Bangladesh and Thailand are very old friends. The two countries are connected by the Bay of Bengal and by sea. Bangladesh and Thailand should strengthen cooperation more in trade, investment and regional communications, exploiting their ample potentials. Bangladesh and Thailand could benefit if they are connected with each other through direct maritime connectivity.
Chittagong sea port is the main sea port in Bangladesh. Ninety percent of the trade of Bangladesh is conducted through Chittagong (Chattagram Port). On the other hands, Ranong port of Thailand is situated in Ranong province in Thailand.  Ranong is on the Kraburi River of the Kra Peninsula, across from Myanmar and near the Indian Ocean coast. The Southern Economic Corridor project, approved by the Government of Thailand in August 2018, emphasizes development of Ranong port as a gateway to trade with Bangladesh, India, Myanmar, and Sri Lanka.Using Ranong port for trade with Bangladesh’s Chittagong, Payra and Mangla ports will reduce distance between the two countries and boost trade. Then this connectivity can be extended to India’s Kolkata, Chennai and Mumbai ports.
The launch of direct shipping services between Chittagong Port in Bangladesh and Ranong Port in Thailand has received a new push as trade between the two countries is increasing.
There are huge opportunities for Thai investors in infrastructure, light engineering, agriculture and food processing, and tourism and healthcare. Thailand and Bangladesh both could and should utilize these potentials. But a smooth connectivity is needed to boost the trade. Chittagong and Ranong port connectivity would boost up the trade, expansion of tourism. Bangladesh and Thailand both can benefit from the sea connectivity project
Bilateral trade between Bangladesh and Thailand has reached $837.08 million in 2019-20. Bangladesh’s total exports to Thailand in 2020 were only $35.46 million and imports were $801.3 million.
In 2021, Bangladesh exported $39 million to Thailand. The previous year’s exports were $35.46 million. According to FDI stock data in Bangladesh, Thailand is the 15th largest investor in the country. But the amount of bilateral trade would increase if the two countries sign a free trade agreement and build direct maritime connectivity between Chittagong and Ranong ports.
Thailand mainly exports cement, cereals, plastics, man-made staple fibers, sugar and sugar confectionery, machinery and mechanical equipment, cotton and cotton cloth, salt, sulfur, clay, stone and mineral fuels.
On the other hand, Bangladesh exports garments, vegetables, textile fibres, garments, animal products, electrical and electronic equipment, frozen fish and crustaceans. The two countries are also in talks to sign a FTA to boost trade and investment..
Many consider Bangladesh a gateway between ASEAN and SAARC. The establishment of trade and economic corridors through coordination between the Look East Policy of Bangladesh and the Look West Policy of Thailand and the establishment of connectivity through coastal shipping will bring prosperity for both. Thailand can fully support Bangladesh’s bid for membership in the Mekong-Ganga Cooperation Forum and the ASEAN Sectoral Partnership.
Direct sea connectivity between Chittagong and Ranong in Thailand will play an important role in expanding trade and commerce between the two countries. The time and cost of transporting goods will come down to one third. In addition to Myanmar, it will also play a key role in building ties with other Southeast Asian countries. The introduction of direct shipping between the two countries will encourage traders from both countries to expand bilateral trade and investment.
The connectivity of Ranong Port with Chittagong port will facilitate a new maritime trade route between Bangladesh and India. Port connectivity is needed between Thailand and Bangladesh to boost up trade and smooth the brimming potential for this. Thailand would be able to boost trade with India, Bangladesh and Sri Lanka under the framework of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).
Thailand and Bangladesh are the active partners of the visionary Chinese BRI project. If Thailand-Bangladesh sea connectivity between Chittagong and Ranong ports can be extended to Iran’s Chabahar port and Pakistan’s Gwadar port via Sri Lanka’s Colombo port through China’s BRI and International North South Transport Corridor project, a huge potential for the region will be creatde. Basically, a free trade zone between ASEAN and SAARC will be ensured. Thailand can access the markets of West Asia, Central Asia and Russia because there are some proposed connectivity projects from Pakistan’s Gwadar port and Iran’s Chabahar port to Russia and Europe through West Asia and Central Asia.
It is to be noted that although the Maritime Assistance Agreement between Bangladesh and Thailand was completed in 1986, and is currently in force. But Bangladesh and Thailand can renew the agreement for ensuring their own business interests.
Thai ambassador to Dhaka Makawadee Sumitmor at a bilateral business meeting with DCCI on November 2 said that the Thai government was planning to open the country step by step and in the next two months it would be possible to open fully, easing Covid-19 restrictions. Mrs Sumitmor said that still there was a trade gap between these two friendly countries.She also said that expansion of India-Myanmar-Thailand trilateral route would boost trade in this region.
She said that she was waiting for the signing of a memorandum of understanding between Thai authorities and the Chittagong Port Authority to establish direct shipping links by sea. She made the remarks at a meeting with the board of Chittagong’s Chamber of Commerce and Industries at Bangabandhu Conference Hall at Chittagong’s World Trade Centre in September 2021. It is true that trade between the two countries would increase if a direct connection was established between Chittagong in Bangladesh and the Ranang seaport in Thailand.
There are huge opportunities for Thai investors in infrastructure, light engineering, agriculture and food processing, and tourism and healthcare. Thailand and Bangladesh both could and should utilize these potentials. But a smooth connectivity is needed to boost the trade. Chittagong and Ranong port connectivity would boost up the trade, expansion of tourism. Bangladesh and Thailand both can benefit from the sea connectivity project.
