BHUTAN COULD act as a gateway for Thai investment to nearby countries in South Asia in various industries including infrastructure, energy development, and tourism and services. That advice came after the signing of an agreement on economic cooperation in Bangkok yesterday by Bhutanese Economic Minister Lyonpo Norbu Wangchuk and Commerce Minister Niwatthumrong Boonsongpaisan covering trade, investment, tourism, construction, healthcare, education, energy, logistics and the development of small and medium-sized enterprises. The two countries agreed to set up a joint trade commission to exchange views and discuss strategies to promote trade and investment every year. Niwatthumrong said closer ties with Bhutan should help open up more trade and investment opportunities to Bhutan for Thai businesses, as well in other countries that Bhutan has bilateral trade agreements with. Those countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, which are members of the South Asian Association for Regional Cooperation and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, a grouping of Bangladesh, India, Myanmar, Sri Lanka, Bhutan, Nepal and Thailand. Thai investors could use Bhutan as an investment base to sell goods in the domestic market and to ship to other countries, as Bhutan has tariff privileges with many nations. Projects that Bhutan has highlighted for foreign investors include a 10-gigawatt power plant that could be tripled in capacity in the future to supply the domestic market and export electricity to India and other nearby countries. Bhutan is also open to investment in many businesses that Thais have high potential in such as healthcare, education, resorts and restaurants, and other tourism and service businesses. The Bhutanese government is studying developing a hydropower plant for exporting electricity to other countries, and organic horticulture, as well as health and tourism, fields that Thais are experts in. Indians are the largest group of foreign investors in Bhutan. Thailand's trade with Bhutan should grow stronger in the following year thanks to the closer ties. Shipments from Thailand to Bhutan should also increase from an average of about US$150,000 (Bt4.7 million) a year. Exports from Thailand to Bhutan grew by 98.97 per cent this year. The Commerce Ministry's data showed average trade between Thailand and Bhutan was worth $12.10 million in the past five years. Bhutan is Thailand's 153rd-biggest trading partner. Thai goods with sales potential in Bhutan include textiles, automobiles and parts, wood and products, plastic products, fabrics, and furniture and parts.

By PETCHANET PRATRUANGKRAI THE NATION

The post Bhutan pact opens doors to South Asia appeared first on Asean Investment | Marc Djandji Blog.