Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
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 report by Savills.
Another vital growth sector for Vietnam is information centers, driven by the development of the electronic market in Asia. Savills valued Vietnam’s data centre industry at over $917 million, as of end-2023. The consultancy projects that this market could grow to $1.87 billion by 2029, spurred by the need for cloud calculating, 5G and IoT technologies that rely on information centre infrastructure. Vietnam’s high internet infiltration amongst its local community will also add to this demand.
“As one of Vietnam’s leading international investors, Singapore has actually helped to the quick development of infrastructure, modern technology and services in Vietnam, proactively taking part in various fields such as property, retail, manufacturing and renewable resource,” says Sally Tan, top managing director and chief of customer services at Savills Singapore.
Investment right into real estate manufacturing ventures made up 63% of FDI into Vietnam, focus on high value industries like electronics products, auto pieces, semiconductors, and green innovation drawing in foreign financial investment.
Demand for warehousing and ready-built industrial place has even rose due to the country’s strong e-commerce sector. Ready-built factory and storage facility number improved 31% y-o-y in 2024, with occupancy rates exceeding 80% in significant industrial zones.
According to Savills, the SEZ is placed to help the most from this demand due to its competitive expenses and strategic vicinity to international ports.
“Over 44% of new FDI capital entering into real estate manufacturing in 9M2024 engaged in value-added items such as electronic devices and electric equipment, which completely stresses Vietnam’s move up the worth chain”, stated John Campbell, executive and head of industrial companies at Savills Vietnam.
He adds that foreign investments into Vietnam’s industrial property market place are focused in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features districts like Bac Ninh and Hai Phong while the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
