Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment right into realty manufacturing projects represented 63% of FDI into Vietnam, focus on high value sectors such as electronics, automobile pieces, semiconductors, and green technology drawing in foreign financial investment.
Covering 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) into Vietnam, according to a market record by Savills.
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“Being one of Vietnam’s biggest foreign investors, Singapore has actually helped to the rapid growth of infrastructure, technology and services in Vietnam, proactively taking part in numerous fields like real estate, retail, manufacturing and renewable resource,” claims Sally Tan, top managing supervisor and head of customer solutions at Savills Singapore.
According to Savills, the SEZ is positioned to help one of the most from this need because of its competitive expenses and important vicinity to international ports.
“Over 44% of new FDI financing entering into real estate manufacturing in 9M2024 took on value-added products like electronic devices and electric tools, which completely emphasises Vietnam’s move up the worth chain”, mentioned John Campbell, executive and head of commercial services at Savills Vietnam.
He adds that international 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.
One more vital development field for Vietnam is data hubs, driven by the development of the electronic economy in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy tasks that this market could grow to $1.87 billion by 2029, stimulated by the demand for cloud calculating, 5G and IoT technological innovations that count on information facility infrastructure. Vietnam’s high internet penetration among its neighborhood population will also contribute to this need.
Need for warehousing and ready-built industrial space has also surged because of the country’s strong e-commerce industry. Ready-built production line and storehouse number expanded 31% y-o-y in 2024, with occupancy rates going beyond 80% in significant industrial zones.
