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) right into Vietnam, according to a market report by Savills.
Investment right into realty manufacturing ventures accounted for 63% of FDI in to Vietnam, focus on high value markets like electronic devices, automotive pieces, semiconductors, and green innovation captivating international financial investment.
Demand for warehousing and ready-built industrial place has also grew due to the country’s strong ecommerce sector. Ready-built manufacturing facility and stockroom supply improved 31% y-o-y in 2024, with tenancy rates going beyond 80% in significant industrial zones.
He adds that international financial investments toward Vietnam’s commercial real estate industry are centered 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.
One more vital growth market for Vietnam is data hubs, steered by the growth of the digital economy in Asia. Savills valued Vietnam’s data centre industry at over $917 million, as of end-2023. The consultancy projects that this market might grow to $1.87 billion by 2029, spurred by the need for cloud calculating, 5G and IoT technological innovations that rely on data centre infrastructure. Vietnam’s high internet penetration among its local population will also contribute to this need.
“As one of Vietnam’s leading foreign financiers, Singapore has actually contributed to the quick growth of infrastructure, technology and services in Vietnam, proactively participating in various markets like realty, retail, manufacturing and renewable energy,” claims Sally Tan, top handling director and head of customer services at Savills Singapore.
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According to Savills, the SEZ is placed to profit the most from this need thanks to its reasonable costs and strategic distance to international ports.
“Over 44% of new FDI financing going into property manufacturing in 9M2024 took on value-added products like electronic devices and electric equipment, that completely stresses Vietnam’s move up the worth chain”, stated John Campbell, director and head of commercial services at Savills Vietnam.
