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THAI-ITALIAN INDUSTRIAL COOPERATION: TIMES FOR EXPANSION
Let us begin with brief historical facts, Thailand established diplomatic relations with Italy on 3rd October 1868 by signing the Treaty of Friendship. Later, Italy appointed the Italian Consulate General to Thailand on 22nd November 1886. The bilateral relations between our two countries was been close and cordial, contributing to prosperous cooperation in many fields such as Trade and Investment, Industries, as well as people-to-people contacts. These are also supplemented by regular exchanges of visits at all levels including the royal family, dignitaries, and senior officials of the two governments.
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The significance of Italian Economy
Italy is a country with a long history in terms of art and culture that emerged for centuries. It has attracted tourists and creating Italy as one of the cultural Capital of the world. The Italian industrials sector has been strong in both heavy industries and its supplement industries. It is noted that the famous processed food industry such as macaroni and spaghetti has also symbolized the image of Italian in the international arena. All food products are influenced by the long history and culture of Italy. Thus, the Italian products that Thais are getting close with are the Italian foods, vegetables, and the beautiful tourist destinations of Italy.
Nevertheless, let the food apart, we should also note that Italy has a strong heavy industry, especially in Northwest Italy, Milan-Turin-Genoa, or the so-called “industrial triangle” where there is an area of intense machinery, automotive, aerospace production, and shipbuilding. The brand that we are familiar with are Ferrari, Leonardo Helicopter, and Fincantieri, help build Italian brands across Thailand and the world.
Italian to the world
As we know, the most popular export products of Italy are “3Fs”: food, fashion and furniture. They are symbolic of the Italian lifestyle. However, they also have capital goods and advanced technology goods. Italy is the second-largest manufacturing country in European Union. A big part of Italy’s export to Thailand is industrial machinery, followed by chemical products, pharmaceuticals, vehicles. In the post-Covid-19, we will focus on digital products, artificial intelligence, and robotics. Thailand exports to Italy many products such as electric and electronic devices, agricultural products, rubber products, and vehicles. Beyond trade, our relations with Thailand focus on a broad spectrum of topics such as sustainability and climate change. We both are committed to supporting multilateralism and we collaborate on several issues at the United Nations and other international fora.
The investment of Italy in Thailand, Ducati has been produced in Rayong since 2010. Also, in Rayong, Danieli Thailand produces turnkey plants for the metal industry, from iron ore to all the different finished products. Cavagna Group, a world-leading manufacturer of equipment and components for controlling compressed gases. Likewise, Thai investments in Italy is also booming, the well-known is by Central Group, which has acquired the historic Italian department store chain La Rinascente, while Thailand’s leading fisheries business, Thai Union, bought an Italian canned tuna brand, as well as, Minor Group in the NH Branded Hotel in Italy.
Way forward for cooperation
Italy has many interesting companies and brands in various sectors, not only in luxury but also in technology-intensive sectors. Real estate is interesting too, as foreigners are allowed to own property in Italy. Furthermore, the Italian government facilitates visas for entrepreneurs who invest above a certain threshold. Italy has many small and medium enterprises, which is the backbone of Italy’s economy, and among these SMEs there are many interesting Italian startups. Some of those SMEs are global leaders in their own market. It makes a lot of sense for Thai investors to look at these success stories to cultivate their relations. As we know, there are many institutions in Italy ready to help foreign investors to identify attractive opportunities. Also, in Thailand, we have the Thai-Italian Chamber of Commerce to support Italian investors.
From the foregoing, it can be seen that there are potential industries of both countries such as food and handcraft, which is related to Italian fashion product to be an industry that guides or attracts trade and investment between each country to increase their trading. Therefore, the Federation of Thai Industries (FTI.) is a great pleasure to operate in various ways to achieve the objectives of enhancing trade and investment relations by 45 industries club and our industrial provinces.
Business matching would strengthen and expand our cooperation very well in the future to be an opportunity and build a strong business alliance network. It is immunity to protect the business from unexpected changes, which create a business risk that could have serious consequences. Further, the Exchange of knowledge and understanding of various technologies in the manufacturing sector is important in the Thai supply chain. The current upstream industry must be adapted to be consistent with the changing production technology in terms of Industry 4.0. Including being Service Industries, which are the policy and vision of the Federation of Thai Industries. Focusing on providing various types of industry information services to entrepreneurs.
As a representative of private sector, FTI and ITCCI can drive and support members for sustainable business expansion, based on the accuracy information and collaboration between us to foster a prosperous Thai-Italian Industrial cooperation.
The Federation of Thai Industries.
8th Flr, Creative Technology Bldg. 2 Nang Linchi Rd., Thung Maha Mek, Sathon, Bangkok 10120 Thailand www.fti.or.th
