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Official Name: Kingdom of Thailand
Land Area: 513,115 sq km
Population: 65.9m (Dec 2007)
Capital City: Bangkok
Religions: Buddhism – 95% of population, but also Islam, and Christianity
Language: Thai
Currency: Thai Baht
Exchange Rate: NZ$1 = 23.737 Baht
Political system: Constitutional Monarchy
National government: Under the Constitution the Prime Minister is an elected member of the House of Representatives.
Last election: Senate 2 March 2008
House of Representatives: 23 December 2007
Head of State: His Majesty King Bhumibol Adulyadej
Prime Minister: Samak Sundaravej
Key Ministers:
Finance: Surapong Suebwonglee
Defence: Samak Sundaravej
Foreign: Noppadol Pattama
Commerce: Mingkwan Saengsuwan
Education: Somchai Wongsawat
GDP US:$225.8 billion (2007)
GDP breakdown:
Agriculture: 10%
Industry: 44%
Services: 46%
GDP per capita: US$3,400 (2007)
Real GDP growth: 4.0% (2007)
Exports (fob): US$123 billion (2007)
Imports (fob): US$119.3 billion (2007)
Main exports: Machinery & mechanical appliances,
Electrical apparatus for circuits,
Integrated circuits & parts,
Textiles
Current account balance: US$8,268m (2007)
Inflation 2.0%: (2007)
NZ Total Exports (FOB): NZ$566,777,000 (for year to Dec 2007)
Main Exports: Milk and cream, crude oil, butter milk, yogurt, malt extract food preparations, butter and other fats and oils derived from milk, wood products, cheese and curd, sugars, paper products, raw hides and skins seafood.
NZ Imports (CIF): NZ$1,124,845,000 (for year to Dec 2007)
Main Imports:
Trucks and vans, crude oil, air conditioning machines, polymers of ethylene, preparations for use on the hair, preserved fish, caviar, automatic data process machines and iron.
Services Trade: There were 19,800 visitors from Thailand in the year to June 2007.
There are approximately 4,500 Thai students currently studying in New Zealand.
New Zealand's relations with Thailand date from the 1950s. The relatively narrow security/alliance dealings of the Southeast Asian Treaty Organisation (SEATO) years have been replaced by a broad based relationship with rapid growth in people to people links.
Both countries share similar perspectives on regional political and security issues. Extensive cooperation exists in multilateral (WTO) and regional fora (APEC, ASEAN Regional Forum, and East Asia Summit).
Thailand is an important export market for New Zealand. In the year ending December 2007, New Zealand exports amounted to NZ$566,777,000.
New Zealand's bilateral aid programme in Thailand ceased formally in July 2004 when the Prime Ministers of both countries announced that a new relationship based on regional partnership would be developed. There is growing informal interaction between NZAID and Thailand International Cooperation Agency (TICA), the aid agency in Thailand, as areas of mutual interest and cooperation are explored.
North East Thailand was one of the earliest centres of civilisation in South East Asia. The country grew with people migrating from China (Yunnan), Burma (Mon) and Cambodia (Khmer). The Kingdoms of Sukhothai (until 1438) and Ayutthaya (destroyed by the Burmese in 1767) laid the foundations for the emergence of the Chakri dynasty in the late eighteenth century.
A coup d’etat in 1932 ended the absolute monarchy of the earlier Chakri dynasty and was replaced by a constitutional monarchy. Thailand, the “Land of the Free”, is the only country in South East Asia never to have been colonised. The military had a strong involvement in running the country up until the 1990s. Student and civilian clashes with the military from the early seventies to 1991 underpinned the development of civil society in Thailand which culminated in the 1997 Constitution. This has been replaced by the 2007 Constitution which, like its predecessor, enshrines the primacy of elected parliamentary government.
The King is Head of State and Commander-in-Chief of the armed forces. His Majesty King Bhumibol Adulyadej ascended the throne in 1946 and in June 2006 he celebrated 60 years on the throne. He is the world’s longest-serving monarch, is much loved by the Thai people and retains immense prestige and moral authority.
