Thailand remains on track to improve economic ties with Saudi Arabia as it seeks a new potential market for its products, following sluggish exports to the US and Europe.
The value of business deals between Thailand and Saudi Arabia is expected to reach 10 billion baht this year, said Nava Chantanasurakon, a member of the executive board of the Federation of Thai Industries(FTI).
"Saudi Arabia is a high-potential market and a gateway to the Middle East," he said, referring to the Gulf Cooperation Council, which comprises Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.
Riyadh wants Thai businesses to invest there, especially after Thailand and Saudi Arabia agreed to boost business relations.
Last year, a joint business council between the two countries was set up to promote trade under a memorandum of understanding signed by the Joint Standing Committee on Commerce, Industry and Banking and the Federation of Saudi Chambers of Commerce.
The FTI is optimistic about trade benefits, work and investments in Saudi Arabia, which is pursuing "Vision 2030", with the flagship of that scheme the establishment of the US$500-billion mega-city of Neom
The government wants to make Neom, located on the Red Sea coast in the northwestern province of Tabuk, a smart city that is less dependent on oil and promotes diverse businesses.
According to the FTI, Saudi Arabia is interested in farm produce, food, cars and auto parts from Thailand.
Thai food processing, especially in the halal food category, has grown rapidly thanks to the country's expertise in food manufacturing and good logistics facilities.
"Thai investors should take advantage of these benefits and plan their new investments in Saudi Arabia," said Mr Nava.
Saudi Arabia, with a population of around 36 million, saw its GDP grow by 8.7% last year, the highest level in the G20.
He said Saudi investors are interested in the Eastern Economic Corridor (EEC) and are expected to spend around 300 billion baht developing various businesses, including those in the energy sector.
Last year around 100 prospective Saudi investors, led by Krayem Alenezi, member of the board of directors of the Riyadh Chamber of Commerce,visited the EEC to get first-hand information about the zone, which covers parts of Chon Buri, Rayong and Chachoengsao.
Source : Bangkok Post
In April 2023, Thailand’s state-owned oil and gas conglomerate, PTT Group, announced that it would invest $7 billion in producing green hydrogen with ACWA Power, Saudi Arabia’s leading renewable energy company.
The project aims to build a plant in Thailand that can produce 225,000 tons of green hydrogen annually, equivalent to about 1.2 million tons of ammonia.
Green hydrogen is a form of renewable energy that is produced by using electricity from solar, wind, or other sources to split water molecules into hydrogen and oxygen. Unlike fossil fuels, green hydrogen does not emit any greenhouse gases when used, making it a clean and sustainable alternative for various applications.
One of the most promising uses of green hydrogen is to power electric vehicles (EVs), especially heavy-duty vehicles such as buses, trucks, and trains that require more energy than batteries can provide. Green hydrogen can also be converted into ammonia, which can be used as a fertilizer, a chemical feedstock, or a fuel for ships and power plants.
Thai government’s targets of carbon neutrality by 2050
The investment is part of PTT’s net-zero strategy, which aligns with the Thai government’s targets of carbon neutrality by 2050 and net-zero emissions of greenhouse gases by 2065. PTT’s CEO Auttapol Rerkpiboon said that the project is the first step to push Thailand to be an international exporter of green power. He added that the goal is to supply green hydrogen and ammonia to power EVs in ASEAN countries and beyond.
The project is also significant for the diplomatic relations between Thailand and Saudi Arabia, which were restored in January 2022 after more than three decades of estrangement due to the Blue Diamond Affair. The affair involved the theft of $20 million worth of jewels from a Saudi prince’s palace in 1989 by a Thai worker, followed by a series of murders and cover-ups that soured the ties between the two countries.
The green hydrogen deal is seen as a sign of mutual trust and cooperation between Thailand and Saudi Arabia, as well as a shared vision for a clean and prosperous future. ACWA Power’s CEO Paddy Padmanathan said that the partnership with PTT will create new opportunities for both countries in the emerging green hydrogen market. He also said that ACWA Power is committed to supporting Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce its dependence on oil.
Global demand for green hydrogen could reach 800 million tons by 2050
Green hydrogen is expected to play a key role in the global energy transition and decarbonization efforts. According to BloombergNEF, the global demand for green hydrogen could reach 800 million tons by 2050, up from less than 1 million tons today. The International Energy Agency (IEA) also estimates that green hydrogen could account for 19% of total final energy consumption by 2050, if supported by strong policies and investments.
