E ISSN: 2583-049X

International Journal of Advanced Multidisciplinary Research and Studies

Volume 3, Issue 6, 2023

Attracting Foreign Investment Capital from Banks in Vietnam: Current Situation and Solutions

Author(s): Hoang Thi Thu Trang


This article studies the current situation of attracting foreign investment capital by banks in recent times in Vietnam. With data collected from statistics of the State Bank of Vietnam, Vietnam Banking Association, Vietinbank, BIDV, in 2022 and using research methods to collect and process research data. Current research shows that foreign-invested banks play a leading role in promoting the flow of capital into the Vietnamese economy through 7 main channels: i) Bringing legal capital from parent banks, investing FDI form to establish joint venture banks, banks with 100% foreign capital, foreign bank branches in Vietnam; ii) Mobilize capital from the parent bank and from the international capital market, through banking legal entities in Vietnam to lend and finance projects implemented in Vietnam; iii) Providing wholesale credits, co-financing, and syndicated loans through Vietnamese banks investing in the Vietnamese economy; iv) Attracting business corporations as customers from parent banks in the home country and from other economies to deploy FDI projects and indirect investments in Vietnam; v) Guarantee and trade finance for foreign import and export activities with Vietnam; vi) Invest capital, buy shares, become a strategic shareholder in Vietnamese financial institutions, such as banks, insurance, securities companies, investment funds and other Vietnamese businesses Male; vii) Consulting and providing market information, policies, laws, and partners for foreign investors coming to Vietnam. Based on the current situation, the research team offers solutions and recommendations to attract foreign investment capital into banks to increase capital and use it effectively but avoid too much foreign control at banks in Vietnam.

Keywords: Commercial Banks, Foreign Investment Capital, Foreign Banks, Vietnam

Pages: 407-412

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