KBank and TCCI support Japanese SMEs in Thailand

KASIKORNBANK and the Tokyo Chamber of Commerce and Industry (TCCI) are offering a business-matching service and seminars on ASEAN investment to promote Thailand-Japan trade and attract Japanese investors to Thailand, the gateway to the region.

KASIKORNBANK Chairman Mr. Banthoon Lamsam said KBank has signed an agreement with TCCI, one of the largest prefectural chambers of commerce in Japan with as many as 80,000 members, whose investments in Thailand are ranked at the top of those from Japanese chambers of commerce. Activities to promote bilateral trade include seminars to enhance knowledge of business and investment opportunities in ASEAN and Thailand for Japanese investors, business matching between Thai and Japanese SME operators, financial management consulting service, and credit extension through partnership with Japanese banks. These activities are aimed at boosting trade between the two countries and attracting Japanese investors to the Thai market.

The agreement marks the first time that TCCI has partnered with a foreign financial institution, as KBank is entrusted by TCCI to provide the best service efficiency for Japanese SMEs in Thailand.

In the second half of 2013, KBank plans to create similar partnerships with other Japanese chambers of commerce and organizations in two or three more Japanese prefectures. As a result, the Bank will be able to offer complete services to Japanese business operators through KBank’s 24 Japanese partner banks, Japan’s chambers of commerce, and state and private organizations. This will reaffirm on KBank’s strategy of being an Asian Bank and Thailand’s goal of serving as the gateway to ASEAN trade.

According to Japan’s chambers of commerce, there are more than 7,000 Japanese companies with operations in Thailand, half of which are SMEs, and 25 percent of which are from Tokyo. During 2005 to 2010, Japan topped Thailand’s foreign investor list with applicants for Board of Investment privileges totaling 720 billion Baht. Despite the flooding of 2011, Japanese firms have maintained their production base in Thailand, while their investments in Thailand surged 119 percent YoY, or 348.4 billion Baht in 2012.

 

In addition, more Japanese investors, including SMEs in particular, are becoming interested in the Thai market. The Japan External Trade Organization projected in early 2013 that more than 1,000 Japanese companies are expected to start their operations in ASEAN within this year. Also, Thailand, according to a number of surveys, has always been ranked at the top of their investment destinations. In spite of Thailand’s recent minimum wage increase, our infrastructure is relatively better than that of regional peers, while the country’s central location makes it suitable as an ASEAN production hub distributing goods to other member countries. Japan is likely to invest more in Thailand for products that require a more sophisticated manufacturing process wherein high technologies, advanced designs and skilled laborers are needed.

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The Tokyo Chamber of Commerce and Industry (TCCI) was established in 1878, making it the oldest economic organization in Japan. TCCI membership is comprised of companies of a variety of types and sizes: large enterprises, SMEs, private enterprises, other organizations, and individual businesspersons in the 23-ward area of metropolitan Tokyo. Membership is currently more than 80,000.

Members are involved in all types of business, and work together to overcome problems or enhance business opportunities in ways that would not be possible for individual entities. Each member belongs to one of nine divisional groups organized according to industry type, and also belongs to a chapter associated with one of Tokyo’s 23 wards. Members elect 150 councilors who deliberate and determine important matters such as annual budgets and final accounting results at the General Meeting of Councilors. The most recent election was held in 2010.