Thailand should explore the benefits of Visegrad Group

V4 is not a household name in Thailand, though it is the most dynamic part of the European Union. The group comprises four countries – Poland, Czech Republic, Hungary and Slovakia – that share a common history, a tradition of political and economic interaction and a dedication to common values of liberal democracy and market economy. 

Poland is the largest economy in V4, accounting for 60 per cent of the population and half of the economic force; and perhaps also the most successful. 

World Bank expert, Dr Marcin Piatkowski, in his paper, Poland’s New Golden Age, illustrated how Poland has outperformed other countries in the region in terms of developmental dynamics. In another text published by the Brookings Institution, Piatkowski explains how Poland achieved an edge relative to its regional peers:

“There were a number of likely factors. First of all, Poland seems to have been more thorough in introducing market oriented-reforms at the beginning of transition (as well as during the dying days of socialism). This helped spawn a private sector boom and move the country out of the post-transition recession already in 1992, before others. Poland was also quick to follow the early market reforms with robust institutional building, and was rewarded with accession to the OECD in 1996. Quite importantly, it managed the privatisation process in a broadly efficient and transparent way. Lastly, Poland benefited from a large and rapidly growing domestic market, which helped to insulate it from external shocks, such as those in 2008-09.”

Thailand’s policy makers and scholars already know that V4 represents new, interesting opportunities. Hence, the recent activities.

In March, the Ministry of Commerce’s Department of International Trade Promotion (DITP) organised Central European Day to promote cooperation with V4 countries. It attracted over 200 Thai businesses. The event included presentations by representatives of V4 and by Thai commercial counsellors based in V4 countries. Testimonies of Thai businesses that operate in V4 were presented. The final part included the “export clinic” – one-on-one meetings with companies. 

In May, Chulalongkorn University’s Centre for European Studies organised a V4 day to educate students about the V4. 

And there’s more to come. In June, DITP is planning to bring a group of business people to V4 countries to investigate trade and investment opportunities. In October, economic and commercial counsellors of the V4 embassies will go on a roadshow to DITP regional offices to promote bilateral cooperation and to reach the business sector outside of Bangkok. 

If Thailand is serious about its economic expansion, and there is no reason not to believe that it is, then it needs to focus on new emerging powerhouses such as V4, where opportunities are great and long lasting. 

Already, Thailand’s trade with the Visegrad group is growing faster than with the rest of Europe. This is a welcome trend. 

But now more effort is needed and Thailand must be quick. Other Asian economies have already identified the potential of Central Europe and V4, with its political stability, liberal market economies and consumer markets far from saturation. China’s cooperation with Central-Eastern European nations dubbed “16 plus 1” is a good example. Consequently, if we are all committed, the economic interaction between Thailand and the V4 will continue to increase. And eventually, V4 will become a household name in Thailand.

DR ANDRZEJ BOLESTA is chief economist at the Embassy of Poland in Bangkok and the author of "China and Post-Socialist Development". He has a PhD from the London School of Economics and an MSc from the Oxford University.