Representatives from the Ho Chi Minh City Export Processing and Industrial Zones Authority, KCN Vietnam, and the construction contractor perform the groundbreaking ritual for the project. — Photo courtesy of the company

HCM CITY — Industrial property developer KCN Vietnam Group on Tuesday broke ground on a 21.9-ha ready-built industrial project in HCM City, as demand for manufacturing space grows amid Việt Nam's efforts to attract higher-quality foreign investment.

The KCN Sóng Thần 3 project, located in Sóng Thần 3 Industrial Park in an area formerly part of Bình Dương Province, will comprise ready-built factories and hybrid facilities with more than 130,000 square metres of industrial space upon completion, the company said in a statement.

Việt Nam is seeking to shift its focus from attracting foreign direct investment by volume towards higher-value projects, including high-tech manufacturing, sustainable industries and stronger links between foreign-invested and domestic companies, in line with Politburo Resolution No 10-NQ/TW.

As investment priorities evolve, demand for industrial real estate is extending beyond location alone, with manufacturers increasingly seeking developments that offer faster speed to operation, strong connectivity to production and logistics ecosystems, and internationally recognised sustainability standards, the company said. 

HCM City attracted more than US$6.8 billion in foreign investment in the first half of 2026, including more than $2.6 billion in export processing zones and industrial parks.

Against this backdrop, the company said it is expanding its Southern portfolio with this lastest development to help address growing demand for high-quality industrial infrastructure.

"Industrial infrastructure is becoming a critical differentiator as Việt Nam competes for higher-quality foreign investment," said Hardy Diec, chief operating officer of KCN Vietnam Group.

"Manufacturers are making investment decisions based on more than rental costs alone. They increasingly prioritise strategic locations, speed to operation, operational flexibility and sustainability alongside long-term business efficiency," Diec said. 

He said that the project is part of KCN Việt Nam's strategy to expand across the country's key manufacturing hubs. In the south, the project follows the company's developments in Đồng Nai and Tây Ninh and marks its entry into HCM City, he added.

KCN Vietnam expects to complete additional projects at Hố Nai in Đồng Nai and An Phát and Phúc Điền in Hải Phòng in the second half of 2026 and early 2027, adding more than 300,000 square metres of ready-built industrial space, the company said. — VNS