Vietnam-Thailand Making Use of Strategic Locations

 

At the moment, despite the world economy’s slowdown, trade and investment between Thailand and Vietnam increase every year. In 2015, our bilateral trade volume was approximately US$12 billion ranking Thailand among the top trading partners of Vietnam. 

 

The establishment of the ASEAN Economic Community provides a platform for both Thailand and Vietnam, as well as the rest of its members with US$2.6 trillion single market with over 600 million consumers. Under the AEC, all members must free up trade and investment restrictions. I am certain that if we make full use of this opportunity, our bilateral trade and investment cooperation will be further strengthened. As key exporters of two major agricultural commodities – rice and rubber-, both Vietnam and Thailand could cooperate in exchanging information and technology know-how. 

 

In addition, our bilateral cooperation in areas of trade and investment will also benefit our neighbours – Cambodia and Laos, as well as regional integration and community building.

 

As our two leaders envisaged at the Third Joint Cabinet Retreat in Bangkok in July last year, bilateral trade volume of our two countries will be increased to US$20 billion by 2020. With economic potentials of Thailand and Vietnam as well as our strategic partnership, I am certain that this number is achievable.

 

What should be done? I think that both countries should look into cooperation on E-commerce and Small & Medium Enterprises (SMEs) as well as make full use of our strategic locations in the region. Thailand and Vietnam should realize the connectivity through Laos and Cambodia, especially R8, R9 and R12 as well as coastal shipping route to promote further trade, investment as well as tourism cooperation. 

In addition to things to be done by the governments, the private sectors of both sides should play active role in promoting trade and investment between our two countries. In this regard, I am pleased with the report that Thailand-Vietnam Business Council and the Vietnam-Thailand Business Council have been revived.

 

Thailand is in the process of considering joining TPP. As Vietnam is now a member of TPP and would need to follow international standards in trade and investment, it is a good opportunity for us, both governmental and private sectors, to push forward economic cooperation in areas, such as cooperation on banking system, doing business in local currencies to name a few.

 

Due to many factors, including economic stability and potential, availability of work force, as well as favorable business environment created by the Vietnamese Government, Vietnam has recently become one of the top destinations for foreign direct investment, including Thailand. Especially for Thailand, Vietnam is an important economic partner in terms of major market as well as investment. Among Thailand’s neighboring countries, Vietnam ranks highest in Thailand’s investment. As of February 2016, Thailand is among the top foreign investors in Vietnam with 428 projects and total investment capital of US$7.8 billion.  

Recently, due to media reports, the focus of Thailand’s investment in Vietnam is mainly on retail market, which is only one part of our investment here. We also invest in other areas, including industrial park, hotel business, agricultural products, cement and building materials, which provide employments for our Vietnamese friends. These companies are also very committed to the Corporate Social Responsibility (CSR) here in Vietnam.

 

Thailand believes in partnership and we value Vietnam as our partner. The same way as Thai products are popular here, Vietnamese products are also popular in Thailand, and we have organized Vietnamese trade fair in Bangkok in July this year.

 

Vietnam and Thailand relations is closer than we might have thought and dated back even before we established official relations in 1976. The Viet Kieu in Vietnam and Vietnamese Thais in several Northeastern provinces of Thailand are the living proof of our close and cordial relations. The “Thai-Vietnamese Friendship Village” as well as the recent inauguration of the Memorial Site of President Ho Chi Minh in Nakorn Panom Province, as initiated by H.E. Nguyen Phu Trong, General Secretary of the Central Committee of the Communist Party of Vietnam, also reflected our special relationship. 

 

As this year marks the 40^th Anniversary of the Establishment of Diplomatic Relations between our two countries, the Royal Thai Consulate-General, together with the Thai community in Vietnam, plans to organize a series of activities to commemorate this auspicious occasion as well as to reflect our close bilateral relations, which has lasted for 40 years, to Vietnamese public.