Vietnam draws new wave of high-value investments: Savills
Vietnam's shift towards high-value-added production, along with the expansion of logistics capabilities and data centers, is enhancing its position in the global supply chain, the agency said in a report released on November 8.
According to the report, the success of Vietnam's industrial sector is supported by several factors, including a dynamic workforce, government incentives, openness in trade cooperation, a strategic location, and continuous infrastructure upgrades. High-value industries such as electronics and semiconductors are driving growth, shaping real estate demand, and attracting regional investment.
“Vietnam has evolved from traditional manufacturing, where companies were primarily focused on low labour costs, to a high-tech, skill-intensive nation with advanced production capacities,” said Troy Griffiths, deputy managing director of Savills Vietnam.
With competitive costs, a strategic location, and participation in numerous trade agreements, Vietnam is well-positioned to seize this new wave of investment. As it integrates into global markets, Vietnam will play a key role in the future of Southeast Asia's industrial sector, maintaining its reputation as an ideal destination for industrial and logistics solutions.
Leading FDI areas include high-value industries such as electronics, automotive components, semiconductors and green technology.
Key investors, including the Republic Korea, Singapore, and Japan, show a shift to high-tech and high-value production. It now makes up around 63$ of FDI inflows, overshadowing traditional low-cost manufacturing sectors.
By 2025, high-value industries and FDI are expected to sustain strong demand for industrial real estate.
Vietnam is ramping up infrastructure spending, allocating 7% of GDP to key projects, including the North-South Expressway, Long Thanh International Airport in Dong Nai province, and deep-water ports like Cai Mep in Ba Ria-Vung Tau province.
Digital connectivity is also a priority, with 5G network expansion and data centre developments driving e-commerce and logistics growth.
Savills Vietnam experts highlight that with the booming e-commerce sector and rising FDI, demand for warehouses and ready-built industrial spaces has surged.
In 2024, the supply of ready-built factories and warehouses increased by 31%, with occupancy rates exceeding 80% in key regions.
The report emphasises Vietnam warehousing costs remain highly competitive, averaging 5.6 USD per square metre./.
Related News
Latest News
Forum seeks to boost Vietnam-China agro-forestry-fisheries trade
14:37 | 04/12/2024 Import-Export
Meetong recycling standards - reducing emissions, increasing competitiveness
13:44 | 04/12/2024 Import-Export
Accelerating official fruit and vegetable exports to China
13:43 | 04/12/2024 Import-Export
Wood exports likely to top 16 billion USD this year
14:19 | 03/12/2024 Import-Export
More News
Vietnam’s manufacturing stalls on weak export activities
14:13 | 03/12/2024 Import-Export
Sustainable production, anticipating the pepper market's price increase cycle
13:49 | 03/12/2024 Import-Export
Imports of textile and footwear materials soar amid robust industry growth
13:44 | 03/12/2024 Import-Export
Agricultural product exports poised for record-breaking year
16:17 | 02/12/2024 Import-Export
Binh Duong posts 10 billion USD in trade surplus this year
16:14 | 02/12/2024 Import-Export
US trade policy is expected to be "stricter", what should businesses do?
15:50 | 02/12/2024 Import-Export
Virtual booths open new doors for Vietnamese farm produce in China
19:08 | 01/12/2024 Import-Export
Vietnam’s exports to the Philippines surge nearly 24% over 10 months
09:19 | 01/12/2024 Import-Export
How will seafood exports to the US be affected after the US election?
09:17 | 01/12/2024 Import-Export
Your care
Forum seeks to boost Vietnam-China agro-forestry-fisheries trade
14:37 | 04/12/2024 Import-Export
Meetong recycling standards - reducing emissions, increasing competitiveness
13:44 | 04/12/2024 Import-Export
Accelerating official fruit and vegetable exports to China
13:43 | 04/12/2024 Import-Export
Wood exports likely to top 16 billion USD this year
14:19 | 03/12/2024 Import-Export
Vietnam’s manufacturing stalls on weak export activities
14:13 | 03/12/2024 Import-Export