Exploring Bangladesh-Thailand cooperation

Opportunities are opening up for Bangladesh and Thailand to further expand mutual cooperation through the signing of MoU for direct coastal shipping between Chittagong port of Bangladesh in the Bay of Bengal and Ranong Port of Thailand in the Andaman Sea.
Thailand is an advanced developing economy, and is recognised globally as a hub of the Asia-Pacific region due to its impressive creation, innovation and development of versatile products. Being strategic partners in the region, Bangladesh and Thailand can cooperate with each other both bilaterally and multilaterally. With a well-developed infrastructure, a free-enterprise economy, pro-investment policies and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports -- mostly electronics, agricultural commodities and processed foods.
Now-a-days, due to the increasing labour cost in Thailand, the country is trying to relocate labour intensive industries like jute, textiles, food processing, automobiles, light engineering, leather etc. These are the potential areas where Bangladeshi entrepreneurs can tie up with Thai entrepreneurs in joint venture collaboration in Bangladesh.
Stated below is a chart showing two-way trade between Bangladesh and Thailand in recent times:
MAJOR EXPORTED ITEMS TO THAILAND: Knitwear, engineering products, agricultural products, woven garments, frozen food, home textile, jute goods, chemical products are the major exported items from Bangladesh. Some other small quantity exported items are cotton, leather goods, specialized textile, footwear, plastic articles, manmade staple fibre, Optical, photo, handicrafts etc.
MAJOR IMPORTED ITEMS FROM THAILAND: Plastics & rubber articles thereof, textiles & textile articles, mineral products, products of chemical or allied industries, machinery & mechanical appliances, electrical equipment, prepared foodstuff, base metal & articles of base metal, vegetable products, vessels & transport equipment, pulp of wood products, articles of stone, plaster, cement, asbestos etc are the major imported items from Thailand. Some other small items imported in smaller quantities include optical & photographic articles, clocks, musical instruments etc, footwear, headgear, wood & articles of wood, natural or cultured pearls, precious stones, imitation jewelry, animal or vegetable fats and oils etc.
Given the present state of bilateral trade, there is ample opportunity for our exporters to explore the Thai market in order that the export basket can be expanded manifold with increased export of existing products as well as bringing in more and more new products in keeping with the tastes and preferences of the Thai consumers.  Thai people are comfortable with Bangladeshi products such as Jute goods, pharmaceuticals, leather, frozen food etc. While these along with other existing products should be geared to gain greater market access in Thailand, efforts must be there to innovate new products. At the same time government level efforts must be on to facilitate market access through reduced or duty free export of some of our prospective items.  

Both Bangladesh and Thailand acknowledge the important role of BIMSTEC in strengthening closer cooperation in South and South-East Asia. Apart from working together in the UN, NAM, BIMSTEC, ACD, Bangladesh is now set to work side by side with Thailand as a participant of ASEAN Regional Forum (ARF) and as a new member of Asia-Europe Meeting (ASEM). Both countries' cooperation should be widened regionally and bilaterally by establishing land route to Thailand through Myanmar, exporting manpower, initiating cooperation between ASEAN and SAARC.  
COOPERATION ON THE INVEST FRONT: Bangladesh called upon Thai investors to invest more in the country. This is in line with the intent of Thai investors to expand investment in Bangladesh, particularly in infrastructure development, food processing and electrical and power generation. Bangladesh is pleased with the news and agreed to support Thai investors on the development and establishment of an industrial estate in Bangladesh's special economic zone. Bangladesh commends Thailand's success in tourism and in recent years and expressed interest in cooperating with Thailand, particularly in the field of medical tourism. Thailand can provide academic assistance for tourism development in Bangladesh, and may consider investing in Bangladesh in the area of tourism and services.
SOME ATTRACTIVE FEATURES FOR INVESTING IN BANGLADESH BY THAI ENTREPRENEURS:
LOW COST EFFICIENT WORK FORCE: Bangladesh offers a well-educated, highly adaptive and industrious workforce with the lowest wages and salaries in the region. About 70 per cent of the population is under the age of 30, a positive aspect in recruitment.
TACTICAL LOCATION AND CONNECTIVITY: Bangladesh is strategically located with opening through sea to almost all countries of the region.
STRONG LOCAL MARKET AND GROWTH: Bangladesh has proved to be an attractive investment location with its 157.9 million population and consistent economic growth leading to strong and growing domestic demand and GDP growth at 6 per cent for over 5 years.
COMPETITIVE INCENTIVES AND FOREIGN REMITTANCE: Bangladesh offers the most liberal FDI regime in South Asia, allowing 100 per cent foreign equity with unrestricted exit policy, easy remittance of royalty, and repatriation of profits and incomes. In the just concluded fiscal year, migrant workers sent home $15.31 billion in remittance, the highest in the country's history.
EXPORT PROCESSING ZONES: Bangladesh offers export-oriented industrial enclaves with infrastructural facilities and logistical support for foreign investors. The country is also developing its core infrastructures, including roads, highways, surface transport and port facilities for a better business environment.
SPECIAL ECONOMIC ZONE (SEZ): Bangladesh has already enacted a law on SEZ which facilitates both local and foreign investors to invest in the country by exploiting all necessary incentives allowed for investment. A special Thai SEZ can be established in Bangladesh.  
The joint statement signed by the Prime Ministers of Bangladesh and Thailand on December 22, 2012 could work as the main stepping stone for the two countries to move further. Two Memorandums of Understanding (MoUs) were signed to expand bilateral cooperation in agriculture and hold regular consultation to strengthen business between the two countries. Bangladesh-Thai Chamber of Commerce, as a facilitating organisation of private sector in the country, is trying to play its due role in exploring new areas of bilateral cooperation
The writer is Secretary, Bangladesh-Thai Chamber of Commerce & Industry (BTCCI).  
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