President of Bangkok Bank, Chartsiri Sophonpanich, is looking forward to
the opportunities that the AEC will bring when it comes into existence in 2015
Chartsiri Sophonpanich, president
of Bangkok Bank plc, Thailand's largest commercial bank by assets, says the
advent of the Asean Economic Community (AEC) in 2015 will provide greater
market access for Thai businesses operating in the 10-country regional grouping.
Outside Thailand, Bangkok Bank
currently has a network of 25 branches in 13 countries. "We're quite well
represented in Asean. For example, we have a local subsidiary in Malaysia with
five branches. We have a branch in Singapore, two branches in Indonesia,
another two in Vietnam, in Hanoi and Ho Chi Minh, as well as in Laos and Manila
in the Philippines. In Myanmar, we've had a representative office since 1995.
"In terms of assets, we are
probably No 5 in Asean after Singaporean and Malaysian banks, largely because
we've been standing on our own feet since the 1997 financial crisis.
Nevrtheless, we've been providing good services to our customers in the region,
especially for trading and cross-border investments.
"Our Thai operation includes
every aspect of banking services, but internationally we focus on business and
related activities. We're not in consumer banking outside Thailand, as we focus
on short-term and medium-term financing as well as working capital
requirements.
"They are the hallmark of Bangkok
Bank's services, as our customers for international banking services work with
many overseas Chinese businesses based in Singapore, Hong Kong, Taiwan, as well
as in Malaysia and Indonesia within their respective economies and across the
region.
"One of our strengths is to
assist our customers operating in the region, especially Thai companies as they
explore new opportunities for better market access and better production
capabilities via more regional resources and raw materials.
"Many Thai conglomerates
have been working in the region for many years, such as PTT plc, Siam Cement
Group, Ban Pu and CP Group. All of these are quite strong financially,
technically and in terms of marketing, and should be able to expand
significantly over the next five years.
"In business, competition is
always inevitable, and we will have to live with increased competition when the
AEC becomes effective in 2015. On the other hand, we also need to boost our
efficiency and effectiveness.
"Most importantly, we need
to be close to our customers, understand their requirements and be able to
anticipate their challenges, and develop our skills accordingly. Manufacturing
industries will remain important as will trading, commerce, energy, food, petrochemicals
and tourism.
"Thailand has been a
production hub for several industries for a long time, as evidenced by
disruptions to the global supply chain caused by last year's massive floods.
With the AEC integration, we could bring our partner countries into the process
and use Thailand on a more value-added basis.
"On Thailand's weaknesses, I
think we're probably not as systemically planned as a country, but our
market-driven economy is quite resilient.
"In terms of Asean countries
that are attractive for Thai businesses, I think the different countries are at
different stages of development, but I think Indonesia is very interesting due
to its abundant natural resources and a population of 240 million, which is the
biggest in Asean.
"Indonesia's per-capita
income is about US$3,000, while many positive changes are taking place, so the
food, construction, energy, automotive, tourism, petrochemical, consumer goods
and retail sectors are all attractive.
"Vietnam is at another level
of development, with nearly 100 million people and a diligent workforce, so the
country can be a strong production base for a number of industries such as
electronics and the textile and garment sectors. In Myanmar, we are watching
closely and preparing to play a role in the next few years. When permission is
granted, we hope to upgrade the rep office in Myanmar into a full branch."
Nophakhun Limsamarnphun
Business & Investment Opportunities
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