Mr. Pisit Seriwattanachai, Managing Director of the Export-Import Bank of Thailand (EXIM BANK) stated at the seminar “Developing Thai Franchise Businesses for Global Expansion” organized by EXIM BANK in collaboration with the Department of Business Development, Ministry of Commerce, at the Anantara Siam Hotel in Bangkok, that currently there are 49 Thai franchise brands operating abroad, primarily in the food and beverage service sector, followed by education and spa services. Notably, 80% of Thai franchises have expanded into the CLMV markets (Cambodia, Laos, Myanmar, and Vietnam) due to Thailand's social and cultural similarities, allowing Thai entrepreneurs to effectively develop service businesses that cater to the lifestyles of consumers in these regions. Additionally, the CLMV countries are experiencing relatively good economic growth, resulting in a continuous increase in per capita income and purchasing power. It is expected that over the next five years, the CLMV economy will grow at an average rate of over 6% per year, nearly double the global economic growth rate, with purchasing power in the CLMV expected to increase by another 30% in 2023, while domestic production of goods and services remains insufficient to meet both quantity and quality demands.

          Given the significant business opportunities for Thai franchises to expand in international markets, EXIM BANK has developed a new service, “Loan for Thai Franchise/Thai Chain Buyers”, which is a long-term loan with a repayment period not exceeding the duration of the franchise/chain purchase agreement. The minimum interest rate is set at LIBOR + 3.50% per annum in US dollars or the Prime Rate in Thai Baht (currently at 6.125% per annum). Collateral will be considered based on appropriateness, with a total approval target of 800 million Baht to support funding for entrepreneurs wishing to purchase Thai franchises for operation abroad or to hire Thai chains for business operations overseas.


       

          Mr. Pisit further stated that in expanding Thai franchises in foreign markets, entrepreneurs must develop their businesses and services under Thai brands to meet the new demands arising from changing lifestyles in various markets. This means being able to cater to the needs of both local consumers and expatriates working in the CLMV, as well as international tourists who expect high-quality services. It is essential to study the opportunities and regulations that vary across different markets and to conduct business prudently, from the marketing strategy formulation, trademark registration, to selecting reliable franchise buyers who are genuinely committed to the business and understand the franchise system. At the same time, they must strengthen their supply chains to effectively manage costs related to raw materials, packaging, product processing, and logistics.

“Starting a franchise business in CLMV is an attractive option for Thai entrepreneurs, leveraging the familiarity of Thai brand products that consumers in CLMV regularly follow through various media. They can also take advantage of their proximity to manage businesses closely, building a reputation for Thai products and services that meet international quality standards at affordable prices. With EXIM BANK's representative offices in CLM (Cambodia, Laos, and Myanmar) collaborating with both public and private sectors under Team Thailand, we support Thai entrepreneurs in expanding their franchise businesses further from the current 584 operations in Thailand, with over 100,000 branches nationwide,” Mr. Pisit concluded.