Thailan’s policies and situation ofservice industries development in theperiod 2011 2022 and the possibility ofcooperation with vietnam

NATIONA ECONOMICS UNIVERSITY SCHOOL OF INT RNATIONAL TRADE AND ECONOMICS ASSIGNMENT OF ASEAN ECONOMICS MODULE Subject: THAILAN’S POLICIES AND SITUATION OF SERVICE INDUSTRIES DEVELOPMENT IN THE PERIOD 2011-2022 AND THE POSSIBILITY OF COOPERATION WITH VIETNAM Student's first and last name : Hoàng Thị Hà Phương Student ID : 11206563 Major Class : International Economics : International Economics 62A Program : Formal University Instructors : Assoc Prof Ph Dr Nguyễn Thường Lạng Email: langnt@neu.edu.vn, langnguyen3300@gmail.com Phone number: 0983478486 Semester : I 2023-2024 Student’s phone number: 0963143922 Student’s email: ph562002@gmail.com Hanoi, 8/2023 ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng REASSURANCE I assure you that this exercise is entirely done by me The citations and documents used in the exercise are completely honest, sourced and ensure the highest accuracy to the extent of my understanding If this is not the case above, I take responsibility for my assignment Hanoi, August 12th, 2023 Implementation student ACKNOWLEDGMENTS First of all, I would like to express my deep thanks to the lecturers of the National Economics University in general and the lecturers of the School of International Trade and Economics in particular for their dedication to teaching and imparting to us valuable knowledge and experience In addition, I would like to express my appreciation to Assoc TS Nguyen Thuong Lang, who directly guided me throughout the ASEAN Economics module exercise During the time of working with him, I have constantly accumulated a lot of useful knowledge for myself but also learned the spirit of serious and effective work, which is very necessary for me in the process of studying and working in the future Finally, I would like to sincerely thank my family and friends for always encouraging, contributing ideas, and helping in the process of studying and researching to complete this exercise Hanoi, August 12th, 2023 Implementation student Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng TABLE OF CONTENTS PROLOGUE 1 The inevitability of topic selection Research overview Research objectives and duties .2 Subjects and scope of research .3 Research methodology Structure of the topic CHAPTER 1: OVERVIEW OF THAILAND 1.1 Overview of natural features 1.2 Socio-economic development situation .5 CHAPTER 2: THAILAND'S POLICY AND SERVICE DEVELOPMENT SITUATION 2011-2022 .10 2.1.Thailand's development policies 10 2.2 Development situation of Thailand's service industry in the period of 2011-2022 11 CHAPTER 3: POSSIBILITIES OF COOPERATION BETWEEN VIETNAM AND THAILAND 15 3.1 Opportunities 15 3.2 Threats 16 3.3 Some proposed solutions 19 CONCLUDE 20 BIBLIOGRAPHY 21 Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng CATEGORIES OF ACRONYMS FULL MEANING ABBREVIATIONS GDP Gross domestic product ASEAN Association of Southeast Asian Nations APEC Asia-Pacific Economic Cooperation WTO The World Trade Organization G-20 FDI Group of 20 Foreign Direct Investment FTA BoT AC Free Trade Agreement Bank of Thailand ASEAN Community 10 11 12 13 EAS ASEM GMS EWEC East Asia Summit Asia-Europe Cooperation Forum Greater Mekong Subregion Cooperation East-West Economic Corridor 14 ITC International Trade Center 15 GCI Global Covid-19 Index Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng TABLE CATALOGUE TABLE TABLE NAME PAGE Top 10 export partners of Thailand in 2019 Top 10 import partners of Thailand in 2019 FIGURE BIBLIOGRAPHY FIGURE FIGURE NAME Geographical location of Thailand Thailand's population density in 2006 Total GDP of Thailand 2011-2022 (USD billion) Thailand's import-export turnover with important markets (USD 10 million) Total value of Thailand's services export and import in the period 20112022 (USD billion) Proportion of Thailand's service industry from 2011-2022 (%) Export and import volume of Thai commercial services in the period 2011-2022 (billion USD) Top Nationalities Visited Thailand in 2018 Gross domestic product (GDP) from the transport and storage sector in Thailand from 2012 to 2021 (in billion Thai baht) President Nguyen Xuan Phuc and Prime Minister of the Kingdom of Thailand Prayut Chan-o-cha held talks PAGE 11 12 12 14 15 17 Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng PROLOGUE The inevitability of topic selection In the era of globalization, industrialization and development of the service industry is an inevitable trend of developed and developing countries Services are intangible goods, or the process of operating activities and behaviors based on intangible factors, to solve the relationships between businesses and customers The service industry is considered a "smokeless industry" This means that they not cause adverse impacts on resources and the surrounding environment, but they bring enormous benefits and surplus value to the economy The service sector has become the largest sector of Vietnam's economy, growing from 40.7% of GDP in 2010 to 44.6% of GDP in 2019 The sector's share of employment has increased from 29.6% in 2010 to 35.3% in 2019 As the largest source of employment, the sector has absorbed a significant portion of its labor from the agricultural sector However, labor productivity and employment efficiency of Vietnam's service sector are still low compared to other countries Despite an increase of 34.3 per cent between 2011 and 