Two thai firms in running for road projects

Ch Karnchang and Italian-Thai Development will join the bidding in Bangladesh next month for expressway projects worth US$2.1 billion (Bt67billion).

The Bangladeshi government is planning to grant concessions for two expressways - a $1.2 billion expressway in Dhaka and a $900 million expressway linking Dhaka and Chittagong, the industrial province.

Chalermpol Thanchitt, the Thai ambassador in Dhaka, said yesterday that Thai firms had high potential to invest in the expressway projects under closer cooperation between the two countries.

Thai firms are keen to invest there, as are firms from other countries, including two Malaysian firms.

Besides construction, other industries show potential for Thai firms, particularly consumer goods and manufacturing, Deputy Commerce Minister Wiroon Techapaiboon said.

After talking with Bangladeshi businessmen in Bangkok, Wiroon urged local businessmen to invest more in Bangladesh, as the country could act as the gateway for Thai exports to India and South Asia.

Thailand and Bangladesh are negotiating a free trade agreement under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, which would help Thai firms in terms of rules of origin to invest there and export to third countries, Wiroon said.

Industries there that Thai companies should consider are textiles and garments, processed food, consumer goods manufacturing and medical services, he said.

Bangladesh allows 100-per-cent foreign ownership, while labour costs are low, only $200 per month, he said.

Despite its status as a developing nation, Bangladesh has bright prospects for growth, which would fuel demand for many goods that Thai businesses could provide, Wiroon said.

With closer cooperation, the Thai and Bangladeshi governments are expected to boost two-way trade to $1 billion in 2013, from $525.4 million last year.

Thailand exported $511.2 million worth of goods to Bangladesh, while importing $14.2 million worth of Bangladeshi goods last year.