Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment into realty production projects accounted for 63% of FDI in to Vietnam, targeting high worth industries such as electronics products, automotive pieces, semiconductors, and environment-friendly innovation captivating foreign investment.
Need for warehousing and ready-built industrial spot has in addition grew as a result of the country’s strong shopping market. Ready-built manufacturing facility and storehouse stock expanded 31% y-o-y in 2024, with occupancy rates going beyond 80% in significant industrial zones.
“Over 44% of brand-new FDI financing going into property production in 9M2024 engaged in value-added items like electronics and electric tools, that perfectly emphasises Vietnam’s move up the worth chain”, said John Campbell, executive and head of industrial companies at Savills Vietnam.
Over the very first 9 months of 2024, outbound Singapore-based capital into Vietnam accounted for $9.91 billion (30%) of the $33.2 billion in foreign direct investments (FDI) right into Vietnam, according to a market review by Savills.
Another vital development field for Vietnam is data hubs, steered by the expansion of the digital market in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy projects that this sector can expand to $1.87 billion by 2029, spurred by the need for cloud calculating, 5G and IoT technologicals advances that count on information facility facilities. Vietnam’s high internet infiltration among its neighborhood population will certainly also contribute to this demand.
“As one of Vietnam’s largest foreign investors, Singapore has contributed to the fast advancement of infrastructure, innovation and services in Vietnam, actively participating in different fields such as real estate, retail, manufacturing and renewable energy,” says Sally Tan, top regulating director and chief of client services at Savills Singapore.
According to Savills, the SEZ is positioned to reward the most from this necessity due to its reasonable costs and strategic distance to international ports.
He adds that overseas financial investments toward Vietnam’s commercial realty market are centered in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ includes districts like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