2019, Viet Nam's labour productivity in the service sector (measured by value added per worker) is still much lower than that of many countries in the region For example, Vietnam's service sector labor productivity (measured by value added per worker) was US$5,000 (USD unchanged) per worker in 2019, still much lower than comparable countries, including Malaysia ($20,900), the Philippines ($9,300), and Indonesia ($7,300) Thailand ($7,800) Therefore, learning about the development of the service industry in countries with similar cultural and economic characteristics of Vietnam such as Thailand helps us have a more comprehensive view of the development trend of this industry Thailand's economy is the second largest economy in the ASEAN region (after Indonesia), ranked 25th globally by nominal GDP, ranked 21st in the world by purchasing power parity, ranked 28th in the world in terms of total national brand value (2020 statistics) Facing the trend of deep integration and the important role of the service industry, market expansion is essential Therefore, research on Thailand's service industry will open up opportunities for cooperation between Vietnam and Thailand Not only contributing to promoting the growth of export turnover, increasing foreign currency revenues, reducing the international balance of payments deficit, the expansion of export markets also helps reduce unemployment This is an issue that has not had much research at the Import-Export Department, so the topic "Thailand's policy and situation of service industry development in the period 2011-2022 and the possibility of cooperation with Vietnam" was selected Research overview Thomas A Hutton (2003) pointed out the development trajectory and planning response of service sectors, globalization, and urban restructuring in the Asia-Pacific region He Student: Hoàng Thị Hà Phương Class: International Economics 62A Document continues below Discover more from: Economies of Southeast Asia 3 documents Go to course Lang- Câu hỏi ôn tập học phần KT Asean Economies of Southeast Asia None Addressing-Issues-of-Unemployment-in-Brunei -The15 Mismatch-Between-Employers-Expectations-and-… Economies of Southeast Asia None Examples Econometrics Econometrics 100% (1) HIGHLAND COFFEE marketing analysis 30 Essay on Marketing Management 97% (142) TRESemmé's Marketing Strategy Essay on Marketing Management 100% (14) Marketing Mix strategy of KFC Essay on Marketing Management 100% (11) ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng concluded that "advanced services" – specialized, intermediate service industries, advanced technology services and innovative service industries – would be quite important for development development of city areas in the Asia-Pacific region, related to job growth and the formation of human resources, for the urban economic base (or export), the operation of flexible production systems and competitive advantages Cem Tanova & Steven W Bayighomog (2022) study on the green human resources of the service industry in "Green human resource management in service industries: construction, premise, consequences and prospects" Studies have shown that organizations that can link their environmental management efforts to their human resource management systems have improved outcomes at the organizational and employee levels This study is a systematic review of empirical work focused on Green Human Resource Management in service industries Ejaz Ghani (2010) pointed out the explosive growth of the South Asian service industry in its study "The Service Revolution in South Asia" The study is divided into three sections: The first part examines the role of services in development and how it contributes to growth, job creation and poverty reduction The second section focuses on patterns and developments in services exports The third section explores what infrastructure, policies, and institutions are needed for service-based growth The focus is on education, telecommunications, and aviation Paul G Patterson, Tasman Smith (2001) addressed relationship benefits in service industries in the context of Southeast Asia The results support earlier research suggesting that relational benefits can be categorized into three distinct benefit categories However, compared to previous research findings in the Western context, the results show some clear variations One should not rely solely on empirical research rooted in Western cultures, but also develop reliable models of how different marketing phenomena operate in rapidly expanding Asian economies Research objectives and duties 3.1 Objectives Based on policy analysis, current situation, assessment of results as well as limitations of Thailand's service industry in the period of 2011-2022, then consider proposals to orient the possibility of cooperation between Vietnam and Thailand and solutions to promote development cooperation between the two countries in the future 3.2 Duties To achieve the above research objectives, the project will perform the following research tasks: Firstly, an introduction to the nation of Thailand Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Second, analyze the policy and current situation of Thailand's service industry in the period from 2011-2022, draw assessments of the results achieved and the remaining limitations Third, analyze the possibility of cooperation between Vietnam and Thailand and propose solutions to promote cooperation in the future Subjects and scope of research 4.1 