MARKET INSIGHT | EAST AND SOUTHEAST ASIA
Southeast Asia – Industrial construction project pipeline Projected spending value by stage ($M) 140,000
120,000 100,000 80,000 60,000 40,000 20,000 0
2024 2025 2026 2027 2028 2029 Pre-planning Planning Pre-execution Execution Construction complete Note: based on assumption that all projects proceed as planned and that spending is evenly distributed during the construction phase.
Southeast Asia – Industrial construction project pipeline Funding mode (% of total)
Public 10.6%
Public/private 3.3%
At the portfolio level, Southeast Asia’s pipeline
Private 86.1%
reinforced by the Electric Vehicle Industry Development Act (EVIDA), enacted in April 2022, which seeks to promote EV adoption through incentives and supportive measures for EV manufacturers, importers, and users. For industrial construction, the practical implications include greater potential demand for component manufacturing, assembly capacity, charging-related equipment production and logistics upgrades. As with many markets in the region, the pace and scale of delivery will depend on power reliability, permitting efficiency and the availability of contractors experienced in higher-spec industrial projects. Vietnam continues to stand out as a manufacturing and electronics hub, with industrial construction supported by ongoing factory investment and a strengthening semiconductor pipeline. In January 2026, Vietnam-based telecommunications company
38 | October 2026 |
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Viettel began construction of the country’s first semiconductor fabrication plant, covering 27ha in Hoa Lac Hi-Tech Park, with the facility scheduled to be completed by 2027. This is significant because semiconductor projects typically lift local standards for utilities, clean environments, wastewater treatment and supply-chain qualification – capabilities that often spill over into other advanced manufacturing sectors. Also in January 2026, Japan-based manufacturing company YKK Corporation began the Phase 3 expansion of its Nihon Trach Factory. The project will be developed on an area of 176,701m2
and is scheduled for completion
by 2027. Alongside these headline projects, Vietnam’s broader industrial activity continues to be supported by industrial park development and export-linked manufacturing, though grid capacity, connection timing, and land-use approvals can influence project sequencing.
is weighted towards early stage activity. Projects in the pre-planning and planning stages account for 58.3% of the pipeline, totalling $334.1bn. This suggests a large volume of proposed work that may still be sensitive to financing conditions, policy adjustments, permitting timelines and changing demand forecasts from global manufacturers. Funding is dominated by private investment, which represents 86.1% of total pipeline value. Public investment accounts for 10.6%, while joint public-private (PPP) funding makes up the remaining 3.3%. The high private share indicates that market confidence, credit conditions and sponsor balance sheets will play an outsized role in determining which projects advance into execution. Based on the data available, industrial construction project spending in Southeast Asia is expected to rise sharply from $83.1bn in 2026 to $135.0bn in 2027. If realised, that step-up would imply increasing demand for contractors, equipment vendors, specialist commissioning services and project management capability. It would also likely intensify competition for skilled trades, particularly in MEP disciplines that are already constrained by data-centre and high-tech manufacturing requirements. In response, many owners are likely to increase use of modular construction, standardised designs for warehouses and light industrial and phased delivery to secure earlier operational starts.
East Asia
East Asia’s industrial construction pipeline totals $1.5trn, representing roughly 25.1% of the overall global pipeline value. The region remains at the forefront of high-value, technology-intensive industrial investment, with deep ecosystems in semiconductors, advanced electronics,
2030
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