Export-Import Bank of Thailand (EXIM Thailand) carries on its business operations within the purview of the Export-Import Bank of Thailand Act to achieve the vision of “a development bank which promotes and supports Thailand’s export, import, domestic and overseas investment as well as actively fulfilling the government’s policy while ensuring sustainable growth.” As such, the Bank will consistently play a “development bank” role in fostering and supporting Thai exports, imports and investments at home and overseas, as well as bridging or at least narrowing financing gaps that are unable to be fulfilled by commercial banks or financial institutions. In addition, the Bank aims to enhance the efficiency and potentiality of its business operations in all aspects.
The Bank’s business operation policy for 2012 are as follows:
The Bank has set out its strategic plan to focus on promotion and development of SMEs’ potentialities, especially those related to the upgrade of SME operators to become exporters as well as the support of existing SME exporters to expand their business. Both types of SMEs are the Bank’s target customers. In 2012, the Bank will offer holistic measures to support SME exporters by way of financial lending as well as developing their comprehensive export knowledge and skills.
Regarding the financing aspect, the Bank will provide SME exporters with a complete range of short-term and long-term credit facilities such as revolving line of export credit (working capital), forward contract, guarantee, loan for capacity expansion or for investment. Additionally, EXIM Thailand offers insurance services to SME operators to hedge risks that may be incurred from their export and overseas investment transactions. The Bank’s insurance service also covers analysis on creditworthiness of overseas buyers or buyers’ banks, which will allow exporters to propose competitive yet reasonable terms of payment to their buyers, thus boosting their confidence, either in terms of starting up a new business or expanding business in existing or new markets.
With respect to knowledge and skill development, EXIM Thailand plans to organize training programs to enhance SME exporters’ knowledge and understanding on export business. Target groups include people looking to start up a business, exporters whose business is in the preliminary stage and general exporters wishing to acquire additional knowledge for their business expansion. The Bank also organizes training programs in relation to export credit insurance, seminars and workshops to provide integrated benefits to SME exporters.
Economic recovery in Thailand’s key export destinations, notably the US and the EU, remain fragile and sluggish due to the fiscal and public debt crises, thus making it difficult for Thai operators and investors to maintain and merely depend on these existing markets. The Bank, however, foresees a fresh opportunity for trading and production base expansion in emerging markets, particularly in the group of ASEAN+6 (including Japan, South Korea, China, Australia, New Zealand and India) which exhibits growth potentials with high demand and purchasing power. Besides, the advent of AEC, to take full effect in 2015, will significantly stimulate Thai operators to expand their trade and/or production base in AEC markets. In this respect, the Bank will provide a comprehensive range of short-term and long-term credit facilities including export credit insurance services, as well as training and dissemination of knowledge and information in relation to international marketing, international trade and foreign investment and preparedness for entry into AEC in order to build operators’ awareness of trade and investment opportunities in AEC and at the same time increase their confidence in growing their business in these emerging markets.
EXIM Thailand set out financial measures consisting of long-term loans for investment and capacity expansion to domestic projects, especially those related to energy and renewable energy, logistics, infrastructure and public utilities, Clean Development Mechanism (CDM) projects and creative industries. The aim is to enable these projects to play a crucial part in national economic improvement and to strengthen competitiveness of the industrial sectors by way of increasing production and transportation efficiency, aligning product design with market demand to upgrade product quality up to international standard, efficiently using energy for cost reduction, as well as developing logistics and infrastructure systems throughout the country.
The Bank is ready to operate business to fulfill the government’s policy and serve as the government’s financing arm to increase export competitiveness and promote international trade and investment that will contribute to national development. In 2012, the Bank will implement projects designated under the cabinet’s resolution, including a merchant marine promotion scheme to provide Thai mercantile maritime operators with a low-cost source of funds for their vessel procurement to ensure their competitive advantage against international operators, and an overseas construction business promotion project to financially support Thai contractors in their market expansion abroad which will broaden competitive opportunity for them.
The Bank will continue to emphasize its human resources development to strengthen operational and service efficiency, along with its IT upgrading for both core banking and supporting systems to nurture the Bank’s sustainable business growth.