Ho Chi Minh Times

Thursday, Nov 21, 2024

Vietnam’s Industrial and Digital Sectors Lead FDI Growth

High-tech industries and infrastructure investments elevate Vietnam’s global position
Vietnam’s industrial and digital sectors are booming, with foreign direct investment (FDI) increasingly directed toward high-value industries like electronics, automotive components, and green technology. According to Troy Griffiths, deputy managing director of Savills Vietnam, the country has transitioned from low-cost manufacturing to a high-tech, skill-intensive production hub. High-value sectors now account for 63 percent of FDI inflows, surpassing traditional industries.

Infrastructure investments, including projects like the North-South Expressway and Long Thành International Airport, are further enhancing Vietnam’s appeal. Coupled with expanding 5G networks and data centre capacity, the country’s logistics and e-commerce sectors are thriving. In 2024, ready-built industrial spaces saw a 31 percent rise in supply, with occupancy rates exceeding 80 percent in key regions.

Savills Vietnam’s report highlights Vietnam’s competitive warehousing costs, averaging $5.6 per square metre, as a major draw for global investors. With high-value manufacturing and logistics driving growth, Vietnam is solidifying its position in the global supply chain.

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