Bangladesh Thailand

Bangladesh Thailand
relationship...
Political
Bangladesh-Thailand relationship boasts of strong political and cultural bonds. With their
diplomatic ties established on October 5, 1972, Thailand opened its Embassy in Dhaka in
1974 and Bangladesh setup it’s Embassy in Bangkok in 1975 at the ambassadorial level.
There have been numerous exchanges of visits between the two friendly countries; the
highest-ranking visits from Bangladesh being the visit by Shaheed President Ziaur Rahman
in 1979, President Hussain Mohammad Ershad in 1985, 1988 and 1990, Prime Minister Kazi
Zafar Ahmad in 1990 and Prime Minister Begum Khaleda Zia in December 2002 and 2004.
The highest ranking Thai dignitaries to visit Bangladesh were Prime Minister Prem
Tinsulanond in 1983, His Royal Highness Crown Prince Maha Vajiralongkorn in 1992 and
Prime Minister Dr. Thaksin Shinawatra in July and December 2002 and January 2004. With
the ‘Look-East’ foreign policy initiative of Bangladesh, the Government to Government and
people to people relationship has been growing from strength to strength since the
establishment of diplomatic relationship between Bangladesh and Thailand.
Trade and Commerce

Although trade volume between Bangladesh and Thailand has steadily increased over the
years, the trade balance continues to remain in favour of Thailand. But sustained growth of
Bangladesh economy and foreign investment in sectors like manufacturing, energy,
agriculture and communication etc has created new avenues for Bangladeshi exporters to
exploit the competitive Thai markets. The Thai Government has given duty concessions to
229 Bangladeshi products. It was granted on two phases. The first phase of tariff concession
on 128 Bangladeshi products was effective since January 16, 2004. The second phase of
tariff concession on the rest 101 Bangladeshi products was approved by the Thai authorities
effective from May 28, 2004. Bangladesh has so far signed six MOUs / Agreements with
Thailand to promote bilateral trade between the two countries.
Bangladesh's export items to Thailand include, among others, finished jute products,
knitwear, ceramic ware, light engineering products, leather products, acrylic yarn, fertilizer,
shrimp, shark fin and fish maws, frozen foods, dry fish etc. Imports from Thailand include,
among others, vegetable products, fresh fruits, processed food, mineral products, textile
articles, oil, paper, iron and steel articles, rubber, plastic products, cement, polymers,
woven fabrics, synthetic yarn, refrigerators, sugar, chemical products, machinery, fish etc.
Trade between Bangladesh and Thailand during the last five years is as follows: (Figures are
in million US dollar)
FY Export Import Trade Balance

2002-2003 25.58 177.88 -152.30
2003-2004 22.79 239.26 -216.47
2004-2005 35.65 338 -302.35
2005-2006 53.63 396 -342.37
2006-2007 22.53 367 -344.47
The private sectors of the two countries are also working together to enhance bilateral trade
for the benefit of both economies. The two nations have signed agreement for the
Promotion and Reciprocal Protection of Investments and MOU on Accounts Trade
Agreements in 2002 and formed Joint Chambers of Commerce on July 9, 2002. Bangladesh
declared Thailand a partner country at the Dhaka and Chittagong International Trade Fairs.
Investment
Bangladesh has a high potential to become an investment destination for the Thai investors
specially in the textile, agro-processing, leather, energy and tourism sectors. The Thai
investors can reap benefits by utilizing the low infra-structure cost, cheap labor and natural
gas of Bangladesh. Thai investment in Bangladesh is gradually on the increase. Total sector-
wise Thai investment in Bangladesh, as registered with the Board of Investment (BOI) up to
December 2004, is US$ 53.66 million in 28 units. The Thai investors are mainly interested
in the sectors of agro-processing, food and allied, textile, tannery & rubber, chemical,
engineering and service industries etc.
Bangladesh welcomes foreign direct investment from Thailand as well as from other
countries in all areas of it’s economy with the exception of only five industrial sectors :
 Arms, ammunitions and other defense equipment and machinery

 Production of nuclear energy
 Forest plantation and mechanized extraction within the bounds of reserved forests
 Security printing (currency notes) and minting
 Air transportation and railways, which are reserved for the public sector
Foreign investors are encouraged to make 100 % direct investment or establish joint
venture projects with the local partners or with the public sector in the following categories:
 Export-oriented industries
 Industries in the Export Processing Zones
 High technology import-substitute products
 Undertaking in which more diversified use of indigenous natural resources is-possible
 Basic industries based mainly on local raw materials
 Labor intensive/technology intensive/capital intensive industries
 Relocation of high technology related industries
Economic
The Joint Commission on Cooperation Agreement signed on January 29, 1982 between
Thailand and Bangladesh and the BIMSTEC are the basis of economic cooperation between
the two countries. Under the umbrella of Joint Commission on Cooperation Agreement, both
the countries are making endeavors to promote bilateral economic and technical
cooperation in the following areas:
 Agriculture
 Fisheries
 Science and Technology (An agreement is pending)
 Tourism development
 Private sector and joint investment (an agreement on promotion and protection
of investment and capital is pending)
 Maritime and Civil Aviation
 Study tours and training
It is high time for Bangladesh to boost relations with Thailand in order to involve her with
Asean, East Asia, China and Japan, into a wider "Asian home" to nurture the economic
diplomacy adopted in recent times.
On the other hand, Thailand's emerging economy might help shape our futures.
Bangladesh needs to pay greater attention to creating economic linkages between South-East
Asian nations through the Asian highway and its immediate neighbours -- Myanmar and
Thailand. India's "Look East" policy is drawing it closer to South-East Asian countries.
Bangladesh should join them actively and immediately.

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Bangladesh Thailand

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Bangladesh Thailand

Trade and Commerce

FY Export Import Trade Balance

 Arms, ammunitions and other defense equipment and machinery

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