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VietinBank prepares for FDI wave post-Covid-19
Monday,  Dec 28, 2020,18:04 (GMT+7)

VietinBank prepares for FDI wave post-Covid-19

Given the rising shift of foreign direct investment (FDI) from China to the Southeast Asian region, coupled with Vietnam’s success in preventing and controlling Covid-19, and numerous advantages including macroeconomic stability, abundant human resources, open-door polices and free trade agreements, Vietnam has become an increasingly safe investment destination, attracting more and more high quality FDI inflows. In this context, VietinBank sticks to its goal of becoming the leading bank in providing project financing and advisory service to FDI customers. The bank also striving to provide comprehensive and competitive financial solutions that meet international standards.

Over the past few years, FDI attraction has been one of the Government’s key strategies, contributing to the national socioeconomic development.

Realizing the huge potential from FDI attraction, in 2013, VietinBank established a specialised department in order to better approach the MNCs that were investing in Vietnam. Having accompanied numerous FDI firms over the past seven years, VietinBank has relentlessly broaden and deepen its specialization business model by setting up Japanese, Korean and Chinese Desks, which employed specialised in foreign languages and having deep knowledge about the culture of firms from different countries. The Bank aims to improve its professionalism, service quality and efficiency; and promoting the connection between FDI firms from Japan and South Korea and Sinophone.

In addition, the bank established a series of key FDI hubs in a number of focal economic regions, and teams for project financing and advisory with an aim to provide consultancy services and project finance meeting international standards. Apart from this, VietinBank has been taking the advantages of its with many reputable financial institutions worldwide , especially the cooperation with MUFG, its strategic partner, one of Japan and the world's leading financial groups, to promote business matching activities, in order to encourage M&A and trading activities between both local and international businesses.

To date, Vietnam has been a leading example in preventing the transmission of Covid-19. To smooth its path to welcome a new wave of investment inflow, Vietnamese Government has focused on the synchronous development of infrastructure, especially in the renewable energy and industrial park real estate sectors. The move is expected to unlock the potential for project financing and advisory service when further boost M&A deals.

As such, VietinBank has proactively got ahead of the trend, formulating a clear strategy with the aim to become the leading bank in term of project financing and investment advisory service and provide FDI customers with various benefits through financial services.

VietinBank has built a specialization model, improve the customer-oriented transaction process, and supplied various products that are suitable to the business activities of FDI enterprises. Its services and products consist of loan guarantee, export credit agency and financial structures such as leveraged buyout, leveraged buyin and M&A. Moreover, the bank has continuously launched a number of preferential and promotional programs, including the free-of-charge money transfer via Internet banking service (eFast).

Continuing to reinforce the strength of a local bank serving international corporate clients, VietinBank has been rolling out a series of programs to attract new FDI customers, including promoting the use of capital accounts for direct and indirect investment and escrow accounts, and providing consulting services for M&A deals at professional processes but reasonable prices.

Aside from offering comprehensive financial solutions to firms after their mergers to ensure they can quickly get on track, VietinBank has cooperated with FDI partners specializing in developing industrial parks; and other partners active in the renewable energy industry. Besides, the Bank has been actively held and joined conferences and seminars on the real estate and renewable energy industries.

In early September, Prime Minister Nguyen Xuan Phuc met with Japanese firms which were  keen to expand business in Vietnam and been actively held that the Vietnamese Government would create favorable conditions for investors, especially the Japanese and improve the business and investment environment.

Realizing the great opportunity in which Vietnam is one of the strategic destinations for Japanese investors given the trend of shifting investment and production, expanding supply chains and diversifying production bases in foreign countries, the board of directors of VietinBank issued effective directives for the promotion of banking solutions meeting customers’ investment demand.

 

Accordingly, VietinBank has offered various special financial packages to Japanese firms which look to invest in key economic sectors. Most of these Japanese firms are large groups which have cooperated with MUFG Bank.
Through the strategic cooperation relationship, VietinBank continues joining hands with MUFG Bank to build joint solutions and take advantage of the financial potential and strengths of the two sides to provide Japanese enterprises with outstanding solutions.

Besides, the lender also builds standard procedures from accessing to serving and caring Japanese customers; and develop key branches in various strategic places, helping it gain the trust from Japanese firms and enhancing VietinBank’s reputation among Japanese enterprises.

VietinBank is the only bank in Vietnam to be selected as a partner to deploy a loan program for Japanese small and medium enterprises active in Vietnam by Japan Finance Corporation (JFC), a financial organization of the Japanese government. The program allows firms to get loans with a guarantee being a standby letter of credit (SBLC) issued by JFC. The SBLC covers 100% of liabilities including principal and interest sums and fees for all corporate borrowers recommended by JFC to ask for loans at VietinBank.

VietinBank applies a floating interest rate for Vietnamese dong loans with the term of one to five years and a lending limit of VND110 billion. The interest rate will be adjusted periodically but not longer than six months, providing more incentives for customers. The bank’s program has various advantages such as avoiding exchange rate risk, diversifying financial sources and improving the financial health of parent companies in Japan. SBLC is expected to bring many practical benefits to small and medium Japanese enterprises in Vietnam.

 

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Publication Permit No. 133/GP-BTTTT issued on March 02, 2021
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
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