Duong Thu Huong, Chair of the Vietnam-Thai Chamber of Commerce in Bangkok, Speaks on Economic Ties with Vietnam
Fostering a Stronger Economic Alliance Between Vietnam and Thailand in ASEAN, Leveraging Shared Strengths for Growth
Duong Thu Huong, the Chair of the Vietnam-Thai Chamber of Commerce based in Bangkok, shares insights on the economic relationship between Vietnam and Thailand with Vietnam News reporter Nguyen Hang. They discuss collaborative opportunities in logistics and strategies to reach a target bilateral trade turnover of US$25 billion.
What are the primary factors that contribute to the economic cooperation between our two nations? What vital steps can the two countries take to achieve the objective of boosting the bilateral trade turnover to US$25 billion in the future?
I think there are several key factors strengthening economic cooperation between Vietnam and Thailand. The strategic geographic proximity places both nations as crucial members of the ASEAN with significant trade routes, enabling efficient logistics and regional supply chain integration at low costs.
In addition to this, the economies of Vietnam and Thailand present complementary strengths. Vietnam boasts a robust manufacturing sector, particularly in electronics, garments, and agriculture, while Thailand excels in automotive, agro-processing, and tourism, offering strong complementarities for trade and joint ventures. In recent years, the bilateral trade between Vietnam and Thailand has consistently surpassed $20 billion, with Thailand being one of Vietnam's top trading partners within ASEAN.
Furthermore, Thailand stands among the top ten foreign investors in Vietnam, and key Thai corporations like CP Group, Siam Cement Group (SCG), Central Group, WHA, and Amata have already set up substantial operations in Vietnam, stimulating job creation and technology transfer.
Both countries are also signatories to the Regional Comprehensive Economic Partnership (RCEP), which provides a robust framework for trade liberalization, investment protection, and standards harmonization. To achieve the $25 billion trade turnover goal, recommendations include streamlining customs procedures, adopting digital border processing, and bolstering logistics cooperation to reduce trade costs and time. Additionally, it is crucial to encourage mutual investments in strategic sectors like renewable energy, the digital economy, green agriculture, and smart logistics through tax incentives and the establishment of special economic zones.
The two countries should also support small and medium-sized enterprises (SMEs) from both sides, connecting them via business matching platforms, joint exhibitions, and digital trade networks.
Expanding and enhancing land, rail, and maritime connectivity, particularly along the East-West Economic Corridor and Mekong sub-regional transport links, has the potential to boost trade and service calls to other countries as well. They should increase inbound and outbound tourism and co-develop packages to boost tourism by simplifying visa policies and jointly marketing attractions to third-country markets. To strengthen bilateral cooperation, a Vietnam-Thailand Economic Partnership Council should be established to facilitate dialogue between the private and public sectors, working together to review progress, address bottlenecks, and develop future collaboration strategies.
Recent diplomatic events, such as Thailand's Prime Minister's visit to Vietnam, and the upcoming 50th anniversary of diplomatic relations in 2026, present unique opportunities to elevate economic ties. By tapping into shared strengths and adopting forward-thinking policies, Vietnam and Thailand can not only achieve the $25 billion trade objective but also forge a deeper and more sustainable economic partnership within ASEAN and the Indo-Pacific region.
How do you regard the prospects for collaboration between Thai and Vietnamese enterprises in logistics?
With both Vietnam and Thailand positioning themselves as ASEAN's regional logistics hubs, collaboration in the logistics sector is timely and strategic. Leveraging the natural geographic advantages – Vietnam as a gateway to northeast Asia via the Pacific, and Thailand as a central point to mainland ASEAN and a connector to the Indian Ocean – offers opportunities to develop seamless East-West and North-South trade corridors. Through the support of frameworks like the ASEAN Economic Community and RCEP, upgrading cross-border supply chains is achievable.
Potential avenues for collaboration include:
- Infrastructure Investment: Thai logistics firms can invest in high-quality, cold-chain, or bonded warehouses in Vietnam's economic zones or near ports. Public-private partnerships (PPPs) can facilitate this process.
- Industrial and Logistics Zones: Thai companies like AMATA, WHA Group have already made successful investments in Vietnam's industrial real estate, which can be expanded through PPPs.
- Port Infrastructure: Collaboration in smart port development, container management systems, and multimodal transport links (road-rail-sea) can enhance regional flows.
- Technology Transfer and Smart Logistics: Thai firms with expertise in automation, fleet management, and logistics tech can partner with Vietnamese firms to digitalize inventory and supply chain management, apply AI/IoT for smart warehousing, and develop green logistics solutions like electric trucks and energy-efficient hubs.
