Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Covering the very 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.
Necessity for warehousing and ready-built industrial spot has also grew due to the country’s solid ecommerce field. Ready-built factory and storehouse number raised 31% y-o-y in 2024, with occupancy rates going beyond 80% in primary industrial zones.
Lakegarden Residences Singapore
“Over 44% of new FDI financing going into property production in 9M2024 went into value-added goods such as electronics and electric equipment, that completely emphasises Vietnam’s move up the worth chain”, said John Campbell, executive and head of commercial services at Savills Vietnam.
Investment into realty manufacturing projects represented 63% of FDI into Vietnam, targeting high worth sectors like electronic devices, automobile items, semiconductors, and environment-friendly innovation captivating international investment.
He adds that overseas investments toward Vietnam’s industrial realty industry are concentrated in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ includes provinces like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
Another key development industry for Vietnam is information centers, steered by the development of the electronic economy in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy projects that this sector can expand to $1.87 billion by 2029, sparked by the need for cloud computing, 5G and IoT technological innovations that rely upon data centre infrastructure. Vietnam’s high internet infiltration among its local population will also add to this demand.
According to Savills, the SEZ is placed to help one of the most from this demand because of its reasonable costs and important proximity to global ports.
“Being one of Vietnam’s biggest international financiers, Singapore has actually contributed to the quick growth of facilities, technology and services in Vietnam, proactively joining numerous industries such as property, retail, manufacturing and renewable resource,” says Sally Tan, senior managing director and head of client solutions at Savills Singapore.