Beneficiaries: Thailand's service industry 4.2 Scope: policies and current situation of Thailand's service industry in the period 2011-2022 Research methodology The exercise uses analytical, synthetic, and comparative methods to solve the problem posed Data collected from the Worldbank, Customs authorities, General Statistics Office of Thailand, and Vietnam Structure of the topic In addition to the introduction, ending, table of contents, bibliography, the topic is presented in chapters: Chapter 1: An Overview of Thailand Chapter 2: Policies and status of Thai service development in the period 2011-2022 Chapter 3: Possibilities for cooperation between Thailand and Vietnam Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng CHAPTER 1: OVERVIEW OF THAILAND Thailand (Thai: ปปปปปปปปป, transliterated Prathet Thai), or Thai (Thai: ปปป, transliterated Thai), officially the Kingdom of Thailand (Thai: ปปปปปปปปปปปปปป, transliterated Racha-anachak Thai) Thailand is one of the founding countries of ASEAN, a member of the international organizations such as the United Nations, WTO, APEC, NonAligned Movement, and a permanent guest of the G-20 Summit The country is recognized as a "New Asian Tiger" and regional power in Southeast Asia and has the potential to become a middle power in the world 1.1 Overview of natural features 1.1.1 Geographical location Thailand is an independent sovereign country in Southeast Asia, bordered to the north by Laos and Myanmar, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, to the west by Myanmar and the Andaman Sea Thailand's territorial sea to the southeast is bordered by Vietnam's territorial sea in the Gulf of Thailand, and to the southwest by Indonesian and Indian territorial waters via the Andaman Sea Figure 1: Geographical location of Thailand 1.1.2 Natural conditions Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Table 2: Top 10 export partners of Thailand in 2019 Rank Country (Imports From) Trade Value (thousands) Share (%) Japan 31,654,363 20.97 China 17,990,360 11.92 United Arab Emirates 11,095,731 7.35 United States 10,406,804 6.89 Malaysia 8,318,926 5.51 Saudi Arabia 7,237,745 4.79 South Korea 6,331,595 4.19 Singapore 5,527,998 3.66 Indonesia 5,087,779 3.37 10 Germany 3,887,354 2.58 Source: General Statistics Office of Thailand The important partners in Thailand's export exchange are the United States, China, Japan, Vietnam, and Malaysia Collectively, those four major trading partners bought nearly half (46.2%) of Thailand's total exports in 2022 Of that, 61.6% of Thailand's exports by value are delivered to Asian countries while 18.5% are sold to North American importers Thailand shipped an additional 10.9% of its goods to Europe Smaller percentages belong to Oceania, led Student: Hoàng Thị Hà Phương Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng by Australia and New Zealand (4.7%), Africa (2.3%), then Latin America (2.1%) excluding Mexico but including the Caribbean According to the Thailand Economic Monitor, Thailand's economy is forecast to recover to pre-pandemic levels in 2022, but the growth rate will be slower than expected in 2023 due to global headwinds The economy is expected to grow 3.4% in 2022 and 3.6% in 2023 Growth in 2023 was revised down by 0.7 percentage points from previous forecasts, reflecting a fasterthan-expected decline in global demand The recovery of tourism and private consumption will remain the main drivers of growth CHAPTER 2: THAILAND'S POLICY AND SERVICE DEVELOPMENT SITUATION 2011-2022 2.1 Thailand's development policies The cabinet on October 17 approved in principle the Industry Ministry's proposal on "Target Industries: Economic Drivers for the Future" This is a long-term measure that will orient the country's "restructuring of production, agriculture - industry - services" effectively Competitiveness, quality job creation and systematic support for continuous and sustainable regional economies The two main directions of the Southeast Asian country's economic policies for the coming year are to maintain economic growth and restructure its economy Supattanapong said it was important to maintain a Gross Domestic Product (GDP) growth rate of around 3.5-4 percent The Thai government forecasts the economy will recover from 2020's projected 6% GDP contraction over the next 12-18 months In addition to the capital reserves allocated from the decree authorizing emergency borrowing worth trillion baht (about $33 billion), fiscal policy will be used to boost economic growth next year Mr Supattanapong said the extent of fiscal policy implementation will depend on quarterly economic conditions According to Deputy Prime Minister Supattanapong, if the second wave of COVID-19 breaks out and Thailand faces another lockdown, the growth forecast will have to be revised up In addition to maintaining its economic growth momentum, Thailand needs to restructure its economy in 2021, with a focus on restructuring focusing on digital technology, electric vehicles, and food industry development Local media on December 5, 2020, quoted Supattanapong as saying that the trade war and the pandemic have made global manufacturers change their minds as they prefer to produce products that are enough for domestic consumption rather than for export Student: Hoàng Thị Hà Phương 10 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng The Thai government wants to invest in new industries rather than traditional labourintensive ones Meanwhile, Bank of Thailand (BoT) Governor Sethaput Suthiwartnarueput said stimulus packages were needed to support the economic recovery in 2021, while the BoT stressed economic growth must be compatible with building financial stability Sethaput said that in the context of an uneven economic recovery, the Thai government needs to maintain stimulus measures until at least the first half of 2021 The BoT governor forecasts that in 2021, domestic consumption and exports will continue to improve thanks to the Government's support measures and the global economic recovery However, the BoT remains concerned about rising unemployment and fragile conditions in the labour market This year, Thailand's GDP growth rate may be better than current forecasts after economic conditions bottomed out in 2020, and signs of improvement appeared The BoT estimates that Thailand's GDP will shrink by 7.8 percent in 2020 and recover growth by 3.6 percent next year if foreign tourist arrivals will reach million 2.2 Development situation of Thailand's service industry in the period of 2011-2022 Source: World Bank Figure 5: Total value of Thailand's services export and import in the period 2011-2022 (USD billion) Currently, Thailand has limited the level of imports in the service industry while exports in this industry have grown slightly A global study by the World Bank shows that Thailand has a more limited-service market on average than ASEAN countries and other parts of the world, especially in professional services such as accounting, legal, architectural, engineering and management consulting For example, a dentist from the Philippines will have to take an exam Student: Hoàng Thị Hà Phương 11 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng in Thai to practice here Source: Worldbank Figure 6: Proportion of Thailand's service industry from 2011-2022 (%) Thailand's service sector market share has remained stuck at around 50% over the past two decades, dominated by low-productivity industries that employ lower-skilled workers and have a low share of service exports in "traditional" sectors Thailand has not shown a sustained increase in the share of the service sector observed in ASEAN and non-ASEAN countries as well as advanced economies For example, China's service sector as a share of GDP is growing rapidly and is close to catching up with Thailand Commercial Services Source: Worldbank Student: Hoàng Thị Hà Phương 12 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Figure 7: Export and import volume of Thai commercial services in the period 2011-2022 (billion USD) The United States is Thailand's largest export market and second-largest supplier after Japan Thailand's traditional markets are North America, Japan, and Europe The recovery of its trading partners in Southeast Asia also helped the country increase exports by 5.8% in 2002 However, the impact of the previous financial crisis has forced the country, which depends on exports to these traditional markets, to look for ways to penetrate the rest of Asia Since 2005, a sharp increase in exports of assembled cars for Japanese car brands (such as Toyota, Nissan, Isuzu, Honda…) has helped rapidly increase the trade balance, with the country producing and exporting an average of more than million cars per year Thailand has joined the top 10 major automobile exporting countries in the world with the nickname "Detroit of Southeast Asia" Medical services The World Covid-19 Index and Global Covid-19 Index (GCI) have just released rankings of the post-Covid-19 recovery rates of 184 countries The two organisations were developed by the Pemandu Association, in collaboration with the Malaysian Ministry of Science, Technology and Innovation (MOSTI) and Sunway Group In particular, Thailand holds the second position among 184 countries and tops Asian countries with a score of 83.32 out of 100 GCI said the ranking is calculated 70% based on changes in the epidemic situation each day including: the number of patients being treated out of the total population; the ratio of cured cases to the total number of infected people; the number of tests for treated patients; the number of tests per the total population of the country The remaining 30% is based on data of statistics collected from the Global Health Security Index (GHS), under the direction of John Hopkins University with support from the Bill and Melinda Gates Foundation Media & Publishing Services By January 2021, there were 48.59 million internet users in Thailand, an increase of 7.4% compared to 2020 The Internet penetration rate stands at 79.3%, which is expected to reach 83.3% by 2025 On average, Thai online users spend 10 hours a day on the Internet Thailand's total e-commerce revenue across all product categories is $8.9 billion and is expected to grow to $12.3 billion by 2025 Electronics & Communications is currently the leading product category in Thailand, accounting for US$2.6 billion market share By 2025, Electronics & Communications will still be the most purchased online category, with an estimated value of $3 billion Educational services Student: Hoàng Thị Hà Phương 13 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng On May 15, Thailand's Ministry of Education proposed a program to amend relevant laws to facilitate the liberalization of education services within the ASEAN framework This is considered one of the steps for Thailand to implement the ASEAN Community roadmap Thai Deputy Education Minister Puangpet Chunlaiad said all departments under the