A New High for Thailand - China Economic Cooperat…

原创 Amb Arthayudh 中国投资参考

H.E. Mr. Arthayudh Srisamoot

Ambassador of the Kingdom of Thailand to China

⬆ Famous Tourist Destinations in Thailand

The journey of cordial relations between Thailand and China since the establishment of diplomatic relations in 1975 can be characterized by two important keywords — “friendship and cooperation”. Both countries have reaped the benefits of successful cooperation, joined hands to overcome challenges, and maintained close people to people exchanges, forging a close and deep-rooted connection as aptly described by the Chinese saying “Zhong Tai Yi Jia Qin” （中泰一家亲).

Since the beginning of time, economic and trade cooperation between Thailand and China have always been the fulcrum of our bilateral relations, and continues to grow steadily despite the impact of COVID-19. China has remained Thailand's largest trading partner for ten consecutive years, and has been a major export market for Thailand's agricultural products. According to statistics by the Board of Investment of Thailand, during the first 9 months of 2022, the investment volume from China into Thailand, which applied for the investment promotion, has increased to 1.2 billion U.S. dollars. However, there is room for more bilateral trade and investments, given the long history of friendly ties between the two countries.

Maintaining the trajectory and momentum of this special bond is all the more crucial at a time of acute political polarization and global economic slowdown. As close neighbors, important economic partners, and supporter of free trade and multilateralism, our unwavering commitment to the peaceful and sustainable advancement of this region will help to inject new impetus to the recovery and stability of the global economy, as well as move forward to a new era of enhanced bilateral relations and economic cooperation.

Reaching new heights

The visit by President Xi Jinping to Thailand in November 2022, the first in 19 years by a President of the People’s Republic of China, signaled a historic milestone in the bilateral relations of our two countries. The visit was also most timely, as 2022 marked the 10th anniversary of the establishment of the Thailand - China Comprehensive Strategic Cooperative Partnership. During the visit, President Xi had a Royal Audience with His Majesty the King and Her Majesty the Queen at the Grand Palace in Bangkok, and a bilateral meeting with Prime Minister Prayuth Chan-o-cha.

Leaders of the two countries jointly witnessed the signing of numerous significant documents, namely the Joint Action Plan on Thailand - China Strategic Cooperation (2022 - 2026), the Cooperation Plan on Jointly Promoting the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and other documents on economy, trade, investment, e-commerce and scientific and technological innovation.

Both sides also released a Joint Statement on Working towards a China-Thailand Community with a Shared Future for Enhanced Stability, Prosperity and Sustainability, which will chart the future direction of the relations as the two countries prepare for the 50th anniversary of the establishment of Thailand - China diplomatic relations in 2025.

The resounding success of the bilateral meeting, as well as the important documents inked during the visit, have paved the way and served as important guideline for a deeper and closer bilateral cooperation, especially in economic areas, which till today remains the heart of the Thai - Chinese bilateral relations.

Forging new partnership

The congregation of APEC leaders in Bangkok in November 2022, was the first in-person interactions of leaders in 4 years and the resumption of face-to-face diplomacy that no technology can fully replace. Under the strong support of China and member economies, 2022 saw Thailand, as host economy, navigated through a year full of uncertainties to achieve numerous key deliverables. These include the FTAAP Agenda Work Plan 2023 - 2026 to push forward a refreshed conversation on the Free Trade Area of the Asia Pacific (FTAAP) in the post-COVID context, and to carry on the torch of the Beijing FTAAP Road Map proposed by China in 2014, and the Safe Passage Taskforce to build resilience in the region’s travel infrastructure against future disruptions.

During the APEC Economic Leaders’ Week, Prime Minister Prayuth Chan-o-cha and President Xi Jinping along with other member economies leaders jointly adopted, by consensus, two important outcome documents, namely the 2022 APEC Leaders’ Declaration and the Bangkok Goals on BCG Economy Model, which is APEC’s first comprehensive framework to advance APEC’s sustainability agenda in a bold, transformative, balanced and ambitious manner. These outcomes illustrate the joint commitment of Thailand and China, to join hands with APEC member economies in realizing the sustainable agenda and find solutions to effectively address pressing economic challenges of this region.

