BAAC president Thirapong Tangthirasunan said the bank would also assist producers of fruit and other foodstuffs in participating in the "Thailand Exhibition 2006" in Vientiane, which starts next Wednesday and runs through July 2.

Representatives from cooperatives that trade fruits and processed foods commercially will be invited along.

Thirapong said the fair would promote Thai brands in Laos, adding that the neighbouring country would like to see Thai products more readily available within its borders.

The bank also plans to work with the Japan Bank for International Cooperation (JBIC) to help develop the agriculture sectors of Laos and Cambodia.

He said the JBIC would lend money, while the BAAC would provide technical assistance and training for development-bank staff in neighbouring countries.

"The BAAC will not lend its money, because we have to help our own farmers first, but we can assist the JBIC with loan management," Thirapong said.

The BAAC is also hopeful that Cambodian and Lao farmers can supply raw materials to Thailand, with the first project possibly a palm plantation in Cambodia.

Increased development in neighbouring countries could potentially prevent labour migration into Thailand, he said.

The BAAC also looks forward to cooperating with the World Bank and the Asian Development Bank.

Thirapong said the BAAC would assign its staff in branches close to the border with the two countries to work with their foreign counterparts. The branch in Nong Khai province will serve as a focal point for promoting trade with Laos. He estimated trade of fruit and other food items could reach Bt100 million in the first year of cooperation.

The BAAC will also try to support Thai farmers and cooperatives in increasing trade with Indonesia, China, Vietnam and Burma.

Wichit Chaitrong

The Nation