Vietnam is experiencing a significant influx of foreign direct investment (FDI), with figures from the Ministry of Planning and Investment showing registered FDI totaling over $18 billion in the first seven months of 2024. This influx of capital, coupled with a stable socio-economic and political environment, a skilled workforce, and the diverse supply chain needs of multinational manufacturers, positions Vietnam as an attractive destination for FDI in the ASEAN region.
When it comes to banking preferences for foreign-invested enterprises (FIEs), there has been a gradual shift. While foreign and multinational banks were often prioritized in the past, domestic banks are now emerging as preferred partners for FIEs. This is largely due to their deep understanding of the local market, culture, and extensive operational network within Vietnam. For medium-sized FIEs with a presence in multiple provinces, a local bank like the Saigon-Hanoi Commercial Joint Stock Bank (SHB) can be an ideal partner.
SHB, with its extensive network of 571 branches and transaction offices across Vietnam, offers a unique advantage to FIEs. The bank has a strong presence and deep connections in various localities, enabling it to provide tailored support to FIEs in terms of capital and business networks. SHB’s cooperative relationships extend to FIEs from Japan, South Korea, and China, particularly in the industrial equipment, manufacturing, processing, and transportation sectors.
A key strength of SHB lies in its customer-centric approach. By placing customers and the market at the core, SHB is able to design products and solutions that align with the unique needs and business models of FIEs at each stage of their development. The bank’s professional staff, equipped with financial expertise and multilingual capabilities, ensures a thorough understanding of its customers’ requirements. SHB offers a range of financial banking solutions and legal assistance to FIEs throughout their investment journey in Vietnam.
To support businesses further, SHB provides a package of products with service fee incentives. These include free domestic payments, reduced international money transfer fees, and import L/C fee reductions, helping businesses optimize their costs and efficiently manage their cash flow. SHB also offers working capital financing with preferential interest rates and payroll services, along with digital solutions like the SHB Corporate Online platform for convenient cash flow and business operations management.
Additionally, SHB has designed lending packages specifically tailored to the needs of businesses. These packages offer competitive interest rates, flexible mechanisms, and numerous incentives. For instance, the bank has a VND10 trillion ($400 million) package for production and business enterprises and a VND1 trillion ($40 million) credit package for car loans. Export-import businesses can benefit from a $50 million credit package with attractive interest rates and reduced service fees.
Recognizing the importance of supporting employees of FIEs, SHB offers attractive account opening and benefit policies. These include credit cards, unsecured loans with generous limits, free SMS messaging, and ATM withdrawal fee waivers. As one of the top 5 largest private commercial banks in Vietnam, SHB is committed to supporting businesses, especially FIEs, with its abundant resources and capital.
Leading the Way in Sustainable Development and Green Capital
Vietnam’s appeal as an FDI destination is further enhanced by its commitment to sustainable development and green capital investment. Major European investors are taking notice, with several large corporations choosing Vietnam for their green initiatives. The LEGO Group, for example, has invested over $1 billion in a carbon-neutral factory, while Adidas is implementing emission reduction strategies, working closely with Vietnamese enterprises to achieve sustainability goals.
SHB is actively contributing to Vietnam’s green transition by collaborating with leading global financial organizations such as the World Bank (WB), the International Finance Corporation (IFC), the Asian Development Bank (ADB), and KfW. Through these partnerships, SHB channels capital into green energy projects, clean agriculture, and supports businesses in their journey towards a greener economy. The bank is also fostering business cooperation and creating supply chains and production-business links between domestic enterprises and FIEs.
SHB’s 2024-2028 Transformation Strategy reflects its commitment to sustainability and digital innovation. The bank aims to become a leader in efficiency, the most beloved digital bank, and the best retail bank. Additionally, SHB strives to be a top provider of capital and financial products and services to strategic private and state-owned enterprise (SOE) customers, with a focus on supply chains, value chains, ecosystems, and green development.
To achieve these goals, SHB is focusing its resources on a comprehensive transformation based on four pillars: reforming mechanisms, policies, and processes; prioritizing people; customer-centricity; and modernizing information technology and digital transformation. The bank adheres to six core cultural values: “Goodwill, Trust, Credibility, Knowledge, Wisdom, and Vision,” guiding its journey towards sustainable growth and enhanced service quality.
With over 30 years of experience in supporting Vietnam’s economic development, SHB is committed to sustainable growth, strengthening its foundation, enhancing service quality, and modernizing technology. The bank is dedicated to meeting the diverse needs of its customers and providing the best financial solutions, solidifying its position as a trusted partner for businesses in Vietnam.
A local ‘magnet’ attracts nearly half a billion USD of FDI in February
In January, Quang Ninh witnessed the registration of 2 new foreign direct investment (FDI) projects, with a total capital of 12.5 million USD, ranking 23rd nationwide. Moving into February, the province saw a remarkable leap to the 2nd position, with 8 new registered projects, amounting to a capital of 478 million USD.
Coastal province beats Hanoi to lead Vietnam in FDI attraction with over $1.2 billion secured in a month
According to the latest report from the Foreign Investment Agency (FIA), Ministry of Planning and Investment, on the situation of foreign investment attraction, over USD 1.5 billion of registered investment capital has been recorded up to April 20, 2024. One locality has surpassed Hanoi, Quang Ninh, Ho Chi Minh City, and others to become the national leader in attracting foreign direct investment (FDI).
“A Surge in FDI: The Result of a Meticulous Investment Attraction Strategy”
“Foreign direct investment (FDI) inflows continue to surge, and more importantly, the quality of FDI capital has significantly improved thanks to meticulous investment attraction policies,” emphasized Minister of Planning and Investment Nguyen Chi Dung at the Government’s regular monthly meeting held in July.
