Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Covering the 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 production projects made up 63% of FDI into Vietnam, focus on high worth sectors such as electronic devices, automobile parts, semiconductors, and green technology attracting international financial investment.
“Being one of Vietnam’s largest foreign investors, Singapore has actually contributed to the rapid advancement of infrastructure, modern technology and services in Vietnam, actively taking part in various industries like real estate, retail, manufacturing and renewable energy,” says Sally Tan, senior regulating director and head of client solutions at Savills Singapore.
“Over 44% of new FDI funds going into property manufacturing in 9M2024 went into value-added goods such as electronics and electric equipment, which perfectly stresses Vietnam’s move up the value chain”, mentioned John Campbell, director and head of industrial companies at Savills Vietnam.
Another vital growth market for Vietnam is information hubs, steered by the development of the electronic market in Asia. Savills valued Vietnam’s data centre industry at over $917 million, as of end-2023. The consultancy projects that this industry could grow to $1.87 billion by 2029, spurred by the demand for cloud computing, 5G and IoT technologies that count on data centre infrastructure. Vietnam’s high internet infiltration amongst its neighborhood community will also add to this need.
According to Savills, the SEZ is placed to profit one of the most from this need thanks to its reasonable expenses and important proximity to international ports.
Necessity for warehousing and ready-built industrial place has even grew as a result of the country’s sturdy ecommerce market. Ready-built manufacturing facility and stockroom number improved 31% y-o-y in 2024, with occupancy rates surpassing 80% in primary industrial zones.
He adds that foreign investments into Vietnam’s commercial property industry are focused 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.
