Leading FDI areas include high-value industries such as electronics, automotive components, semiconductors and green technology.
“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,” Troy Griffiths, deputy managing director of Savills Vietnam, stated.
Key investor nations, including South Korea, Singapore, and Japan, indicate 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’s transition toward high-value-added manufacturing, supported by expanding logistics and data centre capacity, is elevating its position within the global supply chain, according to Savills Vietnam's report.
The nation is stepping up infrastructure spending, allocating 7 per cent of GDP to key projects, including the North-South Expressway, Long Thanh International Airport and deep-water ports like Cai Mep in Ba Ria-Vung Tau.
Digital connectivity is also a priority, with 5G network expansion and data centre developments driving e-commerce and logistics growth.
Savills Vietnam expert highlight that with the booming e-commerce sector and rising FDI, demand for warehouses and ready-built industrial spaces has increased.
In 2024, the supply of ready-built factories and warehouses soared by 31%, with occupancy rates surpassing 80% in key regions.
Vietnam’s warehousing costs remain highly competitive, averaging US$5.6 per square metre, the report said.
