Thailand has said Bangladesh’s economy would be more resilient provided it diversifies its sources of income rather than relying heavily on readymade industry.
The Southeast Asian nation is also keen on promoting economic cooperation with Bangladesh through increased connectivity and bilateral trade, said the country’s ambassador in Dhaka.
“Bangladesh should also consider adding more value to its RMG products by building capacity on design, and research and development to enable local brands to compete in the global market,” Thai Ambassador to Bangladesh Makawadee Sumitmor told the news agency in an interview this week.
She noted that both countries have set the goal to increase the bilateral trade volume to US$ 2 billion.
During the past five decades Bangladesh has progressively built the nation with growing per capita income, said the ambassador.
Bangladesh, she said, will graduate from LDC status in a few years enjoying continued GDP growth even during the pandemic.
“The success of Bangladesh in the RMG sector is impressive and the country could rightfully be called “Wardrobe of the World.” This is a remarkable job that you have proven to the world,” she said.
Responding to a question, Ambassador Sumitmor said the relevant authority of Bangladesh is conducting a feasibility study on the free trade agreement with Thailand.
If the agreement could be signed, it would reduce tariff barriers and increase trade flows, she said, adding that Thailand has approved Duty Free Quota Free (DFQF) scheme to LDCs, which means Bangladesh can export 7,187 agricultural and industrial products to Thailand without tariff and quota. The Thai envoy said one way to boost bilateral trade between Bangladesh and Thailand is to establish a direct sea transport route.
“We signed a MoU between Chittagong Port and Ranong Port last December to establish direct coastal shipping service,” she said.
Previously, shipments have to transit through Singapore or Sri Lanka, which would take 12-15 days.
However, the two countries are trying to set up a direct coastal shipping route between Ranong Port and Chittagong Port to reduce time and cost in accordance with the MoU between the two ports.
The relevant authorities are discussing details to realize this shipping service that will shorten the transport time to three days.
The ambassador said Thailand has a project to connect Ranong Port on the Andaman coast to Chumphon Port in the Gulf of Thailand through a land bridge. In the long term, she said, Bangladesh will have an alternative route to export its products to countries in the Pacific Ocean that is cost-effective in addition to the Malacca Strait.