ministry's control would be lobbied to move towards ASEAN's common goal by 2015 The Office of the Private Education Commission is expected to be the first to implement the scheme by proposing to extend visas for foreign teachers from one year to two years The 2007 Private School Law and regulations relating to private international school standards will also be revised in a positive way The Office of the Commission on Vocational Education will develop criteria for vocational education to train students who can meet the requirements of the ASEAN market Travel & Entertainment services After the COVID-19 pandemic, the Thai government expects the establishment of a new normal to contribute to the recovery of the country's economy, including the tourism industry Recently, the Tourism Authority of Thailand (TAT), in collaboration with private and state partners, issued the "Amazing Thailand Safety and Health Administration: SHA" certification, to raise health safety standards, increase confidence for domestic and foreign tourists when coming to Thailand Source: AEC+ Business Advisory Figure 8: Top Nationalities Visited Thailand in 2018 It is the result of the continuous efforts of both the state-level management system and the Thai people in all fields, and at the same time establishing a new normal for economic and social recovery In particular, the tourism industry plays an important role in the Thai economy This is also the most affected industry The SHA certification will be applied to 10 types of businesses, including: restaurants, food stores; convention and accommodation, leisure and tourism centers; means of tourist transportation; travel agents, tour operators; health and beauty stores; department stores and shopping centers; sports stadiums; theaters, cinemas; souvenir shops and other shops Student: Hoàng Thị Hà Phương 14 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Transportation & Logistic Services In order to maintain the high competitiveness of Thai industry, it is necessary to mention the strategic contribution of Logistics towards lean production through the "Just-in-time" rapid supply management model But there are also risks, such as historic floods in the fall of 2011 that disrupted supply chains and halted production The lesson learned from a logistics perspective is the development of a new strategy to hedge risks It implies a comprehensive solution, including temporarily relocating machinery and equipment to safer areas before floods, changing component suppliers, replacing them with imported goods, increasing stockpiles, or decentralizing factory locations Source: Statista Figure 9: Gross domestic product (GDP) from the transport and storage sector in Thailand from 2012 to 2021 (in billion Thai baht) With the aim of strengthening business coordination with neighboring countries, the Industrial Estate Authority of Thailand (IEAT) has invited individual investors in a total of 13 industrial parks covering an area of 4800 hectares, with a total investment capital of about 300 billion baht Most of the deployment sites are in the North, Northeast and East, in addition to the construction of a logistics service area located on the border with Laos in Chiang Rai city Up to 2014, IEAT has issued 48 licenses for industrial parks, of which 36 industrial parks have been operated and 12 industrial parks are under construction; 11 industrial parks are under the direct supervision of the IEAT The group of potential private investors with financial capacity and experience includes Nava Nakorn and Thai Industrial Estate The Thai government is encouraging SMEs to invest in integrated logistics services in tandem with efficient management of production and product supply chains In particular, investment in information technology is especially encouraged to implement management and control of logistics activities In short, the attention of the Government is considered as one of the advantages of Thai Logistics The positive changes in the policy system and environment of Thai Logistics over the past time show the flexibility and serious interest in promoting Logistics of the Government In Student: Hoàng Thị Hà Phương 15 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng addition to supporting with a policy system, the Thai Government also actively invests heavily in logistics infrastructure The government also maintains a system of continuous monitoring and evaluation of national logistics efficiency However, the results are still limited, Thailand's current position of 35/155 shows that Thailand's logistics capacity is in the good average group In the future, if Thailand does not take more active and effective measures to improve the capacity of the logistics system, Thailand's logistics level may decline, reducing production competitiveness and trade growth CHAPTER 3: POSSIBILITIES OF COOPERATION BETWEEN VIETNAM AND THAILAND 3.1 Opportunities Over 45 years since the establishment of diplomatic relations (1976 - 2021), Vietnam Thailand relations have developed well in all fields, becoming a "strategic partnership", friendly and comprehensive cooperation In the current period, in the face of rapid and unpredictable changes in the world and regional situation, Vietnam - Thailand relations face challenges and difficulties, requiring the efforts and determination of both countries to promote the relationship in depth, effective and sustainable development Up to now, the two countries have signed many agreements