The Islamic Republic News Agency reports that Iranian Ambassador to Thailand Mohsen Pak-Ayeen has called for enhancement of economic cooperation with Thailand, given the great bilateral potential.

Pak-Ayeen was addressing a Bangkok conference to consider avenues for bolstering Thailand's economic cooperation with Islamic states that was organised by the Thai Chamber of Commerce.

"There are no limits to expansion of Tehran-Bangkok ties in various economic fields," he said.

He said bilateral relations had been on an upward trend in recent years, with joint cooperation looking particularly promising in the economic, industrial and tourism sectors.

Pak-Ayeen pointed out that Iran had passed an incentive law facilitating foreign investment in the country by granting additional facilities to investors while guaranteeing a return on capital.

Referring to the law governing free-trade zones in Iran, he said: "Investment in such zones will be exempted from tax for 20 years." He pointed to his country's petrochemical industry as a rich ground for foreign investment and said Iran, Thailand and Japan had entered into a tripartite agreement for investment in it.

He added that Thailand was in a position to make huge investments in Iran's petrochemical industry.

Akbar Nazari, the Iranian Embassy's secretary for economic affairs, told the conference non-oil exchanges last year between Iran and Thailand had risen 72.75 per cent from 2005.

He placed the value of trade between the two countries at US$616.9 million (Bt21.81 billion) last year, almost double the figure of $357.1 million for 2005.