Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over the 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) right into Vietnam, according to a market report by Savills.
Investment into realty production projects represented 63% of FDI in to Vietnam, targeting high value sectors such as electronics, automotive pieces, semiconductors, and environment-friendly innovation drawing in foreign financial investment.
He adds that overseas investments toward Vietnam’s industrial property industry are centered in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of provinces like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
“Being one of Vietnam’s biggest foreign financiers, Singapore has helped to the quick development of facilities, modern technology and services in Vietnam, proactively participating in numerous sectors like realty, retail, manufacturing and renewable resource,” states Sally Tan, senior handling supervisor and head of customer solutions at Savills Singapore.
Another key development market for Vietnam is information centres, 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 might expand to $1.87 billion by 2029, spurred by the need for cloud calculating, 5G and IoT technologies that rely on information facility infrastructure. Vietnam’s high internet infiltration among its neighborhood people will also add to this need.
According to Savills, the SEZ is placed to reward one of the most from this necessity due to its reasonable costs and strategic proximity to global ports.
Demand for warehousing and ready-built industrial location has even grew as a result of the country’s solid e-commerce sector. Ready-built production line and stockroom number increased 31% y-o-y in 2024, with occupancy rates surpassing 80% in significant industrial zones.
“Over 44% of new FDI financing entering into property manufacturing in 9M2024 took on value-added items like electronic devices and electrical tools, which perfectly emphasises Vietnam’s move up the worth chain”, stated John Campbell, director and head of industrial services at Savills Vietnam.
