In January, Singaporean firms contributed US$1.24 billion in foreign direct investment (FDI) to Vietnam across 39 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This marks an increase of US$176.67 million in registered capital compared to December, which saw US$1.07 billion invested across 54 new projects.
Singaporean investments accounted for 28.72 percent of total FDI in January, up from 14.93 percent in December.
Singapore remains one of the largest sources of foreign direct investment (FDI) in Vietnam, reflecting the strong economic ties between the two countries. Singaporean companies have been actively investing in Vietnam across various sectors, including real estate, manufacturing, retail, finance, and logistics. The country’s robust economic growth, business-friendly environment, and strategic location in Southeast Asia make it an attractive destination for Singaporean investors looking to expand their footprint in the region.
One of the key areas of Singaporean investment in Vietnam is real estate and urban development. Major Singaporean developers such as CapitaLand and Keppel Land have played a significant role in shaping Vietnam’s urban landscape, with high-profile residential and commercial projects in major cities like Ho Chi Minh City and Hanoi. Additionally, Singaporean companies have been instrumental in the development of industrial parks and logistics hubs, facilitating Vietnam’s growing role as a manufacturing and export hub.
The strong trade relations between Vietnam and Singapore are supported by trade agreements like the ASEAN Economic Community (AEC) and the Vietnam-Singapore Free Trade Agreement (VSFTA). These agreements have helped to reduce trade barriers and increase market access, fostering further investment. As Vietnam continues its industrialisation and digital transformation, Singapore’s expertise in sectors such as finance, technology, and infrastructure is expected to play an increasingly important role in driving the country’s economic growth. With a growing focus on sustainable development and innovation, Singaporean FDI in Vietnam is poised to remain a key driver of both economic development and regional integration.
See also: List of Vietnam’s Free Trade Agreements