Japan banks expand with SE Asia partnerships

(The Japan News/ANN): Major Japanese banks are teaming up with Southeast Asian financial institutions to increase their presence in the region.

By partnering with local entities that are well-versed in their nation’s regulations and trade practices, Japanese banks can reduce risk while taking advantage of business opportunities created by the region’s growing economy.

Sales fairs

MUFG Bank and Security Bank it has a stake in held a sales fair Wednesday in Manila. In cooperation with MUFG Bank’s Thai subsidiary, Bank of Ayudhya, and its Vietnamese partner, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), more than 200 business discussions were held with 88 companies from four countries.

The growing economies of Southeast Asia offer a huge consumer market of more than 600 million people that is undergoing drastic change.

“There are small and mid-sized local companies, which gives us confidence to expand,” said a department chief at Kyoto-based Pharma Foods International Co, which deals in raw materials for supplements.

Makoto Kobayashi, a managing executive officer at MUFG Bank, said that the company will take advantage of its expanded banking network in Asia through acquisitions and other means, and “offer comprehensive financial services so we can grow along with our customers.”

MUFG Bank is also planning a sales fair in Indonesia, where it is in the process of purchasing a major local bank.

Mizuho Bank teamed up with the Thai authorities in March to develop a special economic zone, in which the Thai government is investing more than ¥5 trillion to improve local industries.

With Japanese and Chinese companies competing over orders, Mizuho is supporting Japanese firms by conveying their needs to parties in Thailand, and using its network of bases in about 40 countries and regions to attract firms from all over the world.

Anticipating the effectuation of the Trans-Pacific Partnership trade pact that includes Vietnam and 10 other nations, and the possible future entry of Thailand, regional banks are pouring resources into establishing new bases in the region.

Shimizu Bank in Shizuoka Prefecture and Hokuto Bank in Akita Prefecture have formed a partnership for overseas business.

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