Multi-storey factories in Vietnam: Key trends and suitable industries

As industrial land becomes increasingly developed and demand for manufacturing expansion continues to rise, multi-storey factories are emerging as a growing trend in Vietnam’s industrial real estate market. This factory model not only maximizes land-use efficiency but also meets the evolving needs of foreign-invested enterprises (FDI), particularly those operating in electronics, high-tech manufacturing, and supporting industries. So, what is a multi-story factory, what are its key features, and which industries are best suited to this model?

I. What Is a Multi-storey factory?

A multi-storey factory, also known as a high-rise factory, is an industrial building with two or more floors, designed to maximize usable production space vertically rather than expanding horizontally in the conventional way.

Unlike traditional single-storey factories, which typically feature ceiling heights of around 8–12 meters and large horizontal floor plates, multi-storey factories distribute manufacturing functions across multiple levels. These facilities are usually equipped with freight elevators, conveyor systems, and internal overhead cranes to support the efficient movement of raw materials, components, and finished goods between floors. The multi-storey factory model first emerged in Vietnam around 2015 at Tan Thuan Export Processing Zone in Ho Chi Minh City. Since then, it has become increasingly common as industrial land in key manufacturing hubs has grown more limited and businesses have sought more efficient ways to optimize land use.

II. Why are multi-storey factories becoming a key trend?

Multi-storey factories are not a new concept globally, but they are gaining increasing attention in Vietnam as industrial land in major manufacturing hubs such as Ho Chi Minh City, Hanoi, and Bac Ninh becomes more limited, while demand for production expansion continues to grow.

At the same time, Vietnam continues to attract strong FDI inflows from electronics, high-tech manufacturing, and supporting industries. This has created growing demand for factory space in strategic locations with convenient access to logistics infrastructure, seaports, airports, and skilled labor. However, large land plots suitable for conventional single-storey factories are becoming increasingly scarce in these key industrial areas.

Against this backdrop, multi-storey factories offer an efficient solution for industrial development, allowing businesses and developers to maximize land-use efficiency, optimize infrastructure costs, and meet the requirements of modern manufacturing operations.

III. Technical standards for multi-storey factories

To ensure safe and efficient operations, multi-storey factories are subject to significantly stricter technical requirements than conventional single-storey factories. This is because the building structure must accommodate heavy loads, control vibration generated by machinery, optimize the movement of goods between floors, and comply with stringent fire prevention, fire-fighting, and operational safety requirements.

Among these factors, floor load capacity is one of the most critical technical specifications, as it determines the types of manufacturing activities that can be accommodated on each floor. To optimize the building structure, floor load capacity is typically designed to decrease at higher levels.

According to TCVN 2737:2023, the minimum standard uniformly distributed load used for the structural calculation of floor slabs and secondary beams in workshop and industrial storage areas is: 3.0 kN/m² ≈ 300 kg/m²

In practice, however, many industrial developers design their facilities with substantially higher floor load capacities. Facilities developed by operators such as Kizuna, for example, may offer floor loading of up to 2–3 tonnes/m², depending on the project and floor level. Higher load capacities allow multi-storey factories to accommodate a broader range of manufacturing operations, particularly for FDI enterprises in electronics, precision engineering, logistics, and supporting industries.

Typical floor load capacities are commonly found in multi-storey factory developments.

IV. Advantages and disadvantages of multi-storey factories

In addition to optimizing industrial land use and rental costs in strategic locations, the multi-storey factory model also comes with higher requirements for structural engineering, floor load capacity, and production planning. Below are some of the most common advantages and limitations of multi-storey factories in practice:

V. Industries best suited to multi-storey factories

Due to their specific structural and operational characteristics, multi-storey factories are not suitable for every type of manufacturing activity. Compared with conventional single-storey factories, they generally have lower floor load limits and are therefore better suited to industries that rely on lightweight machinery, clean production processes, and limited movement of oversized or heavy goods.

Some of the industries particularly well suited to the multi-storey factory model include:

• Electronics and semiconductors: typically use relatively lightweight machinery and require clean production environments with stable temperature and humidity control.
• Pharmaceuticals and medical devices: often require cleanroom systems and controlled production environments, while generally having less need for heavy-duty overhead cranes.
• Fashion and garment manufacturing: involve lightweight production lines and compact products, making goods easier to move between floors using freight elevators.

By contrast, industries such as heavy engineering, metal casting, and metal fabrication are generally less suitable for multi-storey factories due to their reliance on high-capacity machinery, heavy floor loads, and heavy-duty overhead crane systems. Similarly, chemical and fertilizer industries face greater limitations because of their stringent requirements for explosion protection, ventilation, and specialized safety standards, which can be more difficult to integrate into a multi-level factory environment. In Vietnam, the sectors accounting for the largest share of demand for multi-storey factory space include food and beverage at 20%, followed by plastics at 19%, printing at 18%, and electronics at 13%.

