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Tag: asia

  • Longchamp to invest in China

    Longchamp to invest in China

    French handbag label Longchamp sees the China and US markets as key in boosting its global sales.

    Facing sluggish traditional European markets, the company is looking to celebrity endorsements and online opportunities to drive growth, according to CEO Jean Cassegrain.

    “We’re entering a different phase of growth, it’s no longer about store openings but about improving the performance of our current network,” Cassegrain said in an interview.

    China is already Longchamp’s second biggest market, behind France, where turnover took a hit as tourist numbers dived in the wake of terror attacks on Paris in 2015.

    However Cassegrain said in the interview he expected the privately owned company would outperform the wider luxury industry by next year.

    While the firm does not traditionally reveal sales or profit data, it did report sales of US$658.11 million in 2015 and independent analysts estimate turnover remains close to that.

    Longchamp China currently sells products through Tencent’s WeChat social media platform with the brand planning its own direct e-commerce platform soon.

    In the US it plans to open several more stores within the next 12 months, but beyond that believes its global retail footprint is relatively mature.

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  • Michael Kors-Versace deal confirmed

    Michael Kors-Versace deal confirmed

    Michael Kors Holdings LTD confirmed earlier reports that it would buy all outstanding shares from Versace for around $2.1 billion.

    It also announced the group will officially be called Capri Holdings Limited, named after the island of Capri, which the company referred to as an iconic, glamorous destination.

    The renaming of the group was expected, given that keeping its name would perhaps confuse many customers who wouldn’t be able to separate the brand from the holding company, much like Coach Inc. did when the group renamed itself as Tapestry. Donatella Versace will stay on as creative director of the house, and will also be a shareholder in the new group, along with her brother Santo and daughter Allegra. “This demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group,” Donatella said in a statement. Versace CEO Jonathan Akeroyd will also remain with the company.

    John D. Idol, chairman and CEO of Capri Holdings Limited, also put out a statement acknowledging the Italian brand’s history and future prospects. “We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues,” he said.

    In a move that would give Michael Kors Holdings LTD a stronger foothold in the luxury fashion space, the company, which already owns Jimmy Choo, is reportedly inking a deal to buy Gianni Versace SpA that values the Italian company at $2.35 billion. Both parties are set to announce the deal as early as this week, according to sources.

    For Kors, best known for his affordable luxury handbags and his appearance as a judge on the hit design competition show Project Runway, this buyout is a significant step towards building a larger, more efficient holding business that would rival that of French heavyweight conglomerates LVMH (who owns Louis Vuitton, Fendi and Givenchy) and Kering (Gucci, Balenciaga and Saint Laurent). While there hasn’t been a similar American conglomerate that compares in terms of scale and resources, this could perhaps be the start of a new power-playing entity stateside.

    There have even been guessing games as to what Michael Kors would rename his holding company, should he choose to do so. While Coach owner Tapestry has made moves to adopt a similar model (it has acquired Kate Spade and Stuart Weitzman in recent years), owning a European luxury fashion brand like Versace would give considerable clout and star power to an American fashion portfolio.

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  • Zalora Group appoints new CMO

    Online fashion retailer Zalora Group has appointed a new chief marketing officer to help boost its Asia-wide profile.

    Elias Pour joins Zalora Group from Red Bull, where he was head of digital managing the brand’s digital marketing, content production and e-commerce sales in Asia-Pacific. At Zalora, he will lead a team of more than 150 people, overseeing the online fashion retailer’s entire marketing operations.

    Prior to his time with red Bull, Pour worked in both Sweden and Denmark, holding key management positions for Volvo, Danske Bank and Telenor. He has been based in Sydney, Australia, for the last eight years, working for Adobe and Commonwealth Bank of Australia before joining Red Bull.

    Patrick Schmidt, Co-CEO of Zalora Group’s parent Global Fashion Group, said Pour would help the company as it enters a new period of growth.

