Thailand's Kasikornbank eyes business expansion in Laos
Thailand's Kasikornbank eyes business expansion in Laos
Thailand's Kasikornbank (KBank) is planning for business expansion in Laos to capitalise on Laos and Thai trade worth US$8 billion in 2015-17, according to a bank official.
Speaking at Tuesday's exclusive networking dinner for its premium clients, KBank Laos Offi ce Chairman Mr Pattanapong Tansomboon, said beyond the opening of branches to serve retail customers and facilitate networks of investors in Laos, the bank is also eyeing a doubling of the growth target in deposits and business loans as well as a 20 percent increase in cross-border funds transfer transactions.
“KBank is well-prepared to assist in business networking through advisory and business matching activities, lending for businesses in Lao-Thai trade, and various financial services,” he said, noting that last year's performances were satisfactory in relation to the volumes of deposits, loans and cross-border funds transfers in Lao kip, Thai baht and USD.
By the end of this month, the formation of an integrated market under the Asean Economic Community (AEC), KBank is looking forward to be a key driver of growth for the regional economy, particularly for frontier markets in neighbouring nations - Laos and Myanmar.
Last year, Thailand was the second largest investor in Laos with an accumulated investment value of US$4.4 billion, which is set to rise to US$8 billion within 2015-17 based on an action plan for the strategic partnerships of the two governments in trade and investment promotion priorities.
“KBank as one of Thailand's leading financial institutions, we are ready to provide financial services including corporate loans and support to the fund mobilisation efforts of the Lao government, which will in turn enhance the economic progresses of both countries,” Mr Pattanapong added.
The bank established in Vientiane with registered capital of 1.2 billion baht, meeting the US$40-million requirement set by the Bank of the Lao PDR (BOL).
KBank owns 90 percent of the subsidiary, while the other 10 percent is owned by another financial subsidiary, Kasikorn Asset Management.
This bank is one of Thailand's largest banks and is looking to expand in the fast-growing economies of the Southeast Asian nations, where many Thai companies are investing to diversify revenue sources and offset slower growth at home.
