Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment right into real estate manufacturing ventures represented 63% of FDI in to Vietnam, targeting high worth markets such as electronics, automotive items, semiconductors, and environment-friendly technology attracting offshore financial investment.
Covering the very 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) into Vietnam, according to a market record by Savills.
“Over 44% of brand-new FDI funds going into property production in 9M2024 entered into value-added items such as electronic devices and electric equipment, which perfectly stresses Vietnam’s move up the value chain”, stated John Campbell, director and head of industrial companies at Savills Vietnam.
“As one of Vietnam’s largest foreign financiers, Singapore has helped to the quick development of facilities, modern technology and services in Vietnam, actively taking part in different industries such as real estate, retail, manufacturing and renewable resource,” says Sally Tan, top regulating director and director of customer solutions at Savills Singapore.
He adds that international financial investments toward Vietnam’s industrial property market place are centered in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features districts like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
Necessity for warehousing and ready-built industrial place has also surged because of the nation’s solid shopping industry. Ready-built production line and warehouse number raised 31% y-o-y in 2024, with tenancy rates going beyond 80% in primary industrial zones.
Another key growth market for Vietnam is data centers, generated by the growth of the electronic economy in Asia. Savills valued Vietnam’s data centre industry at over $917 million, since end-2023. The consultancy projects that this sector could expand to $1.87 billion by 2029, sparked by the need for cloud calculating, 5G and IoT technologicals advances that rely on information facility facilities. Vietnam’s high internet infiltration amongst its neighborhood people will certainly also contribute to this need.
According to Savills, the SEZ is positioned to help one of the most from this necessity due to its reasonable expenses and strategic proximity to international ports.
