Thailand is set to reap economic advantages in terms of exports and investments once Timor-Leste becomes the 11th member of the Association of Southeast Asian Nations (ASEAN).
The roadmap for Timor-Leste’s full membership was endorsed during the 42nd ASEAN Leaders Summit held in Indonesia. It outlines three areas—politics and security, economy, and social and cultural ties—that Timor-Leste must address before gaining full ASEAN membership.
Having been granted observer status in November 2022, Timor-Leste has already been participating in ASEAN meetings and summits. To achieve full membership, the country must fulfill various criteria, including ratifying 66 economic cooperation agreements among ASEAN members, such as the ASEAN Trade in Goods Agreement, ASEAN Trade in Services Agreement, and ASEAN Comprehensive Investment Agreement.
Timor-Leste’s accession to ASEAN will expand the group’s manufacturing base and provide Thai exports with duty-free access to the country. Thai companies will also have opportunities to invest in Timor-Leste’s infrastructure, particularly in sectors like tourism, where the country aims to increase foreign tourist arrivals to 200,000 per year by 2030.
Although Timor-Leste’s market size is relatively small, its growing economy demands agricultural products from Thailand, such as rice, processed seafood, canned fruits, rubber products, and beverages. Moreover, Thai investors can explore opportunities in restaurants, spas, massage services, and auto parts businesses in Timor-Leste.
Thailand and Timor-Leste have enjoyed diplomatic and trade relations for over two decades, with bilateral trade between the countries reaching US$52.50 million in 2022—a significant increase of 349.31% compared to the previous year. (NNT)