As Thailand’s home-grown approach, the BCG model capitalizes on the country’s strengths in biological diversity and cultural richness and employs technology and innovation to transform Thailand to a value-based and innovation-driven economy, while maintaining balanced growth in harmony with the environment. The model is well in line with China’s Global Development Initiative and conforms to the UNGA’s 2030 Agenda, calling for joint partnership in promoting sustainable development in the region, offering means of helping businesses to remain profitable, while also being environmentally friendly.

Exploring new opportunities

As the second largest economy in ASEAN, Thailand presents ample investment opportunities for Chinese businesses and continues to be one of the most successful countries in the region for attracting foreign direct investment. According to the World Economic Forum, Thailand’s Global Competitive Index 4.0 ranking improved to 40th place out of 141 countries in 2019, while the World Bank Group’s 2020 Ease of Doing Business report ranked Thailand 21st out of 190 countries. Moreover, Thailand was ranked No. 1 on the US News & World Report’s chart of the Best Countries to Start a Business in 2020.

Known as the “Detroit of Asia” and the “Kitchen of the World”, Thailand remains one of the most prominent production and export base in this region for both industrial and agricultural products. Furthermore, Thailand has signed 14 Free Trade Agreements (FTA) to realize the almost tariff-free trade with 18 different nations. Among which, RCEP, which came into force in 2022, is the world’s largest free trade agreement, covering nearly a third of the global population and about 30 percent of the global gross domestic product. The opportunities for regional economic integration promoted by the RCEP will boost trade in the region and bolster the scale and quality of Thailand and China’s economic and trade cooperation to a new level.

To strengthen Thailand’s economic prowess, the Thai government has developed the Eastern Economic Corridor (EEC), a flagship megaproject that aims to become ASEAN’s leading economic zone for industrial, infrastructure, and urban development. Spanning over 13,000 sq.km. across the 3 provinces of Chonburi, Rayong, and Chachoengsao, EEC focuses on 12 targeted industries of the future, such as next-generation automotive, intelligent electronics, robotics, and food for the future. It has also established 5 promotional zones for specific industries, including the EECh High-Speed Railway, EECa Airport City, the EECi Innovation Platform, EECd Digital Park, and EECmd Medical hub. To support innovation-led business within the EEC, the investment environment features numerous tax and non-tax incentives.

In addition to capital infrastructure, the Thai government is committed to capacity building in human resource development and has designed a wide range of vocational education programs to ensure that Thai workforce has the right skills and is able to meet the requirements of future jobs, especially in emerging technologies such as robotics, automation and AI.

Opportunities for Chinese investors thus go far beyond Thailand’s traditional industries of automobile and electronics, but can extend towards other new targeted industries. With supportive incentives from the government, along with the existing expertise of the domestic supply chain, Thailand is an excellent choice for potential Chinese investors seeking to tap into the ASEAN market and beyond.

A shining example is the Thai - Chinese Rayong Industrial Zone, which was established in 2006, and is now one of the biggest Chinese industrial sites overseas, with more than 180 Chinese invested companies.

Thailand has become the second home for numerous global multinational enterprises, and a supply chain hub for major industries. In recent years, numerous Chinese automobile companies, such as Great Wall Motors and SAIC Motor (owner of MG and LDV brands) have established manufacturing presence in Thailand. In 2022, BYD, China’s top electric vehicle producer, officially made Thailand its first production hub in Southeast Asia, which is also BYD’s first wholly invested passenger car factory outside China.

Thailand welcomes other potential Chinese companies to follow suit and capitalize on the equipped EV infrastructure, developed supply chain, favorable investment policies, and strong domestic demand. As part of our goal to be the EV production hub in the region, Thailand believes that the exchange of best practices and know-how in such sectors will bring about the transformation towards a greener and low-carbon society.

