Mr. Pipit Aneaknithi, President of KASIKORNBANK, said that KASIKORNTHAI BANK Ltd.'s Head Office on Lane Xang Avenue opened its door officially on March 13, 2017. It is to play a key role in responding to investor needs and to allow for flexibility in trade and investment between Thailand and Lao PDR which have seen an upward trend. KBank is also ready to be a connection between companies from AEC+3 member countries and operators in Laos. The Bank targets 1.8 billion Baht in loans and 1.3 billion Baht in deposits.
Over the past ten years, Lao PDR's economy has registered significant growth with the GDP improving constantly every year at an average of 8 percent p.a. Several factors help make this happen. As ASEAN's second fast-growing economy, Laos is rich in natural resources with quality labor, not to mention that the establishment of ASEAN Economic Community (AEC) has definitely been conducive to foreign investors looking for business opportunities there. Factoring in the Laotian government's strategic plan to enhance its infrastructures in a bid for the state to become the region's transit service center or logistics hub, its economy has enjoyed rapid growth.
Furthermore, Laotian Ministry of Industry and Commerce and Thailand's Ministry of Commerce have established a strategic partnership, which promotes Thai-Laotian trade and investment. Under this collaboration, both nations aim to achieve USD8 billion in bilateral trade value. Over the past three years, KBank has engaged in Laotian policy practice in various sectors. For the government sector, the Bank approved three billion Baht credit facility forÉlectricite du Laos (EDL) toenable the modernization of the country's power infrastructure. Aeon Leasing Service (Laos) Co., Ltd. is a private firm receiving funding and financial management services from KBank, with particular focus on personal loan and leasing business.
KBank also encourages a value chain business model, prompting sustainable growth among business customers. Among other services are consultations on investment for potential investors from Thailand and elsewhere, which are conducted through business matching and business advisory activities. Customers will be better prepared in many ways while also getting clued up about relevant laws and regulations. These arrangements should help bolster the economy and lead to trade connectivity among regional countries and Laos.
KBank set its foot in Laos for the first time back in late 2014, becoming the first locally incorporated bank from Thailand. It currently has two branches in Vientiane, comprising Ban Pone si nuan branch and the Lane Xang Head Office. KBank has come up with a wide variety of financial products and services for business and individual clientele in Laos, including international transfers, foreign exchange, local and foreign currency deposit accounts, long- and short-term loans in three currencies, namely Lao Kip, US dollar and Baht. It is the one and only bank which opens a service center for High Net Worth Individual customers as well as Thai and foreign investors in Laos. KBank's THE WISDOM has been well-received by a number of clients.
At present, KBank has 16 outlets in AEC+3 and elsewhere: two local bank venues in Lao PDR—the Lane Xang Head Office and Ban Pone si nuan branch in Vientiane; six overseas branches, namely the Shenzhen Branch, Longgang Sub-Branch, Chengdu Branch, Hong Kong Branch, Los Angeles International Branch, and Cayman Islands Branch; and eight representative offices, i.e., the Beijing Representative Office, Shanghai Representative Office, Kunming Representative Office, Yangon Representative Office, Hanoi Representative Office, Ho Chi Minh City Representative Office, Tokyo Representative Office and Los Angeles Representative Office. In February 2017, KBank's second Border Trade Business Center was opened in Mukdahan to cater to border trade between Laos and Thailand.