Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Demand for warehousing and ready-built industrial spot has also rose because of the nation’s sturdy ecommerce field. Ready-built factory and warehouse supply raised 31% y-o-y in 2024, with occupancy rates going beyond 80% in significant industrial zones.
One more essential growth industry for Vietnam is data hubs, steered by the expansion 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 sector can expand to $1.87 billion by 2029, stimulated by the demand for cloud computing, 5G and IoT technologicals advances that depend on data facility infrastructure. Vietnam’s high internet infiltration amongst its local community will also contribute to this need.
Covering the very first 9 months of 2024, outbound Singapore-based capital into Vietnam accounted for $9.91 billion (30%) of the $33.2 billion in foreign direct investments (FDI) into Vietnam, according to a market report by Savills.
“Over 44% of new FDI capital entering into real estate manufacturing in 9M2024 went into value-added products such as electronic devices and electrical devices, which perfectly stresses Vietnam’s change up the value chain”, mentioned John Campbell, executive and head of industrial companies at Savills Vietnam.
He adds that foreign investments into Vietnam’s commercial realty market are focused 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 up Ho Chi Minh City, Binh Duong, and Dong Nai.
Investment into real estate production ventures made up 63% of FDI into Vietnam, targeting high worth markets such as electronics products, automobile items, semiconductors, and eco-friendly technology drawing in offshore financial investment.
“As one of Vietnam’s leading foreign investors, Singapore has actually contributed to the fast development of facilities, modern technology and services in Vietnam, actively joining various fields such as realty, retail, manufacturing and renewable energy,” says Sally Tan, top regulating supervisor and chief of client solutions at Savills Singapore.
According to Savills, the SEZ is placed to help one of the most from this necessity due to its reasonable expenses and strategic distance to global ports.