To further facilitate and expedite the investment process, the Board of Investment of Thailand has established three offices in Beijing, Shanghai and Guangzhou, to effectively serve as channels of communication and disseminate useful information regarding Thailand’s investment policies. (For more information, please visit https://www.boi.go.th)

Amazing new chapter

Thailand’s economy has remained resilience throughout the impact from COVID-19. In the third quarter of 2022, the economy expanded by 4.5 percent, and in the first 9 months grew by 3.1%. Thailand’s GDP in 2023 will expand approximately 3 - 4 %, and the economy is likely to improve from 2022 supported by the expansion of domestic demand, the increase of the production sector, and the recovery of the tourism sector.

Since October 2022, Thailand has fully reopened to the world. The tourism Authority of Thailand has launched the new tourism concept for the year 2023 under the campaign “Amazing Thailand, Amazing New Chapters” with fascinating destination and services offering something for everyone. Thailand is proud to showcase its soft-power foundations, including Food, Film, Fashion, Fighting (Thai Boxing), and Festival. To that end, we have developed different forms of tourism for a variety of purposes, be it cultural, historical, gastronomy, wellness and medical, just to name a few.

Thailand is ready to welcome Chinese tourists and has made the necessary preparations to meet the demands of tourists in the post-COVID era, such as new normal tourism, which strictly complies with health and sanitation measures, as well as contactless (digital) payment services.

Now, with Thailand fully reopened, international visitor and yacht arrivals are on the rise, international events and local festivals are being held, and airlines are resuming flights from countries around the world. In 2022, Thailand received over 10 million tourists, a clear sign of visitor’s confidence in Thailand as a preferred tourist destination and a well-established status as one of the world’s most popular holiday spots. It therefore comes with no surprise that Thailand has consistently garnered prestigious awards and rankings from numerous agencies. Our capital, Bangkok was ranked the “Best City in Asia-Pacific” by Destinasian Magazine’s 2022 Poll and “Best Leisure Time City in Asia-Pacific” by Business Traveller for 6 consecutive years. Chiangmai was a top contender for “Best City for Workation”, meanwhile Phuket and Samui were reputed highly as “Best Islands in Asia-Pacific”.

Thailand also presents itself as the perfect location for “work from anywhere” professionals. The newly launched visa program “Long-Term Resident (LTR) Visa”, provides a range of tax and non-tax benefits to enhance Thailand’s attractiveness as a regional hub for living and doing business for ‘high-potential’ individuals of the following four categories: Wealthy Global Citizens, Wealthy Pensioners, Work-from-Thailand Professionals, and Highly-Skilled Professionals. Privileges include up to 10 years of renewable visa with multiple re-entry permit, fast track service at international airport, tax exemption from overseas income, immigration and work permit facilitation, etc. (For more information, please visit https://ltr.boi.go.th/)

Injecting new vitality

Thailand’s geographical advantage conveniently makes it an important hub in southeast Asia. Thailand is well-connected to the fast-growing CLMV sub-region by excellent transportation infrastructure, including rail, road, water and airways. Businesses based in Thailand have access to a domestic market of 69 million people, with 52 million middle class consumers. Additionally, the CLMV region includes 242 million consumers located within 1,000 kilometers, ASEAN provides 660 million consumers all within 3,000 kilometers, while all of Asia within 5,000 kilometers includes 4.6 billion consumers.

In recent years, Thailand has further strengthened linkages with China by enhancing strategic synergies with the Yangtze River Delta (YRD) and the Guangdong - Hong Kong - Macao Greater Bay Area (GBA). To further promote economic cooperation with Guangdong province, whereby one-third of bilateral trade can be accounted for, the Thailand - Guangdong Working Group Meeting was elevated to Ministerial level in 2021 to deepen economic and industrial cooperation and build strategic synergies between EEC and GBA.

