Bank of Ayudhya, also known as Krungsri, aims to grow its loans to Japanese corporate and multinational corporate customers (JPC/MNC) by 3.4% this year by focusing on foreign direct investment in the Eastern Economic Corridor (EEC).
For 2022, the bank expects improving foreign direct investment (FDI) in Thailand after sluggish outlays the past two years, mainly attributed to the impact of the pandemic.
The EEC should attract positive FDI this year, said Yoshiyuki Horio, Krungsri head of JPC/MNC banking.
FDI represented 71% of total applications for investment promotion from the Board of Investment in 2021, while one-third of total FDI value applying for promotion intended to invest in EEC projects.
Given the positive trend, Krungsri expects major opportunities for JPC/MNC to expand their business in the EEC this year, he said.
Krungsri, the country's fifth largest lender by total assets, set up an EEC office in 2020 and collaborates with the EEC Office of Thailand and related agencies to facilitate investment in the corridor.
The move helps support the business expansion of Japanese, multinational and Thai corporations, as well as extending opportunities for branching out into other Asean countries, said Mr Horio.
"Although other regional countries have also attracted FDI with several incentive measures, Thailand's solid infrastructure system, especially the EEC project, is the key strength attracting FDI," he said.
Given improving Thai and regional economies, the bank is ready to support the expansion of corporate customers both locally and regionally in several industries such as automobiles, electronics, retail, food and beverage, finance and export, said Mr Horio.
Thailand's merchandise exports in the automotive and electronic sectors are slowly returning to pre-Covid levels, he said.
The bank also plans to provide assistance to vulnerable sectors, especially tourism. The industry is expected to gradually rebound in the second half of this year, said Mr Horio.
He said Asean connectivity, promotion of Thai and Japanese startups, business matching, and R&D should also facilitate the bank's JPC/MNC business growth this year.
Mr Horio said Krungsri has been in an enviable position as a long-term partner bank under the Mitsubishi UFJ Financial Group (MUFG) network that has been trusted by Japanese corporates for more than 60 years, which reflects JPC/MNC banking's strength.
MUFG has a global network entailing more than 50 countries and a strong network in Asean covering nine countries -- Thailand, Vietnam, the Philippines, Cambodia, Laos, Indonesia, Malaysia, Singapore and Myanmar.
Moreover, Krungsri cooperates with MUFG and MUFG Innovation Partners in promoting investment in Thai startups to facilitate business growth and overseas expansion, he said.
Krungsri also joined forces with Mitsubishi UFJ Research & Consulting to offer research and consulting services for corporate customers.