Sri Lanka and Thailand could sign a free trade agreement (FTA) by March, a top official of the Indian Ocean nation told Reuters on Wednesday, as it attempts to rebuild its crisis-stricken economy.

The two nations restarted deal negotiations in January, months after a severe financial crisis engulfed Sri Lanka, as its foreign exchange reserves fell to a record low.

"Both sides are enthusiastic and there is strong political will," Sri Lanka's chief FTA negotiator, K.J. Weerasinghe, told Reuters.

"There will be several more rounds of talks, but I am confident we can conclude the agreement for signature by March 2024."

A Thai delegation is expected to visit Colombo from June 26 to 28 for the next round of talks, covering goods, customs cooperation, investment, dispute settlement and services, he added.

Two-way trade was about $460 million in 2021, Sri Lankan central bank data shows. Sri Lanka exports mainly tea and precious stones to Thailand, from which it imports electronic equipment, food, rubber, plastics and pharmaceuticals.

 

Source : REUTERS

Cambodia and Thailand on Tuesday launched the second phase of cross-border QR code payments, which will allow Thai nationals to shop in Cambodia using the Thai currency baht.

Chea Chanto, governor of the National Bank of Cambodia (NBC) and Sethaput Suthiwartnarueput, visiting governor of the Bank of Thailand, presided over the launching event in Phnom Penh, said a NBC's press statement.

The launch of cross-border QR code payments "aims to promote the usage of local currencies and financial inclusion, facilitate cross border trade activities, and boost tourism in both countries", the statement said.

"As the first phase of this project, launched in 2020, allowed Cambodians to be able to pay for goods or services through mobile banking application by scanning QR code at retail merchants in Thailand and vice versa on the second phase starting from June 6, 2023 onward," it added.

The two neighboring countries' central banks have worked together since 2018 to develop a QR code payment app in order to allow people to shop in each other's countries using the currency of their own country.

With the app, Cambodians will be able to use riel to purchase goods in Thailand, while Thais travelling in Cambodia will be able to pay in baht. The users of the QR code payment system will be required to have a bank account in their local currency.

Cambodia's official figures show that there are currently more than 1 million Cambodian migrant workers in Thailand, and that more than 424,000 Thais visited Cambodia in the first three months of 2023.

 

Source Xinhua

The new coalition government is being urged to implement a consistent policy to support Thailand's beauty and wellness market over the long term.

Ketmanee Lertkitcha, chairwoman of the health, wellness and beauty industry cluster of the Federation of Thai Industries, said a national strategy needs to be established by the new government to promote the beauty industry, which alongside tourism contributes a vital portion of the country's income.

To ensure sustained growth of the country's beauty and wellness market, Mrs Ketmanee suggested engaging in soft power activities and identifying prime locations for local small businesses to showcase their health and beauty products. She used South Korea as a prime example of a country that has successfully supported its beauty industry.

Mrs Ketmanee said the global wellness economy was valued at 145 trillion baht in 2020 and is projected to reach 230 trillion by 2025. Thailand's wellness economy was valued at around 1 trillion baht in 2021.

Within the health, wellness and beauty industry, personal care and beauty accounted for 30%, while healthy eating, nutrition and weight loss represented 25%. Wellness tourism contributed 12%, while physical activity and traditional and complementary medicine each accounted for 10%. Public health, prevention, and personalised medicine represented 6%, while spas accounted for 4% of the industry.

Regarding the beauty market, Mrs Ketmanee, said the value of the global market last year was 648 billion baht, while Thailand's beauty market was valued at 246 billion baht.

She said the compound annual growth rate for Thailand's beauty market is 9.22%.

The growth of the local cosmetics market was largely driven by e-commerce, which captured 28% of the market and posted 8.9% growth in 2022. The e-commerce segment of the beauty market is projected to grow 13% this year.

Angel Fu, event director at Informa Markets, said Thailand has emerged as the fastest-growing beauty market in Southeast Asia. Numerous major international brands have already made investments in the Thai cosmetics market, said Ms Fu.

"Thailand has a lot of international brands with production capacity here, given the country's low production costs. Thailand also has a lot of original equipment manufacturers [OEMs] producing here," she said.

Francesca Donati, head of international marketing for Asia at BolognaFiere Cosmoprof, said Thailand holds a strategic position as a gateway to Asean.

She said the country's cosmetics sector accounts for 25% of the entire Asean region.

"Thailand has evolved into a prominent production centre for numerous international brands, offering products of exceptional quality at affordable prices. Moreover, Thailand boasts the largest beauty community of local OEMs/ODMs [original design manufacturers]," said Ms Donati, adding that Thailand is a vital hub for sourcing natural ingredients and raw materials in the beauty industry.

 

Bangkok Post

The southwestern Chinese megacity of Chongqing on Sunday (11 June) welcomed the first direct cold-chain train of Thai durians transported via the New International Land-Sea Trade Corridor.

150,000 durians from Thailand were first transported by road to Laos, where they were then loaded on a train that traveled into China via the China-Laos Railway.