and cooperation agreements in different fields, creating a favorable legal basis contributing to promoting bilateral cooperation In particular, senior leaders of the two countries have always closely directed the implementation of cooperation in all fields agreed in the Action Plan for the implementation of the Strategic Partnership for the period 2014-2018 between Vietnam and Thailand, achieving many good results Within regional and international cooperation frameworks, the two countries have always strengthened close cooperation, mutual support and support Some joint cooperation mechanisms that the two sides participate in, such as the United Nations, Asia-Pacific Economic Cooperation (APEC), Association of Southeast Asian Nations (ASEAN) with the formation of the ASEAN Community (AC), East Asia Summit (EAS), Asia-Europe Cooperation Forum (ASEM), etc… Greater Mekong Subregion Cooperation (GMS), East-West Economic Corridor (EWEC) Student: Hoàng Thị Hà Phương 16 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Figure 10: President Nguyen Xuan Phuc and Prime Minister of the Kingdom of Thailand Prayut Chan-o-cha held talks In terms of trade, Thailand is one of the partners with large export and import turnover with the total trade value always among the 10 countries with the largest trade relations with Vietnam According to statistics of the International Trade Center (ITC), Vietnam's trade turnover with Thailand increased times, from 2.31 billion USD in 2004 to 16.58 billion USD in 2020, the average growth rate reached more than 11% / year Over the past 16 years, twoway trade turnover reached the highest value in 2018 of 18.61 billion USD, mainly due to import turnover from Thailand In 2019 and 2020, due to the impact of drought in Thailand and the COVID-19 epidemic situation, two-way trade turnover decreased, especially for Vietnam's import turnover from the Thai market The trade balance between Vietnam and Thailand over the years has always been unbalanced with the deficit tilted in favor of Vietnam The deficit in Vietnam-Thailand trade relations is widening, increasing from $1.43 billion in 2004 to $7.11 billion in 2018 and $5.54 billion in 2020 The group of products Vietnam mainly exports to Thailand market includes phones, machinery and spare parts, iron and steel of all kinds, computers, electronic products, and components In the opposite direction, Vietnamese enterprises mainly import goods from Thailand, such as machinery and equipment and spare parts, raw materials, household electrical goods and components Regarding tourism, cooperation between the two countries in the field of tourism is also promoted to promote the potentials and strengths of the two sides Thanks to ASEAN's visa exemption policy, convenient air routes with many attractive incentives, close geographical Student: Hoàng Thị Hà Phương 17 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng distance and special promotions, Thailand and Vietnam are among each other's top 12 sending markets In 2019, 1.07 million Vietnamese people came to Thailand for tourism, bringing revenue of 33 billion baht (equivalent to 1.08 billion USD) to Thailand, while Vietnam tourism witnessed a record spike of visitors from Thailand with 510 thousand visitors (up 45.9% compared to 2018) From 2015 to 2019, the number of Thai tourists to Vietnam increased 2.4 times, the average growth rate reached 24.1% per year Recently, due to the impact of the COVID-19 epidemic situation, international travel of both countries has been almost frozen This causes many difficulties for both Vietnam and Thailand in developing tourism cooperation 3.2 Threats To bring the cooperation between Vietnam and Thailand to a new development, the two countries need to work together to overcome a number of difficulties and challenges: First, economic cooperation between Vietnam and Thailand is currently significantly affected by internal and external factors It will be difficult to cooperate and develop successfully if the region and the world have many potential and unpredictable risks and risks Even in Thailand, the political situation always faces many challenges and instability, which is also a significant hindrance to Thailand's cooperation with countries in the region and the world, including Vietnam, especially in the context that Thailand is responding to the widespread COVID-19 epidemic In addition, the process of globalization and free trade and trade protectionism are also rising strongly, affecting the adjustment of bilateral cooperation strategies between the two countries Countries are having to weigh between protecting domestic production and international economic integration Since the 2008 financial crisis, 4,000 new trade protection measures have been applied around the world in various forms, such as: trade remedies (imposition of anti-dumping, anti-subsidy and safeguard duties, tax increases), forms of discrimination and local barriers Increased trade protectionism in recent years has prompted some countries to put their national interests above all else in bilateral and multilateral cooperation Under the impact of trade protectionism, many ASEAN countries and ASEAN partners on the one hand support free trade and international economic integration; On the other hand, the policy focuses on developing a stronger national economy, reducing the level of commitment to regional multilateral mechanisms Along with that, the competition for influence in the region is increasing