Bangkok Bank New regional branches ahead of ASEAN convergence

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http://asia.nikkei.com/Business/AC/New- ... onvergence

BANGKOK -- Two weeks after opening its first branch in Myanmar, Bangkok Bank (BBL) reopened its Cambodia branch on Monday as it strives to get ahead of rivals before the ASEAN Economic Community (AEC) gets going at year's end.


Bangkok Bank President Chartsiri Sophonpanich, third from left, expects the new branch in Phnom Penh to benefit from Cambodia’s investor-friendly environment.
Close Bangkok Bank President Chartsiri Sophonpanich, third from left, expects the new branch in Phnom Penh to benefit from Cambodia’s investor-friendly environment.
BBL's two new full-service branches bring the bank's total overseas to 30 in 14 economies, with its largest foothold in China.

In Cambodia, BBL expects Thai corporate customers and their employees to be its main clients. It is also looking to do business with local companies wishing to expand abroad by leveraging the bank's international network.

BBL had pulled out of the country in 2000 after reserve requirements were increased by the Cambodian central bank.

BBL President Chartsiri Sophonpanich said Cambodia's economy is expected to grow at between 6.7 and 7.4% over the next three years as the AEC stimulates regional trade and investment. He noted that Cambodia encourages foreign investment by placing no limit on foreign shareholdings, no restrictions on international transfers, and offers various import and export tax exemptions. Wages are also low, he said.

"These factors will attract more businesses to invest in Cambodia and present ideal opportunities for Bangkok Bank to facilitate and meet the needs of customers doing business in the country," said Chartsiri.

In Myanmar, BBL was the only Thai lender among nine foreign banks granted licenses in October. BBL has, however, had a representative office in Yangon, Myanmar's commercial hub and former capital, for 20 years, and has long been active in business development there.

The new banking license in Myanmar allows BBL to extend its retail services substantially, and also to contribute to developing the financial system, including increasing the country's exposure to interbank and foreign exchange markets.
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