KBank teams up with VN's Agribank

  This agreement is aimed at promoting trade and investment of both countries in preparation for the launch of ASEAN Economic Community. It was signed in Vietnam by Songpol Chevapanyaroj, right, executive vice president of Kasikornbank, and Kieu Trong Tuyen, left, deputy general director in charge of Board of Management, Vietnam Bank for Agriculture and Rural Development (Agribank).
 Songpol noted that KBank has the policy to establish partnership with banks in nine countries (except Burma), which would boost the number of branches in Asean where KBank can provide services to over 5,000 within this year.
 "Vietnam is one of top priority markets, where we must establish strong and extensive network, to accomodate Thai investment in the country, largely in the manufacturing sector," he said. Cheaper labour cost now attracts a large number of Thai companies to Vietnam. And trade and investment value is expected to rise when Asean becomes a single market in 2015.
  In 2011, KBank forged partnership with VietinBank, which showed the highest earnings last year thanks to its strength in overseas transactions.
 Agribank, entirely owned by the government, owns the largest branch network in Vietnam with over 2,300 branches.
 KBank has so far established partnership with 7 banks in four countries; Indonesia (with banks that own 1,316 branches), Singapore (26 branches), Laos (21 branches) and Vietnam (3,400 branches).

 While the branches allow KBank not to invest in new branches, it will also gain from the local banks' business insights which would benefit customers on top of financial services, Songpol added.