However, as modern factory developments continue to improve, floor load capacities are also increasing, allowing a broader range of industries to operate in multi-storey facilities. Today, the key factor in assessing suitability is no longer floor load alone, but vertical logistics—the ability to move raw materials, components, and finished goods efficiently between floors. Industries that require frequent movement of bulky or high-volume materials across multiple production levels, such as steel production or large-scale wood processing, remain among the least suitable for the multi-storey factory model.

VI. Vietnam’s multi-storey factory market in 2025–2026

1. Market supply and growth

Multi-storey factories are currently being developed rapidly across Vietnam’s key industrial hubs, including Ho Chi Minh City, Dong Nai, Binh Duong, Long An, Hai Duong, and Bac Ninh. These locations are home to a high concentration of export processing zones, industrial parks, and large-scale manufacturing facilities. By the end of 2024, the total supply of multi-storey factory space in Vietnam had exceeded 900,000 m², with approximately 70% concentrated in the southern market.

In Northern Vietnam, multi-storey warehouse and factory developments, as well as hybrid warehouse-factory models, are becoming increasingly common as developers respond to tenants’ growing need for flexible industrial space. Demand is particularly strong among FDI companies operating in electronics, components manufacturing, and high-tech industries.

2. Industries with the highest leasing demand

Market data indicates that demand for multi-storey factory space in Vietnam is distributed across the following industries:

3. Multi-storey factory rental rates in 2026

Rental rates for multi-storey factories are typically around 10%–15% lower than those of comparable single-storey factories in the same area, as developers can optimize land costs more effectively through vertical development. Indicative rental rates by location are as follows:

📌 Read more: [Vietnam Industrial Real Estate Market Report 2025] | [Redsunland Industrial Real Estate]

VII. Frequently asked questions about multi-storey factories

How are multi-Storey factories different from conventional factories?

A multi-storey factory has two or more floors and is designed to maximize usable space vertically, rather than expanding horizontally like a conventional single-storey factory. Its key advantages typically include 10%–15% lower rental costs and better access to strategic locations, such as areas closer to major urban centers, ports, and logistics infrastructure. However, multi-storey factories generally have lower floor load capacities and require more complex vertical logistics for moving materials and goods between floors.

Which industries are suitable for multi-storey factories?

Multi-storey factories are particularly suitable for electronics, pharmaceuticals, food and beverage, garment manufacturing, printing, logistics, and e-commerce fulfillment centers. They are generally less suitable for heavy engineering, metal casting, chemicals, and other industries that require very heavy machinery or overhead cranes with lifting capacities of more than 5 tonnes.

What is the minimum leasing area for a multi-storey factory?

Typical leasing areas for multi-storey factories range from approximately 1,000 to 5,000 m², which is considerably smaller than conventional single-storey factories that often require spaces of around 5,000–10,000 m². This makes multi-storey factories particularly suitable for SMEs and FDI companies entering or expanding into the Vietnamese market, as they provide greater flexibility in both space requirements and initial investment costs.

Where are multi-storey factories located in Vietnam?

Multi-storey factories in Vietnam are concentrated in major industrial and manufacturing hubs. In Southern Vietnam, key locations include Ho Chi Minh City, Binh Duong, Dong Nai, and Long An. In Northern Vietnam, supply is concentrated in Bac Ninh, Hai Duong, Hanoi, and surrounding industrial areas. Businesses can explore available properties through the Redsunland factory listings.

What are the current rental rates for multi-storey factories?

Current multi-storey factory rental rates in Vietnam generally range from approximately USD 4.0 to USD 7.5/m²/month, depending on the location, building specifications, infrastructure, and project standards. Rental rates in Ho Chi Minh City are typically around 20%–30% higher than in Northern Vietnam. Businesses can contact RSL Group / Redsunland for the latest quotations and available factory options based on their specific location and operational requirements.

VIII. RSL Group – tailored factory solutions for your business

When businesses look for factories for lease in Vietnam to expand manufacturing operations, there are many factors to consider. These include location selection, infrastructure quality, rental costs, technical specifications, legal requirements, as well as logistics expenses, labor availability, and supply chain efficiency.

Working with an experienced industrial real estate consultant from the early stages can help businesses significantly reduce the time, cost, and resources required throughout the investment process.

By partnering with RSL Group/Redsunland, investors can benefit from:

• Tailored factory recommendations based on the company’s industry, operational requirements, and investment budget.
• Competitive rental rates and attractive investment incentives, with access to suitable factory options across key industrial locations.
• Direct negotiation support with developers and landlords, covering rental costs, commercial terms, and other key issues throughout the investment process.

Through this article, Redsunland has provided an overview of multi-storey factories, their key characteristics, and the industries best suited to this increasingly popular industrial property model. We hope these insights help businesses make more informed decisions when evaluating factory options in Vietnam.

👉 Contact RSL Group for detailed consultation on investment opportunities at Xuan Kien Industrial Park: Free consultation registration form

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