Trade & Investment
From The Report: Thailand 2017
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Benefitting from an export-oriented, industrialised economy and an ideal geographic position with proximity to Japan, China and high-growth ASEAN members, trade and investment in Thailand has expanded steadily in recent years on the strengths of its agricultural, automotive, electronics and textiles exporters. The country is more economically liberalised than some of its larger ASEAN neighbours, and although foreign direct investment inflows have trended downward after hitting an all-time high in 2013, the government has implemented several reforms reducing taxes and incentivising investment in high-priority industries. These efforts fit into the broader Thailand 4.0 and Cluster Policy economic development strategies, which seek to promote manufacturing along the country’s Eastern Economic Corridor. This chapter contains interviews with Apiradi Tantraporn, Minister of Commerce; Hiroshige Seko, Minister of Economy, Trade and Industry of Japan; Lim Hng Kiang, Singapore Minister for Trade and Industry (Trade); and Kalin Sarasin, Chairman, The Thai Chamber of Commerce and Board of Trade of Thailand.

Articles from this Chapter

Overview

Out on top: Thailand boosts its robust surplus as it strengthens trade ties
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Benefitting from an export-oriented, industrialised economy and an ideal geographic position with proximity to Japan, China and high-growth ASEAN members, trade and investment in Thailand has expanded steadily in recent years on the strengths of its agricultural, automotive, electronics and textiles exporters. Anders Dong Hasselstrom, managing director of Maersk Line (Thailand), told OBG, “The automotive sector remains the country’s major export and while overall figures have dropped,…

Interview

Expanded opportunities: Apiradi Tantraporn, Minister of Commerce, on the positive impact of special economic zones and e-commerce
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Interview: Apiradi Tantraporn What is your outlook on export growth recovery in 2017, and how can that recovery be achieved? APIRADI TANTRAPORN: Strong growth at a higher pace than the previous year is expected for Thailand’s exports in 2017, with an overall export growth rate set at 5%. In 2016 exports grew by 0.45%, owing largely to the expansion of markets like gold, automobiles and fishery products. However, in 2017 expansion is likely to be more evenly distributed, and key industries are…

Analysis

Powerful partnerships: Thailand works on securing profitable regional agreements
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As one of the biggest beneficiaries of rising consumption in ASEAN and the Cambodia, Laos, Myanmar, and Vietnam (CLMV) market, Thailand has seen regional trade become an increasingly critical trade growth driver. Although the country was not a signatory to the Trans-Pacific Partnership (TPP) free trade agreement (FTA) – which all but collapsed following the most recent US presidential election campaign – it continues to negotiate the Regional Comprehensive Economic Partnership (RCEP),…

Interview

Partners in innovation: Hiroshige Seko, Minister of Economy, Trade and Industry of Japan, on trade developments with Thailand
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Interview: Hiroshige Seko What is the current level of trade and investment between Japan and Thailand? HIROSHIGE SEKO: Exports to Japan account for 9.6% of Thailand’s overall exports, the third largest after the US and China, and imports from Japan to Thailand make up 16% of overall imports, the second largest after China. Japan is by far the largest provider of direct investment in Thailand, accounting for approximately $66.3bn (as of 2015), or 35% of the balance of overall foreign direct investment.…

Interview

Strong ties: Lim Hng Kiang, Singapore Minister for Trade and Industry (Trade), on building strength in the region
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Interview: Lim Hng Kiang How can Singapore strengthen its investment in ASEAN now that the ASEAN Economic Community (AEC) has been established? LIM HNG KIANG: Singapore is committed to the AEC and has substantial investments in it. In 2015 Singapore maintained its position as the highest contributor to intra-ASEAN foreign direct investment (FDI) flows at 67.3% of the total. Singapore is also the second-highest recipient of intra-ASEAN FDI at 15.4%. Key to ensuring positive investment trends between…

Interview

Strong ties: Lim Hng Kiang, Singapore Minister for Trade and Industry (Trade), on building strength in the region
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Interview: Lim Hng Kiang How can Singapore strengthen its investment in ASEAN now that the ASEAN Economic Community (AEC) has been established? LIM HNG KIANG: Singapore is committed to the AEC and has substantial investments in it. In 2015 Singapore maintained its position as the highest contributor to intra-ASEAN foreign direct investment (FDI) flows at 67.3% of the total. Singapore is also the second-highest recipient of intra-ASEAN FDI at 15.4%. Key to ensuring positive investment trends between…

Analysis

Streamlining routes: Eastern Economic Corridor (EEC) development opens up trade relations and investment opportunities
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Thailand is developing its EEC project to attract new foreign direct investment (FDI) inflows for next-generation manufacturing and production as part of the Thailand 4.0 initiative, which emphasises innovation, complex high-tech manufacturing and development of a highly skilled workforce. Investors in the EEC will benefit from an expansive package of incentives, including tax breaks and direct grants. The government has committed to major investment in the area’s infrastructure, with large-scale…

Interview

Progress and partnership: Le Luong Minh, ASEAN Secretary-General, on cooperation and partnership between ASEAN, the US and the EU
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Interview: Le Luong Minh Where can the EU and the US offer more support? LE LUONG MINH: Significant progress has been made in ASEAN-US Dialogue Relations, particularly with the elevation of our alliance to a strategic partnership in November 2015 and the successful convening of the ASEAN-US special leaders’ summit in California in 2016. Besides these milestones, good progress has also been made in the implementation of the ASEAN-US Plan of Action 2016-20. ASEAN appreciates the continued support…

Interview

Progress and partnership: Le Luong Minh, ASEAN Secretary-General, on cooperation and partnership between ASEAN, the US and the EU
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Interview: Le Luong Minh Where can the EU and the US offer more support? LE LUONG MINH: Significant progress has been made in ASEAN-US Dialogue Relations, particularly with the elevation of our alliance to a strategic partnership in November 2015 and the successful convening of the ASEAN-US special leaders’ summit in California in 2016. Besides these milestones, good progress has also been made in the implementation of the ASEAN-US Plan of Action 2016-20. ASEAN appreciates the continued support…