Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over 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 report by Savills.
Demand for warehousing and ready-built industrial space has in addition grew due to the nation’s solid ecommerce market. Ready-built production line and stockroom supply improved 31% y-o-y in 2024, with tenancy rates exceeding 80% in primary industrial zones.
One more essential growth sector for Vietnam is data centers, generated by the expansion of the electronic market in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy projects that this market can grow to $1.87 billion by 2029, sparked by the demand for cloud computing, 5G and IoT technological innovations that depend on data facility infrastructure. Vietnam’s high internet infiltration amongst its local people will certainly also contribute to this need.
“Over 44% of new FDI financing entering into real estate production in 9M2024 took on value-added goods like electronics and electric tools, that completely emphasises Vietnam’s move up the value chain”, stated John Campbell, director and head of industrial services at Savills Vietnam.
According to Savills, the SEZ is placed to profit the most from this need thanks to its reasonable costs and important vicinity to global ports.
Investment right into real estate manufacturing projects represented 63% of FDI into Vietnam, targeting high worth sectors like electronic devices, automotive pieces, semiconductors, and green technology drawing in offshore financial investment.
“Being one of Vietnam’s largest international investors, Singapore has contributed to the rapid growth of infrastructure, technology and services in Vietnam, actively taking part in various fields like real estate, retail, manufacturing and renewable resource,” says Sally Tan, top regulating director and director of customer services at Savills Singapore.
He adds that overseas financial investments into Vietnam’s industrial property market are focused 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 up Ho Chi Minh City, Binh Duong, and Dong Nai.
