Bangkok--7 Oct--KASIKORNBANK
KASIKORNBANK, the Department of International Trade Promotion (DITP), the Office of the Board of Investment (BOI), and The Economist magazine will organize “The AEC+3 Summit & Expo 2014”, a summit of market leaders in the ASEAN Economic Community Plus Three (AEC+3) and a regional exhibition with more than 150 booths. This will be the first show of such regional cooperation with the participation of 40 banks from 13 nations, a move to enhance financial services to international standards. AEC economic growth is expected to average 7 percent over the next decade.
Mr. Teeranun Srihong, KASIKORNBANK President, said AEC inception in 2015 is now in the spotlight. The region’s economic power is significant, with a total population of 600 million, or the world’s third-largest market. Over the next decade, AEC economic expansion is expected to average 7 percent per annum. Under AEC+3, the regional cooperation is extended to cover Asian economic leaders China, Japan and South Korea, which will lead to consistent, high growth in trade and investment as well as the economy in this part of the world.
KBank, DIPT, BOI and The Economist magazine will hold “The AEC+3 Summit & Expo 2014” on November 3 at the Centara Grand & Bangkok Convention Centre at CentralWorld. The event aims to enhance knowledge and business extension for Thai businesses ahead of the AEC inception, as well as upgrading regional financial and banking services. The event has three major parts as follows:
The AEC+3 Summit: The summit will be held by The Economist Intelligence Unit, a subsidiary of The Economist, the world’s leading business magazine, with participation of speakers who are government officials, domestic and international business leaders, world-renowned academics, and representatives from international financial institutions. Brainstorming in business development and strategic planning for countries and major industries – namely food and beverages, autos and parts, and tourism and service businesses will be conducted. The summit hopes to help prepare Thailand and its business operators ahead of the upcoming AEC+3 integration. KBank expects at least 1,300 participants to attend the summit.
Trade Exhibition and Business Matching: Businesses in food and consumer industries from AEC+3, including China, Japan, Indonesia and Vietnam, will present their products in more than 150 booths at the event. They are recognized by KBank’s partner banks in their respective country. At least 500 business-matching deals have been registered and at least 6 billion Baht of business agreements is anticipated at the event.
Bangkok Declaration: KBank believes that building of regional financial and banking innovations and standards towards a common international platform should be a major regional agenda. In addition, ASEAN banking personnel development should be in place to enable service offering for multilateral companies in AEC+3. Therefore, the Bank has initiated the “Bangkok Declaration” through the Taksila-ASEAN Banker Academy, a move to enhance financial services and create regional cooperation to accommodate AEC customers.
The Taksila-ASEAN Banker Academy will act as a regional arena for financiers and bankers to share their business know-how and banking experience, to brainstorm for financial innovations towards international-standard services, and to expanded service networks through cooperation with local partners in product and service launches in local markets. The Taksila-ASEAN Banker Academy comprises two programs: a program for financiers and bankers; and a program for senior executives and leaders.
The achievement of the Bangkok Declaration will be the first of its kind in the region, a commitment stating that financial service providers in all ASEAN member states will create a common standard for international customer service quality.
Mr. Teeranun added that the AEC+3 Summit & Expo 2014 is a major stage to enable Thai business operators to access international knowledge and visions that they can utilize in their own business strategy development, and to establish international business partnerships and networks. This will become a significant mechanism driving businesses in the regional market. The Bangkok Declaration, he said, will be a starting point for regional banking service enhancement towards common international standards. Human resource development in the banking business sector will be promoted to support cross-border business operations in AEC.
Capt. Suwipan Thisyamondol, DITP Deputy Director-General, said DITP will provide relevant information and encourage businesses in target industries to participate in the exhibition and business-matching activity, with an aim of encouraging Thai companies to access the regional market and build their market share overseas. Over the first eight months of 2014, trade between Thailand and AEC+3 registered 3.73 trillion Baht. Upon the AEC+3 integration, the trade figure in this area is expected to increase consistently, while new business chain networks are created. Apart from increased business opportunities for Thai firms in this larger market, challenges from market competition will be intense. Therefore, it is important for Thai operators to seek relevant information and new strategies to cope with the changing market environment, e.g., brand building, and value-added product innovations.
According to Mr. Chokedee Kaewsang, BOI Deputy Secretary-General, BOI will provide beneficial information on tax privileges for investors participating in the AEC+3 Summit & Expo 2014. The BOI is confident that the event will emphasize Thailand’s strategy to become an ASEAN trade hub. From January to April 2014, investments from AEC+3 to ASEAN markets represent half of the total regional foreign investment. Thailand has high potential to become an ASEAN economic hub, given its abundant national resources, highly-skilled labor, and efficient infrastructures to support international investment. At the same time, AEC integration may bring about a number of challenges for the country. However, BOI is ready to offer supporting plans for both inbound and outbound investment in terms of taxes and non-tax privileges.
Mr. Charles Goddard, Editorial Director, Asia-Pacific, The Economist Intelligence Unit, said the event will help prepare the business sector for the upcoming regional business pact with economic contexts in all relevant dimensions, including the regional trade and investment outlook, geopolitical challenges in Southeast Asia, in-depth analysis of target industries after the integration takes place, and Thailand’s role in ASEAN.
The AEC+3 briefing will bring together leaders from government, business, academic and multilateral institutions to examine the move towards greater economic integration in South-East Asia and sift the reality from the hype. Fact-driven briefings and frank discussion will explore the opportunities that integration will bring for Thailand’s economy, for business and for investors from China, Japan, Korea and around Asia who are looking to capitalize on the region’s growth. It will also take a realistic look at the steps still to be taken before full economic community is achieved, and will arm business leaders and investors with a practical toolkit to help them plan their strategy towards the AEC.