Thai Banks don’t have the necessary balance sheet to compete with China’s, but given that Thai companies are already involved in Myanmar, they need financing, and it would be silly if Thailand’s bank can’t capitalise on at least following their customers overseas. Now should they be able to get licenses in Myanmar by the end of this year, the amount of fund flows that will enter Thai banks will be off the charts.

The four largest Thai banks by assets — Bangkok Bank, Krungthai Bank, Siam Commercial Bank and Kasikornbank — already have representative offices in Myanmar. Thailand is the second-largest trade partner of Myanmar after China, and an increasing number of Thai businesses are in talks with the Myanmar Investment Commission about new ventures.

“Thai banks are interested in investing in Myanmar because when the Asean Economic Community (AEC) begins late next year, many Thai businesses and goods will arrive in Myanmar, including via border stations. There seems to be good potential for Thai banks to invest here,” said U Myat Thin Aung, vice-chairman of Yoma Bank.

The AEC is intended to allow a freer flow of goods, technologies, investment and labour among Asean member countries. Tariffs will be eliminated on more goods, but developing countries such as Myanmar, Cambodia, Laos and Vietnam will be given an extension until 2018 as their industries are less prepared for foreign competition.

Source: Bangkok Post