Mr. Kittiporn Limpisavasti (second right), Senior Vice President of Export-Import Bank of Thailand (EXIM Thailand), recently welcomed Mrs. Douangsamay Laofoung (second left), Head of International Remittance Section, Treasury and International Service Department, Lao PDR’s Banque Pour Le Commerce Exterieur Lao, and Mr. Yudhi Trilaksono (far right), Corporate Banking Manager, PT Bank Ekspor Indonesia (Persero), Indonesia, who visited EXIM Thailand to observe the Bank’s operations and co-work with the Bank’s management and staff for two months under the personnel exchange program between EXIM Thailand and Asian EXIM Banks.
According to EXIM Thailand Senior Vice President, the Bank launched the personnel exchange program to foster ties among Asian EXIM Banks and exchange country information, credit analysis techniques as well as information on international banking regulations and practices. The program will help develop and deepen EXIM Thailand staff’s knowledge base and specialization with regard to countries with high economic potential serving as investment targets of Thai entrepreneurs. This program is also beneficial for the Bank’s information and consulting services on trade and
investment for Thai exporters and investors. Information to be exchanged includes macroeconomic perspective, trade and investment opportunities, financial and banking system and current business rules and regulations in Lao PDR and Indonesia, etc.
Both Lao PDR and Indonesia possess abundant natural resources. With plentiful water resources, Lao PDR has high potential in producing hydroelectricity and has targeted to become the “Battery of Asia” by 2020. Since 1988, Lao PDR’s economy has strongly expanded at more than 6% per year, thanks to steady export growth and investment expansion.
In 2007, Thailand invested US$ 105.5 million in Lao PDR, ranking third after China and Vietnam. Thai entrepreneurs maintain business interests in various investment sectors such as electricity generation, agriculture, telecommunications, transportation, hotels, tourism and handicrafts. In particular, the businesses with high growth potential in Lao PDR are tourism and related services, agricultural and agro-processing and energy industries.
Ranking the fourth most populated country in the world, Indonesia is the largest economy in ASEAN with a population of more than 230 million, representing nearly half of the whole ASEAN population. In 2007, Indonesia’s economy grew at 6.3%, which is the highest growth rate for the past 11 years, resulting from the investment promotional policy of the Indonesian government. Moreover, the accelerated plan to establish ASEAN Economic Community (ACE) in 2015 compels Indonesia, Thailand and other ASEAN countries to gradually reduce import duty and trade barriers, as well as implement intra-regional service, trade and investment liberalization.
During 2002-2007, Thai investment totaled US$ 93.5 million, representing the third highest among ASEAN countries investing in Indonesia, after Singapore and Malaysia. In 2007, Thailand invested US$ 63 million in Indonesia. In addition, Indonesia’s high potential industries include agricultural and agro-processed products, especially rubber, fishery and processed seafood products, palm oil industry for bio-diesel production, mining industry, construction, hotels and businesses related to tourism.