Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment into real estate production ventures accounted for 63% of FDI into Vietnam, focus on high worth industries such as electronic devices, automotive parts, semiconductors, and eco-friendly technology drawing in offshore investment.
“Over 44% of new FDI financing going into realty production in 9M2024 engaged in value-added goods including electronics and electrical tools, which perfectly stresses Vietnam’s move up the value chain”, said John Campbell, director and head of industrial companies at Savills Vietnam.
According to Savills, the SEZ is placed to reward one of the most from this demand due to its competitive costs and strategic distance to international ports.
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 record by Savills.
“As one of Vietnam’s biggest foreign investors, Singapore has contributed to the quick advancement of infrastructure, modern technology and services in Vietnam, proactively taking part in various fields such as real estate, retail, manufacturing and renewable energy,” states Sally Tan, senior handling supervisor and director of client services at Savills Singapore.
Demand for warehousing and ready-built industrial location has even surged due to the nation’s sturdy shopping field. Ready-built production line and storage facility stock raised 31% y-o-y in 2024, with tenancy rates going beyond 80% in primary industrial zones.
He adds that international investments toward Vietnam’s industrial property industry are focused in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features districts like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
Another vital growth sector for Vietnam is information hubs, generated by the development of the digital economy in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy tasks that this market can expand to $1.87 billion by 2029, spurred by the need for cloud computing, 5G and IoT technological innovations that rely on information facility facilities. Vietnam’s high internet infiltration amongst its local people will also contribute to this need.
