What are the best practices for creating and managing linkages with foreign investors?

You may want to consider market research before approaching foreign investors, conduct thorough market research to understand their interests, preferences, and the specific needs of their target market... - Develop a clear Value Proposition, - Utilize Government and Industry support, - Establish trust and credibility, - Offer incentives and benefits to attract foreign investors, - Understand Cultural Differences (!), customize communication accordingly, maintain regular communication, - Provide clear investment guidelines, - Facilitate site visits, - Provide due diligence information, - Establish a dedicated Investor Relations team By using above, you can enhance ability to attract and maintain linkages with foreign investors.

Four (4) key partners need to collaborate if you want any foreign venture to be successful. Let me use, as an example, Americans doing business in Vietnam. 1. The Vietnamese-Vietnamese. The Vietnamese person born and bred in Vietnam. 2. The Vietnamese American. This is the person who is ethnically Vietnamese but was either 1) born in America or 2) studied in America. They understand both cultures and languages very well. 3) The American Expat. This is the American living in Vietnam because they are ardent fans of Vietnam. 4) The American-American. This is the American person who lives in the US and doesn't care to live in Vietnam. You need these four types (some working more tightly than others) of partners.

In order to identify potential partners we need to focus on specific countries, and on specific types of companies. However, identifying industry trends and emerging sectors may make it possible for you to target companies and sectors that are more likely to invest. Industries that are growing, restructuring, or expanding globally that also are interested in your regional assets may deserve additional attention in comparison to industries that are declining or have already established their global footprints. Targeting is critical to focus on those countries and investors. With limited resources it does not make sense to dilute FDI attraction efforts by pursuing too many different countries or types of investors.

Essential is to have a good contact to all the different experts: International/Bilateral Chambers of commerce, Location experts, relevant fairs and events. Economic diplomacy can also do a lot. Yes, it is not easy to contact 70+ different chamber entities in Germany alone, plus 30+ other organisations. But it does pay off. Beware that few companies go on "investment fairs", but far more can be reached via specialized fairs in their sector, from wine to textile. Investors follow goods, and working with your export promotion teams can create a lot of synergies. Same for tourism.

Agencies should be aware of trends, but not overestimate "strategies". The market is many times more dynamic then the strategic planning of an agency. And what do you do if a potential investor comes out of your scope? Keep in mind that literally bread and butter are the daily needs of a market while AI services generate less daily revenue per inhabitant. Be open, show your services and deal with what is there, instead of running after some imaginative targets where everyone is on.

If you are looking at expanding your investor base internationally, a great way to build trust and rapport amongst your current and target investors is to introduce them to each other! Investors are often curious about finding hidden gems in new and untapped markets, or co-investors for their other investments, but they often need guidance when learning about those new markets. Thus, your ability to link these contacts to new circles of financiers will provide a tremendous amount of value-add to the relationships. This will add to your "emotional bank account" with your investors while also reinforcing the notion that you are able to network effectively and sell, which are two qualities that investors love to see.

Legal contracts, while necessary, are meaningless compared to the monumental importance of trust and rapport. If there's no trust and rapport, then the contracts signed may be worth less than the toilet paper I used this morning. Myth: International law! Fact: There are two laws at work—your country's and the foreign country's. When two laws are at work, it's what Hobbes calls a "state of war"—nobody's law controls the business. Legal contracts are only as meaningful as their enforceability. During a "state of war" the only thing that matters is trust and rapport. Build trust and rapport—not only will your day-to-day dealings be easier, but it will make your contracts more valuable and actually have teeth.

Under-promise and overdeliver. Engage and do, this is the only way to build trust. In practical terms, dealing with banks and authorities are the key points of building trust, or critical as they might be the ones that destroy what is built up with so much effort. Specifically bank procedures have become very burdensome in the last decade for foreign investors and more focus should be given on these issues, from the US to Europe and elsewhere.

To ensure that you have the correct terms in place, for this stage you need to involve a Legal Advisor. This could offer you peace of mind.

The most efficient investment agencies have a "one stop-shop" system, one "key account manager" for the investor who arranges for strictly all issues. He needs the support of hierarchy/politics versus all different stakeholders, from real estate to taxes. Having the interconnections set from the agency, providing regular information to all stakeholders ahead of the issues is key. In some countries, such a function exists in chamber of commerce, in others at the state or municipal level, but in all successful cases there is a "red phone" to the top and a person on the other line who understands the importance.

Keeping in contact with your business network, including the potential investors, is essential. One such avenue is regularly participating in joint bids and multi-country projects. We, at FRD Center, always rely on the substantial and validated network of local experts and business contacts that we have in Romania and, respectively, in the other Emerging Markets in Europe.

In order to sustain and scale the linkage below are Factors Influencing Foreign Direct Investment for a longer period of Time: - Political Stability - Economic Policies and Regulations - Infrastructure Development - Human capital and Skilled Labour - Market Size and Potential - Exchange rates and Currency stability

Some key points to take in consideration are: 1. Create a relationship action plan: identify clear goals and identify people in both sides to assess compatibility who can help achieve them. 2. To keep trust: Be loyal to your values, be respectful, responsive and transparent. 3. Value proposition: Take in consideration cultural differences and customize communication to maintain regular and effective interactions. 4. To sustain & scale: Seek opportunities to deepen the partnership, maintain regular contact. Leverage the experience to engage with other investors and grow the business internationally.

Consider "outside-the-box thinking." International business development can often feel like the wilderness. What worked for one individual/company won't work for another. When Silicon Valley's big tech (i.e., Google, Apple, etc.), for example, went to China to do business, do you think they didn't know the local rules or procedures? They have the BEST attorneys and accountants in the world working for them. But why do some fail while others win? It comes down to creativity. International business development requires a lot of creativity. So when you're stuck, don't get frustrated. Rather, go be more creative.

I prioritise cultural understanding, adapt to investor expectations, and ensure consistent reporting on performance. This approach strengthens relationships, ensures long-term collaboration, and drives successful partnerships.

While you are on it: spread your information via the net. Far more can be done than just PR. Testimonials, contacts, networks - they can do much of the work if you motivate them to spread the news.