    “I am confident that under his leadership, Zalora will continue to provide fashion consumers in Asia, the best online and mobile shopping experience possible and achieve its full potential as the region’s fashion retail powerhouse.”

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  • Mobile World reports surging sales, expands fresh-food business

    Mobile World reports surging sales, expands fresh-food business

    Mobile World says sales grew by 39 percent in the first eight months of the year to VND58.7 trillion ($2.5 billion).

    Profit after tax was up 36 per cent to VND1.97 trillion ($84.34 million) year-on-year.

    HCMC-based Mobile World Investment Corporation (MWG), established in 2004 as a seller of mobile phones, has since diversified into a host of other areas including foods, beverages, meat and seafood, and vegetables.

    Dien May Xanh, its electronics retail arm, accounts for 55 percent of sales followed by mobile phone stores The Gioi Di Dong and then department store chain Bach Hoa Xanh.

    Bach Hoa Xanh, incorporated in 2015, sells vegetables, seafood, meat and fast-moving consumer goods (FMCG). While with VND2.37 trillion ($102 million) it only accounts for 4 percent of the company’s sales, the business is growing at 251 percent.

    It has 405 outlets, with the two largest being in HCMC’s Thu Duc and Binh Tan districts.

    Bach Hoa Xanh plans to focus on the eastern and southern parts of HCMC and the neighboring provinces of Binh Duong, Long An, Dong Nai, and Ben Tre in future.

    By the end of this year it plans to have another 95 stores. A Mobile Word spokesperson said that stores that do not do well would be shut down.

    Based on the firm’s proclaimed plan of having 550 stores with average monthly revenues of VND790 million ($33,850) each by the end of this year, Ho Chi Minh City Securities Corporation (HSC) estimated Bach Hoa Xanh sales to reach VND4 trillion ($171 million) this year.

    But MWG found the department store business less attractive than the two other segments, saying at 14 percent the profit margin of Bach Hoa Xanh is lower than the 17 percent for the cellphone business and 16.7 percent for the electronics business.

    A major reason is fresh food is more difficult to manage than the others due to the short shelf life.

    Doan Van Tieu Em recently took over as CEO of MobileWorld Joint Stock Company, the subsidiary that manages the cellphone and electronics businesses.

    His predecessor, Tran Kinh Doanh, is now CEO of the department store business.

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  • House of Garrard debuts in Beijing

    House of Garrard debuts in Beijing

    British jeweller House of Garrard is set to launch in Beijing.

    The new 100sqm outlet opens this month in a prestigious location in centrally positioned landmark Emperor Group Centre skyscraper on Chang’An Street. It is the brand’s second boutique in China, featuring three private VIP rooms where prospective buyers can examine items away from prying eyes.

    Garrard’s creative director Sara Prentice said: “It’s been a pleasure creating jewels for customers in China since we opened our Shanghai flagship last year. Now with a presence in Beijing, we’re in an even better position to explore how our heritage and craftsmanship can come to life for the sophisticated women who want to wear our designs.”

    The heritage brand has been manufacturing bespoke jewellery since 1735. It was famously commissioned to design Princess Diana’s sapphire cluster engagement ring.

    A rare 118.88 carat sapphire will be on show at the store’s launch event.

  • Camus Cognac appoints new Asia Key Account Director

    Camus Cognac appoints new Asia Key Account Director

    From tobacco to cognac, Rex Zhu Hao has recently been appointed Key Account Duty Free Sales Director of the family-owned Cognac house Camus.

    Backed by 12 years of experience in the tobacco business and travel retail in the Greater China market, managing Asia duty free for Dannemann Cigars, Rex will be in charge of further expanding Camus’ well-established business in Asia travel retail from the Asia Pacific regional office of Camus La Grande Marque in Hong Kong.

