Thai businesses explore new market opportunities in Mideast

Thai entrepreneurs have hailed Iraq and Kurdistan as fertile ground for trade expansion after visiting the Middle East territories in a delegation led by the Department of International Economic Affairs.

The recent mission aimed to explore trade and investment opportunities, reflecting Thailand's proactive economic diplomacy strategy.

Supark Prongthura, Thailand's ambassador to Jordan, said the visit aimed to expand Thai businesses' market reach and explore the potential for new production bases in the Middle East.

Local businesses in Iraq and Kurdistan also expressed strong interest in partnering with Thai companies across various sectors, including agriculture, food, beauty products, health, construction, household goods, and interior decoration.

Noppawat Charoensinphon, managing director of Star Cannery, which produces canned tuna, sardines, mackerel, and pineapples, said he initially had reservations about the trip due to security concerns. However, after experiencing the market firsthand, he saw significant potential.

"Being here has shown me the real opportunities available for our company to expand its market presence," Noppawat said.

Star Cannery has been exporting to Iraq for two to three years, and Noppawat viewed this visit as a crucial step in deepening their market engagement.

"The 'Product of Thailand' label is well-regarded for its quality, particularly in the food sector, which gives us a competitive edge," he added.

Mohammad Ali Khan, president of CK Frozen Fish and Food, identified significant potential in the Iraqi market for fishery products like seabass and seven-striped carp.

“In the past, we had to process payments through Jordan, but now, direct financial transactions from Iraq are possible, which is a positive development,” Khan said.

He added that the challenge isn't the market itself but the need for more support from agencies like the Department of Fisheries to streamline processes.

Monthita Suksanga, executive director of Madamdo Interfood, said that her company has previously exported rice to the Middle East. However, this trip presented an opportunity to explore a market of 40 million people where rice is a staple.

“Thai rice has played a major role in the Iraqi market for decades, although exports paused for a while. However, over the past 2-3 years, trade has resumed, with over 200,000 tonnes of rice exported from Thailand to Iraq between January and August 2024,” she said.

Some local private businesses even requested price proposals for consideration. However, the company needs to review other factors, such as customs procedures and terms of payment, to ensure that no issues arise later, Monthita said.

Some local businesses requested price proposals for consideration, but Monthita said her company needs to review factors like customs procedures and payment terms to ensure no issues arise later.