Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
Demand for warehousing and ready-built industrial place has also rose as a result of the country’s strong ecommerce sector. Ready-built production line and stockroom stock improved 31% y-o-y in 2024, with tenancy rates surpassing 80% in major industrial zones.
He adds that overseas financial investments into Vietnam’s industrial realty market are focused in the country’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of districts like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
“Over 44% of new FDI financing entering into realty production in 9M2024 entered into value-added items including electronic devices and electric devices, which perfectly stresses Vietnam’s move up the worth chain”, stated John Campbell, director and head of commercial services at Savills Vietnam.
Over the first 9 months of 2024, outbound Singapore-based capital into Vietnam accounted for $9.91 billion (30%) of the $33.2 billion in foreign direct investments (FDI) right into Vietnam, according to a market record by Savills.
According to Savills, the SEZ is positioned to profit the most from this demand because of its reasonable expenses and strategic vicinity to international ports.
One more key development field for Vietnam is information centres, steered by the development of the digital market in Asia. Savills valued Vietnam’s data centre market at over $917 million, as of end-2023. The consultancy tasks that this market might expand to $1.87 billion by 2029, spurred by the demand for cloud calculating, 5G and IoT technologicals advances that rely on information centre facilities. Vietnam’s high internet infiltration among its local population will certainly also contribute to this demand.
Investment right into realty manufacturing projects represented 63% of FDI in to Vietnam, focus on high value markets such as electronics, automotive pieces, semiconductors, and eco-friendly innovation attracting offshore investment.
“Being one of Vietnam’s leading international investors, Singapore has helped to the fast development of infrastructure, modern technology and services in Vietnam, actively participating in numerous sectors such as property, retail, manufacturing and renewable energy,” says Sally Tan, top handling director and chief of client solutions at Savills Singapore.