    Anne Blois, Global Sales and Marketing Director, Camus commented: “As sales in duty free continue growing for all our key brands Camus, Moutai and Loudenne we are convinced that Rex Zhu Hao’s solid background in travel retail and deep knowledge of our markets will be a great asset to our group and we wish him every success in his new challenge.”

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  • Spring REIT Buys Guangdong Mall from Huamao Property

    Spring REIT Buys Guangdong Mall from Huamao Property

    Hong Kong-listed Spring REIT has agreed to buy the Huamao Place shopping centre, located in Huizhou, Guangdong Province.

    Spring will pay RMB1.65 billion (US$241 million) for the mall, a seven-storey property, part of the larger integrated development by Beijing Guohua Real Estate, known as Huizhou Central Place (pictured), which also includes three Grade-A office towers, three residential buildings and a serviced apartment complex.

    Located in the Huizhou CBD, the mall is surrounded by major roads, the Huizhou People’s Government complex and other public facilities and attractions, such as the Huizhou Convention & Exhibition Centre, the Huizhou Stadium, the Huizhou Museum and the Huizhou Science & Technology Museum. It is accessible by expressways and intercity railway to the rest of the Greater Bay Area.

    Current tenants include international and local fashion retailers, jewellers, chain restaurants, personal care and cosmetic shops, a supermarket and a cinema.

  • Ideas CEO calls for review of policies as Malaysia slips in economic freedom ranking

    Ideas CEO calls for review of policies as Malaysia slips in economic freedom ranking

    Malaysia’s fall to 79th spot from 67th in the 2018 Economic Freedom of the World Annual Report shows that space for the private sector in the country has been squeezed, businesses have been obstructed and the size of the government has increased.

    Institute for Democracy and Economic Affairs (Ideas) CEO Ali Salman said the findings based on data from 2016, the most recent year of available comparable data, measure economic freedom, that is, levels of personal choice, ability to enter markets, security of privately owned property, rule of law, etc, by analysing the policies and institutions of 162 countries and territories.

    “This calls for a comprehensive review of economic policies under the Pakatan Harapan (PH) administration, spanning critical areas like GLC reforms, size of the civil service and business regulations – areas on which Ideas has researched and advocated vigorously,” Ali said.

    According to research in top peer-reviewed academic journals, people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives.

    For example, countries in the top quartile (25%) of economic freedom (such as the UK, Japan and Ireland) had an average per-capita income of US$40,376 in 2016 compared with US$5,649 for the bottom quartile countries (such as Venezuela, Iran and Zimbabwe).

    And life expectancy is 79.5 years in the top quartile of countries compared to 64.4 years in the bottom quartile.

    “Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” said Fred McMahon, Dr Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute.

    The report was released by Ideas and produced by Canada’s Fraser Institute.

    The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 countries and territories.

    It is the world’s premier measurement of economic freedom, measuring and ranking countries in five areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally and regulation of credit, labour and business.

    Hong Kong and Singapore again topped the index, continuing their streak in first and second place respectively, while New Zealand, Switzerland, Ireland, the US, Georgia, Mauritius, the UK, Australia and Canada (tied for 10th spot) round out the top 10.

    The 10 lowest-ranked countries are Sudan, Guinea-Bissau, Angola, Central African Republic, Republic of Congo, Syria, Algeria, Argentina, Libya and Venezuela.

    Countries such as North Korea and Cuba could not be ranked due to lack of data.

    Other notable country rankings include Germany (20th), Japan (41st), France (57th), Russia (87th) and China (108th).

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  • Dunkin’ Donuts reveals new brand identity

    Dunkin’ Donuts reveals new brand identity

    Dunkin’ Donuts has been on a first-name basis with its fans long before the introduction of its iconic tagline, America Runs on Dunkin’, with customers around the world naturally and affectionately referring to the brand as Dunkin’. In recognition of this relationship, and as one of many steps to transform itself into the premier beverage-led, on-the-go brand, the company has unveiled its new branding at its Global Franchisee Convention that officially recognizes its name as simply Dunkin’. The change will officially take place in January 2019.

