Bangkok--29 May--KBank
KASIKORNBANK (KBank) is emphasizing their leadership in the SME market by entering into close cooperation with the Thai-Chinese Rayong Industrial Zone to provide funding and business information to Chinese SMEs. More investors are expected to arrive at this industrial zone, this year. With KBank services, 2 billion Baht in loans will likely be extended over the next three years in this industrial project.
Mr. Pipit Aneaknithi, KBank Executive Vice President, has said that Chinese investors are interested in Thailand, thanks to our FTA agreements with many developing-country trade partners. Thailand is also abundant in natural resources and rich in agricultural produce, e.g., rubber, cassava and palm oil, etc., which are scarce in China. Moreover, Thailand has good strategic placement, connecting China with ASEAN.
Despite Thailand’s GDP growth of only 0.1 percent in 2011, Sino-Thai trade rose distinctively at 30 percent year-on-year (YoY). China’s investments in Thailand are ranked second among international investors here, totaling 20.5 billion Baht; Sino-Thai trade in the first quarter of 2012 (1Q12) was recorded at USD14.84 billion, up 12.9 percent YoY.
Chinese investors operating in Thailand are supported financially by their parent firms with only a fraction of their needed start-up capital. Thus, they are required to seek more funding from banks in Thailand. As a result, KBank is stressing cooperation with Chinese businesses here by offering complete capital and business intelligence support. According to a survey, over 40 percent of Chinese investors here have had problems involving communication in Chinese with Thai counterparts, followed by a general lack of understanding about investment matters in Thailand. Thus, KBank provides Relationship Managers to Chinese customers to help liaise for them and offer advice about business undertakings in Thailand, e.g., on BOI privileges, locations for physical plants, as well as on financial transactions and business matching services.
Mr. Boonchan Kulvatunyou, KASIKORNBANK First Senior Vice President, has said that KBank offers numerous services to Chinese customers, in particular those investing in the Thai-Chinese Rayong Industrial Zone — which is the first Chinese industrial zone in Thailand — a joint venture between Holley Group Co.,Ltd., and Amata City Industrial Estate. This industrial estate has become the subject of much interest among Chinese investors. KBank Relationship Managers will provide consulting and financial services, credit support, and needed business intelligence to help ensure Chinese SME success here.
There are currently 39 Chinese businesses at the industrial estate, of which 20 are KBank customers with a combined credit exposure of approximately 750 million Baht. Most of the long-term loans are for factory set-ups and as working capital for international trade. This year, 10 more Chinese businesses are expected to begin operation at the estate, supported by the Chinese government’s ‘Go Out’ strategic policy. The zone is preparing to expand service in a ‘Second Phase’ with an additional 2,000 rai (320 hectares) as a center for Chinese investment. Within three years, KBank expects to grant credit totaling 2 billion Baht to Chinese operators in the zone, representing a 50-percent market share.
KBank also wants to focus on diverse loan and trade finance products, and currently offers RMB-denominated L/C services, plus a variety of guarantees and cash management facilities. KBank is the first commercial bank in Thailand to provide one-day money transfers to China.
Thorough information will be provided to Chinese SME customers via seminars on business undertaking in Thailand. More seminars and information, presented in Chinese, will be provided in the future for their benefit. Moreover, business matching and networking services will be accommodated, where KBank recommends local partners to Chinese customers for greater business convenience and simplicity. Thus, they will be able to more successfully gain access to local business networks and alliances for solid, sustainable growth.