- Joint Ventures: Strategic joint ventures between Vietnamese enterprises and Thai companies can expand services in areas like e-commerce fulfillment, cross-border trucking, and last-mile delivery.
- Supporting Policies and Regional Initiatives: Improved road connectivity from Vietnam's central ports to Thailand through Laos offers opportunities for co-managed logistics routes and inland hubs. Continued efforts in customs harmonization and single-window clearance can make Thai-Vietnamese supply chains more efficient. The two countries should establish a government-private working group to coordinate logistics planning, resolve regulatory bottlenecks, and attract investment, address workforce upskilling needs through joint Thai-Vietnamese training initiatives or academic collaborations.
Together, collaboration between Thai and Vietnamese enterprises in logistics can generate significant positive impact on bilateral trade and regional competitiveness.
What is the significance of improving transport links between the two nations to strengthen logistics connectivity between Vietnam and Thailand?
The enhancement of transport links between Vietnam and Thailand is essential for improving bilateral logistics connectivity, advancing trade, and supporting regional supply chain integration. Here's a strategic outlook on the importance and possible ways to advance transport linkages between the two nations.
Firstly, robust transport infrastructure enables goods to move faster and more reliably, reducing costs and time in logistics and supply chains for time-sensitive sectors like electronics, agriculture, and e-commerce. Secondly, enhanced physical connectivity stimulates trade flows and encourages investment in industrial zones, logistics hubs, and distribution networks along transport corridors.
Vietnam and Thailand play pivotal roles in the East-West Economic Corridor (EWEC) and Mekong sub-regional transport networks. Therefore, upgrading these routes boosts ASEAN's collective connectivity and resilience. Seamless multimodal logistics (road, rail, port, and inland waterways) between the two nations enhance flexibility and sustainability. There are several key areas for development:
- Land Transport Corridors: Prioritize road upgrades, customs cooperation, cross-border trucking agreements along the EWEC. For a southern economic corridor (HCM City - Phnom Penh - Bangkok), strengthen highway links, border gate infrastructure (such as Moc Bai - Bavet), and logistics stops.
- Rail Transport: Explore the long-term development of rail links from Vietnam's key economic zones to Thai railway hubs via Laos.
- Shipping Routes: Collaborate on developing smart port technologies, digital documentation, and container tracking at key ports like Cai Mep - Thi Vai Port and Laem Chabang Port.
- Border crossing digitization: Invest in digitalizing customs and logistics services at key border crossings, such as Lao Bao-Dansavanh and Moc Bai-Bavet border gates, to minimize congestion and delays and establish logistics zones or bonded warehouses near border points for efficient transhipment.
- Joint Task Force: Collaborate on a Vietnam-Thailand Joint Logistics Connectivity Task Force, including ministries of transport, industry, and customs authorities, along with private logistics firms, to align infrastructure planning, regulatory frameworks, and encourage investment in highways, dry ports, and intermodal terminals along key routes in cooperation with the ADB, ASEAN, and RCEP frameworks. This alignment aims to address vehicle standards, driver licensing, logistics documents, and customs pre-clearance challenges to promote co-investment in critical transport infrastructure.
Developing modern, efficient, and robust transport links between Vietnam and Thailand is vital for creating a competitive regional logistics ecosystem which not only accelerates bilateral trade and investment but strengthens the roles of both nations in global value chains.
- Duong Thu Huong emphasizes the importance of logistics collaboration between Vietnam and Thailand, given their strategic geographic proximity as members of the ASEAN and their complementary strengths in various economic sectors.
- Vietnam's manufacturing sector, primarily electronics, garments, and agriculture, and Thailand's strengths in automotive, agro-processing, and tourism provide strong opportunities for trade and joint ventures, contributing to the bilateral trade between the two nations.
- Thailand is one of Vietnam's top trading partners within ASEAN, with recent bilateral trade consistently surpassing $20 billion, highlighting the existing economic ties between the two nations.
- Thailand stands among the top ten foreign investors in Vietnam, with key Thai corporations like CP Group, Siam Cement Group (SCG), Central Group, WHA, and Amata setting up substantial operations in Vietnam, stimulating job creation and technology transfer.
- The Regional Comprehensive Economic Partnership (RCEP) provides a framework for trade liberalization, investment protection, and standards harmonization, potentially aiding the bilateral trade turnover objective of $25 billion.
- Recommendations to achieve this goal include streamlining customs procedures, adopting digital border processing, and bolstering logistics cooperation to reduce trade costs and time.
- Enhancing land, rail, and maritime connectivity, particularly along the East-West Economic Corridor and Mekong sub-regional transport links, and expanding inbound and outbound tourism can also boost trade and service calls to other countries.
