Thailand-based bank Kasikornbank (KBank) plans to bolster its presence in Vietnam by establishing a new branch in Ho Chi Minh City. The banking major is considering covering all loan segments in Vietnam and has been operating in Vietnam through its two representative offices in Hanoi and Ho Chi Minh City.
The State Bank of Vietnam has already given the green signal to KBank in January for the proposed development. KBank is Thailand’s second-largest commercial lender by total assets. Once the bank establishes the new branch, then it seeks to offer its banking services within Vietnam covering customers of all sectors including SMEs, retailers and large corporations.
Pattarapong Kanhasuwan, KBank’s executive vice-president, told the media, “Due to greater business opportunities in Vietnam, the bank plans to expand into new client bases and is targeting loan growth of 10 billion baht for the first year of business operations. The new Ho Chi Minh City branch is expected to offer services officially in the third quarter of this year.”
The bank has been operating its business in Vietnam by catering the wholesale clients of Thailand investing in Vietnam. Furthermore, KBank will target Thai SME’s investing in Vietnam including local clients to expand its customer base in Vietnam. Vietnam is considered a hotbed for business due to its robust economic growth potential.
Vietnam posted 2.9 percent growth despite the pandemic outbreak in 2020. The country’s economy is expected to thrive this year with a GDP growth of 6.5 percent.