The completed China - Laos high-speed railway, which opened to service in December 2021, has already benefited both Thailand and Chinese business sectors. According to Kasikorn Research Center, it has helped to cut land transportation costs by approximately 30 percent and save transportation time by roughly 50 percent. The commencement of the Mohan Railway Port in Yunan Province in December 2022 in particular, has greatly facilitated the export of Thai fruits and agricultural products into China. It is therefore with great certainty that the much-anticipated China - Laos - Thailand high-speed railway, once completed, will play a significant role in enhancing regional connectivity, further slashing transportation time and cost from the current level, and accommodate the exchanges of goods and people between Thailand and China, and neighboring countries in the region.

Charting new paths

Every nation today is faced with complex issues that adversely impact the lives of People, the health of the Planet, and the path to Prosperity. These global issues require global solutions from concerted efforts. Thailand therefore has presented its candidature and chosen Phuket as the beautiful canvas to host the Specialized Expo 2028. The Expo 2028 Phuket will advocate innovative and collaborative solutions towards sustainable and equitable future, under the theme “Future of Life: Living in Harmony, Sharing Prosperity” focusing on People, Planet and Prosperity, to help chart a new path towards achieving the United Nations 2030 Agenda for Sustainable Development. This platform welcomes all countries, as well as individuals, with a mutual passion for a better world to share resources, knowledges and expertise in search for innovative and collaborative solutions of the future.

As we embark upon year 2023, challenges and opportunities abound. Thailand stands ready to work with China to jointly tackle global challenges, shoulder common responsibility, and forge forward towards a Thailand - China Community with a Shared Future for Enhanced Stability, Prosperity and Sustainability. Thailand welcomes the successful conclusion of the 20th National Congress of the Communist Party of China, which reiterated China’s continued commitment to opening-up and high-quality economic development, and looks forward to more meaningful cooperation as a result of increased exchanges and economic activities from the resumption of international travel in the post-COVID era.

If 2022 has proved a pivotal year for our bilateral relations and economic cooperation, I am confident that 2023 will be a significant year to the development, enhancement, and deepening of fruitful and tangible cooperation, bringing new opportunities to the business and peoples of our two countries, the Asia-Pacific region and the world.

Translator | Wang Xiaobo

Design | Demi

本文刊于《中国投资》2023年1月号

版权所有，侵权必究

欢迎个人分享，媒体转载请回复本微信号获得许可

《中国投资》杂志创办自1985年，由国家发改委主管，国家发改委投资研究所、中国国际工程咨询有限公司主办，是我国投资领域唯一的中央级刊物，业界最早专注于投资领域趋势报道的核心期刊。创刊三十多年以来，杂志以全球视角看中国投资，涵盖宏观经济、行业分析和企业投资案例，同时以全球市场为坐标，聚焦特定国家、地区和重大国际趋势，目前已经成为世界各国政府官员、各类投资机构、专家学者、企业家以及记者媒体的专业对话平台。

《中国投资》杂志每期覆盖包括上市公司在内的200多家央企国企和10000多家中国民营企业、1000多家中央与地方政府决策部门和机构、1000多家行业协会和商会、300多家主要金融机构等，是了解宏观经济环境、行业趋势前景和企业投资案例的重要参考。

China Investment, founded in 1985, is a monthly under the supervision of National Development and Reform Commission (NDRC) China’s macro-economic management agency, It’s jointly operated by Investment Research Institute under NDRC, China International Engineering Consulting Corporation. Enjoying an exclusive position under the central government, China Investment is the core journal which started the earliest among similar magazines to focus on the investment trend. Over the past 30-plus years, China Investment has been in line with theglobal market as its fundamental coordinate with a strategic focus on specific countries and regional markets and those major international propensities. China Investment is a key dialogue platform for officials from different countries, investment agencies, experts and scholars, business people and journalists.

原标题：《A New High for Thailand - China Economic Cooperation》

阅读原文