Thailand and Saudi Arabia are among the countries that are taking proactive steps to tap into this potential and become leaders in the green hydrogen industry. By investing in green hydrogen production and consumption, they are not only reducing their environmental impact but also creating new economic opportunities and strengthening their bilateral ties.
Source : Thailand Business News
Sabre Corporation a leading software and technology provider that powers the global travel industry, today announced a renewed distribution agreement with Thai Airways. The flag carrier will also be using Sabre’s robust data combined with its consultancy services to help it accelerate recovery.
The Global Distribution System (GDS) renewal ensures that Sabre-connected travel agencies will continue to have access to Thai Airway’s content globally, while enabling the airline to retain its reach across Sabre’s valuable network of global travel buyers and intermediaries. Meanwhile, Thai Airways will also be taking advantage of Sabre’s extensive global booking data to help it identify recovery and growth opportunities.
“As we continue to ramp up operations and resume international flights, it is essential to us that we are able to continue to distribute our fares, offers and itinerary to travel agents, and their customers, across the world,” said Mr. Korakot Chatasinga, Chief Commercial Officer, Thai Airways. “We’re thrilled to have renewed our distribution deal with Sabre at the same time as being able to harness the power of Sabre’s robust booking data and industry expertise.”
Primarily operating from Suvarnabhumi Airport as well as its secondary hub in Phuket, Thai Airways typically serves around 40 international destinations, and is a founding member of the Star Alliance, the world’s largest global airline alliance. It has so far resumed a significant proportion of its pre-pandemic international flights, and is forging ahead with further recovery and growth plans. With Thailand surpassing its tourist number targets last year, and expecting further recovery, particularly from the Chinese travel market, Thai Airways is poised to play an important role in future industry growth.
“We’re delighted that Sabre will continue to be a key part of Thai Airways’ journey as the carrier, and the country, continue to experience strong travel demand,” said Rakesh Narayanan, Vice President, Regional General Manager, Asia Pacific, Travel Solutions Airline Sales. “Our booking data includes detailed insights on itinerary, origin, connection, passenger type, length of stay and other booking patterns. However, it’s important not just to have access to such data, but to be able to interpret and make the best use of it to support an airline’s business strategy and growth. Sabre will be providing consulting services to help identify areas of potential opportunity for Thai Airways to increase efficiencies and enhance future revenue.”
Source : DESTINATION THAILAND NEWS
Ambassador-designate of China to Brunei Darussalam Xiao Jianguo, at the gathering with media and think tanks on Wednesday, shared that bilateral trade volume achieved a year-on-year growth of 7.5 per cent to USD3.08 billion in 2022, an increase of over 200 times since the establishment of diplomatic relations, hitting a new height in history.
On the bilateral relationship between the two countries, Xiao Jianguo said, “Hengyi Industries has made important contributions to the Sultanate by promoting the upgrading of industry, increasing employment and diversifying economic development.
“The projects under the Brunei-Guangxi Economic Corridor, such as Muara Port Company and Hiseaton Fisheries, are developing vigorously. It is worth mentioning that the cooperation between Brunei and China promotes bilateral trade growth and the growth between the Sultanate and other countries.”
Since arriving at Brunei, he said, “I have visited Chinese enterprises in the country such as Hengyi Industries and Muara Port Company, and learnt about their contributions to the diversification of Brunei’s economy and bilateral economic cooperation. I am proud of the achievements.
“This year marks the 10th anniversary of the Belt and Road Initiative proposed by President Xi Jinping. China will take this opportunity to join hands with the Sultanate, to write a new chapter of high-quality, sustainable and beneficial Belt and Road Cooperation, and usher in a new era of mutual benefit and common development.”
Source: Borneo Bulletin
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The International Monetary Fund (IMF) expects Brunei Darussalam’s economy to grow 3.3 per cent this year and 3.5 per cent next year.
Growth projection five years ahead has also shown that the Sultanate’s economy forecast to be 3.1 per cent in the year 2028. This was highlighted in IMF’s annual World Economic Outlook released in Washington on Tuesday.
