Bangkok--2 Jun--KASIKORNBANK
KASIKORNBANK has joined forces with the Osaka Chamber of Commerce and Industry (OCCI) to strengthen trade and investment among Thai and Japanese SMEs, through business matching activities and seminars abroad. This cooperation is hoped to generate a combined investment fund of more than 4.5 billion Baht within a year.
Mr. Banthoon Lamsam, KBank Chairman of the Board, said that an agreement of cooperation has been signed between KBank and the OCCI, a Japanese government organization providing assistance for expansion of SME businesses. The OCCI is located in Osaka, which is one of Japan’s trade and industry hubs. Under this cooperation, both parties will hold business matching activities and seminars to expand opportunities for interaction among companies.
Last February, a “Made in Japan Business Matching” was organized in Japan by KBank and the OCCI – the first business matching activity of KBank abroad. With the participation of businesses from Thailand, Japan and Myanmar, 60 business deals were concluded, suggesting that Osaka and other cities in the Kansai area have good potential in doing business with Thailand.
The agreement with the OCCI will pave the way for greater business opportunities for both countries, in that the OCCI will act as a coordinator inviting customers to join the above-stated activities. Customers’ financial profiles will be considered before their participation is approved. In addition, seminars will be held with local partner banks in order to select target customers. It is expected that, within a year, around 100 companies will participate in these activities, with trade value of not less than 4.5 billion Baht.
KBank aims to become a “AEC+3 Bank” to respond to increasing business opportunities opened up by trade liberalization in ASEAN, wherein Thailand will play an important economic role. On the platform of this agreement and KBank’s strong business network, plus efficient services offered to Japanese SMEs in Thailand, the Bank will be able to accommodate Japanese investors in their negotiations with counterparties in Thailand and other AEC countries via KBank’s partner network, in alignment with the “Thailand Plus One” policy of the Japanese government.
KBank has already entered into cooperation agreements with a number of Japanese counterparties including 27 local banks, one merger and acquisition expert, and seven other organizations. To meet Japanese customers’ needs, the Bank’s services are equipped with at least 30 Japanese-speaking staff members, and Japanese-friendly branches, call center and ATMs, along with important documents prepared in Japanese. Recently, at least 24 staff members of Japanese partner banks have been assigned to visit KBank for onsite business studying. Over the past year, at least 446 business matching deals have been completed under KBank’s arrangement, and 215 of these deals have performed successful transactions. Currently, the Bank’s Japanese corporate customers total 3,300 accounts, representing 14 percent of market share.
Mr. Tsutomu Miyagi, President of the OCCI, said Japan has embraced the major challenge of its SME business expansion in foreign countries, which is supported by the Japanese government with relevant assistance in trade, investment and technology. As a major business-driving mechanism, the OCCI has responded to the government’s policy by building necessary business networks, while its officials have been assigned to aid Japanese business expansion in Thailand at the Japanese Chamber of Commerce, Bangkok, wherein its membership is increasing. This has been made possible by KBank’s financial support for Japanese SMEs in Thailand, while a business network with Thailand’s neighboring countries has been created. The Bank’s staff members have also contributed in supporting Japanese companies for more than a decade, strengthening these businesses’ expansion overseas.
According to the Japanese Chamber of Commerce’s data, more than 7,000 Japanese firms are operating in Thailand, almost half of which are SME businesses. During 2005-2010, Japan was ranked the top foreign investor in Thailand. Trade between Thailand and Japan’s Osaka and nearby prefectures in Kansai reached 54 billion Baht, with exports to Thailand totaling 36 billion Baht, or 47 percent of total Japan’s exports to Thailand, and imports from Thailand registering 18 billion Baht, or 37 percent of total Japan’s imports from Thailand.
Established in 1878 and supervised by the Japanese government, the OCCI has a strong bond with business operators in Osaka. Its more than 30,000 members comprise various types of enterprises including large corporations, SMEs, private companies, and diverse organizations in Osaka.