More than 140 Chinese investors interested in Thailand attended a business matchmaking event for the first time in Thailand under the Regional Comprehensive Economic Partnership (RCEP) agreement, with the aim of attracting new S-curve industries and technology transfer from China.
Commerce Minister Phumtham Wechayachai chaired the opening ceremony of the 1st RCEP Business Opportunities Matchmaking Conference (China-Thailand), aiming to attract investment from over 140 businesses from 60 Chinese associations in 10 sectors by leveraging on the RCEP pact, with the aim of increasing Thailand's GDP.
China continued to be Thailand's largest trading partner for a 12th consecutive year in 2023 with trading value estimated at up to US$105 billion, accounting for 18% of total trade.
The RCEP agreement has boosted trade cooperation between China and Thailand.
The RCEP is the world's largest free trade agreement, covering roughly 30% of global GDP and 30% of the world's population.
China and Thailand are also members of the Asean-China Free Trade Agreement (ACFTA), which is currently being revised.
"The RCEP is expected to increase Thailand's trade and investment with China by expanding the production network and distribution of products in the Asia-Pacific region and connecting to the global value chain through preferential tariffs under the agreement," Mr Phumtham said.
Mr Phumtham has coordinated with the Office of the Board of Investment, the Eastern Economic Corridor (EEC) Office and the Commerce Ministry to support and facilitate China's private sector in taking advantage of RCEP in order to expand the trade and GDP of member countries, particularly in setting up a production base in Thailand and investing in S-curve industries.
The Commerce Ministry has created a business network between the private sectors of the two countries through four memorandums of understanding (MoUs) with the provincial governments of Hainan, Gansu, Shenzhen and Yunnan, with plans to sign another eight MoUs with Fujian, Heilongjiang, Shanxi, Zhejiang, Guangxi Zhuang Autonomous Region, Hebei, Shandong and Jilin.
It will be beneficial to entrepreneurs of both sides, especially small and medium-sized enterprises (SMEs), in increasing bilateral trade and investment.
Thailand offers enterprises numerous benefits for trade and investment, as a gateway to Southeast Asia and the wider Asian region. It also boasts excellent digital connectivity, a skilled labour force and an excellent standard of living, making Thailand an ideal investment destination.
Prime Minister Srettha Thavisin has ordered all ministers to alleviate trade obstacles through regulatory reform to facilitate the private sector such as the provision of long-term visas and other incentives for joint strategic partnerships.
Phinij Jarusombat, president of the Thai-Chinese Cultural and Relationship Council, added that after the RCEP agreement in 2012, trade between Thailand and China increased significantly.
Thailand's trade with RCEP countries in 2023 was worth $312 billion or 54.4% of the country's total trade.
Exports to RCEP members were $1.45 billion. Thailand has 14 free trade agreements with 18 trading partners, including the RCEP agreement, which is currently in the process of accepting new members including Hong Kong and Sri Lanka and is in the process of establishing a RCEP Support Unit with an estimated completion date by year-end.