Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is placed to benefit one of the most from this need because of its competitive costs and important proximity to international ports.
“Being one of Vietnam’s largest international investors, Singapore has contributed to the rapid advancement of facilities, technology and services in Vietnam, actively taking part in numerous markets such as real estate, retail, manufacturing and renewable energy,” claims Sally Tan, top managing director and chief of client solutions at Savills Singapore.
Need for warehousing and ready-built industrial place has even surged as a result of the nation’s solid ecommerce market. Ready-built factory and warehouse number increased 31% y-o-y in 2024, with tenancy rates going beyond 80% in significant industrial zones.
Covering the first nine 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 represented 63% of FDI in to Vietnam, focus on high value industries such as electronics, vehicle pieces, semiconductors, and environment-friendly innovation captivating offshore investment.
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“Over 44% of brand-new FDI financing going into realty production in 9M2024 took on value-added items including electronic devices and electrical devices, that perfectly emphasises Vietnam’s move up the worth chain”, said John Campbell, executive and head of industrial services at Savills Vietnam.
Another key development field for Vietnam is information centres, driven by the growth of the electronic economy in Asia. Savills valued Vietnam’s data centre market at over $917 million, as of end-2023. The consultancy tasks that this sector can expand to $1.87 billion by 2029, spurred by the demand for cloud calculating, 5G and IoT technologies that rely on information centre facilities. Vietnam’s high internet infiltration among its local community will certainly also contribute to this demand.
He adds that international investments into Vietnam’s industrial realty 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.
