FDI plays an important role in attracting foreign capital, promoting innovation and increasing competitiveness for Vietnamese enterprises. Understanding the aspects of FDI capital helps enterprises quickly grasp international investment and cooperation opportunities. Let's join SeABank to learn more about What is FDI capital? in the article News details below

Overview of FDI enterprises and capital sources

To have a comprehensive view of the role of foreign investment in the current economic context, it is necessary to deeply understand what enterprises and FDI capital are. Specifically as follows:

Understanding FDI Enterprises

FDI stands for Foreign Direct Investment.According to the Investment Law 2020, an FDI enterprise is defined as an economic organization in which foreign investors contribute capital, become members or shareholders.Common types of FDI enterprises include:

Enterprise with 100% foreign investment capital.
Joint venture between foreign investors and Vietnamese organizations and individuals.
Other forms of investment such as business cooperation contracts (BCC), purchase of shares/capital contributions, establishment of branches.

FDI enterprises are enterprises with investment capital from foreign countries.

What is FDI capital?

FDI (Foreign Direct Investment) is capital invested directly by foreign individuals or organizations into a country through the construction of production facilities, factories, business offices and direct participation in management and operation. This is one of the important international investment channels, helping to promote economic growth, create jobs and transfer technology to the country receiving the investment.

Key features of outbound FDI

Foreign direct investment has its own distinct characteristics compared to other forms of investment, reflected in the following factors:

Profit is the central goal of FDI. All FDI activities aim to maximize profits, regardless of the form of investment chosen by the enterprise.
The performance of the receiving enterprise is the decisive factor in the success of the investment.
The level of investor participation depends on the capital contribution ratio and the agreement between the two parties. The investor is only entitled to control if it meets the legal conditions in the host country.

Enterprises should clearly understand FDI capital to apply this capital source appropriately.

Benefits and Risks of Attracting FDI

Understanding both the benefits and challenges of FDI will help businesses build effective cooperation strategies and sustainable development. Accordingly, the benefits and risks of attracting FDI that businesses need to understand include the following:

Benefits of attracting FDI capital

Businesses can receive many benefits when attracting FDI capital, for example:

Increase investment capital:FDI provides large cash flows to help businesses invest in equipment, expand scale, and contribute to promoting production and export growth.
Technology transfer & management capacity improvement:Foreign investors often bring modern technology, advanced management processes and specialized training for personnel.
Create more jobs & improve labor quality:FDI not only creates more job opportunities but also promotes professional training and improves internal skills.
Expanding international markets:Thanks to the investor's global network, businesses have the opportunity to access international supply chains and customers, diversifying markets.

Risks in raising capital through FDI

Besides the outstanding benefits, attracting FDI capital also has many potential risks that businesses need to consider to avoid dependence or long-term difficulties, for example:

Businesses can become overly dependent on foreign investors.
Finance is withdrawn abroad because FDI profits can be transferred back to the investor's country, reducing the efficiency of capital circulation and affecting the foreign exchange balance.
Financial volatility & policy shifts due to FDI inflows can be erratic, posing risks if policies change or investors suddenly withdraw capital.

Attracting FDI can make businesses dependent on foreign investors.

To accompany with FDI enterprises,SeABank has been and is implementing FDI Enterprise Incentive Program Specialized, focused on financial support, facilitating operations and business expansion.

Special offers for FDI enterprises at SeABank

Understanding the specific needs of FDI enterprises, SeABank offers outstanding financial solutions and services, specifically designed to provide maximum support for FDI enterprises to develop sustainably in Vietnam. SeABank's incentives specifically for FDI enterprises include:

Credit Offer:

Diverse collateral: Accept many forms of security, including debt collection from export contracts, L/C, with financing rates up to 100% of asset value.
Premium overdraft limit: Grant unsecured overdraft limit up to 1 billion VND, and free overdraft account management.
Preferential loan interest rates: SeABank prioritizes applying special preferential loan interest rate policies exclusively for FDI enterprises, helping to minimize financial costs.

Special offercreditApplication:

Free transaction and management services:Including account opening fee, domestic payment fee, cash deposit - withdrawal fee, counting fee, bill payment fee and batch transfer.
Payroll & e-banking services:Free internal and interbank payroll, free registration and usage SeANet, SMS Banking, transactions via Email.
Remittance & Trade Finance Offers:Free or up to 100% reduction in international money transfer fees (incoming and outgoing), plus up to 50% reduction in trade finance and guarantee service fees.
Corporate card and deposit offers:Competitive term deposit interest rates, free card issuance and annual fees Visa Business, Visa Corporate and SeAMileage.

SeABank has many financial solutions to accompany FDI enterprises.

Conclude

In short, understanding What is FDI capital? and its impacts are not only advantages but also key factors helping Vietnamese enterprises to reach new heights. Seizing the opportunity from this capital flow requires careful preparation in all aspects, especially solid financial potential.

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