Thailand's KBank seeks to become a top 20 bank in Vietnam by assets

Thailand’s Kasikornbank (KBank) eyes to expand its Vietnam operations to 8.4 million customers and outstanding loans of 180 billion baht ($5.22 bln) in 2027, the lender said in a new release.

Per its goal to become a top 20 bank in Vietnam in term of assets, the Thai bank aims to emerge as a full-fledged financial service provider in the transactional ecosystem across all customer segments, including corporate businesses, medium businesses, retail trade operators, and individual clients. It targets a net income of $400 million in the neighboring country in 2027.

Applauding Vietnam’s economic potential, KBank executive vice president Chat Luangarpa highlighted its attractiveness, including a population of nearly 100 million, government efforts to develop digital financial services, fast growth of the banking industry, ample domestic resources, and others. The bank particularly noted more than 69% of Vietnamese people of working age have no bank accounts, the highest rate in Asia.

As a result, the Vietnamese government is pushing digital financial services and financial inclusion, and promoting the country as a new technology hub in Asia, it noted in the release.

The bank seeks to debut its new debit card in Vietnam in July 2023. It plans to cooperate with Vietnamese businesses and startups, following initial joint investments with some local businesses like e-commerce platform Sendo, sale management app KiotViet, investment fund Seedcom, and others.

For corporate customers, KBank offers internet banking services for easy cash management and payroll transactions, digital lending for small and medium-sized enterprises via its K Plus Vietnam mobile app, and KBank Pay later service for retailers seeking digital loans for online purchases.

Thailand’s Kasikornbank opened its HCMC branch last August, saying it expected to have 1.2 million clients and disburse over $500 million in Vietnam before 2023.

Last month, the Thai lender embarked on a strategic cooperation partnership with Vietnamese financial services company F88 to tap unbanked and underserved people in the market.