Thailand, Iran target bilateral trade of $1.2 bn within 3 years
Thailand and Iran are aiming at boosting two-way trade to US$1.2 billion in three years, up from $300 million in 2014, after the Thai government sent its first mission there to form closer economic ties now that trade sanctions on that country have been l
After meeting with key economic ministries – Trade, Petroleum, Roads and Urban Development, and Industry – in Tehran, Deputy Commerce Minister Suvit Maesincee said the two countries had great opportunities to strengthen trade and investment, and cooperate in the tourism industry.
"Thailand is being considered as a source of food for Iran and a gateway to Asean markets, particularly Cambodia, Laos, Myanmar and Vietnam, while Iran could be a gateway for Thailand to penetrate the Middle East market," he said.
The two countries agreed to reorganise the meetings of the Joint Commission between the two sides to drive closer cooperation on various issues starting next February.
Deputy Prime Ministers Pravit Wongsuwan and Somkid Jatusripitak will lead Thai delegations to Iran again in early February.
Bilateral trade averaged about $600 million a year in the past, but fell to about $300 million last year on lower oil prices. During the first 10 months of this year, Thailand’s exports to Iran were worth $181 million. With strong demand from Iran for many products and many investment projects, Thailand will also have greater opportunities to strengthen bilateral ties in promoting business-to-business, government-to-government and government-to-private cooperation in investment and in service businesses.
Iran has shown strong interest in drawing more investment from Thailand in infrastructure development projects.
The Thai government led by the National Housing Authority and ItalThai has good potential to join G2G and G2P projects launched by Iran’s new town-development corporation.
Iran also would like to form a closer relationship with Thailand in promoting and developing its tourism industry, as its sees that Thailand has high expertise in this field.
Thailand could invest in building hotels and shopping malls. It could set up a hotel-management school.
It will also encourage more Iranians to visit the Kingdom, which is one of the desired destinations for Iranian tourists for entertainment and medical services.
Each year, about 100,000 Iranians travel to Thailand. The Thai government will also speed up approval of visas for Iranians. Visa applications run about 300-400 each day.
To facilitate trade for both sides, the Central Bank of Iran and the Bank of Thailand are developing banking and financial-transaction systems. Payments should be easier to make in the near future.
Thailand will have a greater possibility of exporting rice to Iran. Iran demands about 1 million to 1.5 million tonnes of imported rice each year.
Initially, Thailand through both government and private exporters should be able to ship about 200,000 tonnes of rice to Iran next year. Iran has been buying rice from India and Pakistan.
After 53 Thai companies participated in a business-matching function with Iran, $7.2 million (Bt260 million) worth of immediate purchase contracts were clinched.
