According to data from the Ministry of Planning and Investment, Vietnam recorded a total registered foreign direct investment (FDI) of over $18 billion in the first seven months of 2024, with realized capital reaching approximately $12.5 billion. This represents an 8.4% increase compared to the same period last year, the highest in the past five years.
With the diverse needs of multinational manufacturers to optimize their supply chains, along with Vietnam’s stable socio-political foundation and skilled labor force, FDI into the country is expected to continue growing throughout 2024. FDI enterprises are considered a bright spot and an essential driver for the recovery of Vietnam’s economy this year. A survey revealed that 70% of FDI businesses operating in Vietnam plan to expand their production and operations. This, coupled with the entry of new FDI enterprises, presents a valuable opportunity for Vietnamese banks to partner with and provide financial services and solutions to these companies.
When it comes to banking services for FDI enterprises, foreign and multinational banks, or those from the home countries of the FDI enterprises, used to be the preferred choice. However, this trend is gradually changing. Local banks, with their deep understanding of the local landscape, market, culture, and people, along with their extensive branch networks, are now well-positioned to become trusted partners for FDI enterprises investing and operating in Vietnam. This is especially true for medium-sized FDI enterprises with operations spanning multiple provinces, as they can greatly benefit from collaborating with a local bank.
For instance, SHB has become a preferred choice for many FDI enterprises entering Vietnam. With a network of 571 branches and transaction offices nationwide and a profound understanding of the economic and cultural landscape in various provinces, SHB is well-equipped to support FDI enterprises with capital and business connections.
Currently, the bank maintains cooperative relationships and provides products and services to FDI customers from many countries and territories, including Japan, South Korea, and China. Many of these customers are enterprises in the fields of industrial equipment, processing, manufacturing, and transportation.
SHB’s leadership representative stated that with a consistent customer-centric and market-centric orientation, the bank always strives to understand and accompany FDI enterprises throughout their journey in Vietnam. At each stage of development, SHB designs tailored financial products and solutions that align with the needs and operating models of these enterprises. The bank has also built a professional team with financial expertise and multilingual capabilities to better understand and support its diverse customer base. SHB is committed to providing financial consulting and banking solutions, as well as assisting FDI enterprises with legal hurdles during their investment journey in Vietnam.
At present, SHB offers a package of products with attractive service fee incentives, including free domestic payments, up to a 90% reduction in international transfer fees for outward remittances, up to a 75% reduction in import L/C fees, and waivers or reductions in various international payment fees. These benefits help enterprises optimize their costs and efficiently manage their cash flow.
In their business operations, SHB accompanies enterprises by providing working capital financing with preferential interest rates and salary payment services with fee incentives. Additionally, SHB Corporate Online, coupled with the bank’s digital solutions, offers a convenient and swift platform for customers to manage their cash flow, business operations, and foreign currency transactions at any time.
Furthermore, SHB has launched multiple credit packages with preferential interest rates and flexible mechanisms, such as a $1 billion package for manufacturing enterprises with competitive interest rates, a $100 million package for enterprises in need of auto loans, and a $50 million credit package for import-export enterprises with interest rates starting at 4.5% per annum, along with waivers or reductions of 66 types of service fees.
SHB accompanies the development of FDI enterprises with dedicated policies
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For employees of FDI enterprises, SHB offers a range of attractive account opening policies and benefits, including credit card issuance and unsecured loans with credit limits up to 20 times their income, totaling up to VND 500 million. Additionally, they can enjoy free SMS notification services and ATM withdrawal fee waivers.
As one of the TOP5 largest joint-stock commercial banks in Vietnam, SHB possesses ample resources and capital to support enterprises, including FDI enterprises.
Accompanying Sustainable Development and Channeling Green Capital
Vietnam is an attractive destination for FDI in the ASEAN region, particularly with the growing focus on green transition. The country is drawing significant attention from major European investors, as evidenced by the LEGO Group’s investment of over $1 billion in a carbon-neutral factory here. Similarly, Adidas, a German company, is implementing a carbon emission reduction strategy, which requires Vietnamese enterprises—as their suppliers and manufacturers—to align with this sustainable development goal.
It is anticipated that green FDI from European countries will continue to grow. This trend is affirmed by the EuroCham Business Climate Index survey, which revealed that 31% of its members ranked Vietnam among the top three global investment destinations.
In alignment with the government’s National Strategy on Green Growth, SHB collaborates with leading global financial institutions such as the World Bank, IFC, ADB, and KfW to channel capital towards green energy and clean agriculture projects, supporting enterprises in their green transition journey and contributing to the greening of the economy. Additionally, SHB facilitates business cooperation and fosters linkages between domestic enterprises and FDI enterprises, creating supply chains and production networks.
In its 2024–2028 Transformation Strategy, SHB sets strategic goals to become the TOP 1 bank in terms of efficiency, the most favored digital bank, and the best retail bank. Additionally, SHB aims to be a leading provider of financial products and services to strategic private and state-owned enterprises with supply chains, value chains, and ecosystems, fostering green development.
SHB is channeling its resources into a comprehensive and robust transformation based on four pillars: reforming mechanisms, policies, regulations, and processes; prioritizing people; placing customers and the market at the core; and modernizing information technology and digital transformation. The bank remains steadfast in its commitment to six core cultural values: “Heart – Trust – Faith – Wisdom – Intelligence – Vision.”
Over the past three decades, SHB has accompanied the people and the country, steadily growing and achieving sustainable development. The bank continuously strengthens its foundation, enhances service quality, and modernizes its technology to meet the diverse needs of its customers and provide the best financial solutions.
Foreign Investment Attraction Reaches $20.52 Billion in the First Eight Months of 2024, a 7% Increase Year-over-Year
As of August 31, 2022, foreign investment in Vietnam reached a remarkable $20.52 billion, according to the General Statistics Office. This figure includes newly registered capital, additional capital, and capital contributions and share purchases by foreign investors. It represents a significant 7% increase compared to the same period last year, showcasing Vietnam’s growing appeal as a global investment destination.
Sticking to the Macroeconomic Stability Goal, Promoting Growth, and Curbing Inflation.
The economic and social landscape in August and the eight months leading up to 2024 showcased a robust recovery, yielding positive and comprehensive results across all sectors. This momentum has been instrumental in achieving the set goals and fortifying the foundation to meet and exceed the 15 targets outlined for 2024.
“Investors Choose Vietnam as Their ‘First Port of Call’ to the World.”
Vietnam is not just the gateway to ASEAN, but also a key market and the first stepping stone to expanding globally through its market linkage mechanism with 19 free trade agreements.
