Thailand eyes shift from traditional trade to strategic economic engagement with Bangladesh

Ambassador of Thailand to Bangladesh Thitiporn Chirasawadi has said they envision the next few years as a transformative period where the bilateral relationship between Bangladesh and Thailand graduates from a traditional trading partnership to a strategic economic engagement.

"Building on the momentum of our 50th anniversary of diplomatic ties celebrated recently, our primary goal is to initiate and finalise the Free Trade Agreement (FTA) negotiations as soon as possible," she told UNB in an interview today (3 December).

For the FTA, a Letter of Intent (LOI) was signed in April 2024.

The ambassador said this agreement will be pivotal in dismantling tariff barriers and catalysing bilateral trade beyond the current volume of approximately $1.2 billion.

"Furthermore, we see Bangladesh not just as a market, but as a key connectivity hub linking South and Southeast Asia," said the Thai envoy who presented her credentials last month.

With Thailand's "Look West" policy synergising with Bangladesh's "Look East" policy, Ambassador Chirasawadi said they anticipate a significant increase in Thai investment in Bangladesh's Export Processing Zones (EPZs), particularly in agro-processing and logistics.

The evolution of the Bangladesh-Thailand relations will be defined by this shift towards deeper economic integration and physical connectivity, fostering a resilient partnership that supports Bangladesh's graduation from LDC status in next year, she said.

Steadfast regardless of political cycles

As a close friend and partner, the Ambassador said they trust in the desire of the Bangladeshi people and their institutions to navigate this period.

"Our commitment to the Thailand-Bangladesh partnership remains steadfast regardless of political cycles," said the ambassador.

She said they are confident that a stable and prosperous Bangladesh will continue to play its indispensable role in the region, driving the momentum of South Asia-Southeast Asia connectivity that benefits all our citizens.

Bimstec and Bangladesh

Responding to a question, Ambassador Chirasawadi said Thailand fully supports Bangladesh's chairmanship and is committed to ensuring a seamless continuity of the "Pro Bimstec" agenda-Prosperous, Resilient, and Open, as outlined in the Bimstec Bangkok Vision 2030 during the chairmanship of Thailand.

"We will work closely with Dhaka to fast-track the conclusion of the Bimstec Free Trade Area negotiations, providing the technical support and diplomatic backing needed to build consensus among member states," she said.

The ambassador said their shared goal is to transform the Bay of Bengal into a thriving economic corridor.

Specifically on connectivity, the envoy said, Thailand will coordinate with Bangladesh to accelerate the implementation of the Bimstec Master Plan for Transport Connectivity.

"We view Bangladesh as the vital bridge between South and Southeast Asia," said ambassador Chirasawadi.

Therefore, she added, Thailand will actively participate in working groups to push forward the Trilateral Highway's extension and its linkage to Bangladesh, ensuring that physical infrastructure is matched by soft infrastructure like cross-border motor vehicle agreements.

"More importantly, I am of the view that people-to-people connection has to be the crucial part of the regional connectivity," the envoy said.

Potential areas for joint initiatives

The ambassador said both Bangladesh and Thailand are maritime states with shared vulnerabilities to climate change, making the blue economy one of the significant areas of cooperation.

"We see immense potential in operationalising the memorandum of understanding (MOU) between the Port Authority of Thailand (Ranong Port) and the Chattogram Port Authority, signed in December 2021," she said while responding to a question.

Such new maritime route can significantly shorten maritime transport time from the current 12-15 days to just 3-4 days, which can largely help save fuel and the maritime environment, Ambassador Chirasawadi said.

This collaboration can expand into sustainable port management, green logistics, and coastal resource conservation, ensuring our maritime activities drive economic growth without compromising marine ecosystems, she said.

Additionally, she said, Thailand is eager to share expertise through our Bio-Circular-Green (BCG) economy model, which promotes sustainability in agriculture and industry.

"We can launch joint initiatives in climate-smart agriculture and disaster risk reduction, leveraging Thailand's experience in sustainable development. Furthermore, we can co-develop solutions for renewable energy and sustainable fisheries that directly benefit our coastal communities," Ambassador Chirasawadi said.

Promising agenda

Responding to a question, the ambassador said the most promising immediate agenda is the establishment of a direct coastal shipping route between Ranong Port and Chattogram Port.

Once fully operational, she said, this route will reduce maritime transport time from the current 12-15 days to just 3-4 days, significantly lowering logistics costs and enhancing the competitiveness of products from both nations.

This initiative alone has the potential to create bilateral trade dynamics, making Thailand a more accessible source of raw materials for Bangladesh's industries, Ambassador Chirasawadi said.

"Furthermore, we see high-potential opportunities in food processing and the Halal industry," she said.

Thailand's expertise in food technology combined with Bangladesh's vast domestic market offers a lucrative landscape for joint ventures, the Thai Ambassador said.

Additionally, she said, they are keen to expand cooperation in the energy sector and medical tourism.

"We also would like to thank Bangladeshi people for trusting Thailand's medical services," she said, adding that they look forward to doing more to serve the growing demand in this field.

People-to-people relations

The Royal Thai Embassy aims to support and expand their medical tourism, edu-tourism, as well as scholarship programmes to deepen mutual understanding.

At present, Ambassador Chirasawadi said one particularly interesting initiative is the Thai Food Promotion Project in Bangladesh, implemented under the policy of "Thai Kitchen to the World".

This initiative, she said, is believed to help promote Thai cuisine abroad and enhance Thailand's agricultural and food innovation by showcasing local Thai strengths to the international community-from local to global.

The embassy seeks to foster stronger relations with Bangladesh by using food diplomacy to helps strengthen people-to-people ties between the two countries together.

"Moreover, we aim to institutionalise regular cultural exchanges that go beyond annual festivals. We are exploring partnerships between Thai and Bangladeshi artistic institutions to co-create events that highlight our shared heritage and religious links, particularly in Buddhism," said Ambassador Chirasawadi.

By facilitating direct interactions between our youth, artists, and educators, she said, they hope to build a foundation of friendship that transcends diplomatic formalities and fosters a genuine, long-lasting bond between our peoples.

Strengthening democratic institutions

Responding to a question, Ambassador Chirasawadi said Thailand views governance cooperation primarily through the lens of technical assistance and capacity building, facilitated by the Thailand International Cooperation Agency (TICA).

"We see significant opportunities to collaborate on public sector efficiency and digitisation, sharing our experiences in e-governance and service delivery reforms," she said.

The ambassador mentioned that they are ready to organise training programmes and exchange visits for public officials to share best practices in public administration and policy implementation.

"Our approach is anchored in mutual respect and the exchange of technical know-how rather than prescriptive measures," she said.

The ambassador said they believe that robust institutions are built through continuous professional development and adapting successful administrative models to local contexts.

"Therefore, we are open to partnering with Bangladesh's training institutes to co-develop modules on good governance, transparency, and public service innovation that align with Bangladesh's own national reform priorities," said Ambassador Chirasawadi.

Drawing from previous experience in Nepal, the Ambassador said she observed the cultural values shared among South Asian countries, including Bangladesh.

"This has enabled me to understand the various contexts of these countries, particularly their local communities as well as the regional context," she said.

Such understanding, the envoy said, they will contribute to the formulation of appropriate policies and cooperative approaches that can further advance the shared interests and prosperity of both countries in the years ahead.