    The new branding conveys the company’s focus on serving great coffee fast, while embracing Dunkin’s heritage by retaining its familiar pink and orange colors and iconic font, introduced in 1973. Beginning the first of the year, the new branding will appear on packaging, as well as the company’s advertising, website and social channels. Going forward, the new Dunkin’ logo will also be featured on exterior and interior signage on all new and remodeled stores in the U.S. and, eventually, internationally. The brand tested the new logo extensively, including on exterior signage at Dunkin’ locations featuring its next generation design concept over the past year.

    According to Dunkin’ Brands’ CEO and Dunkin’ U.S. President David Hoffmann, “Our new branding is one of many things we are doing as part of our blueprint for growth to modernize the Dunkin’ experience for our customers. From our next generation restaurants, to our menu innovation, on-the-go ordering and value offerings, all delivered at the speed of Dunkin’, we are working to provide our guests with great beverages, delicious food and unparalleled convenience. We believe our efforts to transform Dunkin’, while still embracing our incredible heritage, will keep our brand relevant for generations to come.”

    “By simplifying and modernizing our name, while still paying homage to our heritage, we have an opportunity to create an incredible new energy for Dunkin’, both in and outside our stores,” said Tony Weisman, Chief Marketing Officer, Dunkin’ U.S. “We are bringing the iconic name Dunkin’ to the forefront in a bold way that brings to life how we refill optimism with each cup and bring fun, joy and delight to our customers each and every day.”

    Brand Refresh part of the Dunkin’ Blueprint for Growth

    The new branding, developed in partnership with new creative and branding agencies Jones Knowles Ritchie (JKR), BBDO New York and Arc Worldwide, is one part of Dunkin’s multi-faceted blueprint for growth, a plan designed to transform the company into the premier beverage-led, on-the-go brand. Recent initiatives have included a simplified menu, a greater emphasis on beverages like Cold Brew Coffee, Nitro Coffee and Iced Teas, the introduction of unique products like Donut Fries, an increasing emphasis on On-the-Go Mobile Ordering, and most importantly, the introduction of Dunkin’s next generation design concept.

    Specifically designed to meet the needs and demands of today’s on-the-go consumer, the next generation store design offers new and innovative elements to make running on Dunkin’ faster and more convenient than ever before. The key in-store elements include an eight-headed tap system for cold beverages encouraging crew members to serve guests like bartenders, a glass bakery case putting donuts in the forefront within arm’s reach of guests, and more prominent and engaging mobile-order pick up areas, as well as the first-ever mobile order drive-thru lane to allow mobile users to speed past the line.

    Dunkin’ to Remain Sweet on Donuts

    Although the word ‘donuts’ will no longer appear in the logo or branding, donuts will remain a significant focus for the brand. As the #1 retailer of donuts in America, selling more than 2.9 billion donuts and MUNCHKINS® donut hole treats annually worldwide, each Dunkin’ restaurant is required to make the most popular donuts available every day, along with local favorites, so that guests know they will be able to find the top-selling donuts and fun seasonal varieties no matter which Dunkin’ location they visit.

    Earlier this season Dunkin’ brought back its popular Pumpkin Donut and MUNCHKINS® donut hole treats for a sweet taste of fall. The brand will be revealing this year’s lineup of Halloween-themed donut varieties early next month.

    From Open Kettle to Dunkin’

    The story of Dunkin’ began in 1948 with a donut and coffee restaurant in Quincy, Massachusetts called ‘Open Kettle’. Founder William Rosenberg served donuts for five cents and premium cups of coffee for ten cents. After a brainstorming session with his executives, Rosenberg renamed his restaurant “Dunkin’ Donuts” in 1950. His goal was to “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores,” a philosophy which still holds true today. In 1955, the first Dunkin’ Donuts franchise opened, and, in just 10 years, the number of restaurants had grown to over 100 shops. Since 1950, the number of Dunkin’ restaurants has increased to more than 12,600 restaurants worldwide in 46 countries.

