Foreign Direct Investment (FDI) – SeABank’s comprehensive financial solutions package

FDI is not only an abundant source of capital but also a powerful lever to promote growth and technological innovation. In order to help businesses optimize the efficiency of this important capital flow, SeABank is proud to introduce a specialized FDI financial solution package with comprehensive support. Let's learn about it now. What is foreign direct investment? and FDI financial solution package from SeABank What are the highlights in the article? News below

What is Foreign Direct Investment?

Foreign Direct Investment (FDI) is a form of international investment in which investors from one country invest capital - in full or in a significant part - in a project in another country with the aim of gaining control or participating in the operation of that project. This is a type of private investment in which profit is the main goal of the investor.

Foreign direct investment is a form of long-term investment today.

Current forms of foreign direct investment (FDI) 

Currently, foreign direct investment is implemented in many different forms to suit the investor's strategy and the requirements of the capital-receiving country. Common forms are classified based on the method of market penetration, the country's strategic orientation and legal factors.

Market penetration investment

This classification is based on the way foreign investors participate in the local market, including forms such as:

• New investment:Investors build factories, offices, or business facilities from scratch.
• Buy back:This is a form of foreign investor buying all or part of a business operating in the host country.
• Merger:Two or more businesses (of which at least one is foreign) combine to form a new, larger company.

Investment aligned with national strategy

This form reflects the strategic goals that the recipient country wishes to achieve, and may include forms of FDI such as:

• FDI replaces imports:The main goal is to produce locally those products that the country previously had to import.
• FDI increases exports:These FDI projects focus on producing goods or services for export to international markets, bringing foreign currency to the country.
• FDI by policy orientation:The government of the investment-receiving country proactively directs FDI capital flows through preferential policies and specific planning.

There are many different forms of FDI that businesses need to understand clearly.

Legal Investment

Legal structure is also an important factor in classifying FDI in the host country. According to this factor, the forms of foreign direct investment can include:

• Business Cooperation Contract (BCC): It is a form of cooperation between parties on the basis of a contract, without establishing a new legal entity.
• Joint Venture, this form is similar to merger in that foreign and domestic investors contribute capital to establish a new legal entity.
• Enterprises with 100% capital investment and control rights belong to foreign investors.
• Investment forms under contracts such as BOT, BTO, BT,...

Which industry is leading in attracting FDI in Vietnam?

In 2024, Vietnam continues to affirm its strong attraction to foreign direct investment (FDI) despite fluctuations in the global economy. The overall FDI picture shows stable growth, especially in adjusted capital flows and disbursed capital, reflecting international investors' confidence in the domestic business environment.

In terms of industry structure, the processing and manufacturing industry still plays a key role, contributing the majority of total FDI capital thanks to advantages in human resources, infrastructure and production support policies. In addition, sectors such as real estate, electricity production and distribution, and wholesale and retail also recorded significant growth.

In terms of investment countries, Singapore and South Korea continue to be in the leading group, demonstrating their strong cooperative relationship and long-term trust in Vietnam. At the local level, Bac Ninh, Hai Phong and Ho Chi Minh City are priority destinations thanks to their synchronous infrastructure and strong development potential.

Vietnam remains an attractive market for foreign investors.

To seize opportunities from FDI capital flows and optimize financial efficiency, SeABank offers a comprehensive FDI financial solution package, supporting businesses from cash flow management, international payments to flexible credit services. Discover now FDI enterprise incentive program of SeABank to accelerate and reach out to the international market.

Effective financial solutions from SeABank for businesses FDI

In the context of foreign direct investment capital playing an increasingly important role in economic growth, optimizing financial resources is a top priority for many businesses. Understanding that need, SeABank deploys a package of specialized financial solutions and services, bringing outstanding competitive advantages to FDI enterprises in Vietnam.

Withcredit incentivesOutstanding, SeABank bringsCredit overdraft limit up to 1 billion VND, same policyFree overdraft account issuance and management in the first year.

In particular, businesses will enjoy policies of flexible export finance, with diversified collateral, including debt claims from export contracts or L/Cs, together withFinancing rate can be up to 100% of collateral valueFDI enterprises are also given priority to apply the most attractive interest rate policies from SeABank.

Not only stopping at credit, SeABank also provides a series of endow non-credit valuables, such as free/reduced fees for opening a nice account number, Free of all payment fees domestic, cash deposit - withdrawal, counting and batch transfer fees in the first year. In addition, electronic banking services such as SeANet, SMS Banking, payroll services and international money transfers are all free or have minimal fees.

SeABank also supports businesses through trade finance and guarantees.Up to 50% off fees and free card issuance Visa Business in 5 yearsWith comprehensive financial solutions, SeABank has been gradually affirming its role as a companion of FDI enterprises in sustainable development in Vietnam.

SeABank is providing comprehensive financial solutions for FDI enterprises.

Conclude

Understanding what foreign direct investment is helps businesses proactively seize opportunities and optimize capital flows. In addition, businesses should not forget to immediately explore the opportunity to optimize FDI capital flows and achieve success with a comprehensive FDI financial solution package from SeABank.

To learn more about financial solutions and incentives specifically for FDI enterprises at SeABank, please visit the website: https://www.seabank.com.vn/doanh-nghiep or contact Hotline 1900.599.952 (KHDN).