The forecast came a week after the ASEAN+3 Regional Economic Outlook (AREO) 2023 said the Sultanate’s gross domestic product growth is forecast to be 2.8 per cent this year and 2.6 per cent next year. The IMF said the Philippine economy was forecast to expand 6.0 per cent, Cambodia ranked equal with Vietnam, with both economies projected to grow 5.8 per cent, 5.0 per cent for Indonesia, 4.5 per cent for Malaysia, 4.0 per cent for Laos, 3.4 per cent for Thailand, 2.6 per cent for Myanmar and 1.5 per cent for Singapore.
For the overall world economy, the baseline forecast is for growth to fall from 3.4 per cent in 2022 to 2.8 per cent this year, before settling at 3.0 per cent in 2024.
Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 per cent in 2022 to 1.3 per cent in 2023.
Source: Borneo Bulletin
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The Thai Ministry of Commerce is taking urgent action to provide solutions for private sector challenges related to exports to China, as it seeks to expand Thai product shipments to the world’s second largest economy by at least 1%.
The ministry recently hosted a meeting with representatives from seven foreign trade offices and other prominent Thai private sector companies in the Chinese city of Kunming in Yunnan Province in late March.
The meeting focused on planning market expansion and investment opportunities in China, setting a target for exporting Thai products worth no less than US$34 billion, or generating revenue of over 1.2 trillion baht.
The commerce ministry also gave instructions to its commercial attaches to intensify the promotion of Thai goods through modern trade platforms, expand the market, and promote Thai cuisine. The private sector was also encouraged to take advantage of increasing opportunities in Chinese markets, such as trade fairs.
In addition, the ministry emphasized its strategy of supporting the private sector to help overcome trade obstacles in mainland China, especially during the upcoming harvest season for fruit products. It also urged the private sector to prepare for potential issues that could arise at border checkpoints.
Furthermore, activities will be implemented to penetrate the halal product market in China. This would build on the success of the three limited free trade agreements (mini FTAs) that Thailand established in major Chinese cities such as Guangzhou and Chengdu.
Source : NATIONAL NEWS BUREAU OF THAILAND
The recent launching of cross-border passenger services on the China-Laos Railway on the occasion of the most important festival for Thailand and Laos has boosted the local tourism scene as it recovers from the pandemic.
Thailand’s northeast province of Nong Khai celebrated the Songkran festival with neighboring Laos across the Mekong River since cross-border passenger services of the China-Laos Railway began on Thursday (13 Apr).
Jiranun Sakultangphaisal, an advisor to the tourism association of Nong Khai, said many tourists would stay overnight in the Thai northeast province before traveling to the Laotian capital of Vientiane - some 20 km away.
Monnipa Kovitsirikul, Chairperson of the Chamber of Commerce for Nong Khai, said she hoped that Chinese tourists who arrive in Laos would travel further to tour Nong Khai and Thailand’s wider northeast region.
Monnipa said many business sectors in Nong Khai have benefited from the operation of the China-Laos Railway, which has increased employment and brought new opportunities for the local business community. She has also seen new investment from within Thailand into Nong Khai and stepped up efforts by the Thai government to upgrade local infrastructure.
The China-Laos Railway has also provided a major transport route for Thailand to access the vast Chinese market. In the past, the transport of goods between China, Laos and Thailand had to take longer due to poor road conditions. The China-Laos Railway has cut travel time down to around 10 hours, facilitating the transport of the goods such as fruits which require speedy delivery.
For Jiranun, the tourism association advisor, the China-Laos Railway is also a road of friendship that links Thailand, China and Laos even closer by increasing connectivity and people-to-people exchanges. She said more exchanges would facilitate greater understanding, which would in turn facilitate increased cooperation.
Source : NATIONAL NEWS BUREAU OF THAILAND
APPLE Inc is in talks with suppliers to make MacBooks in Thailand as part of the company’s ongoing efforts to expand its manufacturing presence beyond China, Nikkei reported on Thursday.
Suppliers who are participating in these talks have existing manufacturing complexes in Thailand for other clients and are discussing possible assembly and production of components and modules for MacBooks, sources from three suppliers directly involved in the conversations with Apple told Nikkei.
Apple did not immediately respond to a Reuters request for comment.
It has also been mass-producing its Apple Watch in Thailand for more than a year, the Nikkei report said.
Covid-related issues made Pegatron Corp, a Taiwan-based key iPhone assembler “emphasise” its expansion in other countries, a senior executive had said last year.
Foxconn, which assembles around 70 per cent of iPhones, has also been diversifying production away from China, where strict Covid-19 restrictions disrupted its biggest iPhone plant last year.
Source : THE BUSINESS TIME
