Bangkok--19 May--Siam Commercial Bank
Siam Commercial Bank held the opening ceremony for its Ho Chi Minh Branch in the Socialist Republic of Vietnam, to support growing trade and investment in that country. The branch will serve to deliver a full range of international financial services for both Thai customers seeking to expand in Vietnam and local businesses with strong potential looking to tap into business opportunities in Thailand. The Bank targets acquiring a 25% market share of Thai business in Vietnam by 2018. It will use SCB's strong overseas network to support the business expansion of its Thai, Chinese, and Japanese customers in CLMV countries – Cambodia, Lao PDR, Myanmar, and Viet Nam.
Speaking about the cordial relationship between the two countries, Siam Commercial Bank Chairman of the Executive Committee Dr. Vichit Suraphongchai, said that "SCB has a policy of aligning its branch network expansion with its customer investment trends. Vietnam is one of the major countries that have received strong interest among SCB's customers due to its strong business potential and opportunities. According to the Vietnamese Statistics Office, the Vietnamese economy in 2015 grew the most in 5 years due to strong exports. Furthermore, foreign direct investment poured in at an amazing rate. Domestic consumption increased substantially. GDP growth was even higher than the government's original target. It was recorded at 6.67% while the government had previous projected it at 6.2%.
In terms of the Thailand and Vietnam relations the close ties between the two kingdoms have been well established on a solid foundation of cooperation and joint development through a strategic partnership for mutual benefit by laying guidelines to eliminate barriers and to promote trade and investment.According to trade figures for 2015, Vietnam was Thailand's 9th trade partner on the global list and a major export destination for Thailand.
Dr. Vichit further explained that with such high potential, SCB soft opened its Ho Chi Minh City branch in March with a full range of financial transactions and services, including deposits, loans, trade finance, fund transfers, and foreign currency exchange. SCB is the second Thai bank operating in Vietnam, with a 99-year license from the State Bank of Vietnam. The presence of its Ho Chi Minh City branch will strengthen the SCB network in the CLMV countries, offering expanded financial solutions to support its corporate clients' trade and investment in the Greater Mekong Sub-region (GMS).
With its long standing experience in Vietnam, the Siam Commercial Bank Ho Chi Minh Bank will focus on providing commercial loans and trade finance, such as deposits, loans, import and export services, fund transfer, currency exchange, cash management, and advisory services regarding regulatory requirements and business matching. Led by Ms. Saranya Skontanarak, General Director, the branch has 40 staff members, at an office located at the Kumho Asiana Plaza Building, a prime Grade A building in the heart of the business district.
With its solid expertise and understanding of trade and investment, SCB can respond to the needs of every client segment with total solutions for Thai clients in Vietnam, locals, and international investors wishing to grab an AEC opportunity to expand their businesses in Vietnam. SCB is keen and ready to support their businesses in Vietnam.
The Bank expects a successful operation in Vietnam with a 25% market share from Thai businesses by 2018 and increases the market share in Vietnam-Thai trade volume by up to 10% by 2020.
The Siam Commercial Bank network in the Greater Mekong Sub-region consists of Cambodian Commercial Bank in the Kingdom of Cambodia and Siam Commercial Bank's branch in Vientiane, Lao People's Democratic Republic. In addition, there is a representative office in Yangon, Myanmar, which will become a full branch once regulations permit it.
The establishment of the Ho Chi Minh branch of Siam Commercial Bank will definitely strengthen its networks in CLMV countries and permit the creation of full-fledged financial services to support clients with ambitions to invest or trade in the Greater Mekong Subregion. The aforementioned establishment will not only facilitate trades between the two countries but also connect Thai clients to neighbouring countries with high business potential. Moreover, this will be a good platform to serve both Chinese and the Japanese clients who wish to have more exposures in the CLMV through the strong gateway provided by Siam Commercial Bank.