Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over 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.
Investment right into real estate production ventures represented 63% of FDI into Vietnam, focus on high worth industries such as electronics products, automotive parts, semiconductors, and eco-friendly technology captivating offshore investment.
Demand for warehousing and ready-built industrial location has in addition surged due to the nation’s strong e-commerce field. Ready-built manufacturing facility and storehouse supply expanded 31% y-o-y in 2024, with tenancy rates going beyond 80% in primary industrial zones.
He adds that overseas financial investments into Vietnam’s industrial realty industry are focused in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ includes provinces like Bac Ninh and Hai Phong whilst the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
According to Savills, the SEZ is placed to reward one of the most from this need because of its reasonable costs and strategic proximity to international ports.
One more vital development market for Vietnam is information centers, driven by the growth of the electronic market in Asia. Savills valued Vietnam’s data center industry at over $917 million, since end-2023. The consultancy projects that this market could grow to $1.87 billion by 2029, spurred by the demand for cloud computing, 5G and IoT technological innovations that rely upon information facility infrastructure. Vietnam’s high internet infiltration amongst its local people will also add to this need.
“Over 44% of new FDI funds entering into property manufacturing in 9M2024 engaged in value-added items including electronic devices and electrical devices, which completely stresses Vietnam’s move up the worth chain”, mentioned John Campbell, executive and head of commercial companies at Savills Vietnam.
“Being one of Vietnam’s leading international investors, Singapore has contributed to the rapid advancement of facilities, modern technology and services in Vietnam, proactively participating in different fields like realty, retail, manufacturing and renewable resource,” says Sally Tan, senior managing supervisor and head of client services at Savills Singapore.
