Economy, Domestic Economy

Thai Trade Delegation to Visit in Dec.

Thai Trade Delegation to Visit in Dec.
Thai Trade Delegation to Visit in Dec.

Thailand’s Deputy Prime Minister Somkid Jatusripitak will lead a delegation to Iran in December.

The delegation, which is expected to include 50 Thai companies, aims to promote trade and investment between the two countries after the removal of sanctions on Iran.

Thailand’s Deputy Commerce Minister Suvit Maesincee, who will also join the mission, said it was originally targeted at promoting exports and seeking investment opportunities in Iran.

Currently, Thailand does not export much to Iran, but great opportunities are waiting, wrote Bangkok-based English newspaper The Nation.

“With strong demand for many products and many investment projects, Thailand will use the opportunity to strengthen bilateral ties in promoting business-to-business, government-to-government and government-to-private cooperation,” Suvit said.

“Many European enterprises have already resumed trading and investing in Iran, so Thailand should get into this market quickly.”

It is not only rice exports that can benefit from G2G deals, but Thai construction firms also have high potential to join Iran’s government projects.

Suvit said the Commerce Ministry was looking for about 50 Thai companies interested in trading or investing in Iran to join the delegation, as it believes B2B contracts could be signed during the mission, including on the formation of joint ventures.

“Representatives from the Thai Bankers Association, financial institutions and insurance and logistics firms will also join the mission to forge business ties with Iran once they are confident of the payment systems and other processes,” he said.

According to the ministry, Iran is Thailand’s 11th-largest trading partner in the Middle East. Trade between Thailand and Iran was worth $357.17 million in 2014. Exports from Thailand to Iran were worth $322.16 million, while imports were worth $35 million.

This year, exports from Thailand to Iran in the first nine months were worth $168 million, down by 31.52% year-on-year, while imports from Iran increased significantly by 384% to $90.6 million.

Exports from Thailand to Iran are projected to grow by 1% this year.

Major export products from Thailand to Iran include wood and related products, canned and processed fruits, rubber and related products, frozen and dried vegetables, beverages, automobiles and parts, and batteries and parts.

Major import products include steel, iron, chemical products, fruits and vegetables, frozen and processed aquaculture products, medical products, plants, fuel and mineral ore.