Thailand has undergone a major political upheaval of late, with former Prime Minister Thaksin Shinawatra being overthrown in the September 2006 military coup. However, national democratic elections were held on 23 December 2007 and the Thai parliament convened on 21 January 2008. The roadmap for the restoration of democracy in Thailand was completed with the election of 76 senators to the upper house. A new Thai coalition government (led by the Peoples’ Power Party) is now in place.
Economic Situation
The Thai economy is South-East Asia’s second largest, but growth is slowing. Thailand's GDP growth last year was just over 4.0%, and the World Bank has forecast 4.5% growth for the coming year. Positively, the National Economic and Social Development Board recently announced that economic growth picked up to 5.7% year-on-year for the fourth quarter of 2007.
Thailand has a diversified economy with a significant volume of international trade. This trade is heavily dependent on the United States and Japanese markets with these accounting for 35% of total exports. Strong sectors in the economy are motor vehicles, electronic goods, computer and electronic parts, textiles, fisheries, agriculture and food processing. The export sector has proved remarkably resilient in the face of a persistently high baht. Thailand continues to maintain restrictions on foreign entry in key service areas including air transport services, ports and telecommunications. Relaxing these would enhance competition and investment, reduce costs and raise incomes in the services sector.
The Thai economy will continue to face challenges with consumer confidence remaining fragile and the economy under pressure from rising oil prices; an over-valued baht; a slow-down in demand from key markets; a rising inflation rate, and declining work place competitiveness. The current account is at the moment enjoying a surplus of 3%, but there is the prospect of a deficit in the year ahead if export growth falls. Overall, Thailand does not seem to be at risk from the immediate volatility in world financial markets and alongside a strong fiscal position, the government is taking direct action to sustain levels of domestic confidence and economic activity in the face of an uncertain outlook.
Latest economic information may be obtained from www.bot.or.th
Thailand seeks to position itself as the gateway to mainland Southeast Asia and as such its foreign policy is focused on the immediate region. Beyond this, Thailand accords importance to its relations with China and other major powers, including the USA, and Japan, as well as the Republic of Korea, India and the EU. Thailand has placed increasing emphasis on its regional dialogue with Japan, China and the Republic of Korea. Thailand seeks to play a constructive role in the framework of the United Nations as well as in other multilateral frameworks.
Australia and Thailand signed a Free Trade Agreement (FTA) in 2004 and New Zealand and Thailand signed a Closer Economic Partnership in April 2005. In April 2007, Thailand signed an FTA with Japan and continues to pursue a number of other bilateral FTAs.
Thailand is part of the negotiations towards an ASEAN-Australia/New Zealand Free Trade Agreement (AANZFTA), which is hoped will be concluded in mid-2008.
Thailand’s major security preoccupation has traditionally been with its borders and the internal situations in neighbouring countries, Cambodia, Myanmar, Laos and Malaysia. Contentious issues include the trafficking of narcotics and the presence in Thailand of an estimated one million Myanmar workers, many of them illegal, and over 100,000 displaced. Thailand has contributed to a number of international peace keeping and reconstruction efforts including in East Timor, Afghanistan and Iraq.
Thailand has supported an open international trading environment through membership of the WTO, and joined, as founding member, of both the Cairns Group and APEC.
Further detail on Thai foreign policy may be found on www.mfa.go.th
New Zealand's relations with Thailand date from the 1950s and formal diplomatic relations were established in 1956. The narrow security/alliance dealings of the Southeast Asian Treaty Organisation (SEATO) years have been replaced by a broad contemporary relationship. Both countries share similar perspectives on regional political and security issues. New Zealand is regarded as a friendly and reliable partner.
New Zealand’s economic links with Thailand have grown rapidly over the last decade. Numerous New Zealand firms have offices and considerable business activity in Thailand. Tourism has grown in both directions and helped to promote Thailand as a favoured Asian holiday destination. Thailand is now New Zealand’s leading provider of fee-paying students from Southeast Asia.
