Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Demand for warehousing and ready-built industrial location has also surged due to the nation’s sturdy e-commerce sector. Ready-built production line and warehouse stock raised 31% y-o-y in 2024, with tenancy rates surpassing 80% in major industrial zones.
He adds that foreign investments into Vietnam’s commercial property market place are centered in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of districts like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
“As one of Vietnam’s leading foreign investors, Singapore has actually helped to the quick advancement of infrastructure, innovation and services in Vietnam, actively participating in different industries such as realty, retail, manufacturing and renewable resource,” says Sally Tan, top regulating supervisor and chief of customer solutions at Savills Singapore.
“Over 44% of brand-new FDI financing going into real estate manufacturing in 9M2024 entered into value-added items like electronics and electrical tools, which perfectly emphasises Vietnam’s move up the value chain”, stated John Campbell, director and head of commercial companies at Savills Vietnam.
According to Savills, the SEZ is placed to benefit the most from this demand due to its reasonable costs and important distance to international ports.
One more key growth industry for Vietnam is data hubs, driven by the development of the electronic market in Asia. Savills valued Vietnam’s data center industry at over $917 million, since end-2023. The consultancy tasks that this industry can grow to $1.87 billion by 2029, spurred by the need for cloud computing, 5G and IoT technologies that depend on data centre infrastructure. Vietnam’s high internet penetration amongst its local population will certainly also add to this demand.
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 review by Savills.
Investment into realty manufacturing projects represented 63% of FDI into Vietnam, targeting high value industries such as electronics, auto parts, semiconductors, and eco-friendly technology captivating international investment.
