Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
One more essential development field for Vietnam is information hubs, generated by the expansion of the digital market in Asia. Savills valued Vietnam’s data center industry at over $917 million, since end-2023. The consultancy projects that this field could expand to $1.87 billion by 2029, stimulated by the need for cloud computing, 5G and IoT technologies that count on data centre infrastructure. Vietnam’s high internet penetration among its neighborhood people will certainly also contribute to this need.
Need for warehousing and ready-built industrial location has also rose due to the country’s strong e-commerce sector. Ready-built manufacturing facility and stockroom supply expanded 31% y-o-y in 2024, with tenancy rates surpassing 80% in primary industrial zones.
Covering the very 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 report by Savills.
Blossoms By The Park Singapore
“As one of Vietnam’s leading foreign financiers, Singapore has actually contributed to the rapid advancement of facilities, modern technology and services in Vietnam, actively taking part in numerous sectors like real estate, retail, manufacturing and renewable resource,” states Sally Tan, senior regulating supervisor and director of client services at Savills Singapore.
“Over 44% of brand-new FDI financing going into real estate production in 9M2024 engaged in value-added goods including electronic devices and electric tools, that perfectly emphasises Vietnam’s change up the value chain”, mentioned John Campbell, executive and head of industrial services at Savills Vietnam.
Investment into realty manufacturing ventures made up 63% of FDI in to Vietnam, targeting high worth sectors such as electronics products, auto items, semiconductors, and eco-friendly technology attracting foreign financial investment.
According to Savills, the SEZ is placed to benefit one of the most from this need thanks to its reasonable costs and important proximity to international ports.
He adds that overseas financial investments into Vietnam’s commercial real estate industry are concentrated in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ includes districts like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
