Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Covering the 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) right into Vietnam, according to a market report by Savills.
Investment right into real estate manufacturing projects represented 63% of FDI into Vietnam, focus on high value sectors like electronics products, automobile items, semiconductors, and eco-friendly innovation attracting offshore financial investment.
Another essential growth industry for Vietnam is data centers, generated by the expansion of the digital economy in Asia. Savills valued Vietnam’s data center industry at over $917 million, since end-2023. The consultancy projects that this field can grow to $1.87 billion by 2029, spurred by the need for cloud calculating, 5G and IoT technological innovations that rely on data facility infrastructure. Vietnam’s high internet penetration amongst its local population will certainly also contribute to this demand.
He adds that foreign investments toward Vietnam’s commercial real estate industry are centered in the country’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 leading foreign investors, Singapore has actually contributed to the rapid development of facilities, technology and services in Vietnam, proactively taking part in numerous sectors such as realty, retail, manufacturing and renewable resource,” claims Sally Tan, top managing director and chief of client solutions at Savills Singapore.
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Demand for warehousing and ready-built industrial location has in addition rose as a result of the nation’s strong shopping market. Ready-built production line and stockroom supply improved 31% y-o-y in 2024, with occupancy rates going beyond 80% in significant industrial zones.
According to Savills, the SEZ is positioned to help one of the most from this need due to its reasonable expenses and strategic distance to global ports.
“Over 44% of brand-new FDI funds going into real estate manufacturing in 9M2024 took on value-added goods like electronics and electrical equipment, that perfectly emphasises Vietnam’s move up the value chain”, stated John Campbell, executive and head of commercial services at Savills Vietnam.