According to Deng Haoji, Chief Operating Officer of Hongjiu Fruit, the company that purchased the durians, the entire journey took four days - down from 8-10 days on previous maritime routes.

Deng said, "For fruit importers, time is money and every hour is precious. This durian train has reduced costs, as well as losses during the transportation."

The majority of the durians will enter markets in Chongqing, while the rest will continue the train journey to reach the neighboring province of Sichuan.

Durians are among a growing number of agricultural products from the Association of Southeast Asian Nations (ASEAN) that have expanded entry into the Chinese market. This has been made possible due to the Regional Comprehensive Economic Partnership (RCEP) agreement and improvements in cross-border transport infrastructure.

In 2022, China imported 825,000 tonnes of durian, 780,000 tonnes of which came from Thailand, according to customs data.

 

Source : NATIONAL NEWS BUREAU OF THAILAND

Thailand has started exporting cooked duck meat products to Australia after 7 years of negotiations. The first 20 tons were shipped out of Thailand today, with some 1,200 tons of cooked duck meat expected to go to Australia in the first calendar year.

The Ministry of Agriculture and Cooperatives and food product manufacturer Charoen Pokphand Foods (CPF) today celebrated the first shipment of cooked duck meat products to Australia, the first-ever export of cooked duck meat from Thailand to the Oceanian country.

Mr. Prayoon Inskul, Permanent Secretary of Agriculture and Cooperatives, said Thailand and Australia have been in negotiations since 2016, while the success of cooperation between the Thai government and private sector has resulted in Thailand being the first country in the world allowed to export ready to eat duck products to Australia.

The first shipment consisted of 20 tons of cooked duck meat. The country now expects to export some 1,200 tons to Australia during the first calendar year, generating some 400 million baht in revenue.

CPF CEO Prasit Boondoungprasert said this shipment reflects the capability of Thai businesses to produce world-class agricultural goods, while Australia itself is a high potential market with increasing demands for ready-to-eat duck products, with the current figure of duck consumption at around 50,000 tons per year.

CPF has been exporting duck products to several international markets, including Germany, England, the EU, Japan, Singapore, and New Zealand. The company is targeting a 500-600 ton duck export to Australia, consisting of grilled duck, shredded duck meat, and grilled duck with flour wrap.

 

Source : NATIONAL NEWS BUREAU OF THAILAND

Two Japan-based data center providers have made substantial investments totaling $164 million (5.5 billion baht) in Thailand to capitalize on the increasing demand for digital transformation and cloud computing.

According to a report, Telehouse has recently opened its first data center in Thailand with an investment of $74 million, while NTT Global Data Centers Corporation has invested 3 billion baht to develop its largest data center in Thailand, which is set to begin operations in the second half of 2024.

Thailand has become an attractive destination for global cloud and data center providers looking to expand their presence. Companies such as Tencent Cloud, Huawei, NTT, Alibaba Cloud, Amazon Web Services, and Google Cloud have already invested in the country.

Telehouse’s new data center in Bangkok aims to be an internet hub where multiple telecommunication carriers and service providers can interconnect and exchange data traffic domestically and internationally. With over 10 partners, the facility supports the ecosystem of "interconnection" in the data center.

NTT’s investment will result in the development of a significant data center named BKK3. Located in the Amata City Chonburi industrial estate on the Eastern Economic Corridor, BKK3 will provide a maximum IT capacity of 12 megawatts across approximately 4,000 square meters of IT space. The infrastructure will cater to hyperscalers and enterprises, contributing to Thailand’s digital economy growth.

The new data centers are also part of NTT Group’s "Green Innovation" vision, focusing on achieving net-zero emissions by 2040. They will adopt sustainable practices and green energy to support Thailand’s commitment to achieving net-zero emissions by 2050.

 

Source NATIONAL NEWS BUREAU OF THAILAND

The Tourism Authority of Thailand (TAT) has unveiled its direction for fiscal 2024 with a budget of 5 billion baht aiming to grow off-peak customers, increase spending per trip by 7%, and distribute income to a greater variety of destinations.

TAT governor Yuthasak Supasorn said fairness in revenue distribution through a "sharing economy" and making Thailand a "Tourism for All" destination will be key strategies for the next fiscal year when it starts in October 2023.

He said the 5-billion-baht budget is an increase from 3.25 billion baht in fiscal 2023.

Even though tourism revenue is expected to fully recover to the 2019 level of 3 trillion baht, Mr Yuthasak said TAT hopes to see better distribution of tourists to secondary provinces, as well as improved dispersal of tourists from the high season to the whole year.

"We will create more opportunities and improve access to ensure that all people can travel to Thailand," he said.

Mr Yuthasak said issuing travel vouchers to boost tourism in secondary cities, as suggested by Pita Limjaroenrat, the leader of the proposed coalition government, is a measure that could be implemented.

Mr Yuthasak, who will end his second term as governor on Aug 31, said lessons learned from the pandemic helped TAT formulate a new plan for next year, as well as implement crisis management for possible contingencies in the future.

