KBank set up new division to supervise international businesses supporting trade of AEC+3
KASIKORNBANK has integrated all international business into the “World Business Division”, a new division serving trade and investments at home and abroad, while planning to open five foreign outlets for better business coverage. The Bank aims to maintain its leadership in extending credit to Chinese and Japanese businesses in Thailand.
According to KBank President Mr. Predee Daochai, the Bank has last year integrated the Global Business Division and China Business Division into the World Business Division, headed by Mr. Pipit Aneaknithi, the Bank’s Executive Vice President. The integration intends to enhance services for local and foreign customers who operate cross-border businesses in preparation for the ASEAN Economic Community (AEC) inception in 2015 plus the bloc’s cooperation with China, Japan and South Korea. The regional cooperation with these Asia’s major economic powers, whose combined GDP represents a fourth of the world’s GDP, will bring about more dynamic trade and investments thereafter.
AEC will open a pool of high potential markets and low-cost production bases, with abundant resources and consumers in need of goods and services. The region is apparently an investment magnet for ASEAN as well as other parts of the world including China, Japan and South Korea.
Rich in resources, quality labor forces and geological advantage, bordering Malaysia, Myanmar, Laos, Cambodia and Vietnam, Thailand becomes a hub for the region’s tourism, border trade, transportation and distribution. Therefore, these advantages attract foreign investors to establish production bases in Thailand particularly those from automotive and electronics industries, while Japan has already been the top investor in Thailand with “Thailand Plus One” policy, reinforcing Thailand’s role as the base for market penetration into other ASEAN countries.
According to Mr. Pipit, the newly-established World Business Division serves trade and investments for local and foreign investors in AEC+3 through six main segments. These include international trade, border trade, foreign investors in Thailand who wish to invest in AEC, Thai investors penetrating the AEC market, foreign tourists, and local customers in countries where KBank branches are established. KBank services, financial and otherwise, including beneficial information, advisory services from experts, business matching, and diverse service channels will help streamline investors’ businesses in AEC+3.
In 2014, KBank plans to expand in AEC+3 with five business outlets: two branches and three representative offices. Along with outlet expansion, KBank also aims to create stronger partnerships with local banks for financial service enhancement, information exchange, business matching, manpower enhancement in terms of business and language skills, and IT development for higher customer satisfaction.
The 2014 business strategy for the World Business Division is to maintain the Bank’s position as the leader in Chinese, Japanese and South Korean businesses operating in Thailand; with “Business Life Cycle” services.
KBank is also aiming for total international trade transactions targeted at 910 billion Baht, up 28 percent from last year, and loans for investment at 37 billion Baht, an increase of 48 percent. Loans in China are expected at 20.6 billion Baht.