TEHRAN: Deputy Prime Minister Somkid Jatusripitak will lead a delegation including 50 Thai companies to Iran in December with the aim of promoting trade and investment between the two countries after the cancellation of international sanctions on Iran.
Deputy Commerce Minister Suvit Maesincee, who will also join the mission, said it was originally targeted at promoting exports and to seek investment opportunities in Iran. Currently Thailand does not export much to that country, but great opportunities are waiting.
“With strong demand for many products and many investment projects, Thailand will use the opportunity to strengthen bilateral ties in promoting business-to-business, government-to-government and government-to-private cooperation,” Suvit said.
Many European enterprises have already resumed trading and investing in Iran, so Thailand should get into this market quickly, he said.
It is not only rice exports that can benefit from G2G deals, but Thai construction firms also have high potential to join Iran’s government projects.
Suvit said the Commerce Ministry was looking for about 50 Thai companies interested in trading or investing in Iran to join the delegation, as it expected some B2B contracts could be signed during the mission, including on the formation of joint ventures.
Representatives from the Thai Bankers Association, financial institutions, and insurance and logistics firms will also join the mission to back up Thai companies wanting to do business with Iran so that they can be confident in the payment systems and other processes, he said.
According to the ministry, Iran is Thailand’s 11th-largest trading partner in the Middle East. Trade between Thailand and Iran was worth US$357.17 million in 2014. Exports from Thailand to Iran were worth $322.16 million, while imports were worth $35 million.
This year, exports from Thailand to Iran in the first nine months were worth $168 million, down by 31.52 per cent year on year, while imports from Iran increased significantly, by 384 per cent, to $90.6 million.
Exports from Thailand to Iran are projected to grow by 1 per cent this year.
Major export products from Thailand to Iran include wood and products, canned and processed fruits, rubber products and rubber, frozen and dried vegetables, beverages, automobiles and parts, and batteries and parts.
Major import products are steel and iron, chemical products, fruits and vegetables, frozen and processed aquaculture products, medical products, plants, fuel, and ore.
Meanwhile, the ministry will also set up a mission to Cambodia in December, which will be led by Suvit. The trip is part of the ministry’s deepening Asean strategy to penetrate the Cambodia, Laos, Myanmar and Vietnam markets.
The ministry will promote top Thai brands to Cambodian buyers, while also visiting the “One Village One Product Exhibition” in that country.