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  • Japanese department stores Takashimaya and Mitsukoshi upgrading

    Japanese department stores Takashimaya and Mitsukoshi upgrading

    Major Japanese department stores Takashimaya and Isetan are opening new developments in Tokyo.

    Both newly-refurbished stores will launch in Tokyo’s Nihonbashi district to attract a wider customer base. The move occurs against a backdrop of declining department store sales in Japan.

    Today’s Takashimaya launch opens a seven-storey annex with one underground level next to its existing store, accommodating a high proportion of F&B tenants as well as clothing and variety stores, amongst others. The development targets nearby company employees in their 30s and 40s and families, many of whom visit the store to eat.

    Takashimaya President Shigeru Kimoto said: “We integrated a department store with specialty stores. It’s the culmination of meeting the needs of today’s customer.”

    The Isetan renovation to its Mitsukoshi main store in Nihonbashi will open in late October. Among its new features will be a new concierge service.

    The store will share data on the tastes and purchasing histories of key customers with concierge staff and other employees, leading them to use suggestion selling techniques so as to meet customer preferences. Customers will be able to designate a specific concierge before visiting the store via smartphone app.

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  • Vietnam’s top banks struggle to increase capital to meet global norms

    Vietnam’s top banks struggle to increase capital to meet global norms

    Three top Vietnamese banks have been struggling to increase their capital to meet international adequacy norms.

    The second Basel Accords, or Basel II, prescribe capital of 8 percent of risk-weighted assets for all financial institutions, including in Vietnam, to cover operational risks.

    The National Financial Supervisory Commission found that Vietnamese banks need to increase their charter capital by 1.8-2 times to meet the Basel capital adequacy ratio (CAR).

    They include three of the four biggest lenders, BIDV, Vietcombank and Vietinbank.

    BIDV, Vietnam’s biggest bank by assets, currently has total assets of VND1,270 trillion ($54.3 billion) but capital of nearly VND34.19 trillion ($1.46 billion), which has remained unchanged since 2015.

    BIDV’s CAR is now only 9 percent according to leading broker VietCapital Securities, which is “close to dangerous” if compared to Basel II standard, the bank’s CEO, Phan Duc Tu, said.

    In the last three years the bank has been making three or four plans each year to increase charter capital, but none of them have been successful.

    In 2016 BIDV and Vietinbank had offered to pay its largest shareholder, the State Bank of Vietnam (SBV), the previous year’s dividends in stocks and not cash to increase its capital.

    But the central bank rejected it saying it needed the cash.

    Last year BIDV had made several plans like initiating an employee stock ownership plan (ESOP), selling shares to existing shareholders, paying dividends in stocks, and private placement of shares to strategic shareholders.

    Again all of them fell through.

    The public bank with the highest state ownership – of over 95 percent – has been looking for strategic investors it can sell stakes to but in vain.

    In 2016 Vietcombank, the third largest bank by assets, signed a deal with Singapore sovereign wealth fund GIC Private Limited to sell a 7.73 percent stake. The deal has yet to be consummated, with the bank’s chairman, Nghiem Xuan Thanh, saying they have been unable to agree on a price.

    Vietcombank’s charter capital has remained since 2016 at VND35.98 trillion ($1.54 billion).

    The SBV recently gave the lender approval to increase its charter capital by 10 percent to VND39.58 trillion ($1.69 billion).

    Vietcombank plans to make a private placement of 10 percent of its stake and has received approval from its shareholders for this.

    Should its plan succeed, Vietcombank will surpass Vietinbank as the bank with the largest charter capital.

    Vietinbank, the country’s second largest lender by assets, has seen state ownership fall to the minimum permitted level of 65 percent, and so can no longer issue more shares.

