Siam Commercial Bank (SCB), Thailand’s third largest bank by assets, is aiming to provide 25% of loans for Thai businesses investing in Vietnam by 2018, along with a 10% share of Vietnam-Thai trade volume by 2020, Bangkok Post reported.
The bank, which has launched its Ho Chi Minh City
branch, will focus on both Thai and Vietnamese corporate customers before moving to the retail banking sector in Vietnam, said Chairman Anand Panyarachun.
Thai conglomerates are increasing their presence in Vietnam, mostly in the manufacturing and retail industries. They include CP Group, Siam Cement Group (SCG), TCC Holding, Central Group
, Amata, and Red Bull.
The bank’s CEO Vichit Surapongchai said SCB was ready to expand its business in Vietnam, a country of 95 million people, thanks to its solid economic growth and higher interest of Thai firms in the country.
SCB won a license from the Vietnamese central bank to set up the HCM City branch after acquiring a combined 67% stake in the Vinasiam Bank joint venture from the Vietnam Bank for Agriculture and Rural Development and Thai conglomerate Charoen Pokphand Group. SCB has been operating in Vietnam for more than two decades.
Saraya Skontanarak, general director of SCB Ho Chi Minh City branch, said the bank was in the process of increasing its registered capital from $25 million to $70 million. The recapitalization is expected to be completed this month.
Trade between Vietnam and Thailand reached $11.46 billion in 2015, up 8.2% from a year earlier, of which the former posted a deficit of $5.1 billion, according to data of the General Department of Vietnam Customs.