Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is positioned to profit the most from this need thanks to its competitive costs and important distance to international ports.
Investment into realty production projects made up 63% of FDI into Vietnam, focus on high value markets such as electronic devices, automobile parts, semiconductors, and environment-friendly innovation drawing in offshore investment.
Another essential growth market for Vietnam is data centers, generated by the expansion of the electronic economy in Asia. Savills valued Vietnam’s data centre 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 computing, 5G and IoT technological innovations that rely on information facility facilities. Vietnam’s high internet penetration amongst its local people will certainly also contribute to this need.
“Over 44% of new FDI funding entering into property manufacturing in 9M2024 went into value-added goods such as electronics and electric equipment, that completely emphasises Vietnam’s change up the value chain”, mentioned John Campbell, director and head of commercial companies at Savills Vietnam.
Demand for warehousing and ready-built industrial location has even surged due to the country’s strong ecommerce industry. Ready-built factory and stockroom supply improved 31% y-o-y in 2024, with occupancy rates going beyond 80% in major industrial zones.
Covering the very 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 report by Savills.
“As one of Vietnam’s leading foreign financiers, Singapore has helped to the fast growth of facilities, technology and services in Vietnam, proactively taking part in various sectors such as realty, retail, manufacturing and renewable energy,” claims Sally Tan, top managing supervisor and director of customer services at Savills Singapore.
He adds that international financial investments into Vietnam’s commercial realty industry are concentrated in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features districts like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
