Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over 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 record by Savills.
Need for warehousing and ready-built industrial spot has in addition grew because of the nation’s sturdy ecommerce market. Ready-built factory and warehouse number raised 31% y-o-y in 2024, with tenancy rates going beyond 80% in major industrial zones.
According to Savills, the SEZ is positioned to profit one of the most from this necessity thanks to its competitive costs and strategic distance to global ports.
Investment into realty manufacturing projects made up 63% of FDI in to Vietnam, targeting high worth sectors like electronics products, vehicle items, semiconductors, and eco-friendly innovation attracting offshore investment.
Another vital growth industry for Vietnam is data centers, driven by the growth of the electronic market in Asia. Savills valued Vietnam’s data centre market at over $917 million, as of end-2023. The consultancy tasks that this industry can grow to $1.87 billion by 2029, sparked by the demand for cloud calculating, 5G and IoT technologicals advances that count on data centre infrastructure. Vietnam’s high internet penetration among its neighborhood people will also contribute to this need.
He adds that overseas investments into Vietnam’s industrial realty market place are centered in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of districts like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
“Being one of Vietnam’s leading international investors, Singapore has actually helped to the quick growth of infrastructure, innovation and services in Vietnam, proactively participating in various industries such as property, retail, manufacturing and renewable energy,” states Sally Tan, top regulating director and head of customer services at Savills Singapore.
“Over 44% of brand-new FDI funds entering into real estate production in 9M2024 went into value-added products such as electronic devices and electrical devices, that perfectly stresses Vietnam’s move up the worth chain”, mentioned John Campbell, executive and head of industrial companies at Savills Vietnam.