New Zealand's bilateral aid programme in Thailand ceased formally in July 2004 when the Prime Ministers of both countries announced that a new relationship based on regional partnership would be developed. There is growing informal interaction between NZAID and Thailand International Cooperation Agency (TICA), the aid agency in Thailand, as areas of mutual interest and cooperation are explored. Thailand was welcomed as the thirteenth Post-Forum Dialogue partner in 2004 and this took effect at the 2005 Forum.
While no longer receiving bilateral assistance, Thailand is still eligible to receive humanitarian assistance and continues to benefit from the Head of Mission fund which has a strong poverty focus for meeting local community level needs. New Zealand provided police officers and funds to assist with victim identification in the aftermath of the December tsunami which ravaged the west coast of Thailand.
New Zealand continues to work in active partnership with Thailand in supporting the Mekong Institute at Khon Kaen University in northeast Thailand. Since the Mekong Institute was constituted as a regional institution in 2003, Thai nationals have held the positions of Director and Steering Committee chair. New Zealand has a seat on the Council but no longer has an ownership role. The Mekong Institute is diversifying its programmes across the region, and works more closely in co-ordination with other regional training institutions and mechanisms that provide human resource development to the Greater Mekong Sub-region (GMS) – Cambodia, Laos, Myanmar, Thailand, Viet Nam, and the Yunnan province of China.
Thailand is keen that its traditional donor/recipient relationships be transformed into collaborative partnerships in third countries, particularly in the GMS. New Zealand increasingly meets with Thailand and other GMS countries at regional meetings such as the annual Asia Development Bank GMS Economic Programme and the ASEAN Joint Management Committee meetings. These occasions offer old and new donors alike opportunities to share experience and to find new ways to collaborate.
The Thai market is large and diversified and there is an increasing Thai awareness of New Zealand as a source of imports. Thailand is New Zealand’s 16th largest export destination, and 11th bilateral trading partner.
A Closer Economic Partnership (CEP) between New Zealand and Thailand was signed in Bangkok on 19 April 2005 and entered into force on 1 July 2005.
In the initial year of the CEP, from 1 July 2005, New Zealand exports to Thailand increased by 10.3 per cent on the previous year, to NZ$384 million and New Zealand's merchandise exports to Thailand has increased by almost 70% over the past two years, signalling a significant period of growth. The value of Thai merchandise exports to New Zealand over the same period rose by 18%.
In parallel with the CEP, New Zealand and Thailand also signed Arrangements on Labour and the Environment in April 2005. Under both Arrangements, information exchange with a view to technical cooperation activities is well underway. New Zealand and Thailand also signed a Cooperative Arrangement on Customs in June 2005.
Thailand’s role as a low cost regional hub has led to investment by New Zealand companies and there are a number of joint ventures or representative offices in Thailand. These include Air New Zealand (TT Aviation Co Ltd); Australia and New Zealand Banking Group Ltd (ANZ); Fisher and Paykel; Baldwin Boyle Group; CR Asia; Connell Wagner; Fonterra; Hedley Jonh Exporters Ltd (NZ); Joy Sports Co Ltd; Lees Technology Ltd; Massive Software; Mastip Thailand Co Ltd; Nekta (Thailand) Ltd; NCC (New Zealand) Ltd; New Zealand Tourism Board; Pacific Aerospace Corporation Limited; TENCO – NZ Co Ltd; Tait Mobile Ratio Ltd; Thai Universal Office Products Co Ltd; Siam Dyemaster Co Ltd; Sealed Air (Thailand) Ltd; Volastic Co Ltd; Wai Ora Spa; Aviation Services; Patton Aero; Tatou Spa; and Gardyne Holt Thailand
The New Zealand Thai Chamber of Commerce, inaugurated in 1996 in Bangkok, is willing to assist New Zealand commercial interests.
Thai International Airways (TG) has recently reduced the frequency of its direct flights between Bangkok and Auckland from seven to five per week. Air New Zealand and Thai Airways are members of the Star Alliance.
