Bangkok--19 Mar--KASIKORNBANK
KBank plays greater ASEAN role by joining with leading Vietnamese bank to serve Thai investors there; vows to fortify partnerships in all 9 member countries with a combined 5,000-foreign-branch network within 2012
KASIKORNBANK is steadily building up its service network in preparation for the upcoming ASEAN Economic Community (AEC). Apart from an alliance recently concluded with the Vietnam Bank for Agriculture and Rural Development (AGRIBANK), Vietnam’s largest bank by branch network, the Bank aims to create partnerships with local banks in the nine member countries of ASEAN with a network of more than 5,000 branches within 2012.
Mr. Songpol Chevapanyaroj, Executive Vice President of KASIKORNBANK, said KBank has consistently expanded its service network in support of international business by creating alliances for further business enhancement with local banks in each country, in preparation for the AEC launch in 2015. Vietnam is among the first ASEAN countries where KBank has strengthened its service network coverage in order to support Thai investors, who have reported continual growth there. Most of them are in the manufacturing sector, including construction materials, food and energy.
In achieving this business goal, KBank in 2011 joined hands with VietinBank, which is prominent in technology-oriented operations and foreign business, and has expertise in diverse industries. VietinBank has expanded rapidly, posting the highest net profit among local banks in Vietnam last year.
To fortify the Bank’s services in Vietnam, KBank has established a partnership with Vietnam Bank for Agriculture and Rural Development (AGRIBANK), wholly-owned by the Vietnamese government and specializing in the agricultural industry. With more than 2,300 outlets nationwide operated by over 37,000 staff members, AGRIBANK’s branch network is the largest in Vietnam.
The Bank’s cooperation with the two top banks of Vietnam is aimed at pooling all advantages of these banks for KBank’s customers, providing complete banking services and branch coverage. As part of the agreements made with Agribank and VietinBank, KBank will jointly provide financial services to the Bank’s customers in Vietnam, including account management, domestic and international transactions, loans, financial advisory service on trade and market competition — and relevant regulations — for decision-making, joint business activities such as seminars and business matching, and staff exchange programs. These services, derived from the maximum potential of the partner banks, will certainly benefit Thai business operators.
Mr. Songpol added that Vietnam has high growth potential in trade and investment, with a high-spending-power market. Given its consistent economic growth, high investment market potential, relatively low production costs and abundant labor force, Thailand has been a major investor in Vietnam, ranked in the top-10 list. The most popular market for Thai investors is southern Vietnam, including Ho Chi Minh City and nearby provinces, where infrastructure and logistics are sound.
Da Nang, located in the central region of Vietnam, is the business center with a vast port and advantageous strategic location in terms of logistics. The city, which is located along the R9 Road connecting Thailand’s Mukdahan, Lao PDR and Vietnam, a distance commutable within one day, has high investment potential. The country’s state agencies are concentrated in northern Vietnam, while most leading local banks are also headquartered there, including both partner banks of KBank. Under the AEC starting in 2015, more foreign investment and trade are anticipated in this part of the country.
For the partnership-creation progress, KBank currently has seven bank allies in four ASEAN countries, including Indonesia, with a total of 1,316 branches; Singapore with 26 branches; Lao PDR with 21 branches; and Vietnam with the combined 3,400 branches of VietinBank and Agribank. The Bank aims to have partners in all nine countries within 2012, boosting the total ASEAN branch network to more than 5,000 outlets.
Mr. Songpol said the strategy of partnership with local banks has saved KBank branch establishment costs as well as investment in human resource. Most importantly, KBank customers, including cross-border investors, will be able to easily access banking services through branches of the Bank’s local partners, served by experienced staff. Local banks, in addition, have better expertise and understanding of the working system and economic and social environment in their home countries. They will be able to provide useful information for KBank customers, while the joint banking activities of the Bank and partners will enhance customer business of both sides. These are among the advantages customers will receive in addition to traditional financial services.