EXIM Thailand responds to the Ministry of Finance Stimulating Thai businesses to connect with the world market in the Next Normal era, pointing out that Vietnam is an important trading partner that is ready to be an industrial production base for the future
Mr. Arkhom Termpittayapaisith Minister of Finance presided over the opening ceremony of the seminar “Vietnam in Focus 2022: The Dream Journey” with Mr. Nikradej Plengkul, Ambassador of Thailand to Hanoi, Socialist Republic of Vietnam, with Dr. Rak Worakitpokathorn, Managing Director. Export-Import Bank of Thailand (EXIM Thailand) welcomed on September 22, 2022 at The St. Regis Bangkok.
The Finance Minister revealed that in the Next Normal world, after the Covid-19 epidemic situation has eased, new business opportunities have started to return with the recovery of the global economy. Especially in emerging markets like Vietnam, with a population of nearly 100 million and an economy that is likely to grow at nearly 7% per year, Vietnam is Thailand’s fourth most important export market after the United States, China and Japan, and a source of imports. Number 10: Trade between Thailand and Vietnam has made great leaps and bounds, from $150 million in 1992 to about $20 billion today. Or expanding nearly 20% per year. In addition, the Vietnamese government has a policy to promote free trade and foreign investment. This makes Vietnam an important investment destination for foreign investors. Including Thailand, which is the 8th largest investor in Vietnam, Thai entrepreneurs should expedite expansion of cooperation with Vietnam. whether it is international trade or joint investment
Mr Arkhom said that the Thai government is ready to promote cooperation between the public and private sectors in the dimension of international trade and investment. including in the fiscal and financial dimension Through the support of EXIM Thailand, the focus is on taking a proactive role in the development bank role. Use your expertise financial instruments and network of alliances to encourage Thai entrepreneurs to access new opportunities in the global trading market. Overcome obstacles, challenges and risks in international trade and investment business. as well as driving the development of the industry into the future bio economy circular economy and green economy Thailand’s Bio-Circular-Green Economy (BCG Economy) is linked to regional sustainable development in the framework of cooperation under ASEAN and the Asia-Pacific Economic Cooperation (APEC).
Managing Director of EXIM Thailand said that at present, the key to competitiveness in the next normal world market is the adaptability of Thai entrepreneurs. EXIM Thailand is therefore ready to perform more than a bank (Beyond Banking) to help Thai entrepreneurs at all levels. From start-ups to entrepreneurs, they can continue their business amid uncertainties and challenges in economic, social and environmental dimensions. EXIM Thailand has a full range of financial tools. Along with information, knowledge and network of partners that will help Thai entrepreneurs to start or expand their international trade and investment business with confidence. both in the new market and the old market Especially Vietnam, which used to be a “competitor”, has now turned into a “Key partners” that Thailand relies more on and relies on Vietnam has been Thailand’s 5th most important trading partner since 2017, rising from 15th place in 2012, while Vietnam is Thailand’s 4th most important source of investment today. Climbed from the top 10 10 years ago.
Dr. Rak went on to say that EXIM Thailand is ready to strengthen its weapons for Thai entrepreneurs to enhance their ability to adapt and cope with risks in international business operations. It consists of foreign exchange risk mitigation tools such as foreign exchange forward contracts or foreign exchange options, trade and political hedging tools. whether the buyer is bankrupt The buyer refuses to accept the delivery of the goods. Buyer does not pay for the product Buyer country government controls money transfers. Prohibition of importation of goods, war or riots, EXIM BANK will pay compensation. including following up on debts So that Thai entrepreneurs are worried about the risk factors mentioned above. It is ready to devote time and resources to developing products and services to fulfill Vietnam’s production chain. Especially in industries where Thailand has potential and is in demand by Vietnam, such as automotive, electronics, clean energy and food of the future.
In the past, EXIM Thailand has focused on encouraging Thai entrepreneurs to enter the supply chain of Vietnam’s BCG business because the potential of Thai entrepreneurs is in line with the policy of the Vietnamese government that strongly promotes the development of the renewable energy industry. This is due to Vietnam’s high demand for electricity due to industrial development and urbanization. Currently, investment projects in Vietnam under the support of EXIM Thailand are worth more than 17.3 billion baht in various businesses, such as clean energy power plants, petrochemicals, wholesale and retail. In addition, EXIM Thailand has products that support the business sector to reduce emissions. Greenhouse and can comply with international environmental standards. Keep up with the green economy towards sustainable development such as EXIM Kill Bill by Biz Transformation Loan The maximum loan amount is 100 million baht, the lowest interest rate is 2.00% per annum, the payment is up to 7 years and the Solar Orchestra loan for businesses of all sizes who want to invest in the installation of solar rooftop systems (Solar Rooftop), the maximum loan amount is 100% of the project value. invest Interest rates as low as 2.75% per annum, installments up to 7 years, borrowers will be entitled to a comprehensive carbon credit registration and tax exemption benefit of 50% of investment for a period of 3 years from the Board of Investment (BOI). )
As for EXIM Thailand’s operating results, as of the end of August 2022, EXIM Thailand’s outstanding loans for international projects totaled 67,458 million baht, an increase of 4,271 million baht or 6.8% from the same period last year. Classified by key markets, EXIM Thailand has continuously supported Thai businesses to expand to CLMV countries (Cambodia, Lao PDR, Myanmar and Vietnam) and new frontiers. During the first 8 months of 2022, EXIM Thailand’s outstanding CLMV and New Frontiers loans amounted to 53,815 million baht, an increase of 7,804 million baht or 17% from the same period last year. The outstanding loans in Vietnam were 14,960 million baht, an increase of 55.4%.
“There are still many opportunities for Thai entrepreneurs in new markets. especially Vietnam Which is an alliance with many countries in both political and economic dimensions, including having the most FTAs in the world, covering more than 50 countries around the world. As Thailand has the potential to fill the supply chain of Vietnam and the world, EXIM Thailand is ready to work with the government and private sectors. Encourage Thai entrepreneurs to confidently start or expand their business to the global market. probably starting from Vietnam and advance to other trading markets It helps build on the sustainable development of the region and the world as a whole,” said Dr. Rak.