Thailand, Korea Have More Room for Trade Expansion
By Jung Sung-ki
Staff Reporter
Thailand hopes that it will develop stronger economic ties with South Korea, which it sees as having become a global economic powerhouse, Thai Prime Minister Abhisit Vejjajiva said.
In a written interview with The Korea Times ahead of the ASEAN-Korea Summit on Jeju Island, he praised the bilateral relations that have evolved over the last 50 years, but pointed out that more investments by South Korea would help build a future-oriented ``strategic partnership.''
``Clearly, security continues to be an area of mutual interest,'' said Vejjajiva. ``At the same time, the Thai people have looked on in admiration as Korea became first a regional, then a global economic powerhouse. It is a vital strategic partner for Thai trade and investment in Asia.''
Yet trade with Korea represents less than 3 percent of Thailand's international trade, he said.
``Given Korea's growing importance in the world economy, we need to build upon our good relations and improve the economic ties between us,'' said the prime minister. ``There are a number of mechanisms already in place that will facilitate this.''
He referred to the ASEAN-Korea Free Trade Agreement (AKFTA) as the ``most recent vehicle'' for increasing trade between Thailand and South Korea.
He said, once the AKFTA is fully implemented, the resulting reduction and elimination of tariff barriers should lead to a significant expansion of trade between both countries.
Currently, investment from South Korea stands at only 0.5 percent of total foreign direct investment in Thailand, according to the Thai leader.
``In the years after the 1997 Asian financial crisis, Korean direct investment in Thailand fell, while that of Japan and Western nations increased,'' he noted. ``This was largely attributed to Korea's own credit crunch and falling credit ratings, making it harder to get financing.''
He said he was aware that this kind of problem had been particularly acute for Korean small- and medium-sized enterprises (SMEs), which affected their presence in Thailand.
To solve the problem of lack of financing for Korean SMEs, he said, the Korean authorities have proposed that Korean banks such as the state-owned Korea Development Bank should be allowed to open branch offices in Thailand.
Seoul and Bangkok established diplomatic relations in 1958. Thailand was one of the first countries to send troops to defend South Korea during the 1950-53 Korean War.
In all, 11,786 Thai troops served under the United Nations Command throughout and after the war. Of this number, over one thousand were killed or wounded in action. Today, Thailand is proud to remain part of the United Nations Command, doing our part to ensure the freedom and security of the Republic of Korea.
Joint Efforts to Combat Crisis
The prime minister said the ASEAN-South Korea Summit would definitely provide an opportunity for ASEAN and Korea to build upon their partnership of the past 20 years and come together to find ways to overcome their common challenges, such as the ongoing global financial crisis.
``We are in the midst of global and regional challenges that affect our people's lives at a fundamental level,'' he said. ``The most urgent among these are, of course, the global financial crisis and the H1N1 influenza pandemic. I am very pleased that President Lee Myung-bak will be hosting the Commemorative Summit.''
He referred to the Chiang Mai Initiative (CMI) launched in 1998 as a cooperative model to shield the Asian region from financial turmoil.
He also expressed hope that the outcomes of ASEAN Plus Three Health Ministers Special Meeting on Influenza A (H1N1) in Bangkok, such as the sharing of stockpiles, exchange of information and transfer of technology for anti-viral medicines, as agreed in the Joint Statement, will be followed through by concrete action.
He continued, ``What we discuss at the Commemorative Summit can, of course, be inputs for the upcoming 12th ASEAN-Korea Summit in Phuket, Thailand, later this year.''
Tourism and Hallyu
Thailand is one of the most favorite travel destinations for South Korea. The prime minister said his country would make more systematic efforts to help attract Korean tourists.
He said Thailand offers something for everyone: beaches and jungles, temples and shopping malls, culture and fun ― all at very reasonable prices. So whether your purpose is business or leisure, Thailand fits the bill perfectly, he stressed.
``Another of Thailand's strengths is the warmth and friendliness of its people, their `signature smile'. So people come back because Thailand offers great value for money and a fulfilling experience,'' Vejjajiva said.
For years, the Thai government has worked to develop Thailand into a regional hub of trade, investment, transport and tourism. To ensure that Thailand's tourism success is sustainable, the country needs to ensure that all these areas of development are compatible with one another, he said.
``For example, we must see to it that industrial development does not occur at the expense of the integrity of, say, our national parks, and that our desire to promote tourism does not adversely affect the traditional lifestyles and landscapes that made Thailand unique and attractive to begin with,'' he said.
In addition, the Cabinet has decided to put in place various incentives to promote tourism, such as on tourist visa waivers, tourism insurance and aircraft landing fees. This is being implemented along with measures to promote conservation in tourism, as well as to develop sustainable tourism and diversification of the tourism industry, through medical tourism and other schemes.
He said the number of Thai tourists to Korea is also on the rise due to the effects of the ``hallyu,'' or Korean wave, currently sweeping Thailand. This hallyu is not only a catalyst for the increase of Thai tourists to Korea, he said, but also an effective tool to promote Korean brand names in Thailand.
The Korean wave has also encouraged Thai youths to learn about all things Korean. Korean studies and Korean language courses are increasingly popular among Thai university students.
Korean brand names are also increasingly popular. Samsung and LG have become household names in Thailand. More and more, Thai consumers regard Korean products as cutting-edge, reliable and good value, on a par with more established foreign brand names.
``We are delighted to welcome more than one million tourists from South Korea to Thailand each year,'' he said, adding that many of them are golfers and honeymooning couples visiting Bangkok, Pattaya and Phuket.
Korean tourists arriving by air are currently the second highest number, he explained. ``I believe that, in a few years, Korea will become number one.''
For that, the Thai government plans to increase the number of Korean-speaking tour guides, he said, adding that more Korean studies programs at Thai universities as well as language training courses, with Korea's support, would help ease the shortage.
About 35,000 Thais are now working in Korea, especially in small factories around the country.
`` I know they are proud to do their part in the construction of infrastructure such as Incheon International Airport and railways. I appreciate the Korean government and people for helping make the Thai workers feel welcome,'' he said.