Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment into realty production ventures represented 63% of FDI in to Vietnam, targeting high value sectors such as electronics, automobile pieces, semiconductors, and green technology drawing in international investment.
Need for warehousing and ready-built industrial location has even surged because of the country’s sturdy ecommerce field. Ready-built production line and storehouse stock raised 31% y-o-y in 2024, with occupancy rates exceeding 80% in major industrial zones.
“Over 44% of brand-new FDI funding going into real estate production in 9M2024 engaged in value-added products like electronic devices and electrical tools, which perfectly emphasises Vietnam’s move up the value chain”, said John Campbell, director and head of industrial companies at Savills Vietnam.
One more vital growth field for Vietnam is data centres, steered by the growth of the digital economy in Asia. Savills valued Vietnam’s data center market at over $917 million, as of end-2023. The consultancy projects that this field could grow to $1.87 billion by 2029, sparked by the need for cloud calculating, 5G and IoT technologicals advances that rely upon data centre infrastructure. Vietnam’s high internet infiltration among its local population will also contribute to this demand.
Over the first nine 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) right into Vietnam, according to a market review by Savills.
He adds that foreign financial investments into Vietnam’s commercial realty market place are concentrated in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features provinces like Bac Ninh and Hai Phong whilst the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
“Being one of Vietnam’s largest international financiers, Singapore has contributed to the fast development of infrastructure, technology and services in Vietnam, proactively taking part in different fields like realty, retail, manufacturing and renewable resource,” claims Sally Tan, top handling supervisor and head of customer services at Savills Singapore.
According to Savills, the SEZ is placed to benefit the most from this demand because of its reasonable costs and important proximity to international ports.
