Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment right into realty production ventures made up 63% of FDI in to Vietnam, focus on high value markets such as electronic devices, automobile items, semiconductors, and eco-friendly innovation attracting international financial investment.
According to Savills, the SEZ is positioned to profit the most from this demand because of its competitive expenses and important proximity to international ports.
Another vital development industry for Vietnam is information centers, driven by the expansion of the digital market in Asia. Savills valued Vietnam’s data center industry at over $917 million, as of end-2023. The consultancy tasks that this sector can expand to $1.87 billion by 2029, stimulated by the demand for cloud computing, 5G and IoT technological innovations that rely on data centre facilities. Vietnam’s high internet penetration among its neighborhood community will also add to this need.
He adds that international investments toward Vietnam’s commercial property market place are concentrated in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features provinces like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
“Being one of Vietnam’s largest foreign investors, Singapore has actually helped to the quick advancement of infrastructure, modern technology and services in Vietnam, proactively taking part in different markets such as real estate, retail, manufacturing and renewable energy,” says Sally Tan, senior handling supervisor and head of customer services at Savills Singapore.
“Over 44% of brand-new FDI capital entering into property manufacturing in 9M2024 entered into value-added goods including electronic devices and electrical tools, which completely stresses Vietnam’s move up the worth chain”, mentioned John Campbell, director and head of industrial services at Savills Vietnam.
Need for warehousing and ready-built industrial spot has in addition rose as a result of the nation’s sturdy e-commerce field. Ready-built production line and warehouse supply raised 31% y-o-y in 2024, with tenancy rates going beyond 80% in major industrial zones.
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.
