Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Necessity for warehousing and ready-built industrial location has also grew because of the country’s sturdy ecommerce industry. Ready-built production line and storage facility stock raised 31% y-o-y in 2024, with tenancy rates going beyond 80% in significant industrial zones.
“Being one of Vietnam’s largest foreign financiers, Singapore has actually helped to the rapid advancement of facilities, technology and services in Vietnam, proactively joining different industries like property, retail, manufacturing and renewable energy,” states Sally Tan, top managing director and chief of client services at Savills Singapore.
He adds that international financial investments into Vietnam’s commercial property industry are centered in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features districts like Bac Ninh and Hai Phong while the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
According to Savills, the SEZ is placed to help the most from this demand due to its competitive costs and strategic proximity to global ports.
Emerald Of Katong Jalan Tembusu Road
“Over 44% of new FDI capital going into real estate production in 9M2024 went into value-added goods such as electronics and electric tools, that perfectly emphasises Vietnam’s change up the worth chain”, stated John Campbell, director and head of commercial companies at Savills Vietnam.
Another key development field for Vietnam is data centers, generated by the expansion of the electronic economy in Asia. Savills valued Vietnam’s data center market at over $917 million, since end-2023. The consultancy projects that this sector could expand to $1.87 billion by 2029, sparked by the need for cloud computing, 5G and IoT technologicals advances that count on data centre facilities. Vietnam’s high internet penetration amongst its local people will also contribute to this demand.
Investment into real estate production projects represented 63% of FDI into Vietnam, focus on high value sectors such as electronics products, auto parts, semiconductors, and environment-friendly technology attracting foreign financial investment.
Over the first 9 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 report by Savills.
