16 June 2023
Bangkok (16 June 2023) –
Krungsri (Bank of Ayudhya PCL and its business units) is pressing ahead with one of its key strategies, GO ASEAN with krungsri, by expanding its retail customer base overseas. The Bank has recently built upon its strength in consumer finance through SHB Finance, a consumer finance business in Vietnam which is the latest company joining Krungsri Group after Krungsri has secured its foothold in Cambodia, Lao PDR and the Philippines, to pass on its expertise and grow the retail customer base in foreign countries. At the same time, Krungsri supports Thai businesses planning to enter the Vietnamese market via the service of ASEAN LINK by leveraging business networks of Krungsri and MUFG, carrying forward the aspiration of “Being the Preferred Thai Bank Connecting Customers’ Needs across ASEAN.”
Krungsri successfully completed the acquisition of SHB Finance, a consumer finance business in Vietnam, in May this year. It currently holds 50% shares in SHB Finance and will complete the remaining 50% in the next 3 years under the terms of agreement and subject to approval from the relevant regulators.
Mr. Wanchairabin Jitwattanatam, Krungsri Head of Regional Business Division, said “Vietnam has a large population base of nearly 100 million people with favorable demographic structure. It has a diverse workforce with a large pool of young and improving quality working population. This together with the high economic growth rate of 8% of the Vietnamese economy in the past year make Vietnam an attractive market that attract significant number of foreign investors. Especially, the foreign direct investment (FDI) promotion policy implemented by the Vietnamese government is another key driving economic growth rapidly. Krungsri’s acquisition of SHB Finance has the objective to reinforce its knowledge and expertise in consumer finance which will strengthen the capability of marketing, distribution channels and risk management so as to enable it to design the consumer finance products that meet the Vietnamese customer needs and bolster sustainable success of the business over there.”
Mr. Wanchairabin Jitwattanatam, Krungsri Head of Regional Business Division
The opportunities and potential for Vietnam’s economic growth are as follows:
- The current population of Vietnam is 97.58 million, making it the 15th largest country by population in the world and the 3rd in Southeast Asia. Beside the high proportion of working-age population, the growth rate of the middle-class is the fastest among Southeast Asian countries. (Source: NIA)
- In 2022, Vietnam enjoyed an impressively high economic growth rate of 8% with over 19.8% expansion in domestic retail sales and over 10.6% increase in exports. (Source: World Bank and BBC News)
- Vietnam is a strategic location for trade and thus benefits from the US-China trade war.
- The FDI promotion policy which involves investment law reform has facilitated foreign investment and simultaneously created investor confidence and a conducive investment climate, turning Vietnam into an attractive investment destination for global companies such as Boeing, Airbus, Google, Samsung, Canon, etc. The growth rate of FDI was as high as 13.5% in 2022. (Source: BBC News)
“Apart from using SHB Finance as a major mechanism for expanding retail customer base in foreign countries, Krungsri, which is a strategic member of MUFG, has a distinct competitive advantage in strong regional network. Together with MUFG, it can leverage world-class knowledge and expertise plus the opportunities derived from partner bank like VietinBank, a leading commercial bank in Vietnam strategically owned by MUFG, to provide assistance to and enhance opportunities for Thai customers who want to expand their business into Vietnam. To effectively respond to customers who seek advice or need a business partner to provide assistance in various aspects, Krungsri has recently upgraded its advisory service to be stronger and more efficient under the name of Krungsri ASEAN LINK which is ready to meet every customer needs in doing business.”
“To stay beside our customers as a trusted business partner, Krungsri has a knowledgeable and experienced team ready to help customers expand their business overseas. This team will work closely with MUFG and partner banks in various countries. For interested customers who want to expand their business into Vietnam, Krungsri is ready to help them through the services ranging from giving advice, undertaking analysis, supporting necessary information including marketing and economic data for merger and acquisition and business expansion in foreign countries, which may lead to the development and establishment of a regional office; and providing consultancy service relating to business laws and regulations which are different in each country. The Bank also offers advice concerning a comprehensive range of financial solutions which will certainly help identify new business opportunities and generate growth for Krungsri customers in Vietnamese market according to the strategic direction of GO ASEAN with krungsri,”
Mr. Wanchairabin concluded.
For further information in relation to the business and network of Krungsri in ASEAN, please visit
https://www.krungsri.com/th/asean.