Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Investment into realty manufacturing projects accounted for 63% of FDI in to Vietnam, targeting high value sectors like electronics, vehicle parts, semiconductors, and environment-friendly technology drawing in offshore financial investment.
Another key growth sector for Vietnam is information centers, generated by the growth of the digital market in Asia. Savills valued Vietnam’s data center market at over $917 million, as of end-2023. The consultancy projects that this market could grow to $1.87 billion by 2029, sparked by the need for cloud computing, 5G and IoT technologies that count on information facility infrastructure. Vietnam’s high internet infiltration amongst its local community will certainly also contribute to this need.
“Being one of Vietnam’s largest international financiers, Singapore has helped to the rapid development of infrastructure, technology and services in Vietnam, actively joining numerous sectors like realty, retail, manufacturing and renewable energy,” says Sally Tan, senior regulating supervisor and head of client solutions at Savills Singapore.
“Over 44% of new FDI funding entering into real estate manufacturing in 9M2024 engaged in value-added goods such as electronic devices and electric devices, which perfectly stresses Vietnam’s move up the worth chain”, said John Campbell, executive and head of industrial services at Savills Vietnam.
Need for warehousing and ready-built industrial space has even grew due to the country’s sturdy shopping industry. Ready-built production line and warehouse supply expanded 31% y-o-y in 2024, with occupancy rates surpassing 80% in major industrial zones.
Over the very 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.
According to Savills, the SEZ is placed to benefit the most from this need because of its competitive expenses and strategic distance to global ports.
He adds that overseas financial investments into Vietnam’s industrial real estate industry 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 while the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
