Bank of Ayudhya (BAY) is targeting 6% loan growth to Japanese Corporations and Multinational Corporations (JPC/MNC) Banking Group this year to secure its leadership in the segment.
The loan growth target is based on expectations of higher foreign investment and improving business sentiment, on the back of a cyclical recovery of the global economy and a more broad-based recovery in Thailand.
"BAY is committed to supporting and facilitating foreign investment here as a backup effort to drive the Thailand 4.0 policy, a key engine of the Thai economy. Special investment incentives such as the Eastern Economic Corridor [EEC] scheme and BoI Plus are expected to attract investment from Japan in the coming years," said Masaaki Suzuki, head of JPC/MNC banking.
To strengthen the business promotion structure in the EEC, spanning Chachoengsao, Chon Buri and Rayong provinces, Japanese and local staff under the JPC/MNC banking umbrella will be assigned as "EEC Area Promoters", making them a regional fulcrum facilitating industrial estate investment.
"This business function will enable the bank to engineer the provision of products and services to a greater degree, supporting and promoting EEC businesses for our Japanese customers," he said.
BAY is the largest lender to Japanese companies in Thailand. In 2017, the bank's international corporate loans increased by 5.5% to 170 billion baht, reflecting the improvement of the global economy.
Japanese companies continue to view Asean as a major destination for investment. According to a Japan External Trade Organization survey released in December, more than 54% of Japanese companies located in Asia plan to expand their businesses over the next two years. Of that number, 56% are targeting business growth in Southeast Asia.
"We believe the concentration of supply chains for specific industries such as automotive and electronics will preserve the significance of Thailand as one of the major manufacturing bases for Japanese companies, which further stimulates trade growth of their supply chain," said Mr Suzuki.
To support cross-border trade and investment for enterprises from Thailand and Japan, Krungsri and Mitsubishi UFJ Financial Grou (MUFG) recently signed a memorandum of understanding with the Board of Investment (BoI) to aid Thai operators looking to expand abroad and Japanese companies planning to invest in Thailand.
In addition, the bank also promotes end-to-end solutions ranging from supplier financing to dealer financing while leveraging relationships with Japanese car manufacturers and their supply chains, he said.
BAY shares closed yesterday on the Stock Exchange of Thailand at 46 baht, up 25 satang, in trade worth 16.9 million baht.