Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over the first nine 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.
“As one of Vietnam’s leading international investors, Singapore has actually contributed to the fast growth of facilities, innovation and services in Vietnam, actively joining different fields such as real estate, retail, manufacturing and renewable resource,” says Sally Tan, senior handling director and head of client services at Savills Singapore.
He adds that overseas investments into Vietnam’s commercial property industry are concentrated 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.
Another key development field for Vietnam is information hubs, driven by the expansion of the digital economy in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy tasks that this industry might expand to $1.87 billion by 2029, sparked by the need for cloud calculating, 5G and IoT technologies that depend on information centre infrastructure. Vietnam’s high internet penetration among its neighborhood population will also contribute to this demand.
Investment right into real estate manufacturing ventures represented 63% of FDI into Vietnam, targeting high value markets such as electronics, automobile items, semiconductors, and environment-friendly technology drawing in international investment.
“Over 44% of new FDI funding entering into realty production in 9M2024 took on value-added products including electronic devices and electric devices, that perfectly emphasises Vietnam’s change up the value chain”, said John Campbell, executive and head of industrial services at Savills Vietnam.
According to Savills, the SEZ is placed to help the most from this need due to its reasonable expenses and strategic proximity to global ports.
Demand for warehousing and ready-built industrial spot has even rose due to the country’s solid shopping sector. Ready-built production line and storage facility stock expanded 31% y-o-y in 2024, with tenancy rates exceeding 80% in major industrial zones.
