Thailand offers loans for Cambodia, Laos, Burma and Vietnam entrepreneurs

13-Mar-2019 Intellasia | MMTimes | 6:00 AM Print This Post

The Export-Import Bank of Thailand (Exim Bank Thailand) has unveiled a new loan facility for entrepreneurs in Cambodia, Laos, Myanmar and Vietnam who purchase products from Thai businesses, a move aimed at boosting exports to the subregion.

Under the scheme, each borrower is offered up to $4 million (K6.06 billion) in credit facility for a maximum 85 percent 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 four countries are a key export destination for Thailand, with an 11.5pc share of total merchandise shipments in January. Their exports grew 17pc 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, particularly emerging markets, Pisit said.

The Cambodian economy has seen average annual growth of 6.5pc, 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 Pisit, opportunities in Cambodia for Thai businesses include restaurants, coffee shops, bakeries and spas.

The Cambodian branch is the third foreign representative office for Exim Thailand after branches opened in Yangon in 2017 and Vientiane, Laos, in 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 15pc over the past five years.

Last year, two-way trade soared to $8.4 billion, up 36.6pc, and the figure is forecast to reach $15 billion next year.

Apisak said 7 billion baht (K334.6 billion) 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.

https://www.mmtimes.com/news/thailand-offers-loans-cambodia-laos-myanmar-and-vietnam-entrepreneurs.html

 


Category: Thailand

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