A leap forward in economic relations with Thailand

Anu Mahmud A new dimension in Bangladesh-Thailand cooperation has been opened up with the visit of Thai Prime Minister Yingluck Shinawatra to Bangladesh. The joint statement, issued by Prime Minister Sheikh Hasina and Thai Prime Minister Yingluck Shinawatra on the conclusion of the latter's two-day visit to Dhaka on December 22, 2012, spelt out a number of decisions to strengthen relations between the two countries. There are specific bilateral, regional and sub-regional components of partnership for mutual benefit. From Dhaka's point of view, it is a reflection of its 'Look East' policy. From the Thai side, it reinforces linkage with a promising South Asian country that is steadily growing despite various constraints. An institutional framework already exists between the two countries to enhance and diversify their cooperation in trade and investment. The Bangladesh-Thailand joint commission has been assigned the task of making recommendations on specific areas of cooperation with a major focus on connectivity through increased regional cooperation and development of roads and shipping infrastructures. The two leaders acknowledged the important role of Bimstec (the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) in strengthening closer ties in South and Southeast Asia. One expects a revitalisation of Bimstec as a powerful instrument of collective growth. In specific terms, two memoranda of understanding (MoUs) have been signed to expand bilateral cooperation in agriculture and hold regular consultations to strengthen friendly relations between the two countries. Bilaterally, Bangladesh-Thai trade is aimed to double by 2016 with a rapid reduction in trade imbalance. It appears to be a modest objective given that the inter-state trade grew by 65 per cent in FY 2010-11 alone, compared to the level a year before. There is an unrealised scope to diversify trade in a wide range of products and services. New areas of cooperation include infrastructure development, food processing and power generation. That both the governments have agreed to explore possibilities of cooperation between their respective oil and gas companies to generate opportunities for exploration and production in Bangladesh augurs well. Thailand has also offered technical assistance for in-depth study for development of tourism and hospitality industry in Bangladesh. Thai side was very keen to cultivate closer economic or business relations with Bangladesh. This was evident from a 100-plus-member delegation of the Thai PM which included nearly all the top figures of their business community. Some members of the Thai delegation stayed back in Dhaka after their Prime Minister left to carry out follow-up discussions with business and government leaders on various issues. Thailand of late has emerged as an important player in the Association of South Asian Nations (ASEAN0, the second most successful regional grouping in the world after the European Union. It has developed considerable economic sinews. It is a net food grain-surplus country and can be a regular and reliable supplier of food grains to Bangladesh in short and long terms, should the need arise. Some Thai business leaders showed interest in setting up industries in Bangladesh. Thailand has offered to invest in a big way in our power sector and the tourism and hospitality industry where they are a world- class player and Bangladesh has much untapped potentialities. The Thais have also expressed their desire to make sizeable investments in our infrastructures including the building of an expressway between Dhaka and Chittagong for business use and an elevated expressway in Dhaka. Bangladesh has plans to take lease of Thailand's ample and excess farmlands for growing crops there as part of ensuring our long-term food security. Bangladesh and Thailand can immensely benefit from the expansion of economic ties. This point was highlighted during the Thai PM's short, yet fruitful, visit to Bangladesh. The two countries are already engaged in a mega-project - the Dhaka Elevated Expressway, which is going to be constructed by the Italian-Thai Development Company. The $1.2-billion expressway is so far the biggest project that a Thai company will undertake in Bangladesh as soon as the conditions, like finalisation of the route and land acquisition, are completed. There are a number of other areas where the economic ties between the two countries can be carried further forward. Another very critical area is recruitment of Bangladeshi workers by Thailand. Initially, Thailand is planning to have Bangladeshi workers for its fisheries sector. Hopefully, cooperation in this area will further deepen as Bangladesh is now globally recognised as a source of manpower. Tourism is another key sector where Thailand has achieved tremendous success over the years. In contrast, our performance in this area is still unsatisfactory, despite the fact that the country is having some truly beautiful and attractive tourist spots including heritage sites. Thai government has agreed to provide technical assistance to our tourism industry. There is no doubt that Bangladesh will gain a lot by sharing Thai experience. It will be a great boost for this industry if the Thai businesses invest directly in this sector. Many people across the world appreciate quality medical treatment in Thailand. Prime Minister Sheikh Hasina has requested the Thai government to invest in our health sector. The Bangladesh PM has also invited Thai entrepreneurs to invest in sectors like food processing and power generation. Bangladesh has made remarkable achievements in the pharmaceutical sector. Thailand could be an important market for our pharmaceuticals. The proposal from Bangladesh in this regard has been apreciated by Thailand. Bangladesh may seize the opportunity and encourage Thai investment in the country. It can create an industrial area in the special economic zone, especially for Thai entrepreneurs. The writer is an economic analyst. anumahmud@yahoo.com