha and total investment of $18 billion, has been approved at the provincial level and is moving toward submission to the central government. In Hai Phong, its free trade zone has entered the implementation phase, with a focus on integrating port, logistics, and industrial ecosystems.

Public investment in infrastructure is also accelerating. Major projects such as Ring Roads 4 and 5 in the Hanoi region, Gia Binh Airport, and the Hanoi - Ha Long high-speed railway are expected to strengthen supply chains in the Red River Delta and stimulate industrial real estate demand.

Infrastructure reshaping the market

Mr. John Campbell, Director of Industrial Services at Savills Vietnam, noted that with approximately 234 large-scale projects underway and total investment estimated at VND3,400 trillion ($130.8 billion), the country is entering a new phase of infrastructure-led growth. Key developments such as Long Thanh International Airport, metro systems in Hanoi and Ho Chi Minh City, and more than 380 km of newly-operational North-South expressways are opening new economic corridors and supporting the formation of integrated supply chain ecosystems.

Infrastructure development continues to play a central role in Vietnam’s industrial transformation. In the north, sectors such as electronics, semiconductors, and high-value manufacturing are being driven by sustained investment in seaports, expressways, and logistics networks. In the south, large-scale infrastructure projects are expected to reshape freight flows and support new development corridors, while improved transport links will strengthen interregional connectivity and the efficiency of goods movement.

Mr. Campbell said the market’s growth momentum is expected to strengthen over the course of 2026. Infrastructure rollout will open up new industrial clusters, while policies supporting high-value industries are likely to attract additional quality investment. At the same time, Vietnam’s digital capacity is expanding with the development of large-scale data centers, reinforcing the country’s competitive position as it shifts toward more advanced manufacturing and technology-driven supply chains.

The core of this transformation, he noted, lies in scaling up while improving quality, supported by alignment across infrastructure, technology, human capital, and policy. Future growth is expected to come from high-value industries that depend on stable energy supply, modern industrial and distribution systems, and integrated digital infrastructure.

Looking ahead, JLL expects rental rates in northern Vietnam to rise by 4-6 per cent annually, particularly in areas near seaports, airports, and major expressways. Occupancy is projected to remain high, with industrial land above 80 per cent, while factory and warehouse occupancy should improve from late 2026 as new supply is absorbed.

During their talks in Bangkok on May 28, General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam and Prime Minister of Thailand Anutin Charnvirakul pledged efforts to soon raise bilateral trade turnover to $25 billion annually.

Vietnam and Thailand will step up cooperation in potential areas such as clean energy, the digital economy, the green economy, innovation and high-tech agriculture, stated General Secretary of the Communist Party of Vietnam Central Committee and President of Vietnam To Lam at a press briefing in Bangkok on May 28 following his talks with Prime Minister of Thailand Anutin Charnvirakul, according to a report by the Vietnam News Agency.

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The Vietnamese Party and State leader said the two sides had highly successful talks and achieved many positive, comprehensive and substantive outcomes.

Both sides highly valued the positive progress in Vietnam – Thailand relations in recent years, noting that political trust has been strengthened continuously, defense and security cooperation enhanced, while economic, trade and investment cooperation remains a bright spot. People-to-people exchanges have also remained vibrant, and coordination at regional and international forums, especially within the Association of Southeast Asian Nations (ASEAN), has become increasingly close.

On that basis, he noted, the two sides discussed in depth orientations and measures to further strengthen the Vietnam – Thailand relationship in a more robust, sustainable and effective manner.

Vietnam and Thailand agreed to further deepen political trust as the political foundation for a long-term and close relationship between the two countries; promote high-level and all-level exchanges and contacts across all channels and sectors; enhance the effectiveness of existing cooperation mechanisms; and maintain and further promote the effectiveness of defense and security cooperation mechanisms. They pledged to bolster cooperation in combating transnational crime, and step up the negotiations and signing of bilateral legal cooperation agreements. They reaffirmed their commitment to preventing any individual or organization from using the territory of one country against the other, the Vietnamese leader noted.

General Secretary and President Lam stressed that the two countries will foster collaboration in potential fields while tightening transport and logistics infrastructure connectivity and effectively utilizing economic corridors in the Mekong sub-region, especially the East-West Economic Corridor, to facilitate the flows of goods and services between the two countries and across the region.

Regarding locality-to-locality cooperation, he said the two sides will further enhance cooperation efficiency, increase tourism promotion, strengthen cultural and educational links, and expand people-to-people exchanges, particularly among younger generations, thereby deepening mutual understanding and bonds between the two peoples.

Appreciating the Thai Government’s attention to and support for the Vietnamese community in Thailand, he affirmed that the community serves as a valuable bridge in bilateral relations and an indispensable part of efforts to preserve and enhance friendship and ties between the peoples of the two countries.

On regional and international issues, General Secretary and President Lam reaffirmed the importance of maintaining ASEAN solidarity and centrality. He said the two sides agreed to strengthen coordination of their stances on issues of mutual concern, including promoting peace, stability, security, safety and freedom of navigation and overflight in the East Sea, and resolving disputes through peaceful measures in accordance with international law.

He also welcomed Thailand and Cambodia’s serious implementation of the ceasefire agreement and expressed his hope that the two countries will maintain dialogue and resolve border disputes peacefully for the long-term benefit of both sides and the region as a whole.

The Party and State leader expressed confidence that with the shared determination of the leaders and peoples of both countries, the Vietnam – Thailand Comprehensive Strategic Partnership will continue to develop in a stronger, more substantive and more effective manner, serving the interests of both peoples and contributing positively to peace, cooperation and development in the region and the world.

For his part, Thai PM Anutin Charnvirakul affirmed that the visit by General Secretary and President Lam holds special significance as the two countries celebrate the 50th anniversary of their diplomatic relations.

He said the visit provides a foundation for the two sides to jointly shape orientations for the implementation of the Comprehensive Strategic Partnership in a deeper and more substantive manner, bringing tangible benefits to the peoples of both countries.

The Thai PM noted that the two leaders had open and candid discussions and reached consensus on orientations for fostering cooperation across all areas within the framework of the Thailand – Vietnam Comprehensive Strategic Partnership.

The two sides agreed to further enhance coordination to respond to current global economic uncertainties and fluctuations, while placing importance on promoting cooperation between the private sectors of both countries. They also pledged efforts to soon raise bilateral trade turnover to $25 billion annually.

In the coming period, the two countries will focus on reinforcing ties in energy security, science and technology, innovation, biotechnology and agriculture. They also affirmed that they can work together to promote economic development in the Mekong sub-region.

The host expressed confidence that the outcomes of the talks will continue to consolidate friendship, trust and cooperation between the two countries, thereby generating benefits for their peoples.