Bangkok--28 Nov--KASIKORNBANK
KASIKORNBANK, in collaboration with Aozora Bank, a Japan-based merger and acquisition (M&A) expert, is seeking business partners for Japanese SME operators to increase joint ventures as well as M&A transactions between Thailand and Japan. It is hoped that these efforts will attract Japanese investors into Thailand as a gateway to other ASEAN markets.
According to KASIKORNBANK President Mr. Predee Daochai, Japan’s “Thailand+1” policy that makes Thailand the hub of its private sector’s foreign investments has drawn a number of Japanese investors into Thailand as well as other ASEAN markets. A wholly-owned company has been a popular business platform among Japanese operators in our country, while some are seeking investment partners or M&A deals with Thai firms which have better insights in local and neighboring markets. On the other hand, Thai operators welcome Japanese allies for their business expansion and advanced business know-how.
In light of this, KBank has signed a cooperative agreement with Aozora Bank, a leading Japanese bank with expertise in advisory service for M&A transactions, a move expected to support Thai and Japanese operators in seeking business partners. Aozora Bank is the 1st partner bank of KBank regarding M&A and the 29th Japanese partner bank of KBank. Under the agreement, activities to promote bilateral investments between the two countries will be organized, e.g., seminars to enhance knowledge of business and investment opportunities in Thailand for Japanese businesses, business matching activities, and Thai-Japanese M&A deals. This is expected to advance bilateral investments for both markets, while attracting Japanese investors – particularly SME operators – to Thailand.
This collaboration will enable KBank to offer complete services to Japanese customers – in addition to the general information and financial services currently provided – through 28 local Japanese banks as well as Japanese organizations from the public and private sectors. On the other hand, business opportunities for Thai companies will be enhanced, in addition to financial support, through Japanese business partners, which are expected to share technologies, experience and relevant knowledge with their Thai counterparts.
Aozora Bank Chief Executive Officer, Mr. Shinsuke Baba added that in recent years, business development in Thailand, which plays a significant role in ASEAN economies, has become an important growth strategy for Japanese companies. This partnership with KBank, a leading bank in Thailand, will allow Aozora to build a framework for providing enhanced cross-border M&A advisory services to meet its customers’ business needs in Thailand. The Bank is already engaged in a joint collaboration with KBank from which it expects to achieve great results
Thanks to the largest SME business network and efficient care given to Japanese SMEs in Thailand, Aozora Bank has chosen KBank as its business partner. The Japanese bank previously signed partnership agreements with two other foreign financial institutions in ASEAN, Oversea-Chinese Banking (OCBC) and Bank Central Asia (BCA), being the top-tier banks in Singapore and Indonesia, respectively.
According to Japanese Chamber of Commerce (JCC), more than 7,000 Japanese companies have established operations in Thailand, almost half of which are medium- and small-sized businesses. During 2005-2010, Japan was ranked number one among foreign investors in Thailand, and more Japanese investors – particularly SME operators – have shown interest in entering the Thai market. According to various surveys, Thailand has always been among the top targets of Japanese partners. Despite the recent minimum wage hike, Thailand’s basic infrastructures remain an appealing advantage compared to peers, while our location is suitable as the regional production hub for goods distribution to other ASEAN markets. It is possible that business operators from Japan will focus their Thailand investment in products with higher value, e.g., goods with more complex manufacturing processes or advanced technologies or designs, or products that need skilled labor.
Aozora Bank is a local Japanese bank with more than 1.3 trillion Baht of assets and 20 domestic branches. It also has representative offices in New York, Shanghai and Singapore as well as a subsidiary in Hong Kong.