The bilateral trade turnover of Vietnam and Thailand has grown more than 40 per cent in the latest five years, even against the backdrop of currently unpredictable global economic fluctuations. In 2015, trade revenue climbed 10 per cent to reach nearly US$13 billion. This was the sweet fruit of close economic development cooperation between the two governments and enterprises.
Vietnam and Thailand are two close neighbours. Since diplomatic relations were established in 1976, the two sides have continued to reap successes on all fronts. And, strong economic cooperation is an important cornerstone in Thailand - Vietnam relationship.
According to statistics, in the first quarter of 2016, the two-way trade revenue was US$2.65 billion. The two nations expected the value to reach US$20 billion in 2020. This illustrated the solid foundation of economic relations and complementary relations between the two countries.
Vietnam mainly imports raw plastics; automobile components, electrical household appliances; petroleum, chemicals, fabrics and paper; and fibres and yarns from Thailand. In the meantime, Vietnam exports telephones and parts; crude oil; vehicles and spare parts; iron and steel; computers, electronic products and components; seafood; fibres and yarns; wood products, precious stones, and agricultural products to Thailand.
Like trade, Vietnam and Thailand have witnessed a considerable growth in investment. Thailand has expanded investment in Vietnam for years. According to statistics, Thailand’s investment into Vietnam increased 35 per cent from US$5.9 billion in 2012 to nearly US$8 billion in mid-2016, ranking 11th among countries and territories with investment in Vietnam and placed third among ASEAN countries (after Singapore and Malaysia).
In 2015, Vietnam licensed 53 new Thai projects and allowed many to raise their investment capital, totalling US$262 million of registered capital. Remarkable Thai companies in Vietnam include CP Vietnam Corporation with US$$328 million of investment capital, SAS CTAMAD Company with US$72.6 million, Long Binh Development Joint Venture Company with US$46 million in Dong Nai province, and TCP VINA Chemical Plastic Company with US$90 million in Go Dau Industrial Park, Dong Nai province.
At the workshop on “Thailand - Vietnam: Fostering economic cooperation for shared prosperity” held by the Thailand - Vietnam Business Council, the Thailand Business Association in Vietnam and SCG Group, Thai Foreign Minister Don Pramudwinai said Thai companies have expanded investment in Vietnam because they believed in this country. Thai investors always want to create more jobs, raise incomes, improve professional skills and develop human resources in Vietnam. They perceive and expect a long-term relationship with Vietnam by providing standard products and services in Thailand.
To date, nearly 2,000 Thai companies have expressed their intention to invest in Vietnam in addition to a number of experienced businesses seeking to increase their market shares in Vietnam. The establishment of the ASEAN Economic Community (AEC) is a great motivation for Thai investors to bring their capital to Vietnam and expand their business presence.
Besides, the Thai Foreign Minister welcomed Vietnamese investors to invest in Thailand. The Government of Thailand pledges to provide maximum supports, including cooperation with the Government of Vietnam and the business sector, to organise retailer business connections for Thai retailers and Vietnamese suppliers. Last year, Vietnamese airline, VietJet Air, injected more than US$150 million in Thailand.
Reportedly, Siam Cement Group (SCG) - one of Thailand's big corporations - will raise its investment capital in Vietnam by expanding its existing projects. Recently, Central Group officially completed the acquisition of Big C Vietnam for more than US$1 billion. Thai Charoen Corp (TCC) also acquired Metro Cash & Carry Vietnam supermarket chain (Germany) for US$876 million.
Mr Sanan Angubolkul, Chairman of Thailand - Vietnam Business Council, said the formation of the ASEAN Economic Community has further tightened the partnership between the two countries, driven by business transactions from Thailand to Vietnam and vice versa. Moreover, Thai businesses also expect to cooperate with Vietnamese partners to tap existing potential of the two countries in order to make inroads into the AEC market where there are over 600 million consumers and a GDP of up to US$3,000 billion.
Quynh Chi
Vietnamese
