Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is positioned to profit the most from this necessity due to its competitive costs and strategic vicinity to international ports.
“As one of Vietnam’s largest international financiers, Singapore has actually helped to the quick advancement of facilities, technology and services in Vietnam, actively participating in various fields like realty, retail, manufacturing and renewable resource,” says Sally Tan, top managing supervisor and chief of customer solutions at Savills Singapore.
He adds that overseas investments toward Vietnam’s industrial real estate market are concentrated in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of provinces like Bac Ninh and Hai Phong whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
Investment into realty manufacturing projects made up 63% of FDI into Vietnam, focus on high worth industries such as electronics products, auto items, semiconductors, and green technology attracting offshore investment.
“Over 44% of new FDI capital going into real estate production in 9M2024 took on value-added items including electronic devices and electrical equipment, which completely emphasises Vietnam’s change up the value chain”, stated John Campbell, director and head of industrial companies at Savills Vietnam.
One more key development field for Vietnam is information centres, generated by the development of the electronic market in Asia. Savills valued Vietnam’s data center industry at over $917 million, since end-2023. The consultancy tasks that this sector could grow to $1.87 billion by 2029, sparked by the need for cloud calculating, 5G and IoT technological innovations that rely on data centre facilities. Vietnam’s high internet penetration among its neighborhood people will certainly also add to this need.
Over 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) into Vietnam, according to a market record by Savills.
Need for warehousing and ready-built industrial space has in addition rose due to the country’s sturdy ecommerce industry. Ready-built factory and warehouse stock improved 31% y-o-y in 2024, with tenancy rates going beyond 80% in primary industrial zones.
