Bangkok Bank unveils strategy for Hong Kong branch to act as gateway to China-Asean

The bank said it aims to capitalise on business opportunities in the Greater Bay Area (GBA) economic zone, leveraging its nearly 70-year experience in Hong Kong and fortified branch network across the region.

Seizing the moment of global economic recovery, Bangkok Bank is simultaneously preparing to welcome Chinese capital inflows into Thailand, particularly from the booming electric vehicle (EV) sector. The bank said it was determined to be a leading regional bank, facilitating its customers as they venture into the Asean market.

Sitthichai Jiwattanakul, senior vice president and general manager of the Hong Kong Branch, said the bank has set up its growth strategy for its Hong Kong branch to serve as a gateway for businesses and investments, seeking to tap into China, utilising Hong Kong as the central hub.

Aligned with a Chinese group's aspirations to invest in Thailand and extend their operations to other Asean nations, Bangkok Bank is utilising Hong Kong as a focal point. This approach is designed to accommodate the ongoing recovery of the global economy, he said.

After overcoming the challenges posed by the Covid-19 pandemic, entrepreneurs and investors continue to prioritise international trade, aiming to enhance production capabilities and explore new markets. These efforts are expected to bolster long-term business growth.

It is important to note that Hong Kong's economy faced significant challenges since 2019 due to the pro-democracy protests and the impact of Covid-19, Sitthichai said. Sectors like services and tourism, including hotels and restaurants, were particularly affected. As the situation gradually improved, signals of growth emerged. The economy expanded by 2.3% in 2022 and is projected to grow by 4-5% this year, with inflation at around 2%.

Sitthichai highlighted that Hong Kong is a vital gateway for businesses aiming to invest in China and various special economic zones. This is especially true since the Chinese government declared the Guangdong-Hong Kong-Macao Greater Bay Area, covering up to 11 important cities. This presents an attractive opportunity for trade and investment.

Hong Kong's role as a financial centre is reinforced by its well-established financial infrastructure and extensive offshore yuan currency market, the largest in the world. This makes it a central hub for businesses and financial activities, connecting with subsidiaries or factories located in China. For investors, Hong Kong often serves as a key business and financial hub, facilitating connections to Chinese operations. This is a significant opportunity for Bangkok Bank's Hong Kong branch as well, he said.

The majority of customers at Bangkok Bank's Hong Kong branch comprise large business groups and international companies that are looking to invest in China, Sitthichai said. Hong Kong serves as a central hub, attracting businesses not only from Thailand, such as the CP Group and Banpu, but also from other countries like Singapore, Malaysia, and Taiwan, he said.

Additionally, businesses within Hong Kong themselves have grown from small beginnings to international enterprises over the past nearly 70 years since we established our presence there in 1954, Sittichai added.

As a result, Bangkok Bank (Hong Kong branch) has a deep understanding of this market and is the only Thai bank to hold a full banking licence in Hong Kong. The bank is closely collaborating with Bangkok Bank (China), which has a network of five branches in major cities across mainland China. This positions us well to offer comprehensive services to businesses that wish to enter the Chinese market, Sittichai added.

Apart from serving as a gateway for investments into China, Bangkok Bank's Hong Kong branch is also prepared for Chinese businesses seeking to invest in Thailand, as well as various Asean countries. Sitthichai mentioned that currently there are two prominent groups of businesses that are significantly investing in Thailand. The first is electric vehicle (EV) manufacturers, which have grown by about 20-30% from the previous year. The second group consists of large capital companies, typically holding companies investing in various industries, such as China Resources and China Merchants, according to Sittichai.