Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam

Investment right into realty manufacturing ventures accounted for 63% of FDI in to Vietnam, targeting high value sectors such as electronic devices, automotive items, semiconductors, and eco-friendly technology attracting offshore financial investment.

“Over 44% of new FDI funds entering into real estate production in 9M2024 entered into value-added items like electronic devices and electric equipment, that completely emphasises Vietnam’s move up the worth chain”, stated John Campbell, executive and head of industrial services at Savills Vietnam.

“As one of Vietnam’s leading foreign investors, Singapore has actually helped to the fast advancement of facilities, technology and services in Vietnam, proactively joining various fields like real estate, retail, manufacturing and renewable energy,” says Sally Tan, senior regulating director and chief of client services at Savills Singapore.

Another essential growth field for Vietnam is data centers, generated by the growth of the electronic market in Asia. Savills valued Vietnam’s data centre market at over $917 million, since end-2023. The consultancy tasks that this field could grow to $1.87 billion by 2029, spurred by the need for cloud computing, 5G and IoT technologies that depend on data centre infrastructure. Vietnam’s high internet penetration among its local community will also contribute to this demand.

Necessity for warehousing and ready-built industrial space has even rose as a result of the country’s solid ecommerce field. Ready-built production line and storage facility number increased 31% y-o-y in 2024, with occupancy rates going beyond 80% in primary industrial zones.

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) right into Vietnam, according to a market review by Savills.

He adds that international financial investments toward Vietnam’s industrial property market place are focused 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.

According to Savills, the SEZ is placed to help one of the most from this need because of its competitive costs and important proximity to international ports.

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