Mr Phailavanh Sophabmixay (left) shakes hand with Mr Chatchai Sirilai (right) at the MOU signing in Vientiane.

Lao, Thai banks launch international partnership

The Agricultural Promotion Bank (APB) and the Bank of Agriculture and Agriculture Cooperatives (BAAC) have launched a money transfer service between Thailand and Laos to assist Lao nationals working in Thailand.

A Memorandum of Understanding on the partnership was signed in Vientiane last week by the Managing Director of APB, Mr Philavanh Sophabmixay and President of BAAC, Mr Chatchai Sirilai.
The agreement signing ceremony was attended by Laos’ Deputy Minister of Labour and Social Welfare, Mr Phongsaysack Inthalath; Deputy Governor of the Bank of the Lao PDR, Ms Khankeo Lamaningao; and the Thai Ambassador to Laos, Ms Morakot Sriswasdi, who made speeches in support of the partnership.
Leaders from both sides highlighted the importance of cooperation and support from the governments of Laos and Thailand.
Representatives of public and private organisations, including department leaders from the Bank of the Lao PDR, the ministries of Labour and Social Welfare, Finance, and Public Security, the Prime Minister’s Office, the Employment Services Association, employment agencies, and management teams from both sides also participated in the event.

Mr Philavanh Sophabmixay.	Mr chatchai Sirilai.

The partnership will allow migrant workers to transfer money back home quickly and securely at low fees and with greater cost savings
The service is divided into two phases. In the first phase, after signing, Lao nationals who work or live in Thailand can transfer money back home at the service counter of all branches of the BAAC nationwide.
The second phase will see the introduction of a mobile banking app, which users in Thailand can download and then transfer money to the destination account or set up automatic money transfers back home, without having to go to the bank’s service counter.
The cooperation scheme follows on from an earlier Memorandum of Understanding signed between the Ministry of Labour and Social Welfare and the Agricultural Promotion Bank on a feasibility study of banking services for workers to access employment both domestically and overseas, as well as providing credit and remittance services for Lao migrant workers.
The initiative supports the goals of the Ministry of Labour and Social Welfare to assist Lao migrant workers in Thailand by ensuring they have access to legal and secure financial services.
In addition, the partnership enables the government, and specifically the Ministry of Labour and Social Welfare, to track the amount of foreign currency earned by Lao nationals working in Thailand, as part of the government’s policy concerning workers’ contribution to the national economy.
The agreement signed between the Lao and Thai banks reflects the development of an international financial service system that responds to the needs of society.
The Agricultural Promotion Bank and the Bank of Agriculture and Agricukture Cooperatives strongly believe that cooperation between the two banks will not stop there and they will forge links in other areas, relying on the strengths of each party, combined with government support, to make financial services and relations between the two banks more comprehensive in the years to come.

By Advertorial Desk
 (Latest Update February 10, 2025)