Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is placed to profit the most from this necessity thanks to its reasonable expenses and strategic proximity to international ports.
He adds that international investments toward Vietnam’s commercial property market are focused in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of provinces like Bac Ninh and Hai Phong while the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
Over the very 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 report by Savills.
One more vital development industry for Vietnam is information hubs, generated by the growth of the electronic market in Asia. Savills valued Vietnam’s data centre industry at over $917 million, since end-2023. The consultancy tasks that this industry can grow to $1.87 billion by 2029, sparked by the demand for cloud computing, 5G and IoT technologicals advances that rely upon information centre infrastructure. Vietnam’s high internet infiltration amongst its neighborhood community will also add to this demand.
Investment into real estate manufacturing ventures made up 63% of FDI in to Vietnam, targeting high value industries like electronics, vehicle parts, semiconductors, and environment-friendly technology captivating offshore financial investment.
“As one of Vietnam’s leading international investors, Singapore has actually contributed to the rapid development of infrastructure, innovation and services in Vietnam, actively participating in numerous sectors such as real estate, retail, manufacturing and renewable energy,” claims Sally Tan, top regulating director and head of customer solutions at Savills Singapore.
“Over 44% of brand-new FDI funding entering into realty manufacturing in 9M2024 engaged in value-added products like electronics and electric tools, which perfectly stresses Vietnam’s move up the worth chain”, said John Campbell, executive and head of commercial companies at Savills Vietnam.
Demand for warehousing and ready-built industrial location has also rose because of the country’s strong e-commerce industry. Ready-built production line and storage facility number expanded 31% y-o-y in 2024, with tenancy rates going beyond 80% in primary industrial zones.
