KBank commits to making positive economic impact in Việt Nam
KBank commits to making positive economic impact in Việt Nam
KASIKORNBANK (KBank), one of the leading commercial banks in Thailand, views Việt Nam as the epicentre of growth for Southeast Asia as it expands its reach across diverse territories in the region.
A KBank branch in HCM CIty. — Photo couresy of the bank |
"With consistently high GDP growth rates over the past decade, Việt Nam has solidified its position as one of the fastest-growing economies in the region," the company said in a statement.
"By 2030, it is expected to rank 30th in terms of global GDP ranking. The emergence of a thriving middle class and working-age population in Việt Nam is significantly reshaping the country’s consumer landscape in the long run."
"At the same time, while urban areas in Việt Nam are undergoing rapid development, many rural regions continue to lack access to essential financial services. This discrepancy underscores an essential role that KBank can undertake and extend financial inclusion to empower underserved communities and contribute to equitable growth," according to the company.
Pipit Aneaknithi, President of KASIKORNBANK said KBank has made a resolute commitment to foster empowerment, cultivate value, and enhance connectivity to engage with various segments of Việt Nam's population. This serves as a clear manifestation of the bank's dedicated determination to leverage its expertise and partake in a positive transformation spanning the entire nation.
"Through these endeavours, KBank aims not only to propel the country's economic advancement but, more significantly, to empower its customers and elevate their quality of life across the entire socio-economic spectrum,” he said.
Empower connectivity for SMEs
Acknowledging the pivotal role of small and medium-sized enterprises (SMEs) in the economic ecosystem, KBank is steadfast in its endeavour to empower these entities.
Despite over 97 per cent of businesses in Việt Nam being small and medium-sized enterprises (SMEs), they only account for 20 per cent of the market share in the credit capital structure, KBank said.
To assist these enterprises in accessing more capital, with KBank, online businesses have the opportunity to access loans to fortify their operations exclusively through online channels, eliminating the need for physical bank visits, it added.
Presently, the bank has cultivated this portfolio to approximately US$40 million by year-end. The institution aims to facilitate the seamless amalgamation of business operations with tailored financial solutions, thus furnishing SMEs with the essential tools to cultivate sustained growth.
Chat Luangarpa, Executive Vice President of KASIKORNBANK said: “We are focusing on serving all customers in Việt Nam from Corporate; SMEs; and retail by empowering them to be able to capture this economic opportunity through both financial and non-financial support."
"With our purpose to empower every customers’ life and business we have launched various products for micro and small merchants such as K PLUS Vietnam; lending and trade solutions for medium to large corporates; during our first two years of business and are launching many more to ensure that our customers are equipped with the suitable financial solutions every stage,” he said.
As of August 2023, KPLUS Vietnam had 760,000 users and is well on track to reach 1.3 million users by year-end.
As the banking population of Việt Nam continues to grow, KPLUS Vietnam said it hoped to achieve about 8.4 million users by 2027.
Solidifying commitment
KBank said its ambitious expansion into Việt Nam is reinforced by robust quantitative measures. With a projected capital investment poised to surge from US$285 million in 2023 to an impressive $735 million by 2027, the bank underscores its resolute commitment.
At the same time, KBank's workforce is primed for exponential growth, ascending from 350 employees in 2023 to 1,700 by 2027.
This trajectory of remarkable expansion is further fortified by the invaluable backing provided by the KASIKORN Business Technology Group (KBTG), whose instrumental role in furnishing essential IT infrastructure support stands pivotal to KBank's endeavours in Việt Nam.
In 2027, KBank is dedicated to empowering local customers through innovative banking in collaboration with partners, with an incremental budget of US$7 million allocated to KASIKORN Business Technology Group - its technology arm, $735 million to the banking sector, and $336 million to KVision – the investment arm for potential companies.
As part of its expansion strategy, the bank launched the "Kay! Kay! KBank" Campaign on August 16, a resolute initiative that seeks to foster financial inclusivity.
Acknowledging the transformative potential of integrating the unbanked and underbanked into the mainstream financial ecosystem, KBank's campaign is engineered to rebuild trust in banking across Việt Nam."KBank’s stride into Việt Nam is not merely a geographical expansion, but a profound testament to its resolute commitment to innovation, inclusivity, and excellence," the bank concluded.
