Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is positioned to reward one of the most from this necessity due to its competitive costs and strategic distance to international ports.
Demand for warehousing and ready-built industrial space has in addition rose because of the nation’s sturdy shopping field. Ready-built factory and storehouse number expanded 31% y-o-y in 2024, with occupancy rates exceeding 80% in significant industrial zones.
“Over 44% of new FDI financing going into property production in 9M2024 entered into value-added goods such as electronics and electric devices, that perfectly stresses Vietnam’s move up the worth chain”, mentioned John Campbell, director and head of commercial services at Savills Vietnam.
Another essential growth market for Vietnam is information centres, steered by the growth of the digital economy in Asia. Savills valued Vietnam’s data centre market at over $917 million, as of end-2023. The consultancy tasks that this sector could expand to $1.87 billion by 2029, spurred by the need for cloud calculating, 5G and IoT technological innovations that count on information centre infrastructure. Vietnam’s high internet penetration amongst its local community will certainly also contribute to this need.
He adds that international financial investments into Vietnam’s commercial property market place are focused in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ features provinces like Bac Ninh and Hai Phong while the SEZ covers up Ho Chi Minh City, Binh Duong, and Dong Nai.
Aurelle of Tampines floor plan
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) right into Vietnam, according to a market record by Savills.
“Being one of Vietnam’s leading international investors, Singapore has contributed to the rapid growth of facilities, modern technology and services in Vietnam, proactively participating in numerous industries such as property, retail, manufacturing and renewable energy,” claims Sally Tan, top managing supervisor and director of customer services at Savills Singapore.
Investment right into real estate manufacturing projects made up 63% of FDI into Vietnam, targeting high value industries like electronics, automobile pieces, semiconductors, and green innovation drawing in international financial investment.
