Vietnam, Thailand target US$20 billion in trade by 2020

The Industry and Trade Investment Promotion Center of Vietnam and the Kasikorn Bank of Thailand sign a memorandum of understanding on cooperation

There remains much room for Vietnamese-Thai trade and investment growth, Deputy Minister of Industry and Trade Do Thang Hai told a Vietnam-Thailand Trade and Investment Promotion seminar held recently by the Vietnamese Ministry of Industry and Trade’s Trade Promotion Agency, in association with the Ministry of Commerce of Thailand. He expressed hope that bilateral trade could reach US$20 billion by 2020.

According to the Ministry of Industry and Trade, trade and investment between the two countries have improved in recent years. Vietnam is currently Thailand’s second trade partner in the Association of Southeast Asian Nations (ASEAN ), while Thailand is Vietnam’s largest client. Specifically, two-way trade reached US$12.49 billion in 2016, a nine percent increase from 2015.

According to the Ministry of Planning and Investment’s Foreign Investment Department, Thailand has invested in 457 projects in Vietnam with total registered capital of US$7.8 billion, ranking 10th among the 116 foreign countries and territories investing in Vietnam.

Do Thang Hai said at the workshop that the ASEAN Economic Community (AEC) is accelerating the pace of implementing its commitments to achieve four goals. These include (1) forming a united market and production facility, (2) forming a competitive economic region, (3) developing a balanced economy and (4) integrating with the global economy.

As of January 2015, Vietnam had slashed its tax rates to zero percent for 8,603 tariff lines, with the remaining 669 tariff lines to be cut to zero percent by 2018.

As for Thailand, all 9,558 tariff lines in the ASEAN Trade in Goods Agreement (ATIGA) tariff table were terminated in 2012.
Do Thang Hai also said the governments of Vietnam and Thailand are implementing a full array of measures to reduce barriers, facilitate goods transportation and promote the application of the self-certification of origin to provide the best conditions for exporters.

Thailand’s Deputy Minister of Commerce Winichai Chaemchaeng said both countries have favorable transport networks and are applying open policies to reduce barriers and facilitate goods transport, laying a good basis for two-way trade to grow to US$20 billion by 2020.

Winichai Chaemchaeng emphasized the need for both countries to increase exchange via conferences and seminars to seek ways to strengthen links and resolve difficulties for exporters and investors in order to boost trade and investment. He added that businesses themselves need to stay active in market research.

During the seminar, a memorandum of understanding on cooperation was signed between the Industry and Trade Investment Promotion Center of Vietnam and the Kasikorn Bank of Thailand, which will launch joint programs to support Vietnamese and Thai businesses.