The New Nation - Internet Edition

UNB, Dhaka

Thailand has set its sights on doubling bilateral trade with Bangladesh to at least US$1 billion within five years, Thai Deputy Commerce Minister Viroon Tejapaibul said after meeting with trade representatives and authorities from Bangladesh. He said the two governments also pledged to accelerate talks on a free trade agreement and promote joint investment, Bangkok Post reported on May 24.

Thailand has a large trade surplus with Bangladesh. Out of two-way trade worth US$525.38 million last year, Thailand's shipments accounted for $511.16 million. Major export products included cement, fabric, yarn, plastic pellets, machinery, and chemicals. Thailand's key imports from Bangladesh were fertiliser, pesticides, raw hides and leather, and scientific equipment.

According to Viroon, the relatively high trade deficit has led Bangladeshi authorities to urge the Thai government to purchase more products such as pharmaceuticals, seafood, spices and cosmetics. Bangladesh has also called for more investment from Thailand, particularly in construction, automobiles, shrimp farming, black goat farming, sugar, leather finishing, and power plants. Chalermpol Thanchitt, the Thai ambassador to Bangladesh, said Bangladesh offered attractive investment opportunities now that its government was allowing full foreign ownership in almost all businesses.

Bangladesh is rich in natural gas and has relatively cheap labour. More importantly, it has enjoyed Generalised System of Preferences (GSP) tariff privileges as a least developed country (LCD) from developed economies such as the European Union, the United States and Canada. "The Bangladeshi government is now looking for joint investments from Thai investors in developing hotels in Dhaka and hospitals and Foy's Lake in Chittagong," said the ambassador. "They are also interested in a skytrain development project and need Thai investors to forge such joint ventures."

According to Chalermpol, daily direct flights between the two countries have led many cash-rich Bangladeshis to visit Thailand not only for tourism but also for medical treatment. Bangladeshi tourists spent about $2.6 billion in Thailand last year. About 13 Thai private companies already have a business presence in Bangladesh. They include CP Animal Feed and Thai Classical Leathers.