Part 13: Thai – Danish Trade and Investment Ties in the Modern Times

Part 13: Thai – Danish Trade and Investment Ties in the Modern Times

วันที่นำเข้าข้อมูล 12 Oct 2021

วันที่ปรับปรุงข้อมูล 30 Nov 2022

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Trade and investment are a cornerstone of Thai-Danish relations. In fact, the first contact between the two Kingdoms 400 years ago began with the arrival to Siam of a Danish trading envoy while the diplomatic relations were established after the signing of “Treaty of Friendship, Commerce and Navigation” in 1858 or just over 160 years ago. After the Treaty, trade between the two kingdoms rapidly increased along the sea routes. In particular, the establishment of Andersen & Co. in Thailand in 1884 and the East Asiatic Company in 1897 played a vital role in expanding trade between the two countries and increasing Thailand’s exports to other regions. Many Danish engineering companies, through their role in the infrastructure development of Thailand from railway to electricity, also have paved the way for the strong presence of Danish investment in Thailand today.

In 2020, bilateral trade between Thailand and Denmark amounts to 760 million USD, while the first 8 months of 2021 already registered the trade value of 640 million USD. Top exports from Thailand to Denmark include gems and jewelry; footwear, electrical components, household table and kitchenware; and rubber product, whereas animal and animal products, large machinery, pharmaceutical items, chemicals, and tools/appliances linked to science and medicine are the primary imports from Denmark to Thailand.

In terms of investment, many leading Danish companies have utilized the strategic location of Thailand and its competitive advantage as their production base or regional headquarters for decades. These include, among others, Pandora, Royal Copenhagen, George Jensen, Ecco, Danfoss, Grundfos, Maersk and more recently Kvik Furniture and M2 Animation. Two Danish companies have invested in the Eastern Economic Corridor (EEC) since 2020 with total investment value of almost 700 million Baht, namely Mountain Top (Thailand), a leading company of aluminium roll covers for pickup trucks, and Linak Apac Ltd., producer of electric linear actuator solutions from agricultural to healthcare industry.

The presence of Danish business in Thailand is more than notable as it creates more than 50,000 jobs in Thailand. The Danish – Thai Chamber of Commerce, established in 1992, has more than 100 corporate members today and is the largest Danish Chamber of Commerce in ASEAN.

More recently Thai businesses also began their investment foothold in Denmark. These include prominent enterprises like Central Group, which has acquired Illum shopping complex, Thai Airways International, Thoresen Thai, a shipping company that opened a chartering office in Denmark, SVI Public Co. Ltd, Team Precision Public Company Limited, CPF food retailer, and Blue Elephant restaurant.

Beyond the present bilateral trade and investment, which primarily involves the production of merchandise goods, Thai and Danish businesses are entering into new partnership in the fields of the future, such as green energy, environmentally-friendly food production and agriculture, as they see new business opportunities from Thailand’s new focus on “Bio-Circular-Green” Economy Model and Denmark’s expertise in these fields.

Credits:

 

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"All rights reserved by PANDORA"

Picture 1: Pandora, Danish Jewellery Brand with its manufacturing site in Thailand since 1989, opened Its Second State-of-The-Art Facility in Lamphun, Thailand in 2016 to keep up with consumer sustainability awareness. The architecture and design of the site as well as the new production setup meet the highest demands regarding Corporate Social Responsibility (CSR) and sustainability and received an LEED (Leadership in Energy and Environmental Design) certificate.

 

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Picture 2: Illum shopping mall, acquired by Thailand’s Central Group in 2013, at the heart of Copenhagen’s shopping street.

 

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Pictures 3: Thoresen Thai shipping company in Denmark

 

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Picture 4: The Royal Thai Embassy in Copenhagen, in collaboration with Thailand’s National Science and Technology Development Agency (NSTDA) and Thailand Board of Investment (BOI), has organized a webinar series entitled “Thai - Danish Cooperation on Bio-Circular-Green (BCG) Economy Model” during  31 May - 2 June 2021.

 

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Picture 5: Thailand’s Eastern Economic Corridor (EEC) covering three eastern seaboard provinces of Rayong, Chonburi and Chachoengsao, is a key geographical gateway to one of the most prosperous regions of the world. The project offers favorable tax incentives and schemes attracting numerous foreign investments including from Denmark