The Export-Import Bank of Thailand (Exim Thailand) has unveiled a new loan facility for entrepreneurs in Cambodia, Laos, Myanmar and Vietnam (CLMV) who purchase products from Thai operators, aimed at boosting exports to the subregion.
Under the scheme, each borrower is offered up to US$4 million in credit facility for a maximum 85% of purchase value.
The five-year loan charges four percentage points on top of the London Interbank Offered Rate, Pisit Serewiwattan, president of Exim Thailand, said at a ceremony to open the bank's third overseas representative office in Cambodia.
"CLMV is a target destination for trade and investment for Thai entrepreneurs," he said. "Cambodia in particular is a modern trade market with high potential as a result of the country's thriving economy and increasing purchasing power of new-generation consumers in the capital city and principal tourist towns."
The CLMV area is a key export destination for Thailand, with an 11.5% share of total merchandise shipments in January. CLMV exports grew by 17% in 2018.
Exim Thailand will work with the public and private sectors under "Team Thailand" to provide necessary information and help Thai operators iron out plans for running businesses in potential countries, particularly emerging markets, Mr Pisit said.
The Cambodian economy has seen average annual growth of 6.5%, he said, adding that the government has a policy to expedite infrastructure development over the next five years as Cambodia prepares to host the 2023 Southeast Asian Games.
According to Mr Pisit, business opportunities in Cambodia for Thai operators include restaurants, coffee shops, bakeries and spas.
The Cambodian branch is the third foreign representative office for Exim Thailand after Yangon in Myanmar and Vientiane in Laos opened in 2017 and 2018.
Finance Minister Apisak Tantivorawong, who jointly chaired the opening ceremony, said two-way trade between Thailand and Cambodia has grown at an average annual rate of 15% over the last five years.
Last year, two-way trade soared to $8.4 billion, up 36.6%. The figure is forecast to reach $15 billion next year.
Mr Apisak said 7 billion baht in investment has been poured into Cambodia from Thailand over the past five years, making Thailand the fourth-biggest foreign investor in the neighbouring country.
"The launch of Exim Thailand's representative office will be greatly beneficial to Thai operators, particularly small and medium-sized enterprises who will have a significant business opportunity in Cambodia," he said.
The finance minister said the state-owned bank will play a role in disseminating information and advice to Thai operators with regard to trade, investment and finance.