Vietnam and Thailand anticipate 25 billion USD in bilateral trade

President Nguyen Xuan Phuc's upcoming official visit to Thailand and his attendance at the 29th APEC Economic Leaders' Meeting in Bangkok from November 16–19 are anticipated to serve as a catalyst for closer bilateral ties and increased two-way trade. Two-way trade between Vietnam and Thailand reached 17.8 billion USD in the first ten months of this year, up 22.8% year on year. At this growth rate, the Department of Asia-Africa Markets of the Ministry of Industry and Trade anticipates that the market will soon reach the goal of 25 billion USD.

The department reported that the two governments had formed a Joint Trade Committee, co-chaired by the Vietnamese Minister of Industry and Trade and the Thai Minister of Commerce, to resolve issues in economic and commercial relations. In April, the fourth meeting of the committee was held in Bangkok under the leadership of the two ministers.

Vietnam and Thailand anticipate 25 billion USD in bilateral trade (Illustrative image).

Vietnam, Thailand, and other ASEAN members have also joined bilateral and multilateral agreements, such as the ASEAN Trade in Goods Agreement, ASEAN's free trade agreements with partner countries, and the Regional Comprehensive Economic Partnership – the largest free trade agreement in the world, which went into effect in early 2022. Since normal travel conditions have been restored following the COVID-19 outbreak, trade promotion activities such as market survey trips, seminars, exhibitions, and fairs have been conducted in person.

More than 60 percent of Vietnam's total exports to Thailand consist of manufactured and processed goods, including mobile phones and spare parts, machinery and equipment, computers, electronics and accessories, transport vehicles, metal products, and apparel. Construction materials, particularly iron and steel, are also significant foreign exchange earners for Vietnam.

However, the exports of Vietnam and Thailand are comparable, particularly agro-fishery products, creating competition. Thailand has thus far only permitted the importation of five varieties of Vietnamese fruit: white and red dragon fruits, lychee, longan, and mango.

Nguyen Thanh Huy, from the Vietnam Trade Office in Thailand, stated that Thai consumers prefer processed and packaged foods, so Vietnamese exporters should concentrate on developing market-specific strategies and trademarks for low-sugar and low-fat foods, in addition to e-commerce.

He suggested that they adhere to technical standards and employ modern technology in processing and preservation in order to maintain product quality during transportation, as well as participate in more exhibitions and fairs to promote their products and find business partners.

The Vietnamese Minister of Industry and Trade, Nguyen Hong Dien, wished that the Vietnamese Ambassador and the Vietnamese Embassy in Thailand would continue to assist the Vietnam Trade Office in organizing cooperation activities between the two nations, thereby contributing to the economic growth and friendship between the two nations.