Vietnam and Thailand are neighbouring countries with cultural similarities as common ground to promote trade and investment. On the occasion of 35th anniversary of the establishment of diplomatic relations between the two countries, reporter Anh Phuong interviewed Dr. Ta Quang Ngoc, President of Vietnam-Thailand Friendship Association.
How do you evaluate trade and investment relations between Vietnam and Thailand in recent years?
Vietnam and Thailand established diplomatic relations in 1976. Bilateral economic cooperation has developed since 1991 and especially when Vietnam joined ASEAN in 1995. In the past 35 years, leaders of the two countries have made great efforts to promote bilateral cooperation. Currently, Thailand is among the top ten of countries investing in Vietnam and ranks third among ASEAN countries after Singapore and Malaysia.
The two-way trade value continues to increase. Main Vietnamese exports to Thailand are crude oil (32.03 percent) and coal (3.74 percent). Other important trading items are computers, electronics and parts (22.19cent), aquatic products (5.25 percent), agricultural produce (3 percent including cashew nut 0.72 percent, vegetable and fruit 0.61 percent), apparel (1.5 percent), and footwear (0.55 percent). The export of those items can increase in the future. Meanwhile Vietnam imports from Thailand auto parts (8.81 percent), plastic materials (7.65 percent), machines, equipment and parts (7.56 percent), petroleum (7.54 percent), motorbikes and parts (7.09 percent), steel (4.38 percent).
In the coming years, the bilateral cooperation will increase vigorously due to the development of production and service sectors. With the completion of the East-West Corridor of the Greater Mekong Sub-region, Vietnam and Thailand will be linked by railways. The development of transport infrastructure will reduce the cost for business communities of the two countries.
I believe that, trade and investment cooperation between the two countries will continue to expand and deepen. The two countries can increase trade value 5-10 percent a year. However, Vietnam should be careful of trade deficit. Regarding investment, Thai businesses wish to come back to Vietnam. Thai private sector is quite strong with financial resources and wishes to make the best use of cheap labour in Vietnam, a neighbouring country.
Which are main areas of cooperation with Thailand?
Thailand is among the top ten of countries investing in Vietnam. Thai businesses focus on provinces in Central Vietnam with investments in industry, aquatic products processing, infrastructure development and services. Important Thai businesses are CP Vietnam with investment capital of US$328 million; SAS CTAMAD, US$72.6 million; Long Binh joint venture, US$46 million; TCP VINA plastics in Dong Nai IZ, US$90 million. In addition, Thailand is also a big exporter of aquatic products with world biggest resources. Vietnam can learn from Thailand to develop aquaculture, processing as well as how to deal with policy and barriersimposed by up-markets such as Europe, USA and Japan.
Vietnam and Thailand are the two world biggest rice exporters, is there any danger of harsh competition in the future?
True, Thailand and Vietnam are two leading rice exporters in the world. However, there are differences in characteristics and categories of rice between the two countries. Most of Thai rice is with flavour while Vietnamese rice is of 5 -10 percent of broken rice. The difference prevents overlapping in markets and harsh competition. It can even promote cooperation in rice export. Accordingly, Vietnam and Thailand can cooperate in post-harvest maintenance, storing and prevention of diseases.
Thailand is well-known with tourism development, how can Vietnam cooperate with Thailand in this field?
In fact, Thailand is very successful in developing tourism, contributing important revenue to annual budget. Thailand has developed a good planning for tourism industry. Vietnam and Thailand with geographical and cultural closeness can attain the goal set by the two countries of one million tourists before 2015. Thai businesses have indeed made big investments in airlines and hotels in Vietnam. Thailand is quite successful with slogans attracting tourists for recreation and shopping. In addition, as far as I know, Governors of Thai provinces have encouraged local people to learn Vietnamese language. It will help people of the two countries to understand each other better and promote tourism.
How do you assess cultural and educational cooperation between the two countries?
As I mention earlier, Vietnam and Thailand have shared a long history of cultural exchanges. Several Thai officials told me that deep inside Thai culture, there is Vietnamese cultural trait. As a matter of fact, many people in Thailand are studying Vietnamese language. The educational exchanges between the two countries continue to increase. By March 2011, there are nearly 1,000 Vietnamese students studying in Thailand. Each year, two Thai cultural seminars are organized in Vietnam. On the occasion of one-thousand-year Thang Long – Hanoi, Thai Prime Minister sent a painting and a delegation of Thailand-Vietnam Friendship Association visited Vietnam to celebrate together with Vietnamese people on the anniversary.
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