Vietnam – Thailand: Beefing up Win-Win Cooperation

A high-ranking delegation from the Vietnamese National Assembly led by Chairman Vuong Dinh Hue, embarked on an official visit to Thailand. This visit, which took place from December 7 to 10, 2023, was facilitated by an invitation extended by Mr. Wan Muhamad Noor Matha, Speaker of the House of Representatives of Thailand.

Mr. Vuong Dinh Hue, Chairman of Vietnamese National Assembly and Mr. Wan Muhamad Noor Matha, Speaker of the House of Representatives of Thailand 

This occasion marked NA Chairman Hue’s inaugural visit to Thailand in his current capacity, and the first instance of a high-ranking Vietnamese leader visiting Thailand subsequent to the formation of Thailand’s present government.

Fostering a deeper strategic partnership

The recent visit holds paramount significance as both nations actively propel action programs for the implementation of the Enhanced Strategic Partnership spanning 2022-2027. This visit also marked preparations for the celebratory activities commemorating the 10th anniversary of the Strategic Partnership established in 2013.

Chairman Vuong Dinh Hue engaged in substantive discussions and meetings with Thailand's top leaders, culminating in a historic first time of being the inaugural foreign National Assembly Chairman to confer with the King and Queen of Thailand. The engagements extended to various spheres, encompassing central and local levels, and included dialogues with the vibrant overseas Vietnamese community in Thailand.

During extensive exchanges, Chairman Hue and Thai leaders deliberated on bilateral relations and charted the course for forthcoming development. Thai leaders underscored Vietnam's important role as a regional partner and concurred on directions to fortify the strategic partnership. Notably, they embraced and commended Chairman Hue's resonant message of "Win-win cooperation, mutual benefit instead of competition." The Thai Prime Minister expressed the hope to elevate the relationship to a comprehensive strategic partnership during his slated visit to Vietnam in 2024.

Chairman Vuong Dinh Hue and Speaker Wan Muhamad signed a memorandum of cooperation between the National Assembly of Vietnam and the House of Representatives of Thailand. Simultaneously, General Secretary of the National Assembly Bui Van Cuong and Acting Secretary General of the Thai House of Representatives inked a memorandum of cooperation between the Office of the National Assembly of Vietnam and the House of Representatives of Thailand. Both parties pledged to actualize these memorandums, thereby intensifying collaboration between the two legislative bodies and enhancing their parliamentary roles in advancing bilateral cooperation.

Delving into the implementation of the "Three Connections" Strategy, both sides explored measures to create new supply chains, connecting businesses and localities of the two countries. They committed to amplifying cooperation in emerging domains such as the green economy, digital economy, renewable energy, and just energy transition, aligning with the sustainable development strategies of both nations.

The Thai King and leaders assured ongoing facilitation for the community of over 100,000 Vietnamese and overseas Vietnamese in Thailand. Additionally, they pledged continued support for preserving Vietnamese historical and cultural values in Thailand, encompassing President Ho Chi Minh's relics, Vietnamese pagodas, and the inaugural Vietnamese Street in Udon Thani City.

The launching ceremony of the Vietnam-Thailand Chamber of Commerce (VTTC) in Thailand 

Elevating economic, trade and investment collaboration

In an address at the Policy and Law Forum on advancing economic, trade and investment cooperation between Vietnam and Thailand, organized by the Vietnam Chamber of Commerce and Industry (VCCI) in conjunction with the Thai Chamber of Commerce (TTC) and relevant agencies in Bangkok, Chairman Vuong Dinh Hue underscored the untapped potential for growth in these pivotal domains within the overarching bilateral relationship.

Chairman Hue advocated for an innovative mindset and visionary approach, grounded in mutual trust, sincerity, openness, responsibility and heightened efficacy.

Despite sharing similar economic structures, he emphasized that Vietnam and Thailand are not competitors; instead, they embody collaborative partners driven by the principles of mutual benefit and the pursuit of win-win outcomes. This collaborative spirit aims to rejuvenate existing value chains and establish new strategic supply chains with elevated added value, seamlessly integrating into regional and global supply networks.

"We envision collaboration in areas such as rice trading, electric vehicles and semiconductors, especially as Vietnam aspires to become a global semiconductor hub. Together, Vietnam and Thailand are striving to reach the bilateral trade target of US$25 billion, adopting a sustainable and forward-looking approach," said Chairman Hue.

Speaking at the forum, Chairman of the Thai Chamber of Commerce (TCC), Sanan Angubolkul, highlighted the close coordination between TCC and VCCI. He affirmed TCC's active commitment to collaborating closely with VCCI to actualize the leaders' vision of achieving the anticipated US$25 billion two-way trade value. Mr. Angubolkul further pledged ongoing collaboration with VCCI and pertinent Thai agencies to facilitate the Vietnamese business community in Thailand, fostering a conducive environment for enhanced two-way trade turnover.

VCCI Vice President Nguyen Quang Vinh, on behalf of VCCI, expressed deep appreciation for the robust cooperation between the business communities of both nations. Through this forum, VCCI sought to transmit the resolute message and commitment of the parliaments and governments of both countries to the business communities. The shared objective is to collectively forge a favorable, sustainable, and responsible business and investment environment.

Against the backdrop of this forum, National Assembly Chairman Vuong Dinh Hue presided over the launching ceremony of the Vietnam-Thailand Chamber of Commerce (VTTC) in Thailand.

Within the ASEAN landscape, Thailand emerges as Vietnam's largest trading partner. Simultaneously, Vietnam claims the distinction of being Thailand's second-largest trading partner in ASEAN and the 6th largest globally, following only China, Japan, the United States, the European Union (EU), and Malaysia.

According to data from the Ministry of Planning and Investment, Thailand has made significant inroads as the second-largest Southeast Asian investor in Vietnam, with 685 active projects and a cumulative registered investment capital exceeding US$13.1 billion as of January 2023. This positions Thailand as the 9th largest investor globally among the 142 countries and territories investing in Vietnam. Thai direct investment flows into Vietnam have seen an average annual increase of 13% over the past decade, attesting to the appeal of Vietnam's economic landscape.

Noteworthy is Vietnam's presence in Thailand's investment landscape, with 17 active projects as of September 2022, two of which increased their investment capital. These ventures collectively account for a registered capital of US$32.8 million. The spectrum of Vietnamese investment in Thailand spans diverse sectors, including manufacturing and processing, real estate business, as well as wholesaling and retailing.

Source: Vietnam Business Forum