He said the industry should build "tourism security" to make itself resilient through a four-step development combining the public and private sectors.

The first measure involves strengthening the supply chain by deciding which products and services must be upgraded to match demand, while local communities should be developed to receive a greater amount of tourists through more distribution channels.

Support and infrastructure for tourist services must be built to improve their safety and ease of travel while in Thailand, said Mr Yuthasak.

The country must adopt safety standards that apply to all segments, especially for people with disabilities, he said.

Enhancing the digital transformation can help to maximise tourism revenue if the industry can improve its digital literacy, reaping benefits from technology, said Mr Yuthasak.

Factors such as natural disasters, a pandemic or a global recession are out of the industry's control, so regulators should prepare for external risks by installing management plans, he said.

"Thai tourism can survive any crisis, avoid severe impacts and recover faster than during the pandemic if we build resilient tourism through these suggestions," said Mr Yuthasak.

The TAT is slated to discuss implementation of the 2024 plan during its annual meeting between July 11-13 in Pattaya.

 

Source Bangkok Post

The Federation of Thai Industries (FTI) wants to increase Chinese investment in Thailand, especially in the electric vehicle (EV), food and healthcare segments, by advocating more business cooperation with Beijing.

"We recently met Chinese ambassador to Thailand Han Zhiqiang and talked about investment opportunities in Thailand," said Kriengkrai Thiennukul, chairman of the FTI.

He believes Thailand can be a production base for Chinese companies, serving as a gate to Asean.

The FTI set up a Thai-Chinese economic institute to promote investments and trade between the two countries.

The new institute works with other agencies, including the China Council for the Promotion of International Trade, to initiate and push ahead with new trade and investment promotion projects.

Prospective investors will be introduced to 45 industry clubs under the FTI as well as logistics and supply chain systems that can support their businesses.

"FTI expects this collaboration will improve Thailand's competitiveness on the global stage and further strengthen domestic industries," said Mr Kriengkrai.

Among key industries in Thailand is EV manufacturing which is being promoted by the government.

Last year, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022-2023.

The subsidies range from 70,000 baht to 150,000 baht depending on the type and model of vehicle, while there will be lower excise taxes and import duties on completely knocked down and completely built up units.

The National EV Policy Committee announced in 2021 it wants EVs to constitute 50% of locally made vehicles by 2030, part of an ambitious plan to make Thailand a regional EV hub.

Food and healthcare businesses can also attract investors because they have the potential to grow.

Thailand is rich with raw materials for food processing, which can support plans to develop "future food", or new food products that match people's lifestyles, said Mr Kriengkrai.

Healthcare is also expected to see bright business prospects as it relates to aged or ageing societies, he said.

 

Source : Bangkok Post

Hanoi (VNA) – Deputy Prime Minister Tran Hong Ha received visiting Lao Minister of Technology and Communications Boviengkham Vongdara in Hanoi on May 29.

Welcoming agreements signed between the Vietnam Academy of Science and Technology (VAST) and the Lao Ministry of Technology and Communications, Ha expressed his wish that the two sides will actively promote cooperation and technology transfer so that Vietnam and Laos can jointly implement digital and green transformation as soon as possible.

With its potential for renewables such as hydroelectricity, wind power, and solar power, Laos can become a center of clean energy, he stated, adding that this is one of the factors that determine the level of attraction for investors in the future.

Regarding digital transformation, the Deputy PM appreciated the results that the information and communications technology (ICT) industry of Laos has achieved, with the active and effective support of Vietnam’s Viettel Military Industry and Telecoms Group (Viettel).

He showed his belief that in the coming time, Laos will form an effective ICT system helping people benefit from the digital government and digital economy, replacing the development model based on natural resources which are becoming exhausted. From the experiences it has in Vietnam, the Lao ministry needs to "order" the Viettel Group to achieve bigger goals in digital transformation and digital society promotion.

In terms of human resources training and development, Ha asked the Lao Ministry of Technology and Communications to identify specific needs and coordinate with the VAST to develop a Government-level project to create a solid foundation for cooperation and accompany Vietnam on the path of innovation.

Boviengkham said that this visit is to promote the signing of a Memorandum of Understanding on cooperation with the VAST on forecasting and warning of natural disasters and tsunamis; research and technology training related to the fourth Industrial Revolution; and on building a national center for cloud computing/Big Data and application.

According to the minister, the Lao ministry has a close cooperative relationship with the Ministry of Information and Communications and the Ministry of Science and Technology, and other ministries of Vietnam, thus contributing to strengthening and cultivating great friendship, special solidarity, and comprehensive cooperation between the two countries.

Source: VNA News

Minister of Tourism and Creative Economy, Sandiaga Salahuddin Uno, hopes that the Belitung Festival will contribute to the reopening of international flights. The Minister expressed its optimism that the festival, which showcases the cultural richness of Belitung Island in Indonesia, will attract international tourists and lead to the resumption of international air travel. Minister Sandiaga believes that the festival's success in attracting tourists will demonstrate the safety and preparedness of the region, encouraging countries to lift travel restrictions and resume international flights to Belitung.