    Its charter capital has remained at VND37.23 trillion ($1.59 billion) since 2014.

    A masterplan, approved by the Prime Minister early last month, targets to have 3-5 banks listed on foreign stock exchanges.

    The plan, which covers the banking sector’s development until 2025 with a vision to 2030, also set targets to reduce the state capital ownership in three major banks: Vietcombank, BIDV and Vietinbank.

    In 2018-2020, the state will reduce its shares in those banks to at least 65 percent and in 2021-2025, the figure will be 51 percent.

    Vietnam has nine wholly-owned foreign banks, four state-owned banks and 31 joint-stock banks.

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  • Ogilvy picks up creative work for Pizza Hut Hong Kong as brand targets millennials

    Ogilvy picks up creative work for Pizza Hut Hong Kong as brand targets millennials

    Ogilvy will be tasked with raising the profile of Pizza Hut among millennials after being appointed creative agency of record for the brand in Hong Kong.

    The agency was selected following a competitive pitch. Havas was the incumbent.

    Ogilvy & Mather also won the creative work for Pizza Hut in Singapore at the start of the year, releasing its first work in May. The agency also works with Pizza Hut parent Yum! across several markets in Asia.

    Ogilvy will deliver Pizza Hut’s integrated marketing strategy including creative, brand building and campaign execution with the agency tasked with raising the profile of the brand among millennials while “maintaining its strong heritage in the family segment”.

    In a statement, Pizza Hut Hong Kong marketing director Wendy Leung said: “Our decision to partner with Ogilvy was based on their proven track record of delivering innovative work that resonates with the local market.

    “As we look to elevate the Pizza Hut brand amongst millennials in Hong Kong, it was critical that we chose an agency whose work is grounded in strong, local consumer insights”.

    Ogilvy Hong Kong executive creative John Koay added: “Everyone in Hong Kong grew up with Pizza Hut. We are thrilled Ogilvy can partner with this iconic brand to create effective and famous work that will drive their business forward and connect with Hong Kong people”.

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  • Spotify to Offer Carrier Billing to Telkomsel, AIS and DTAC Subscribers via Fortumo’s Payments API

    Spotify to Offer Carrier Billing to Telkomsel, AIS and DTAC Subscribers via Fortumo’s Payments API

    Fortumo has expanded its partnership with Spotify in South-East Asia to offer an expanded carrier billing program specifically for Spotify users in Indonesia (Telkomsel) and Thailand (AIS and DTAC).

    In both Thailand and Indonesia, credit card ownership remains below 10% while more than 65% of the population already has smartphones. This means most consumers can access online entertainment but do not have a way to pay for premium content. Carrier billing solves this issue for digital service providers by giving any mobile phone owner the option to make online purchases and deduct the charges from their mobile account balance.

    Spotify launched direct carrier billing with the new telcos through Fortumo’s Payments API. Using Payments API gives Spotify full control of the checkout flow and access to advanced features of carrier billing such as token-based authentication, dynamic pricing and an automated refunding process.

    At the other end of the Payments API are Fortumo’s pre-integrated connections with telcos, which gives Spotify and other digital service providers a scalable way of rolling out carrier billing.

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  • Flights from Da Nang to Osaka for Vietnam Airlines

    Flights from Da Nang to Osaka for Vietnam Airlines

    The first non-stop flights from Da Nang to Japan will begin on 28 October, the national flag carrier Vietnam Airlines has confirmed. The airline will use an Airbus A321 with services meeting 4-star standards to cover the 2,114 miles (3,403 kilometers) from Da Nang to Japan’s Osaka City, with flights taking around four and a half-hour.

    The airline will operate 7 return flights each week. The non-stop flights will depart from Da Nang at 00:20 am, and from Osaka at 09:30 am local time. This will be the 11th air route to Japan operated by the Vietnam Airlines after those from Ha Noi, Ho Chi Minh City, and Da Nang to Japanese cities of Tokyo, Osaka, Nagoya, and Fukuoka.

