Issue 54

Bangladesh and Thailand look forward to forging a closer relationship through bilateral trade and investment.

With bilateral trade valued at US$903 million in 2015, Thailand and Bangladesh have many potential business opportunities still to be explored across various industries, says H.E. Saida Muna Tasneem the Bangladesh Ambassador to Thailand.

“Bangladesh and Thailand have 44 years of bilateral relations, we’re very close geographic neighbours and connected culturally,” says Tasneem. “It would be a win-win situation for both of us if we can do more trade.”

The Embassy of Bangladesh in Bangkok, with the Export Promotion Bureau, Ministry of Commerce Bangladesh recently organised the Bangladesh Trade and Investment Expo 2016 at the Queen Sirikit National Convention Center, Bangkok, from May 30 to 1 June with the aim of connecting Bangladeshi products, services and investment opportunities to the Thai market and businesses.

The event proved a success in drawing together business people and high-level government policy-makers from both countries to participate in panel discussions on how to enhance trade and investment connectivity between the two countries. Over 60 Bangladeshi companies had booths displaying products and services at the expo while the ‘Bangladesh-Thailand Threads of Heritage’ silk fashion show displayed the heritage silk textiles of both countries.

“The expo focused on displaying Bangladesh silk, leather products, ceramic ware, bone china porcelain and pharmaceutical products,” says Tasneem. “Bangladesh exports pharmaceutical products to over 100 countries in North America, Latin America, Europe, and ASEAN countries like Myanmar. We are looking to enter the Thai market next as Thailand has a large medical tourism industry and a universal healthcare needing pharma imports.”

Currently Bangladesh’s export basket to Thailand is limited to jute and jute products, ready made garments (RMG) and smaller amounts of pharmaceutical products. Thai exports mainly consist of consumer products including toiletries, food and vegetable products, clinker bricks, minerals and chemicals, and machinery. Thai companies are also investing US$605 million in Bangladesh through 96 projects, led by top Thai companies such as CP Group, Ital-Thai and SCG.

Another area that may be worthy of investment is agriculture and agro-processing industries.

“Thailand is a champion in agricultural processing while Bangladesh too is famous for its tropical fruits like mango, jackfruit, lychees and pineapples,” says Tasneem. “There are opportunities for Thai companies to process dried fruits in Bangladesh, and sell them locally or export, especially given that Bangladesh enjoys 100% duty-free market access to the EU.”

Both countries are currently working towards increasing bilateral trade through the Joint Trade Committee (JTC), headed by Thai Commerce Minister Apiradi Tantraporn and Bangladeshi Commerce Minister Tofail Ahmed.

“The ministers have agreed to meet for the fourth JTC meeting in Dhaka later in 2016 where we hope to have a greater understanding of each other’s trade complementarities,” reveals Tasneem. “Currently there are no FTAs between the two countries, but this issue will be raised during the upcoming JTC.”

The Bangladeshi ambassador is closely involved in multiple projects to ensure that trade between the two countries will increase in the near future.

“We are trying to create trade-related private-sector dialogues in several issues, such as the possibility of initiating duty-free access between the textile industry in Thailand and the RMG industry in Bangladesh, improving shipping connectivity through an ongoing coastal shipping agreement, which will enable goods to be shipped between Thailand and Bangladesh within three days … and also the introduction of the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) Business Travel Card for businessmen from both countries,” she says.

Words by Pimsirinuch Borsub