Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over the very first nine 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.
Another essential development industry for Vietnam is data hubs, steered by the expansion of the electronic market in Asia. Savills valued Vietnam’s data centre market at over $917 million, since end-2023. The consultancy tasks that this field can grow to $1.87 billion by 2029, sparked by the need for cloud computing, 5G and IoT technologicals advances that depend on data facility infrastructure. Vietnam’s high internet penetration amongst its neighborhood people will certainly also add to this demand.
Investment right into realty production projects accounted for 63% of FDI into Vietnam, targeting high worth sectors such as electronics, auto items, semiconductors, and eco-friendly technology attracting foreign investment.
According to Savills, the SEZ is placed to profit one of the most from this demand due to its reasonable expenses and strategic proximity to international ports.
“As one of Vietnam’s leading foreign financiers, Singapore has helped to the rapid advancement of facilities, technology and services in Vietnam, proactively taking part in numerous industries like real estate, retail, manufacturing and renewable resource,” states Sally Tan, senior managing director and head of customer solutions at Savills Singapore.
“Over 44% of new FDI financing going into real estate production in 9M2024 went into value-added goods such as electronic devices and electric devices, which completely stresses Vietnam’s change up the value chain”, said John Campbell, director and head of industrial services at Savills Vietnam.
He adds that international financial investments toward Vietnam’s commercial realty industry are centered in the nation’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 location has even rose because of the country’s solid shopping sector. Ready-built factory and stockroom supply improved 31% y-o-y in 2024, with occupancy rates exceeding 80% in major industrial zones.