among great powers, affecting the situation of the region, making countries always have to be flexible to be able to offer appropriate cooperation options, especially in the context that countries in the Student: Hoàng Thị Hà Phương 18 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng world are increasingly strongly linked with each other China's strong rise, coupled with the United States' quest to counter China in order to maintain its influence in the world, has created new upheavals in the region The gathering of forces to pivot in relations between the US and China is putting countries in the region in a difficult position, especially in terms of foreign policy Not only that, the trade wars between the US and China, Japan and South Korea It has also disrupted global supply chains and trade and investment Second, challenges come from climate change, environment, water resources and population Thailand is currently suffering from severe drought The water level of the Chao Phraya River has continuously dropped in recent years, leaving people without enough running water In addition, the decline in water levels has led to seawater intrusion into water sources, adversely impacting water-using industries such as agriculture and manufacturing plants This affects Thailand's exports of staples, especially agricultural commodities that are Thailand's advantage (such as rice and sugar) Like Thailand, Vietnam faces both saltwater intrusion and severe impacts from flooding In addition, environmental control in industry in Vietnam and Thailand is limited Especially, the increase in land erosion due to unsustainable exploitation of mineral resources, chemical pollution and untreated industrial wastewater, polluting the water and air environment Meanwhile, the management of the aquatic environment remains a challenge due to the lack of uniform standards of safety; Limited equipment and resources make it difficult to manage and respond to potential risks If both Vietnam and Thailand not pay attention to environmental issues, the development process will damage the ecosystem and cause significant consequences The two countries need to be aware to make appropriate policies towards the goal of linking markets in the region into a common, dynamic and sustainable economic development space Third, the issue of capital and resources for the implementation of cooperation mechanisms This is an issue that needs to be focused in the cooperation between the two countries Currently, Vietnam and Thailand are working with other countries in the region to implement a number of large projects from infrastructure construction, industrial development, agriculture, environment, social security This requires the development of resources, especially high-quality capital and human resources Although Thailand and Vietnam have received great support from outside, especially from Japan and the European Union (EU), and other international financial institutions, but the need for capital cannot meet the requirements expected by regional cooperation mechanisms Moreover, the disbursement of these funds is not simple, especially when the aid is accompanied by non-economic conditions In addition, in fact, Vietnam has great advantages in human resources for growth, but the Student: Hoàng Thị Hà Phương 19 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng quality is not commensurate with the growth rate in scale and level of regional and world economic integration Skilled labor is an important premise for sustainable development, high income and meets the requirements of industries in the use of modern technology and management activities in the period of the Fourth Industrial Revolution However, it can be seen that Vietnam's labor is mostly workers without high technical qualifications, mainly in rural areas Therefore, the big challenge for workers is the ability to meet the development requirements of technology, especially when Thailand has been implementing the "Thailand 4.0 Economic Strategy" In addition, the challenge in cooperation between the two sides is also the language barrier Although appropriate education-oriented programs are in place, high-quality human resources with limited understanding of Thai and Thai language in Vietnam are limited Fourth, the COVID-19 epidemic situation has slowed down the cooperation process between Vietnam and Thailand Although the Thai and Vietnamese governments are making every effort to control the wave of COVID-19 infections, the epidemic situation in both countries is still very complicated In addition, the emergence of the COVID-19 epidemic has also made many businesses aware of the need to diversify their supply chains In this context, the ASEAN region has emerged as a potential destination due to its great advantages in human resources along with policy support on taxes and factory rent Therefore, the United States, along with many countries, is accelerating the process of moving part or all of the production and business chains home or to some other partners, including ASEAN countries Although this is an important opportunity for Southeast Asia to become the "factory of the world", this trend also poses a great challenge for Southeast Asian countries, including Thailand and Vietnam Countries will have to make great efforts to restructure their economies, improve management institutions, strengthen training of high-quality human resources, promote the construction and completion of hard and soft