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Operational factors to consider for AgriTech entering Vietnam

Dante Bui

October 9, 2025

In previous articles, we have looked through the key opportunities for agritech companies entering Vietnam, and how the government incentives are enabling a vertical that is still extremely underserved by technology. As the big picture is drawn, we’d like to discuss key factors that directly impact operational baseline – labor, cost, and infrastructure.

A Workforce That’s Growing, Getting Smarter, and Still Competitive

First up: the people. Vietnam has a large labor force with rising wages, but still very competitive compared to many markets in Asia.

In Q1 2025, the average monthly income for workers across most sectors was about VND 8.3 million (roughly 321 USD)—up ~9-10% compared to a year earlier. Urban workers tend to earn more; rural areas noticeably less.
For agricultural, forestry & fisheries sectors in particular, the average income is lower—around VND 4.9 million (roughly 200 USD) for Q1 2025. Still, that’s rising about 9.8% year-on-year in many regions. (The Investor, 2025)
Region matters. In urban industrial and manufacturing hubs like Ho Chi Minh City or Hanoi, wages are higher. In smaller or rural provinces, wages are somewhat lower—offering options for cost savings if you don’t need to be in a big metro.

You’ll pay more now than a few years ago, but relative to developed markets, especially Europe, the cost of labor is still advantageous. And with wage growth expected to continue (often around ~8-10% annually), it’s wise to build that into your financial models.

Industrial Parks, Land & Real Estate—Strong Foundations, Tight Margins

When it comes to setting up physical operations—whether greenhouses, processing facilities, or logistic hubs—the infrastructure environment is improving. Industrial parks (IPs) in particular are a major part of this story.

As of mid-2024, Vietnam had around 429 operating industrial parks with a combined total planned area of about 142,162 hectares.
The average occupancy rate among these IPs is healthy—nationally around 80%. Many parks are fully or nearly fully leased: some southern key provinces like Binh Duong, Dong Nai, Long An are in the high 80s to low 90s in occupancy.
For example, in Binh Duong province, there are 28 industrial parks in operation; they have leased ~7,080 hectares with an occupancy rate of about 93.77%.

What it means: industrial land is in demand, especially in zones near transport hubs or ports. If you’re eyeing prime locations, expect competition—and possibly premium rental and land lease rates. But there is still supply coming online, especially in less-central regions, which may offer trade-off opportunities.

Rental Prices, Accessibility & Infrastructure Quality

Beyond occupancy, cost breakdowns matter. It’s not just what you pay per square meter, but what kind of infrastructure you get (roads, utilities, internal transport, warehousing availability etc.).

Rental prices vary a lot depending on how close the industrial park is to major cities, ports, or highways. Parks near Ho Chi Minh City or Hanoi tend to command higher rental rates.
According to the 2023 half-year industrial park infrastructure reports, many parks rent land in lower price bands (≤ US$50/m² per lease cycle). But there’s a clear trend: more parks are moving into higher rent bands (US$90-110, US$150-200, even above in some cases), especially in well located, high demand areas.
Transportation infrastructure is improving—many parks are located adjacent to national highways (about 67% of them), which helps reduce logistics time and cost. Internal roads within many parks meet good design standards (some main roads being 4 lanes etc.).

Balancing the Upward Pressure

With many positives, there are also pressures to be mindful of:

Wage inflation is real. As Vietnam moves up the value chain, wages—especially for skilled roles—are rising. If your business plan assumes static labor costs, you’ll want to build in a buffer.
Proximity equals premium. If you need to be near ports, good roads, major metros, expect that land and rental rates will be higher, sometimes much higher.
Supply chain and power infrastructure are generally solid in industrial parks, but food/agri-processing often has additional challenges—cold chain, storage, refrigeration, consistent power supply—these are areas where infrastructure still lags.
For operations using advanced automation, robotics, or high-tech greenhouse systems, you’ll also need to invest in skilled labor training and possibly import some of the specialized equipment, which adds to costs.

If You’re Eyeing Vietnam for Market Entry

Competitive base costs + rising productivity: Labor remains more affordable than many alternatives; you get more labor value if you combine it with automation, training, and efficient design.
Access to infrastructure that supports scale: Industrial parks near transport infrastructure, with high occupancy, show where demand is and what’s valued—good roads, reliable utilities, warehousing.
Location strategy matters: If your product or tech requires heavy logistical movement (inputs, outputs, perishable goods), being in southern IPs near ports or in the north near transit hubs gives you better margins.

Cost escalation is coming, but manageable: Because wage growth (≈ 8-10%/year) is predictable, you can plan for it; you’ll want to off-set it with tech, efficiency, and possibly location tradeoffs.