A production line of Vietnamese technology equipment products. — VNA/VNS Photo

HÀ NỘI — Việt Nam’s industrial and digital sectors are thriving, fueled by a surge in foreign direct investment (FDI) inflows.

Leading FDI areas include high-value industries such as electronics, automotive components, semiconductors and green technology.

“Việt Nam 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 Việt Nam, said. 

Key investor nations, including South Korea, Singapore, and Japan, show a shift to high-tech and high-value production.

It now makes up around 63 per cent 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.

Việt Nam’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 Việt Nam's report. 

Việt Nam is ramping up infrastructure spending, allocating 7 per cent of GDP to key projects, including the North-South Expressway, Long Thành International Airport and deep-water ports like Cái Mép in Bà Rịa-Vũng Tàu.

Digital connectivity is also a priority, with 5G network expansion and data centre developments driving e-commerce and logistics growth. 

Savills Việt Nam 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 per cent, with occupancy rates exceeding 80 per cent in key regions.

The report emphasises Việt Nam’s warehousing costs remain highly competitive, averaging US$5.6 per square metre. — VNS