infrastructure, develop common standards on product quality and management, etc… especially strengthening links in the region 3.3 Some proposed solutions It can be affirmed that the potential for Vietnam-Thailand tourism cooperation is huge and promising The two countries are not only friends but also brothers in the same ASEAN family In order to promote sustainable development cooperation between the two countries, some proposed solutions are as follows: At the same time as bilateral cooperation, the two countries work closely in multilateral forums such as the United Nations (UN), World Trade Organization (WTO), Asia-Pacific Economic Cooperation (APEC), East-West Corridor, Southern Corridor, etc… In the coming time, according to the general trend of the world, Vietnam and Thailand Student: Hoàng Thị Hà Phương 20 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng tourism services need to continue to exploit this potential market through direct as well as online promotion activities on popular media channels and social networks In addition, Vietnam and Thailand also regularly research the market, grasp the new needs and tastes of tourists in general, including international visitors to orient the development of products with attractiveness and competitive advantages, suitable for each type of guest, each region of the two countries and in each period The two sides work closely together in the process of tourism recovery and reopening of international tourism On the basis of the good foundation that has been built and consolidated, with the joint efforts of the Government and people of the two countries, the cooperation of all levels, sectors as well as the tourism business community, Vietnam-Thailand tourism cooperation in the future needs to strengthen technology exchange, learn from each other, constantly develop, contributing to strengthening the enhanced strategic partnership between the two countries CONCLUDE The service industry is one of the industries with potential for development and brings high added value to manufacturers and exporters Student: Hoàng Thị Hà Phương 21 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Chapter one presents an overview of Thailand, including natural features (topography, climate, environment…) and socio-economic characteristics (population characteristics, economic development situation of Thailand) Chapter two analyzes Thailand's development policy in the period 2011-2022, the results show that Thailand's service industry is one of the important industries with high added value, the Thai government focuses on investment especially tourism services This chapter also analyzes the development of Thailand's service sector in the period 2011-2022 Chapter three outlined the possibilities for cooperation between Vietnam and Thailand in the service sector, including opportunities and challenges The chapter also addresses solutions and recommendations to promote development cooperation between Vietnam and Thailand In order for the service sector to develop effectively, it is necessary to have close coordination between relevant ministries, sectors, domestic and foreign enterprises and industry associations The Government of Vietnam as well as Thailand should have preferential policies for enterprises in the domestic service industry, while increasing the attraction of foreign direct investment and expanding service export markets Enterprises need to actively seek and exploit opportunities to expand service export markets Before expanding market share to new markets, enterprises need to survey the market, analyze and evaluate market supply and demand movements, improve their products to meet the standards of importing countries Industry associations support businesses in creating brands and promoting images At the same time, providing necessary information about the market and consulting to guide businesses in expanding service export markets and stabilizing traditional markets ASEAN countries including Vietnam and Thailand need to actively cooperate and exchange technology in the service industry, thereby developing a sustainable service industry BIBLIOGRAPHY Khai thác tiềm tăng trưởng ngành dịch vụ (worldbank.org) Các ngành dịch vụ Việt Nam hội việc làm ngành dịch vụ (topcv.vn) Patterson, P G., & Smith, T (2001) Relationship benefits in service industries: a replication in a Student: Hoàng Thị Hà Phương 22 Class: International Economics 62A ASEAN Economics module Instructors: Assoc Prof Ph Dr Nguyễn Thường Lạng Southeast Asian context Journal of services marketing, 15(6), 425-443 Ghani, E (2010) The service revolution in South Asia Oxford University Press https://vnexpress.net/no-luc-phuc-hoi-nganh-du-lich-cua-thai-lan-4121407.html Quan hệ Việt Nam - Thái Lan: Chặng đường 45 năm hợp tác, phát triển - Tạp chí Cộng sản (tapchicongsan.org.vn) Kinh tế Thái Lan – Wikipedia tiếng Việt Điểm tin Thị trường Thái Lan từ ngày 17-21/1/2022 (moit.gov.vn) Nghiên cứu Krungsri: Phân tích công nghiệp Thái Lan Năm '65-66 Phục hồi kinh tế chậm - Yếu tố cấu - ThaiPublica 10 Thailand | Data (worldbank.org) 11 Services as a new driver of growth for Thailand (worldbank.org) 12 mecometer.com/whats/thailand/export-partners/ 13 Thailand Major Trade Partners – Countryaah.com 14 Tổng cục Hải quan (2023) T c ụ c Hả i quan (customs.gov.vn) 15 Tạ Lợi & Nguyễn Thị Hương (2015), Giáo trình Kinh doanh quốc tế NXB Đại học Kinh tế quốc dân Hà Nội Student: Hoàng Thị Hà Phương 23 Class: International Economics 62A