Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is placed to benefit the most from this demand due to its reasonable expenses and important vicinity to international ports.
“Being one of Vietnam’s biggest foreign financiers, Singapore has actually helped to the quick growth of infrastructure, technology and services in Vietnam, actively joining numerous industries like realty, retail, manufacturing and renewable resource,” claims Sally Tan, top handling director and head of customer services at Savills Singapore.
Need for warehousing and ready-built industrial space has in addition rose as a result of the nation’s sturdy e-commerce field. Ready-built production line and stockroom supply increased 31% y-o-y in 2024, with occupancy rates exceeding 80% in major industrial zones.
He adds that international investments toward Vietnam’s industrial realty 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 Ho Chi Minh City, Binh Duong, and Dong Nai.
Covering the very 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) into Vietnam, according to a market review by Savills.
Investment right into real estate manufacturing projects represented 63% of FDI into Vietnam, targeting high value industries like electronic devices, auto items, semiconductors, and environment-friendly technology attracting international investment.
One more vital development sector for Vietnam is information centres, generated by the development of the digital market in Asia. Savills valued Vietnam’s data centre industry at over $917 million, as of end-2023. The consultancy projects that this field might expand to $1.87 billion by 2029, stimulated by the need for cloud calculating, 5G and IoT technological innovations that depend on information facility infrastructure. Vietnam’s high internet penetration amongst its neighborhood community will also contribute to this demand.
“Over 44% of brand-new FDI capital entering into real estate production in 9M2024 went into value-added goods like electronic devices and electric equipment, that perfectly emphasises Vietnam’s change up the worth chain”, stated John Campbell, director and head of commercial companies at Savills Vietnam.
