Thai Business Delegation in Tehran
A Thai business delegation, leading by Mr. Suvit Maesincee, deputy minister of Commerce, visited Tehran this week to identify the mutual interests of co-operations with Iran.
Tourism and Construction industry, particularly building Hotels in Iran, were at the center of the Thai interests.
In return, through the construction of oil depots in Thailand, Iran seeks the opportunity of turning its future partner to a terminal for its oil on the way to south-east Asia.
Iran-Thailand’s trade-size is about $ 214 m and is planned to reach $ 1 billion within the next 3 years.
Encouraging demand: recession cure?
Iranian Government tries to fight the recession by providing facilities that would encourage people to buy domestic products.
Automobile industry and home appliances lie at its center of attention. By providing long-term loans with low interest rate, the Government hopes to help the national manufacturers.
There are however critics about its plans; non-competitive quality and prices of Iranian products remain as strong issues.
Requirements of eligibility for such loans, e.g. employment contract, lead to another conflict: many labourers, who also form the low-income class, are automatically eliminated from the plan, as they are basically hired hourly.
Foreign investors: more than welcome
The Ministry of Industry and Business has introduced 17 sectors of investment in Iran; Medical devices, Chemicals and non-metal minerals are the top three priorities.
Foreign companies interested in investing in Iran need to satisfy three conditions: providing facilities to export at least 30% of what is produced in Iran, partial investments in R&D in Iran in order to exchange the knowledge and the technology, and finally the competitiveness of the products for Iranian market are required.
In return, investors who observe these conditions will be treated like Iranian investors and could expect similar support.
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