Thailand hopes for boost in trade with Iran after sanctions get lifted

Asre Khodro: As foreign investors and potential trading partners worldwide wait that Western sanction against Iran are getting gradually lifted, Thailand has expressed hope that this would revive exports to the Middle Eastern country which is currently its 11th biggest trading partner in the region, with bilateral trade valued at just $357mn last year. In particular, exports of rice, seafood and pickup trucks could get a boost, Thailand’s permanent secretary in the Commerce Ministry, Chutima Boonyapraphasara, told local newspaper The Nation.

Saturday 01 August 2015 - 12:34:00

Thailand hopes for boost in trade with Iran after sanctions get lifted

Reporting "Asre Khodro", She added that this could partly offset the sharp drop in Thai exports this year, which so far culminated in June when exports fell nearly 8% year-on-year, surpassing a 5% year-on-year drop in May, according to data from the Thai customs department.
It was the biggest drop in exports since an 11.6% fall in November 2011, a result of increasingly volatile global markets with weakening demand for Thai products in Europe and China, as well as a number of home-made headwinds the Thai economy is currently facing, namely dropping investor confidence owing to political uncertainty, high household debts and low consumer confidence. To build momentum in the Iran-Thailand trade, the Thai Commerce Ministry said it will organise a “Thailand Week 2015” in Tehran, lead a trade mission to Iran and also invite a delegation from Iran to Thailand, in addition to promoting Thai products at the many trade fairs held in Dubai during the remainder of the year, also hoping to arouse Thai investors’ interest in Iran.
So far, only a few Thai companies are engaged in the country, namely oil giant PTT in hydrocarbon exploration, SCG Chemicals operating a plastics production in a $330mn-joint venture with a local polyethylene company, and seafood specialist Prantalay Group, which is invested in fisheries and some cooperative projects related to prawn and fish farming.
According to the Thai Board of Investment, other opportunities for Thai investors in Iran include the sectors of construction, agriculture, textile and garments, electronic parts manufacturing and automotive. In turn, Iranian investors could find interesting investment deals in the energy, halal food and tourism sectors in Thailand, the board said. At present, Iranian economic activities in Thailand are minimal, with just a few small companies or traders active mainly in the gems and jewellery business.
Up to now, Thailand was quite inventive to get around Western sanctions imposed on trade with Iran. The Commerce Ministry openly admits that it has been exporting to Iran through the United Arab Emirates. There have also been attempts for high-volume rice-for-oil barter trades between the two countries to circumvent the trade ban, but to not much avail.
Iran in fact used to order some 800,000 tonnes of rice annually from Thailand in the past, but, however, in 2011 imposed an import ban after a Thai exporter defaulted on a rice-shipment contract. The ban was only lifted in February 2015.
Classified as an upper-middle income country, with a population of close to 78mn and nominal GDP of around $410bn as per World Bank figures, — higher than, for example, South Africa’s, Malaysia’s, the UAE’s and also Thailand’s GDP — Iran is set to be the biggest economy to rejoin the global trading and financial system since the break-up of the Soviet Union more than 20 years ago after the sanctions get lifted — which could ideally happen by September this year.

برچسب ها

Iran Automotive Industry
مطالب مرتبط بیشتر
Construction of Chinese-Persian car in Semnan France to update firms on doing business with Iran S. Africa-Iran Business Forum Next Week Iran, Turkey to Hold Meeting of Joint Economic Commission Next Month French Businesses, Officials to Preempt American JCPOA Walkout Lack of Iran Khodro Capital Impedes Peugeot Plans Auto Parts Makers Demand Tougher Regulations on Imports Istanbul Automechanika Conference with the participation of the senior director of the exhibition European carmakers on the road back to Iran after nuclear deal Car from the new minister's perspective Iran Automakers Need Logistical Spread Iran Auto Output: All That Clamor for Naught French Leverage in Iran Auto Industry Iran Industrial Agency Kicks Starts Another Car Factory Iran Automotive Production Up 20% y/y With Sanctions Behind, Iran Looks Ahead Iran Carmakers Obliged to Offer 2-Year Guarantees Iran Auto Companies Not Raising Prices Iran to hit two car industry accords soon Turkey keen on investment in Iran's auto industry PSA to carry out Iran plans despite US threats Peugeot, Citroen Will Uphold Localization Segment in Iran Iran to release Euro V passenger cars next year Production surges in Iran's car industry Iran Khodro Group Retains 39% Market Share Iran to sign 5 auto deals with intl. companies by Mar. 20 Iran talks with Germany’s VW to produce passenger car Car Import only through Investment Iran’s Vehicle Initial Quality Study Released Iran has potential to be top-10 auto market by 2020 Iranian, Turkish companies discuss auto parts Coop. The 4th Vehicle Conference "Sales and After-sales Service Approach” Iran Car Sales Slump Despite Loans Iran’s Auto Import Report by MSD Iran Targets 80% Auto Localization Effects of Automotive Ties With China Faurecia builds on Iran ties to secure major deals - CEO Renault signs MoU with Iran to create new joint venture Peugeot to try for making Iran its manufacturing hub in Middle East, Africa Iran to ink new deals with foreign automakers Pakistan-Iran cooperation in auto sector discussed Iran to open car factory in Azerbaijan Auto Sector Recovery to Buoy Steel Consumption New Automotive Decisions Announced Iran's Automotive Advantages Friends with many benefits Encouraging foreign investment to revitalize Iran’s car industry - expert Iranian car output down 2.5% Y/Y Algeria-Iran: 15 cooperation and agreements for automotive industry Automotive Targets Highlighted How to seize Iran’s automotive opportunities VW In Iran Iran ranked 13th in world passenger cars sales of 2015 Bavaria eyes major auto supplier potential with Iran Plans Devised to Make Iran Region’s Top Automaker: Minister Iran Seeks Foreign Partnerships to Boost Auto Industry Volvo on the Final Decision to Manufacture Car in Chabahar 3rd Iran Automotive Industry Int'l Confab opens in Tehran Iran Inks 3 MoUs with Foreign Carmakers Iran signs three deals with foreign automakers Iran to become a hub for automotive manufacturing: OICA President Iran, Germany Ink MoU to Boost Cooperation in Automotive Industry How Iranian Cars Are Viewed Around the Region Peugeot to Compensate for Iran’s Losses in New Contract: Minister Minister Calls for Japanese Automakers’ Investment in Iran Iran seeking Japanese investment in autos, water Iran in Talks with Germany, Italy to Boost Cooperation in Automotive Industry Three Europe carmakers to return to Iran soon Iran to become world's 8th automotive manufacturer Iran suspends car loan programme on soaring demand Iran to export 30% of domestically produced cars French firms trail in economic rush to Iran - executive Iran interested in cooperating with German, Italian carmakers Nematzadeh defends automotive sector Changing Automotive Perception Italy to broaden cooperation on auto industry with Iran Iran: The next automotive hotspot in Middle East? Iran's car market ready to zoom in on the action Japan explores opportunities in Iran's auto industry
Back to top