Bangkok. Memorandum Of Understanding (MOU) between Federation of Handicraft Association of Nepal (FHAN) and Songkhla Chamber of Commerce has been signed recently amidst the presence of delegates in SME’s Fair 2024 held in Hat Yai, Thailand on July 19, 2024.
The signing ceremony was attended by Mr. Maha Mapiskree Wamae, Deputy Governor of Songkhla Province, and Chatsuda Chumsaeng, Director of Songkhla Provincial Commerce during the three-day SMEs Fair 2024 held from July 19-21.
Mr. Prachanda Shakya, President FHAN and Mr. Songphon Jangsiriwatthanthamrong, President of the Songkhla Chamber of Commerce had signed the MOU to foster cooperation and friendship relations among both parties. Addressing the opening ceremony of the fair, President Shakya emphasized on the potential collaboration between SMEs of Nepal and Thailand business communities, particularly in skill transfer and trade promotion.
Following an official invitation from the Office of Provincial Affairs of Songkhla Province through Ms. Jittra Ying Padungsak, Managing Director of Siam Lanchang Co. Ltd.; a delegation led by President Shakya and Vice President Dilli Ratna Tuladhar had attended the event as honored guests.
“FHAN being felicitated as the special guest during the event was also the highlight of the three-day event held at Hat Yai.”, said President Shakya, “Current export to Thailand is comparatively low at 1% of total export, the signing of MOU has opened doors to concentrate on increasing product markets in Thailand further.”
The MOU commits to act as a letter of intent to promote friendship and cooperation in the fields of tourism, culture, education, economy, trade, livestock industry and agriculture between Songkhla Province, Thailand and Nepal. Both parties have agreed to work further through the Division of Public Relations and International Cooperation units towards fulfilling the vital requirements to foster the trade relations in the agreed fields.
During the SMEs Fair organized by the Songkhla Chamber of Commerce with support from the provincial government, FHAN delegates also interacted with representatives of 70 SMEs and jewelry designers. “Our interactive discussion on potential collaboration towards mutual promotion of natural fiber products as well as fabric products from banana fibers could yield fruitful business,” said Mr. Dilli, Vice President, Commerce at FHAN, “Organized interactions with jewelry designers in future could enhance Nepalese jewelry crafts to cater the interest of Thai consumers.”
During the event, Mr. Neak Neron, Deputy Governor of Siem Reap, Combodia also showed keen interest in potential collaboration with FHAN for potential tourism and Art Exchange Programs. Along with him, the team from Chong Kausau Village were interested in architectural history as both countries have stone sculpture craft culture. Mr. Shakya exclaims that this interest could be linked to the aim of establishing mainstream formal education of traditional handicraft sector in Nepalese Universities to foster educational exchanges.
In addition to their participation in the trade fair, the FHAN delegation met with the Nepalese Ambassador to Thailand, Dhan Bahadur Oli, at his office. During the meeting, the delegation sought the ambassador’s assistance in promoting Nepalese handicraft products in Thailand as well as to assist in upcoming 21st Handicraft Trade Fair and 19th Craft Competition in Nepal. Ambassador Oli assured the delegation of his full support and commitment to this cause.
There has been a continuous increase in the amount of trade between Nepal and Thailand since last year. In 2023, the bilateral trade reached about 150 million US dollars, adding possibilities and opportunities for both countries to mutually prosper through trade and tourism.
In 2022, Nepal exported $1.06M to Thailand. The main products exported from Nepal to Thailand were Paper Containers ($319k), Blankets ($205k), and Iron Cloth ($114k). During the last 5 years the exports of Nepal to Thailand have increased at an annualized rate of 7%, from $756k in 2017 to $1.06M in 2022.
In 2022 Thailand exported $79.8M to Nepal. The main products exported from Thailand to Nepal were Unprocessed Synthetic Staple Fibers ($14.6M), Vinyl Chloride Polymers ($9.42M), and Cars ($5.59M).
According to latest data from June 2024 Ministry of Commerce Thailand, Nepal stands at 107th rank of its trade relations among 230 nations worldwide. The comparative data of last 3 months (May-June 2024) shows gradual growth of 25million baht in exports to Nepal in June 2024. While 15 types of exports from Nepal during same time has also proportionately increased by 97% in June 2024.
