Thailand - Viet Nam economic cooperation towards a brighter future

Thailand and Viet Nam have a long-standing close relationship. The two sides always give each other practical support in economic and trade, and economic cooperation between the two countries has made remarkable progress.

Since 2012, the mechanism for regular meetings of the Thailand - Vietnam Joint Committee for Trade has been maintained annually in order to resolve issues of trade barriers, contributing to promoting effective cooperation in many fields such as cooperation on agricultural commodities, promotion and facilitation of trade and investment, as well as cooperation among the private sector.

Mr Jurin Laksanawisit, Thai Deputy Prime Minister and Minister of Commerce. (Source: Thai Ministry of Commerce)

In addition, the Ministry of Commerce also supports trade promotion activities to raise bilateral trade volume, such as trade fairs and business networking events, and encourages the Thai private sector to organize promotion activities for Vietnamese products in Thailand.

In recent years, economic ties between Thailand and Viet Nam have been seen with great development. Bilateral trade value increases annually and the two countries become each other's leading trading partners. In 2020, Thailand-Vietnam trade turnover reached over VND 16.6 billion.

Looking back over the past decade, the two countries' trade turnover has more than doubled with an average growth rate of 8.7% per year.

This is a relatively high growth rate compared to the trade turnover between Thailand and other ASEAN member countries. Trade growth is mainly driven by imports and exports of raw materials and intermediate goods, reflecting the fact that Thailand and Viet Nam are both in the same production chain.

In addition, Thailand's import of finished goods, including industrial products such as motorcycles, and agricultural products such as vegetables and fruits, as well as various food products from Vietnam, is increasing. Vietnamese goods are known and preferred by Thai consumers.

Besides, with confidence in Viet Nam's economic potential, the number of Thai investors investing in Vietnam has continuously increased in recent years. The two sides have closely supported each other in industrial and trade development in areas of mutual benefit, as well as promoted investment cooperation between the private sectors of the two countries.

In 2021, given the complicated Covid-19 pandemic which had effects on almost all countries over the world, the bilateral trade between Thailand and Viet Nam in the first six months of the year continues to increase by 31.03%.

This fact shows that the economic and trade links between the two countries are increasingly strong and reciprocal. Thailand and Viet Nam have enhanced their cooperation in using technology to meet development requirements in the new economic period, such as knowledge exchange and production innovation, so as to develop supply chains in the region that Thailand and Viet Nam have connected along the production chain. It is also to accelerate the value chain of agricultural products as both Thailand and Viet Nam are big producers and exporters of agricultural and food products in the world.

Vietnamese Ambassador to Thailand Phan Chi Thanh (left) in his courtesy visit to Thai Deputy Prime Minister and Commerce Minister Jurin Laksanawisit on June 7, 2021. (Photo: Trung Anh)

In addition, the two countries also created a development environment in other fields such as connecting payment systems and applying electronic customs systems to facilitate convenient and fast trade. The two sides organized online trade promotion activities in various ways to solve trade problems in the new normal in the most effective way. Viet Nam's outstanding economic growth and comprehensive trade liberalization is an important factor contributing to a stronger growth in trade between Thailand and Viet Nam in the time ahead.

On the occasion of the 45^th anniversary of the establishment of diplomatic relations between Thailand and Viet Nam, I would like to thank the government leaders and the private sector of Viet Nam for creating favorable conditions to promote bilateral trade and maintain and promote economic cooperation through effective cooperation mechanisms.

It is emphasized that the Thai Ministry of Commerce always wishes to boost close cooperation with the public and private sectors of Viet Nam to develop the economies of both countries, as well as make good use of the relationship in Strategic Partnership in increasing opportunities for the economy and trade of the two countries to step up together steadily. I am also very pleased that Viet Nam achieved 2.9% economic growth in 2020 despite the complicated situation of the COVID-19 pandemic.

And I have a strong belief that, with the active support of the Vietnamese government, along with a solid foundation in production and export, Viet Nam's economy will continue to grow impressively and achieve the goals set by the Vietnamese government.

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