Bilateral Investment and trade between Kazakhstan and Thailand

According to the Observatory of Economic Complexity, Thailand exported $48.7 million worth of goods to Kazakhstan in 2021, while Kazakhstan exported $15.9 million worth of goods to Thailand. Kazakhstan is Thailand’s largest trading partner in Central Asia. Thailand has been particularly interested in Kazakhstan’s energy resources and in cooperation in tourism, science, and sports to enhance bilateral relations. Such interest remains strong today.

The trade between Kazakhstan and Thailand in 2021 amounted to $64.6M. Kazakhstan sold Semi-Finished Iron ($5.7M), Raw Lead ($5.08M), and Ferroalloys ($2.34M) as its main products to Thailand. Thailand sold Cars ($18.5M), Delivery Trucks ($5.8M), and Large Construction Vehicles ($5.09M) as its main products to Kazakhstan.

The exports of both countries have increased at an annualized rate of about 10% since 1995. The two countries have also signed a bilateral investment treaty (BIT) in 2010, which entered into force in 2013, to promote and protect investments between them. 

The Eurasian Economic Union (EAEU) offers a huge market opportunity for Thailand by signing a free trade agreement. Thailand aims to emulate Vietnam, which has already secured such a deal and become the top trading partner of Kazakhstan, the second biggest economy in the EAEU, among the ASEAN nations. 

Kazakhstan attracts Thailand's attention because of its strategic position in China's Belt and Road Initiative (BRI) and its own "Nurly Zhol" program, which connects with the BRI and makes Kazakhstan a key link between Asia and Europe by land. 

On the other hand, Thailand appeals to many Kazakhstani tourists. Kazakhstan also wants to learn from Thailand's experience as a leader in tourism and service-based sectors, which are areas that Kazakhstan is working to develop and promote.

Thailand is a vital partner for China's BRI in the region and can facilitate the linkage between Southeast Asia and Central Asia, which aligns with the Thai Foreign Ministry's Central Asia Strategy. Thailand has a special role in enhancing the political and economic relations between Kazakhstan and ASEAN. This is a timely opportunity as Kazakhstan seeks new avenues of cooperation with a broader range of actors, including ASEAN, and ASEAN countries are keen to engage more with Kazakhstan.

By Mr.Sarawut Thiramanit, Dr. Prachaya Suwanhirunkul

Enterprise Thailand