Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is placed to reward one of the most from this necessity because of its competitive expenses and strategic vicinity to international ports.
Over the very 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.
Another essential growth field for Vietnam is information centers, driven by the expansion of the electronic market in Asia. Savills valued Vietnam’s data centre industry at over $917 million, as of end-2023. The consultancy projects that this sector could expand to $1.87 billion by 2029, stimulated by the demand for cloud calculating, 5G and IoT technologicals advances that depend on data centre facilities. Vietnam’s high internet penetration amongst its local people will also contribute to this demand.
Investment right into real estate production ventures made up 63% of FDI in to Vietnam, targeting high value sectors like electronics, auto pieces, semiconductors, and environment-friendly innovation captivating foreign investment.
He adds that international investments into Vietnam’s commercial real estate industry are centered in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ includes districts like Bac Ninh and Hai Phong whilst the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
“Over 44% of brand-new FDI capital going into real estate production in 9M2024 entered into value-added goods like electronics and electric equipment, which completely emphasises Vietnam’s move up the worth chain”, stated John Campbell, director and head of commercial services at Savills Vietnam.
Need for warehousing and ready-built industrial location has in addition grew because of the country’s sturdy shopping field. Ready-built manufacturing facility and storage facility number raised 31% y-o-y in 2024, with occupancy rates exceeding 80% in major industrial zones.
“Being one of Vietnam’s largest international investors, Singapore has helped to the rapid growth of facilities, technology and services in Vietnam, proactively joining various sectors such as realty, retail, manufacturing and renewable energy,” states Sally Tan, senior regulating supervisor and chief of client services at Savills Singapore.