    Mr. Nguyen Duc Quynh – Executive Vice Chairman of Danang Hotel Association, Deputy General Director of Furama Resort Danang, opined: “The Japan market recently makes up 10% of Danang tourism industry and continue to increase strongly. Thanks to this new direct air-route that we will have more opportunity to attract this potential market, as well as introduces the “fantastic-city” of Danang to Japan. We need to take advantage of this chance by providing more Japan-friendly services, promoting our venue as not only Leisure but also an ideal MICE destination. Danang tourism colleges and Hotels in Danang should provide more Japanese language training to their tour guides and staff to welcome more and more tourists from Japan to the City.”

    As reported, from 2011 – 2017, the number of visitors from Japan had increased 18 times, especially, 2016 – 2017 period eyes a rise of 23,000 tourists. Not only Japan market, overview the snapshot of Danang tourism, air travelers to Da Nang increased 40% over the same period last year. The number of international visitors to Da Nang is concentrated mainly in North East Asia (Korea, China, Japan) through direct flights to Da Nang. The number of international flights this year at Da Nang International Airport is 183, an increase of 76 flights over the same period of 2017.

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  • Kasikornbank Joins Visa’s B2B Connect Project in Thailand

    Kasikornbank Joins Visa’s B2B Connect Project in Thailand

    Visa’s blockchain-based B2B Connect project is gaining steam, with Thailand’s fourth-largest bank, Kasikornbank, joining the fold.  The bank will be the first Thailand bank to use the technology, joining other well-respected financial institutions such as the U.S. Commerce Bank, Shinhan Bank in South Korea, the Union Bank of Philippines, and the United Overseas Bank in Singapore.

    Kasikornbank may not be the largest financial institution in Thailand, but it still has substantial $96 billion in assets.  The bank was established in 1945 with a registered capital of only five million baht.

    The move shouldn’t come as too surprising, considering the fact that Thailand as a nation is much more pro-cryptocurrency, especially in the context of Asia.  For example, China, the largest economy in the region, has banned ICOs completely, even while its state-owned banks have implemented blockchain technology to optimize its operations.

    In contrast, the Bank of Thailand has revealed just last month that it actually plans on issuing its own state-issued cryptocurrency.  The Bank of Thailand has also even allowed local banks much more leeway in terms of cryptocurrency – such as allowing them to issue tokens, invest in cryptocurrency markets through subsidiaries, and even provide crypto brokerage services.

    While Japan and South Korea have expressed positive sentiments about cryptocurrency before – such as Japan declaring that bitcoin is a legal form of payment, and the mayor of Seoul expressing interest in developing his own cryptocurrency – the amount of regulation involved has allowed Thailand to become an international hub when it comes to cryptocurrency.

    While Thailand’s economy might not be as powerful as its neighbors, it still has been drawing in cryptocurrency enthusiasts and companies internationally.

    Suripong Tantiyanon, Visa’s Thailand country manager, praised the decision, pointing out that Visa B2B will help guide the country when it comes to “security, governance, and distributed ledger technology”. He believes that Visa will be an industry leader in this space.

    Visa’s B2B program was already launched last year but is obviously making great progress in Asia already.  The platform is built on Chain, which was actually acquired by Stellar recently.  The platform is meant to enter the corporate cross-border payment sector, which many analysts believe will grow tremendously over the years and is one of the main ways that many cryptocurrency enthusiasts believe the cryptocurrency sector will grow, with institutional money helping lead the charge to mass adoption.

    The idea is that blockchain technology will allow for faster and cheaper transactions, which will save banks massive amounts of money.  Visa also believes that blockchain technology allows for the cross-border payment sector to be more transparent than ever, as well. Kasikornbank is the first Thailand bank to join the platform.

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