A blossoming partnership
WBJ sits down with Viroon Tejapaibul, Thailand's deputy minister of commerce, to talk about growing trade between the two countries and prospects for the future
E Blake Berry: In the first nine months of 2007, trade between Poland and Thailand grew by 44.9 percent y/y to reach $392 million. What drove this growth?
Viroon Tejapaibul: First of all, Thailand was in need of a new market and Poland is one of the new markets we're exploring. Because [our cooperation] is just beginning, it's growing very fast. Everything is in the beginning stages and I think Polish people like Thai products. And we've paid a lot of attention to satisfying needs in Poland. Food, clothing, these things are very useful for Poland.
As recently as 2004, Polish exports to Thailand exceeded imports, yet now the trade balance is firmly in Thailand's favor. What changed?
I think that Poland's entry to the EU mattered because we're familiar with this area, we have experience in places like the Netherlands. Also the current Thai Ambassador [Thakur Phanit], who started two years ago, is very capable and has provided good information to Thailand. Of course, Poles' buying power is increasing, so this too has helped to increase prosperity between the two countries.
Poland is a large manufacturer of televisions, yet televisions make up a large portion of imports from Thailand. Why is that?
I think marketing and sales are an influence. Products produced in Thailand might be a little cheaper than those produced in the local market.
Two Thai firms - S.Khonkaen and Lucky Union Foods-Euro - have invested in Poland. Are there any other Thai firms interested?
This is one of the things that we're pursuing - it's part of our policy to invest outside our country. Poland is more open now and regulations are becoming more convenient. So we think we will invest more here, including in terms of the construction business - if Poland provides more information, then I may be able to convince people from Thailand to invest more in this country. More things are in the pipeline now.
According to the Polish embassy in Thailand, there have been no direct Polish investments in Thailand to date. Will this change?
I think Thailand is an open country, open to investments that fit the needs of the market. Fertilizer is one of the things we need a lot of right now, for example. As Poland is more or less industrial, we'd be happy to become partners or even to welcome investments to Thailand. Of course our laws need to be studied a little bit, but most of the foreign people who invest in Thailand are quite happy. So I think Poles would be no exception.
What advantages does Poland offer Thai businesspeople over other EU markets?
Culture is very important, and Poles seem to be very straightforward people. Thais are also like this, so I think the cultures match well. And I also I think that Poles are more accepting now [than they used to be], they are more open.
Is export to Poland less attractive now, given the stronger złoty and high oil prices?
I don't think so. This isn't just an issue between Poland and Thailand, it's something happening around the world. So the standard of things will be changing everywhere. Logistics is more expensive everywhere.
