Wut Thanittiraporn, Senior Executive Vice President, Head of Corporate Banking and Transaction Banking of CIMB Thai Bank stated that CIMB Thai, a member of CIMB Group, a leading regional financial institution, with a strong presence in the region, celebrates ASEAN Day, by updating the progress of its strategy "Digital-led Bank with ASEAN Reach."
As CIMB Thai has a strong commitment to support Thai corporate towards expanding into ASEAN markets and has been consistently following this plan for several years, it has observed that Thai companies with clear expansion strategies to open markets abroad operate in diverse business sectors such as energy, petrochemicals, retail, automotive, food and beverages, and agro-processing. The expansion formats vary, including investment expansion, business acquisition, and business integration.
The targeted destination countries for Thai companies are Indonesia, Vietnam, Cambodia, Malaysia, and Singapore. For Indonesia, with a population of 275 million, presents a highly promising market for growth, particularly in key industries such as petrochemicals, automotive, food and beverages, and agro-processing. Similarly, Vietnam, with nearly 100 million people and an impressive GDP growth of 8% in 2022, is also favored as a production base for establishing factories and industrial estates. In Cambodia, opportunities lie in the food and beverage industry, and Cambodian consumers prefer Thai products. Malaysia, as a neighboring country, offers easy access and serves as a trading hub for food and halal products. Additionally, Singapore serves as a central trading hub. Beyond the ASEAN countries, CIMB Group also has a network of branches in both Shanghai and Hong Kong. CIMB Thai is ready and prepared to bring customers to open markets beyond ASEAN.
"For companies that have successfully overcome these barriers and expanded into foreign markets, they have experienced substantial growth, new market openings, acquisition of new customers, and an increase in revenues from 20% to over 100% in the long term. The key advantage is the risk diversification through having a diversified market presence, supporting sustainable growth. The challenges of venturing into new markets are regulatory requirements, political and policy risks, competition, and cultural differences of the destination countries. In addition, the risks related to exchange rates and financial transactions. Willing companies interested in expanding their business abroad should start by identifying the strengths of their products along with their target customer group. Then, they should seek advice from experts who possess the know-how and networks to work closely with locals who are well-acquainted with the market. CIMB Thai has set up an ASEAN Desk to advise and collaborate with its strong network within CIMB Group, helping customers with ASEAN Total Solutions. We has gained customers' trust as a bridge to lead and support them in expanding their businesses in various formats. The offshore loan in 1H2023 has grown over 70% compared to the end of last year," he said.
CIMB Group has branches, representative offices, and diverse business networks in various countries, including Thailand, Malaysia, Indonesia, Singapore, Vietnam, Cambodia, Myanmar, Brunei, the Philippines, China, Hong Kong, and the United Kingdom.
