PM’s recent visit to Thailand encourages private sector to expand trade between two countries

Kathmandu, Apr. 13: Recent official visit of Prime Minister KP Sharma Oli to Thailand has been fruitful in expanding trade and commerce and strengthening relations through the private sectors of both countries.

During the visit, Nepal and Thailand signed eight agreements, including two government-to-government agreements and six non-government agreements.

A Nepali delegation led by Prime Minister Oli went to Bangkok, the capital of Thailand, on an official visit from April 1-5 to participate in the 6th BIMSTEC Summit.

Six memorandums of understanding (MoUs) between private sector of Nepal and Thailand have been signed in the presence of Nepali Prime Minister Oli and Prime Minister of Thailand Paetongtarn Shinawatra which has encouraged Nepali private sector to expand trade and business through the mutual cooperation, said Kamlesh Kumar Agrawal, President of Nepal Chamber of Commerce.

"No MoU had been signed between the private sectors of Nepal and Thailand in the presence of the Prime Ministers of both countries so far. So this is historic itself and it has also encouraged us, the private sector, to expand investment, trade and commerce," Agrawal, who was part of the Prime Minister's visit to Thailand, told The Rising Nepal.

There has never been such a high-level official visit from Nepal to Thailand before, marking the 65th anniversary of the diplomatic relations between Nepal and Thailand since 1959.

Agrawal said that the visit has opened up the avenues of cooperation between private sector of Nepal and Thailand in attracting investments and increase tourists and boost other sectors.

During the visit, Nepal Chamber of Commerce and Tourism Council of Thailand have signed an agreement for cooperation in the fields of trade, tourism and civil aviation. 

The agreement was signed in Bangkok in the presence of Prime Minister of both countries by Nepal Chamber of Commerce President Agrawal and Tourism Council of Thailand President Chai Arunanondchai.

It is believed that this collaboration, which includes joint market promotion campaigns to identify and promote the tourism sites of Nepal and Thailand, joint cooperation in the field of civil aviation, exchange of heritage and culture, promotion of trade and investment, and capacity building, will play an important role in expanding economic activities in the relevant areas, he added. 

He said that the agreement is important to increase tourism activities in Pokhara and Bhairahawa International Airports in Nepal.

Despite having huge potential to attract more tourists from Thailand to Nepal, we have not been able to exploit the potential due to lack of marketing and collaboration, he said, and added that this agreement would support to bring more tourists in Nepal from Thailand.

About 4,986 tourists arrived from Thailand in Nepal by March of 2025. This is 4.10 per cent of tourist arrival during the review period. A total of 121,687 foreign tourists visited Nepal by March of 2025.

According to him, during official function hosted in Thailand and other sideline meetings, they have discussed with the private sector of Thailand and Thai businessmen have shown their interest to expand investment and trade in Nepal with the consultation of Nepali private sector.

He said that at the State Luncheon hosted by Thai Prime Minister on April 2, they got the chance to meet the Thai Prime Minister where she was impressed with the private sector of Nepal.

Prime Minister Oli met with Thai businessmen in Bangkok during the official visit. 

In the meeting, which was also attended by a Nepali business delegation, Prime Minister Oli urged Thai businessmen to invest in Nepal, stating that Nepal is a fertile land for investment.

Agrawal stressed on the need to focus on connectivity, trade facilitation and mutual cooperation to remove non-trade barriers for the promotion of trade between the member countries of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

Similarly, a MoU was signed between the Federation of Nepalese Chambers of Commerce and Industry and the Chamber of Commerce and Board of Trade of Thailand regarding mutual cooperation and the enhancement of trade and business.

In the meantime, a Joint Business Council (JBC) is set to be formed between Nepal and Thailand.

Discussions regarding the formation of this council took place during a meeting in Bangkok between the presidents of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Chamber of Commerce and Board of Trade of Thailand. 

During the meeting between FNCCI President Chandra Prasad Dhakal and Board of Trade President Sanan Angubolkul, along with officials from both countries, the FNCCI proposed the formation of a Joint Business Council between the two organisations.

FNCCI President Dhakal stated that the council will serve as a dedicated platform for continuous dialogue, collaboration and the exploration of business opportunities. 

"Nepal stands as a land of promising potential, offering numerous opportunities for investors and businesses. The initiative to form a Joint Business Council will further strengthen our partnership and drive economic growth in both countries," he said.

While talking about trade between Nepal and Thailand, Nepal has huge trade deficit with Thailand due to lack of export promotion of Nepal in Thailand, Agrawal said.

During the first eight months of the current fiscal year, the deficit with Thailand stood at Rs. 9.2 billion, with Nepal importing goods worth Rs. 9.30 billion from Thailand, while exports were a mere Rs. 40 million. 

Nepal had faced trade deficit of Rs. 8.56 billion with Thailand in last fiscal year 2023/24. Nepal exported goods worth Rs. 94 million to Thailand while imported goods worth Rs. 8.65 billion in last fiscal year.

Nepal is exporting goods, including green tea, yarchhagumba, dog food, aagarbatti, handmade paper, carpets and readymade garments in a low volume to Thailand while importing goods from Thailand such as pepper, crude palm oil, crude soybean oil, sugar, dry fruits and apple juice, among others.

Agrawal expressed his confidence that this visit could be a milestone to increase the volume of exports to Thailand and narrow down the widening trade deficit of Nepal through mutual cooperation between private sectors in the days to come.