Forging close Franco-Thai relations
Leading Thai companies have continuously invested in France over the years and this has helped build close trade ties between the two countries in the manufacturing and service sectors. The big names include Double A Paper, SCG Cement, PTTGC & Indorama Petrochemicals, Thai Union Foods’ canned seafood under various brands that French may not know they are owned by Thais, for example, John West or Petit Navire, the Sea Value Group, Mudman’s restaurants and the Narai Hotel, France’s ambassador to Thailand Jacques Lapouge told Thailandtoday.co in an exclusive interview.
This year, the ‘Choose France’ Summit held at the Versailles close to Paris has seen the attendance of President Macron and top management of PTTGC and Indorama at the opening ceremony, which is indicative of the interests of Thai companies to explore new business opportunities in France and other European countries. In Ambassador Lapouge’s opinion, France is one of the most accessible choices for the rapid acquisition of new technology and innovative business practices in many sectors, such as next generation automotives, smart electronics, medical, wellness tourism, biotechnology, property and logistics. France is now the first destination for R&D projects in Europe and provides tax incentives for companies which have made investments in R&D and related ecosystems.
The 333rd anniversary of diplomatic relations between the two countries – the first Siamese Embassy in France led by Kosa Pan arrived in 1686 – was celebrated in 2019, a year that saw a bilateral Franco-Thai trade balance of EUR 4.5 billion, based on EUR 1.6 billion French exports to Thailand ranging from transport equipment, wines, chemicals, pharmaceutical products, cosmetics and other luxury products and EUR 2.9 billion Thai exports to France comprising electronics and equipment as well as agricultural products such as rice, sugar, fishery. French exports are very dependent on aircraft deliveries, which are cyclical.
In the past years, many French companies have invested in Thailand’s Eastern Economic Corridor (EEC) and Eastern Seaboard, among them Michelin for tyre products, Schneider Electric for electric and energy-related products, Saint Gobain for innovative materials manufacturing and construction solutions, and automotive part maker Valeo. Current French companies in Thailand is approximately 300 companies which employ the workforces over 70,000 Thais. Additionally, many French engineering and hospitality services projects are based in Thailand, for example, hotel chain operators like Accor with brands Sofitel and Pullman with more than 90 hotels nationwide. Ambassador Lapouge added that French investment is continuing and the focus is on sustainable development as a priority. Examples include the opening of bio-degradable plastic factory in Rayong province called Total Corbion PLA, a joint venture between Total Group of France and Corbion of the Netherlands and the Chonburi Clean Energy Waste-to-Energy Power Plant co-sponsored by the Suez Group of France which aims to share world-class expertise in smart and sustainable resource management for the circular economy. Innovative businesses in the transport and smart city sectors are also ongoing, and these infrastructure and technology-driven businesses will stimulate higher economic growth for Thailand and follow the Thailand 4.0 strategy. Long pending issues are the negotiations between Thai Airways International and Airbus on their development of an aircraft maintenance depot at U-Tapao airport in Rayong province and the purchase of Theos-2 satellite by the Geo-Informatics and Space Technology Development Agency.
Addressing the impact of COVID-19 outbreak on Franco-Thai trade and the economy, Ambassador Lapouge commented that the outcomes were difficult to predict, especially given such pending and unresolved issues such as US-China trade war, FTA agreements, the direct impact on Thailand from the sudden drop in Chinese tourists and the appreciation of Thai Baht and its effect on export values. He declined to comment on political issues and the dissolution of the Future Forward Party. He also noted that the FTA negotiations between EU and Thailand were expected to resume following the Thai government’s election in 2019.
