Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment into real estate production projects represented 63% of FDI in to Vietnam, focus on high worth industries such as electronics, automobile pieces, semiconductors, and green innovation attracting international investment.
According to Savills, the SEZ is positioned to benefit one of the most from this necessity thanks to its competitive costs and strategic distance to international ports.
Another vital growth industry for Vietnam is data hubs, steered by the growth of the electronic market in Asia. Savills valued Vietnam’s data center industry at over $917 million, as of end-2023. The consultancy tasks that this market might grow to $1.87 billion by 2029, spurred by the demand for cloud calculating, 5G and IoT technologicals advances that rely on information centre infrastructure. Vietnam’s high internet infiltration amongst its local population will also contribute to this demand.
“Over 44% of brand-new FDI financing entering into realty production in 9M2024 entered into value-added goods such as electronics and electric equipment, which completely stresses Vietnam’s change up the worth chain”, said John Campbell, executive and head of commercial services at Savills Vietnam.
Over the first nine 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 report by Savills.
Necessity for warehousing and ready-built industrial place has even grew due to the nation’s sturdy shopping field. Ready-built factory and stockroom stock raised 31% y-o-y in 2024, with tenancy rates exceeding 80% in primary industrial zones.
“As one of Vietnam’s biggest international investors, Singapore has actually helped to the fast growth of infrastructure, modern technology and services in Vietnam, actively joining numerous fields such as property, retail, manufacturing and renewable energy,” claims Sally Tan, senior regulating supervisor and director of customer solutions at Savills Singapore.
He adds that international investments into Vietnam’s commercial real estate market are focused in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of provinces like Bac Ninh and Hai Phong while the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
