The intense political turbulence in Bangkok has created concern among Italian investors, who had considered the Kingdom as one of the best destinations for investment under its Look East policy, according to the Italian Trade Commission to Thailand.
Commissioner Vincenzo Cale said yesterday that the political chaos could destroy investors' confidence.
"Although Italy has a Look East policy and considers Asean, including Thailand, as one of the most attractive investment destinations, the political instability and turmoil have encouraged Italian investors to look to other countries in Asean, mainly to Vietnam and Malaysia," he said.
However, Cale is confident that the political chaos will not affect bilateral trade growth as two-way trade has increased gradually since early this year.
According to the Customs Department, Thailand exports to Italy grew by 36.01 per cent year on year in the first quarter this year to US$451 million (Bt14.6 billion), while imports from Italy rose 9.64 per cent year on year to $355.4 million.
Thai exports dropped 33.58 per cent last year to $1.3 billion. Imports last year dropped 7.97 per cent to $1.4 billion.
Major export products from Thailand to Italy are precious stones, air conditioners, motor cars and rubber. Major import goods are machinery, chemicals and medical goods.
Despite the turmoil, to increase export opportunities to Thailand the Italian Embassy in Bangkok with the Italian Commission will organise the Italian Festival 2010 in Bangkok starting soon.
The festival and more than 20 activities will be conducted in different places from later this month to December.
Products and services that will be promoted at the exhibition are home decorative items; foods, restaurants and cuisine; arts and culture, including music, movies and performance; design; and education.
The Italian government has organised the festival in Thailand for nine consecutive years. This year's festival will mark Italy's 140-year bond with Thailand.
The first exhibition, "Italy Style-Dressing Home" on interior design is being organised for May 25- June 25 at the Crystal Design Centre (Atrium D).