Education is an important and rapidly growing element in the relationship. Thailand is now New Zealand’s largest Southeast Asian and fourth most important overall source of fee-paying students. The numbers of Thai full time private students in New Zealand rose during the 1990s, and as at December 2007, there were 2669 Thai students studying in New Zealand.
A number of New Zealand universities have developed strong links with counterpart institutions in Thailand, including with Thailand’s most prestigious universities. Such links promote New Zealand education as a quality product and represent an opportunity for building research and constituent links with Thai counterparts. New Zealand has had a long association with Khon Kaen University in the north east of Thailand.
Thailand is not a significant immigration source for New Zealand and numbers have been small (less than 1% of immigrants). A bilateral visa waiver agreement for tourist travel was concluded in 1987, but was suspended in December 2000. All Thai nationals travelling to New Zealand require visas; with the New Zealand Immigration Service maintaining an office in Bangkok to process visitor, student, work and residence visa applications. New Zealand visitors to Thailand are granted a 30-day permit on arrival.
Thailand is a significant source of tourists to New Zealand. New Zealand is seen as a clean, green, friendly and safe place in which independent travelling is easy. There were 19,800 visitors from Thailand in the year to June 2007. The number of Thai tourists to New Zealand has remained relatively steady over the last few years with a shift towards higher value independent tourists.
Around 90,000 New Zealanders (which includes New Zealand citizens arriving from all destinations) visit Thailand every year. Staying an average of about 10 days, these tourists are valuable contributors to the Thai tourism trade.
Strong people-to-people links between New Zealand and Thailand had their foundation in Thai students coming to New Zealand under the Colombo Plan. An active Alumni Association based in Bangkok refreshes these bonds.
The New Zealand Minister of Foreign Affairs and Trade and the Minister for Trade Negotiations have made regular visits to Thailand. The Prime Minister visited in 2005 for the signing of the CEP. The New Zealand Attorney General visited Thailand in August 2001; the Minister of Defence and Tourism made a bilateral visit in June 2003; and the Minister of Education visited in May 2004. The Governor-General, Dame Silvia Cartwright visited Thailand in April 2002. Most recently, the Minister of Police visited Thailand in May 2006. Most recently, the Minister of Education/Ethic Affairs, Hon Chris Carter, visited Bangkok in March 2008.
The Thai Foreign Minister, Dr Surakiart Sathirathai, visited New Zealand for official talks in late October 2003. The Thai Prime Minister, Thaksin Shinawatra, visited New Zealand in July 2004 along with nine ministers. Foreign Minister, Kantathi Suphamongkhon, visited New Zealand in July 2006. Several Thai Parliamentary delegations have visited New Zealand in recent years. These have included the Senate Tourism and Privatisation Committees.
The Ministry’s website (www.safetravel.govt.nz) has comprehensive travel information including advice on the safety of travel to various countries.
Enquiries should be directed to Consular Division at the following:
Telephone: +64 (04) 439-8000
Fax:+64 (04) 439-8532.
Thailand is represented in New Zealand by:
The Royal Thai Embassy
2 Cook Street (PO Box 17226)
Wellington
Ph: (04) 476 8618
Fax: (04) 476 3677
Thailand/New Zealand Business Council
PO Box 47
Auckland
Ph: (09) 309 6100
Fax: (09) 309 0081
Freephone: 0800 809 675
New Zealand is represented in Thailand by:
The New Zealand Embassy (street address)
M Thai Tower, 14th Floor
All Seasons Place, 87 Wireless Road
Bangkok 10330
THAILAND
The New Zealand Embassy (postal address)
PO Box 2719
Bangkok 10500
Ph: (66 2) 254 2530
Fax: (66 2) 253 9045
Email: nzembbkk@loxinfo.co.th
New Zealand Trade & Enterprise
Co-located with the embassy:
Ph: (66 2) 254 1610
Fax: (66 2) 256 0129
New Zealand Immigration Service
Co-located with the embassy:
Ph: (66 2) 654 3444
Fax: (66 2) 654 3445
