Detail

INDUSTRIAL MARKET – A SHIFT IN MINDSET – FROM “RURAL EXODUS” TO “RETURN-TO-LOCAL INVESTMENT”

In the 80s & 90s, migrating to big cities was almost the only path to building a career. Millions of young workers left their hometowns, heading to urban centers with one belief: the city equals opportunity. Industrial zones, factories, and services were heavily concentrated in major cities, creating massive labor demand.

But that picture is rapidly changing.

Industrial Parks - TTTFIC Group — Industrial Parks – TTTFIC Group

A Reversal Trend: Industry Moving Back to Rural Areas

Today, it’s no longer workers chasing jobs – it’s businesses chasing labor.

Land prices range from $45–$70/SQM/ 50 Years, while in major cities they typically range from $200–$350/SQM/ 50 – Years.

Investors are increasingly shifting toward:

Provincial areas and satellite regions
Rural and semi-rural locations
Undeveloped but high-potential localities

The reasons are clear:

Significantly lower land costs
Larger land banks with room for expansion
Attractive investment incentives (tax, infrastructure, procedures)
Abundant and cost-effective labor supply
Less competition compared to major cities

Gone are the days of fighting over every square meter of industrial land or constantly raising wages to retain workers.

The Harsh Reality in Major Cities

Meanwhile, companies trying to “force their way” into big cities are facing:

Soaring land lease and operating costs
Severe labor shortages
Increasing regulatory and environmental pressures
Intense competition and shrinking profit margins

And for workers:

High cost of living
Pressure from housing, healthcare, and education
Crowded, unstable living conditions

A clear paradox: both businesses and workers are struggling to stay in large cities.

Golden Opportunities in “Undervalued” Regions

Places once considered “remote” or “underdeveloped” are now becoming:

New industrial hubs
Strategic manufacturing satellites
Destinations for both FDI and domestic investment

This is no longer a backup option—it’s the optimal choice.

Changing the Mindset – First Movers Win

The question is no longer:

“Should we go to the city?”

But rather:

“Why not move one step ahead—choose the right place at the right time?”

Why:

Struggle to compete in oversaturated markets?
Accept higher costs and greater risks?

When you can:

Secure land at better prices
Take full advantage of incentives
Access and stabilize your local workforce
Build a sustainable production ecosystem from the ground up

Vietnam’s industrial market is entering a phase of major redistribution. Businesses that are agile, forward-thinking, and willing to shift their mindset will gain a significant advantage over the next 5–10 years.

Don’t follow outdated paths. Invest where the future is heading.

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