Last Updated: May 12, 2010

Bilateral Relations

Nepal-Thailand Relations


Political Relations

Background

Both Nepal and Thailand are members of BIMESTEC and NAM. Bilateral relations between Nepal and Thailand are based on goodwill, mutual cooperation and understanding. Both countries are bound by common cultural and religious values. Thai people have tremendous goodwill for Nepal and Nepalese people. Thousands of Thai monks and other pilgrims visit Lumbini, the birthplace of Buddha, every year.

Diplomatic Relation

The Diplomatic Relation between Nepal and Thailand was established on 30 November 1960. The resident embassy in Charge d’ affairs level was established in 1969 and later upgraded to Ambassadorial level in 1980. Embassy of Nepal in Bangkok and Royal Thai Embassy in Kathmandu have been established to further the bilateral relations.

Exchange of Visits

There are frequent visits from both countries at higher levels. There have been several other exchanges of visits at different levels, official and unofficial.

From Nepal
  1. Late King Birendra and Queen Aishwarya had paid a State visit to Thailand in 1984.
  2. Former Foreign Minister Kamal Thapa paid an official visit to Thailand in 1997.
From Thailand
  1. The former Prime Minister of Thailand Prem Tinsulanonda paid an official visit to Nepal in 1983.
  2. His holiness Somdet Phra Nyanasamvra, Supreme Patriarch of Thailand visited Nepal for the fifth time in 1999.
  3. Former Prime Minister of Thailand Thaksin Sinabatra visited Lumbini in December, 2011.
Development Cooperation

Thailand is providing a number of short term and long term scholarships to Nepalese students in medicine, engineering, economics, communication, agriculture and other areas under Colombo Plan and Technical Cooperation scheme among Developing Countries through Thailand International Development Cooperation Agency (TICA).

Economic Cooperation

Trade Relations

Trade relation between Nepal and Thailand is heavily in favor of Thailand. Nepal imports electrical goods, construction materials, clothing, transport and telecommunication goods from Thailand and exports to Thailand consist of handicrafts, woolen carpets and Nepalese paper products.

Nepal can benefit from Thailand’s experience basically in the field of agriculture, small and medium enterprises and tourism.

The trade figure for the past three years between Nepal and Thailand has been as follows:

Value in ‘000 Rs.

FY 2007/08

FY 2008/09

FY 2009/10

Export

Import

Balance

Export

Import

Balance

Export

Import

Balance

NA

4,983,493

 

NA

6,637,979

 

24,080

7,504,724

-7,480,644

Source: Trade Promotion Centre, GON, 2009/10

Tourism

About 94% of Thai population is Buddhist. Thousands of Thai people visit Nepal every year for religious purpose and also enjoy natural beauty of Nepal. Thailand has become an important tourist market for Nepal in the recent years. The figure of Thai tourist visiting to Nepal is as follows:
By Air

Year

January-November

2008

2009

2010

2010

2011

5,442

6,664

5,581

4,700

5,732

Source: Nepal Tourism Board, GON,2010/11

Air Links

There are direct and regular flights operated by both Nepalese and Thai airlines linking capitals of the two countries, which greatly promote trade and tourism. Royal Thai Government has designated Phuket Airlines Co. Ltd. In addition to Thai Airways Pvt. Ltd. for operating air services in Bangkok-Kathmandu-Dubai-Kathmandu-Bangkok sectors from October 2004. The Government of Nepal has permitted in November 2006 the Orient Thai Airlines Co. Ltd. to operate flight on Kathmandu-Bangkok-Kathmandu sector as per the Air Services Agreement signed between the two countries on 29 October 1971.

Foreign Direct Investment

Thai investment has been realized in the sectors of manufacturing, production of mineral water, hotel business, restaurant, etc. Thailand has invested Rs.116.29 Million in 11 different industries creating 1159 jobs for Nepalese people. Direct investment made by Thailand in Nepal stands as follows:

Rs. in Million

FY 2008/09

FY 2009/10

FY 2010/11

Total Investment upto now

Investment

Ind.

Jobs

Investment

Ind.

Jobs

Investment

Ind.

Jobs

1.66

1

16

NA

NA

NA

23.00

2

37

116.29

Source: Department of Industries, GON,2067/68

Cultural Cooperation

Thai people and Government have tremendous goodwill towards Lumbini, the birthplace of Lord Buddha where a Thai temple has also been built.

Major Agreements/MOUs
  1. Nepal Chambers of Commerce and Thai Chambers of Commerce signed a Memorandum of Understanding on May 20, 2004 in Bangkok for promoting bilateral trade and commerce.

A Joint Working Group was established at Foreign Secretary level in 1984. Fourth meeting of the Nepal-Thailand Joint Commission was held in Kathmandu in 2004.
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