Russian firms ready for Thai opportunities

The Russian business mission to Thailand from February 20-22 has paved the way for more trade and investment between the two countries, said Russian business leaders who spoke with The Nation about their business plan in Thailand. 
 Victor N Kladov, the Rostec group’s director for international cooperation and regional policy of Rostec group, said his high-tech firm comprises 16 holding companies and more than 600 enterprises. The group, a state corporation, produces many products including weapons systems, aviation clusters, helicopters, high precision rockets and missiles, combat tanks, and on-board electronics for aircraft, car and truck manufacturing. The company has supplied helicopters to the Thai Royal Air Force. 
He said his company is looking into expanding business with Thailand. For example, it is considering setting up an aircraft maintenance, repair and overhaul centre in the country, possibly in the Eastern Economic Corridor (EEC). Asked about the possibility of direct investment here, he responded that Russian business leaders need first to analyse the business potential. 
Evgeny Matveev, chief executive officer of Rite Ltd, a subsidiary of Rostec, said Russian information technology is outstanding in preventing cyberattacks or threats. Over the last 10 years, there has not been significant damage to IT systems, as the country’s powerful IT systems are designed to prevent such incidents. He said Rite had developed the best Russian IT solutions in the areas of security, transport, finance, energy, education and healthcare. Meanwhile, Pavel Frolov, owner of ROBBO Russia, said he has already found his business partner in Thailand. He sells sets of robotics and computer coding programmes for children. A set costs about Bt16,000. Kids find his computer programmes easy to write, because they do not require previous knowledge of computer code to do it. Kids learn while playing with the simple coding and robotics, he said. 
Arnate Smerasuta, chief marketing officer of Ten Forward Co, a distributor of ROBBO Russia, said he had introduced the robotics and computer coding to schools outside Bangkok. Kids in provincial areas like it, yet the price is quite expensive compared to China-made products, he said. However, ROBBO robotics toy is safe for children and in line with European safety standards. 
 Pisit Serewiwattana, president of Export-Import Bank of Thailand (Exim Bank), said his bank has signed a memorandum of understanding with the Export-Import Bank of Russia to do business together. “It is a good opportunity for Thailand, as Russian authorities are now seriously interested in doing more trade and investment with Thailand,” Pisit said. 
The two banks will first provide information for both sides. Thai exporters have had little knowledge about Russian business communities. Thai exporters also do not have much confidence in a letter of credit issued by Russian companies, so that lack of information is an obstacle for trade, Pisit said. Two-way trade has remained small so far, worth US$1.96 billion (Bt61.5 billion) in 2016. 
The next step building co-operation between the two Exim banks would cover joint financing, or syndicate loans to finance joint-venture projects between Thai and Russian businesses, he said. Facing economic sanction from the western, Russia has turned to focus on Asia. 
 Sakon Waranyuwatana, Thailand’s vice minister for Commerce, revealed that a few joint venture projects were signed between Thai and Russian businesses during the Feb 20-22 Russian trade mission to the country. 
He said Russians wants Thai investors for food processing, energy and other sectors.