Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Demand for warehousing and ready-built industrial spot has in addition surged because of the country’s solid ecommerce field. Ready-built manufacturing facility and warehouse supply improved 31% y-o-y in 2024, with occupancy rates going beyond 80% in significant industrial zones.
“Being one of Vietnam’s largest foreign investors, Singapore has actually contributed to the rapid advancement of facilities, technology and services in Vietnam, proactively participating in various markets such as realty, retail, manufacturing and renewable resource,” claims Sally Tan, senior regulating director and chief of client solutions at Savills Singapore.
“Over 44% of new FDI financing going into realty manufacturing in 9M2024 entered into value-added items like electronic devices and electrical devices, which completely emphasises Vietnam’s change up the value chain”, mentioned John Campbell, director and head of industrial services at Savills Vietnam.
He adds that overseas financial investments into Vietnam’s industrial property industry are concentrated in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of provinces like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
Investment into realty production projects accounted for 63% of FDI in to Vietnam, targeting high worth sectors such as electronics products, automotive items, semiconductors, and environment-friendly innovation attracting foreign financial investment.
Another essential growth sector for Vietnam is data centers, driven by the expansion of the electronic market in Asia. Savills valued Vietnam’s data centre market at over $917 million, as of end-2023. The consultancy projects that this field could expand to $1.87 billion by 2029, sparked by the need for cloud computing, 5G and IoT technological innovations that rely on data centre infrastructure. Vietnam’s high internet penetration among its neighborhood community will certainly also add to this need.
Over 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.
According to Savills, the SEZ is positioned to reward the most from this necessity thanks to its reasonable expenses and important distance to international ports.
