Four major Thai banks, including Thai Military Bank, Bank of Ayudhya, CIMB Thai Bank, and Bangkok Bank, have decided to close their branches in Laos. These closures are attributed to stricter regulations, increased operating costs, and reduced business activities. The banks cited several reasons for their withdrawal, including tighter regulations imposed by Lao authorities, rising operational expenses, and a decline in cross-border trade and investments.
While some major Thai banks continue to operate in Laos, others are reassessing their business strategies and closing branches that fail to meet their targeted returns. The specific branches to be closed are Thai Military Bank’s Vientiane branch, Bank of Ayudhya’s Savannakhet branch, CIMB Thai Bank’s Vientiane branch, and Bangkok Bank’s Pakse branch in Champasak province.
Bangkok Bank had opened a second branch in Pakse on January 5, 2016, with the aim of expanding its services to southern Laos and the Emerald Triangle. However, due to the challenges mentioned earlier, these branches are now being closed.
Despite these closures, Bangkok Bank, Bank of Ayudhya (Krungsri), Krungthai Bank, Siam Commercial Bank, and Kasikornbank (KBank) are continuing to conduct business in Laos through their other branches. They too have faced stricter regulations and increased operating costs as obstacles, making it more challenging to do business in the country. The decline in business activity, particularly in cross-border trade and investments between Thailand and Laos, has also played a role in their decision to withdraw from certain branches. Nevertheless, these banks still see potential business opportunities in neighboring countries.
Bangkok Bank first opened a branch in Vientiane on August 5, 1993, becoming one of the earliest Thai banks to establish a presence in Laos’ capital city. The Vientiane branch was relocated to a newly-renovated historical building on January 13, 2014.
READ MORE: https://bangkokone.news
