Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Over the 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 record by Savills.
Another vital growth market for Vietnam is data centers, steered by the growth of the digital market in Asia. Savills valued Vietnam’s data centre market at over $917 million, since end-2023. The consultancy projects that this industry might grow to $1.87 billion by 2029, spurred by the demand for cloud computing, 5G and IoT technological innovations that depend on data facility infrastructure. Vietnam’s high internet infiltration among its neighborhood community will certainly also add to this demand.
Union Square Residences Singapore
“Being one of Vietnam’s biggest international investors, Singapore has contributed to the rapid advancement of infrastructure, technology and services in Vietnam, proactively participating in numerous markets like real estate, retail, manufacturing and renewable energy,” states Sally Tan, senior managing director and director of customer solutions at Savills Singapore.
Investment into realty manufacturing projects represented 63% of FDI in to Vietnam, targeting high value industries like electronics, auto parts, semiconductors, and eco-friendly technology captivating foreign financial investment.
He adds that foreign investments toward Vietnam’s industrial property market 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 whilst the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
“Over 44% of new FDI financing entering into realty production in 9M2024 took on value-added products like electronic devices and electrical equipment, which perfectly stresses Vietnam’s change up the worth chain”, mentioned John Campbell, executive and head of commercial services at Savills Vietnam.
Demand for warehousing and ready-built industrial place has in addition surged as a result of the country’s strong e-commerce industry. Ready-built factory and warehouse number raised 31% y-o-y in 2024, with tenancy rates going beyond 80% in major industrial zones.
According to Savills, the SEZ is positioned to benefit the most from this demand thanks to its reasonable expenses and strategic distance to global ports.
