Bangkok--12 Jul--Siam Commercial Bank
Siam Commercial Bank has inaugurated its Shanghai Branch in The People's Republic of China as part of its strategy to connect Sino-Thai trade and investment, targeting Chinese corporates seeking to expand into Thailand and neighboring countries, and facilitate Thai clients to capture business opportunities in China under the Belt and Road Initiative.
SCB Chairman of the Executive Committee Dr. Vichit Suraphongchai said SCB has attached significance to expanding its overseas network to cover key strategic investment destinations in the region. China is considered an important market, with investment potential in every corner of the world under the Belt and Road Initiative (BRI). Thailand is an ideal strategic destination linking investment from China to ASEAN given its basic infrastructure readiness, a favourable legal system, supply of skilled labour, and abundant natural resources.
Over the past five years, Chinese foreign direct investments (FDIs) into Thailand has grown an average of 14% annually and risen to a top-3 position in value of investment application. Simultaneously, the consumer market in China is sizable and ready for market expansion by Thai businesses, particularly in the food and beverage segment, due to quality of Thai products and its popularity among Chinese consumers.
The opening of the SCB branch in Shanghai is considered a major milestone since it reflects the strong commitment of the bank in providing services to business clients exploring opportunities for Sino-Thai business expansion. It underlines the bank's intention to boost Thailand's economic growth propelled by bilateral investment between the two countries. The presence of Shanghai branch will also boost our service capabilities in China, where SCB has almost 40 years of experience in providing services to Chinese clients through its Hong Kong Branch since 1979. Furthermore, the bank has been entrusted by a wide range of leading Chinese companies investing in Thailand within manufacturing and more recently high-tech industries.
The SCB Shanghai Branch officially started operation in May 2018. It serves business clients with deposit products and foreign currency-denominated loans, trade finance, and international money transfer, payment, and China-Thailand business advisory. The branch is headed by General Manager Ms. June Qiong Fu, who brought with her over 25 years of banking experience in China and is situated on the 74th Floor of the Shanghai World Financial Centre building in the heart of China's financial centre.
In terms of China business strategy, SCB put significant resources in developing ties with large Chinese corporates both state-owned enterprise and private sectors, building in-depth partnership with Chinese financial institutions and relevant government offices, and deploying a team of professionals with extensive China-Thailand financial expertise. At present, the Bank (including Shanghai and Hong Kong branches) has extended financing support over US$1 billion to Chinese clients and expects to grow the business rapidly in the coming years. We are proud to be the first and so far the only Thai bank to receive "Best Local Bank in Southeast Asia for Belt and Road Initiative" award from Asia Money in 2017 and "Best Bank in Thailand for Belt and Road" award from Finance Asia in 2018.
Currently, SCB has overseas networks in Shanghai, Beijing, Hong Kong, Singapore, Cambodia, Laos, Vietnam, and Myanmar. They will help support the bank's business client groups seeking to expand trade and investment networks efficiently and enhance business opportunities in neighboring countries with potential for the sustainable growth in the region.