The broker considers that while Vietnam is the market with the highest potential for growth in Asia, Thailand's prospects are still uncertain given the political situation, although it does have positive economic potential.

Daishin Securities' team manager for business planning Shin Je-hyun told The Nation that his company planned to open its first-ever representative office in Southeast Asia, and was considering the two countries.

"The objective is only to get to know the Thai market. All foreign investors are looking for business opportunities in emerging markets," he said.

Daishin would like to begin in Thailand where it already had some relationships with the stock exchange authorities, and Vietnam where the growth potential is amongst the highest in Asia.

"We cannot commit at the moment as to whether we will invest, as we are in the preliminary research process. The form of investment is also uncertain and we have to consider things case by case. We don't have a set idea of how much we expect from any investment, we just want to make a profit," he said.

Generally, South Korean investors believe Vietnam has higher growth potential than Thailand and a number of South Korean business operators have opened offices there.

"In Vietnam everything is at the early stage and it has started to boom. This provides us with a vast opportunity to make profits. We are however worried about a bubble in the Vietnamese market. Vietnam also does not have as much infrastructure as Thailand," Shin said.

During a three-week visit, he spoke with the Securities and Exchange Commission, the Stock Exchange of Thailand (SET), some local brokerage houses, and construction and real-estate-management companies.

"Personally, I think the brokerage retail business is attractive for the Thai stock market as the number of retail investors remains low. The market situation will improve after the political uncertainty clears. Vietnam has the opportunity to grow due to limited infrastructure, and several firms are lining up to enter that country," he added.

As of February, the Vietnamese stock market index had risen 249 per cent over the previous 13 months, while the SET Index fell significantly after the Thai central bank announced its 30-per-cent reserve rule last December.

Daishin Securities last year entered a business and capital alliance with Nikko Cordial. It has a representative office in Tokyo, Japan being the only country in which the South Korean company has overseas business.

Jiwamol Kanoksilp,

Oranan Paweewun

The Nation