EXIM Thailand

Editorial Staff

EXIM Thailand teams up with NEXI to provide risk hedging for Thai and Japanese entrepreneurs in expansion of trade and investment to target countries along Greater Mekong Subregion

Dr. Pasu Loharjun, chairman of Export-Import Bank of Thailand (EXIM Thailand), and Mr. Oba Yuichi, Charges d'Affaires Ad Interim, Embassy of Japan in Thailand, presided over the opening ceremony of a seminar titled “EXIM Thailand and NEXI Collaboration: A New Chapter Begins” organized by EXIM Thailand in joint forces with Nippon Export and Investment Insurance (NEXI)

EXIM Thailand chairman Pasu Loharjun said that, at present, countries along the GMS, particularly Lao PDR, Cambodia and Vietnam are new frontiers with high trade and investment potential and consistently recording robust economic growth with availability in multiple facets, such as low labor cost, abundant natural resources, increasing number of consumers with higher purchasing power, ongoing urbanization and industrial development, political stability, and bilateral and multilateral free trade agreements.

All these factors would attract investments of entrepreneurs from countries around the world, contributing to target countries’ national development, along with relocation of production bases of products and operation of service businesses to serve domestic consumption and for export to third countries like China and India. In this regard, Thai and Japanese entrepreneurs would be major investors to fulfill such needs and enhance linkage with global supply chain.

Meanwhile, Dr. Rak Vorrakitpokatorn, EXIM Thailand president, pointed out that this new chapter of collaboration between EXIM Thailand and NEXI in the global trade of the new era focuses on exchange of information and cooperation in development of financial tools, covering export credit and investment insurance, as well as reinsurance facilities, with a view to safeguarding Thai and Japanese entrepreneurs against international trade and investment risks and amplifying efforts to drive together national development of Asian countries.

Both institutions would promote and support Thai and Japanese entrepreneurs who are well-positioned to confidently start up or expand international businesses, particularly in new frontiers with good prospects, e.g. countries along the GMS. As predicted by world leading insurance agencies, there could be an over 14% year-on-year increase in the number of bankrupt businesses as business sectors have been ravaged by the prolonged COVID-19 pandemic and Russia-Ukraine tensions.

EXIM Thailand has operated export credit insurance business since its official start of business operation in 1994. It has so far recorded accumulated export credit insurance turnover of 1.82 trillion baht and total insurance claim payment of approximately 1.4 billion baht. Of the total claim payment, 76% has been caused by foreign buyers’ rejection of payment for goods, around 23% due to buyers’ bankruptcy, and the remaining 1% coming from buyers’ rejection of delivered goods.