KF&E eyes machinery leasing market in Laos

This move is also part of its preparation for the Asean Economic Community, which kicks off in 2015, executive chairman of KF&E Sasawat Virapriya said.

He added that the firm had found that many Thai businesses were investing in Laos due to cheaper labour, and many have also been granted major concessions there.

Last year, KF&E started leasing machinery to Thai construction firms in Laos and plans to expand further this year, he said. The company is confident that it will achieve its target of Bt10 billion this year and hopes to become a market leader in the next two years, he added.

Sasawat explained that businesses had recovered from last year’s flood crisis, which in turn has boosted their credit capacity, pushing the company’s outstanding loans in the first quarter by 92 per cent to Bt8.6 billion. The highest loans come from small and medium-sized enterprises, he said.

Corporate and multi-corporate customers are also expanding their production capacity, which is increasing their need for machinery. Printing, packaging, auto parts and construction are among the industries that have the highest investment in machinery.

KF&E has extended its relationship with machinery vendors from 136 to 190 and boosted its new borrower referral by 50 per cent, of which 80 per cent are small enterprises and 20 per cent medium ones.