Trade & Investment
From The Report: Thailand 2016
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Trade and investment have witnessed robust growth in Thailand over the past 30 years, as rapid industrial development led manufacturing to overtake agriculture as a primary economic engine. This has had a dramatic impact on exports, with the country rising to become a major regional exporter of electronics, automotive parts and food products. Trade relations have also expanded in recent years on the back of improved bilateral relations with China and the US: Thailand is poised to enter into a major global free trade agreement with each – respectively, the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Despite uncertainty regarding the country’s political future, as well as rising concern about falling regional competitiveness, particularly in light of the ongoing process of AEC integration, cautious optimism prevails in Thailand. This chapter contains viewpoints from Julie Bishop, Australian Minister for Foreign Affairs; and Dmitry Medveded, Prime Minister of Russia; and interviews with Cecelia Malmstrom, European Commissioner for Trade; and Thongsing Thammavong, Prime Minister of Laos and 2016 ASEAN Chair.

Articles from this Chapter

Overview

Long-term plan: Reforms encourage stability and value-added production
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Trade and investment have witnessed robust growth in Thailand over the past 30 years, as rapid industrial development led manufacturing to overtake agriculture as a primary economic engine. This has had a dramatic impact on exports, with the country rising to become a major regional exporter of electronics, automotive parts and food products. Trade relations have also expanded in recent years on the back of improved bilateral relations with China and the US: Thailand is poised to enter into a major…

Viewpoint

Friendly ties: Julie Bishop, Australian Minister for Foreign Affairs, on the launch of the Australia-ASEAN Council
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The South-east Asian region is one of the fastest growing economically in the world. It is a dynamic and exciting area within the Indo-Pacific, a region which straddles the Indian and Pacific Oceans, and which is home to around half the world’s population, about a third of the world’s GDP, and around a third of the world’s total exports. South-east Asia comprises an estimated 620 million people with a combined GDP of around A$3.6trn ($2.87trn), so it is an area of enormous importance to us,…

Viewpoint

Partners in trade: Dmitry Medvedev, Prime Minister of Russia, on Russian-Thai trade relations
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As is known, our countries have a special relationship. In two years’ time, we will mark the 120th anniversary of the establishment of diplomatic ties. Our economic cooperation has, in effect, never been interrupted. In recent years, trade turnover, despite the crisis and global economic problems, has grown, reaching $4bn in 2014 by our estimate, and $5bn by our Thai partners’ estimate – these are positive dynamics. We believe that we have every chance to increase this indicator to $10bn through…

Analysis

Moving forward: Government reforms incentivise high-tech industry investment
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Late in 2015, for the first time since 2000 Thailand’s investment promotion policies underwent sweeping reforms, with the government launching a seven-year investment promotion strategy which significantly alters existing policies. Under amendments to the Investment Promotion Act, foreign investors in Thailand will benefit from a host of new financial incentives and privileges, including tax breaks and import duty exemptions, with the expectation that the new policy will increase foreign direct…

Interview

Partners in development: OBG talks to Thongsing Thammavong, Prime Minister of Laos and 2016 ASEAN Chair
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Interview:Thongsing Thammavong How can ASEAN improving how it addresses development gaps across the region? THONGSING THAMMAVONG: Over the previous years, the Initiative for ASEAN Integration (IAI) has contributed to narrowing the gaps by helping the CLMV countries (Cambodia, Laos, Myanmar and Vietnam) participate in the ASEAN Economic Community (AEC) building process. As the development gaps remain wide among ASEAN member states, the IAI continues to be significant and is one of the top…

Analysis

Weighing up the options: The coming years could see the country join two trade agreements
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Pacific Rim trade is slated to surge in the coming years as negotiations for the Trans-Pacific Partnership (TPP), the world’s largest free trade agreement (FTA), move forward. At present there are 12 signatories to the agreement, including Thailand’s largest export market, the US. Although Thailand has not yet committed to joining the agreement, recent statements from top politicians indicate it could still sign on, should negotiations around the problem areas of pharmaceutical patents and biodiversity…