Thailand and France aim to bolster their economic collaboration

Thailand’s Prime Minister, Srettha Thavisin, during his bilateral visit to France, proposed a partnership in key sectors of mutual interest.

Thailand’s Prime Minister is seeking French assistance to establish Thailand as an industrial defense base. He is also encouraging French companies to invest in the automotive, transportation, and clean energy sectors with the goal of enhancing economic cooperation between the two nations.

Thailand’s Prime Minister, Srettha Thavisin, met with 22 CEOs of major French companies during his bilateral visit to France. They explored business opportunities in sectors such as automotive, aviation, clean energy, fashion, sports, hospitality, and tourism. Thavisin aims to transform Thailand into a regional hub for electric vehicle production and also introduced the Landbridge project, which aims to enhance logistics by shortening the connection between the Pacific and Indian Oceans. Additionally, he emphasized technology transfers to establish Thailand as a defense production base in the region.

The current state of economic cooperation between France and Thailand is characterized by bilateral efforts to enhance trade and investment opportunities. Here are some key points:

1. During the 33rd Asia-Pacific Economic Cooperation (APEC) summit hosted by Thailand, French President Emmanuel Macron visited Thailand, marking the first French presidential visit in 16 years.
2. Macron aimed to strengthen bilateral relations across various domains, including economic partnership and efforts to advance the EU-Thailand Free Trade Agreement (FTA)
3. High-Level Economic Dialogue (HLED): Both nations are committed to continuously increasing trade and investment opportunities. The High-Level Economic Dialogue serves as a framework for discussions in various areas.
4. France-Thailand Business Forum (FTBF): This forum supports economic collaboration in several sectors:
   • Transport and Infrastructure
   • Digital Economy
   • Bio-Circular-Green (BCG) Economy
   • Smart and Creative Cities
   • Food for the Future
   • Energy Transition
5. Investments in the Eastern Economic Corridor (EEC): France and Thailand are exploring investment opportunities in the EEC, which is a strategic development zone in Thailand.

In 2022, the bilateral trade volume between France and Thailand saw continued growth, increasing by 14.1% to €5.2 billion, following a 22.8% rise in the preceding year. French exports to Thailand amounted to €1.5 billion in 2022, marking a 4.3% increase from 2021. Thailand stands as France’s second-largest client in Southeast Asia, accounting for 9.9% of its exports, down from 11.1% in 2021.

French imports from Thailand also maintained a robust growth trajectory, climbing by 18.5% to €3.7 billion after a similar 18.6% growth in 2021, positioning Thailand as France’s third-largest ASEAN supplier. France ranks as the fifth-largest European investor in Thailand—following the Netherlands, the United Kingdom, Germany, and Switzerland—with investments totaling €2.6 billion in 2021. Nearly 300 French enterprises have established their presence in Thailand.