Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment right into realty production projects accounted for 63% of FDI in to Vietnam, focus on high value sectors such as electronic devices, auto items, semiconductors, and environment-friendly technology captivating international investment.
He adds that international investments toward Vietnam’s commercial property market are concentrated in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ includes districts like Bac Ninh and Hai Phong whilst the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
“As one of Vietnam’s leading international financiers, Singapore has contributed to the rapid growth of infrastructure, technology and services in Vietnam, proactively participating in different industries such as real estate, retail, manufacturing and renewable resource,” says Sally Tan, top handling supervisor and chief of client solutions at Savills Singapore.
Necessity for warehousing and ready-built industrial location has in addition surged due to the country’s sturdy e-commerce sector. Ready-built factory and storehouse number expanded 31% y-o-y in 2024, with occupancy rates exceeding 80% in primary industrial zones.
“Over 44% of brand-new FDI financing going into realty production in 9M2024 engaged in value-added items such as electronic devices and electrical devices, which completely stresses Vietnam’s change up the worth chain”, said John Campbell, director and head of industrial services at Savills Vietnam.
One more key development field for Vietnam is data centers, steered by the growth of the digital market in Asia. Savills valued Vietnam’s data centre industry at over $917 million, as of end-2023. The consultancy projects that this industry could grow to $1.87 billion by 2029, stimulated by the need for cloud computing, 5G and IoT technological innovations that rely upon information centre facilities. Vietnam’s high internet penetration amongst its local community will also add to this need.
Covering the very first 9 months of 2024, outbound Singapore-based capital into Vietnam made up $9.91 billion (30%) of the $33.2 billion in foreign direct investments (FDI) into Vietnam, according to a market review by Savills.
According to Savills, the SEZ is placed to help one of the most from this demand thanks to its reasonable expenses and strategic distance to global ports.
