Top 5 Companies Dominating the ASEAN Trade Finance Market Landscape

The ASEAN trade finance market reached a value of about USD 4.32 billion in 2023. The market is projected to grow at a CAGR of 5.3% in the forecast period of 2024-2032 to reach around USD 6.87 billion by 2032. As per the analysis by Expert Market Research, the market is expected to be driven by the rising need for capital efficiency to expand the business and expansion of SMEs.

The development of The ASEAN Trade Facilitation Fund (ATTFF) to promote increased trade facilitation efforts and revitalised trade facilitation within the ASEAN area is aiding the market. It offers a concerted effort to work towards the two objectives of tripling intra-ASEAN trade between 2017 and 2025 and reducing trade transaction costs by 10% in 2020.

The market is also being fuelled by the growing incorporation of technologies. Financial technologies, such as blockchain and artificial intelligence, can enhance the efficiency and availability of trade finance. Additionally, the implementation of innovative technologies, including optical character recognition (OCR), radio frequency identification (RFID), and quick response codes (QRC) further create opportunities for the market.

The growing working-age population is another important market driver in the trade finance market. The availability of cheap labour induces leading global manufacturers to set up their manufacturing units in ASEAN countries. Over two-thirds of the population in the region is working age, and it is anticipated that the number of middle-class and wealthy homes will increase by about 5% yearly. Over that time, the aggregate GDP of ASEAN is expected to expand by around 4.6% yearly. By 2030, when considered as a single economy, the trade bloc is expected to rank 4th in the world.

Top 5 Trade Finance Companies in the ASEAN:

Asian Development Bank

Asian Development Bank is a leading organisation that supports Asian countries to promote their trade and offers financial aid to facilitate trade, energy power generation, and other important purposes. The bank offers purposeful programmes such as the Trade and Supply Chain Finance Programme (TSCFP) to guarantee loans to 240+ partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. This programme empowers Asian countries to meet the Sustainable Development Goals by closing market gaps.

DBS Bank Ltd

DBS Bank is a leading multinational banking and financial services corporation. The bank offers a comprehensive range of services, including retail, corporate, and investment banking, as well as wealth management and insurance. It offers a range of trade and supply chain finance services to help market players enter into new markets and capitalise on existing sales and supply chains.

Malayan Banking Berhad

Malayan Bank offers a comprehensive range of banking and financial services to individuals, businesses, and organisations. It operates across Malaysia and has a significant presence in other Southeast Asian countries. The bank offers SME Digital Financing, Working Capital Financing, Project and Contracting Financing, Commercial Hire Purchase (SME), and other trade financing solutions.

Bank of the Philippine Islands

Bank of the Philippine Islands is the oldest bank in the Philippines. As a universal bank, BPI provides a broad range of financial products and solutions to both corporate and retail clients through its subsidiaries and affiliates. Consumer banking and lending, asset management, payments, insurance, foreign exchange, leasing, stock brokerage and distribution, and corporate and investment banking are among the services offered by BPI. The Supplier Finance Program under this bank allows suppliers to non-recourse the sale of their eligible receivables to BPI.

Vietinbank

Vietinbank provides individuals, businesses, and governmental organisations with a range of financial solutions, including loans, deposits, and investment services. This bank is crucial to the expansion of Vietnam's economy, especially in the trade and industrial sectors.