Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is placed to benefit one of the most from this necessity because of its reasonable costs and important distance to global ports.
“As one of Vietnam’s biggest foreign investors, Singapore has helped to the rapid development of infrastructure, modern technology and services in Vietnam, proactively joining different markets like realty, retail, manufacturing and renewable resource,” says Sally Tan, senior managing director and chief of client solutions at Savills Singapore.
Covering 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.
He adds that foreign financial investments into Vietnam’s commercial property market are concentrated in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of districts like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
“Over 44% of new FDI financing going into real estate production in 9M2024 went into value-added goods including electronics and electric equipment, that completely emphasises Vietnam’s change up the value chain”, said John Campbell, executive and head of industrial companies at Savills Vietnam.
Another key development industry for Vietnam is information centres, driven by the expansion of the digital economy in Asia. Savills valued Vietnam’s data centre market at over $917 million, since end-2023. The consultancy projects that this sector can grow to $1.87 billion by 2029, sparked by the need for cloud computing, 5G and IoT technologies that depend on data centre infrastructure. Vietnam’s high internet infiltration among its neighborhood people will certainly also contribute to this demand.
Need for warehousing and ready-built industrial spot has in addition surged due to the country’s sturdy shopping market. Ready-built manufacturing facility and storage facility number improved 31% y-o-y in 2024, with occupancy rates exceeding 80% in significant industrial zones.
Investment into real estate manufacturing projects accounted for 63% of FDI into Vietnam, focus on high value markets like electronics, automobile parts, semiconductors, and eco-friendly technology captivating offshore investment.
