Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is placed to help the most from this need thanks to its reasonable costs and strategic vicinity to international ports.
He adds that international financial investments toward Vietnam’s industrial property industry are focused 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.
Covering the 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) right into Vietnam, according to a market record by Savills.
“Being one of Vietnam’s largest foreign financiers, Singapore has actually helped to the rapid growth of infrastructure, innovation and services in Vietnam, proactively joining different sectors such as real estate, retail, manufacturing and renewable energy,” claims Sally Tan, top handling supervisor and head of customer services at Savills Singapore.
“Over 44% of new FDI funding going into realty production in 9M2024 took on value-added goods including electronic devices and electric devices, which completely stresses Vietnam’s change up the value chain”, stated John Campbell, director and head of commercial companies at Savills Vietnam.
Another essential growth sector for Vietnam is data centres, generated by the development of the digital market in Asia. Savills valued Vietnam’s data centre market at over $917 million, as of end-2023. The consultancy tasks that this sector might expand to $1.87 billion by 2029, sparked by the need for cloud calculating, 5G and IoT technologicals advances that rely upon information facility infrastructure. Vietnam’s high internet penetration among its neighborhood population will also contribute to this need.
Demand for warehousing and ready-built industrial spot has even surged because of the country’s strong e-commerce market. Ready-built manufacturing facility and storehouse number expanded 31% y-o-y in 2024, with occupancy rates exceeding 80% in primary industrial zones.
Investment right into real estate manufacturing projects accounted for 63% of FDI into Vietnam, focus on high value markets such as electronics products, automotive parts, semiconductors, and environment-friendly innovation attracting offshore investment.
