Nepal and Thailand on Wednesday signed eight different agreements during Prime Minister KP Sharma Oli’s day-long official visit to the East Asian nation ahead of the sixth summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) that will kick off in Bangkok on Thursday.

During their meeting, which coincided with the 66th anniversary of the establishment of the diplomatic relations between Nepal and Thailand, Prime Minister Oli and his Thai counterpart, Paetongtarn Shinawatra, discussed a range of issues, including strengthening bilateral relations; increasing trade and investment in areas like tourism, agriculture, herbal processing and medicine; and bringing more Thai businesses and investments in Nepal.

“We discussed the importance of promoting ease of doing business, reducing trade barriers and identifying each other’s comparative advantages,” the Thai prime minister said during the luncheon meeting with Oli.

“Given our potential to increase trade volume beyond the current $40 million, these measures could boost trade and investment, encouraging more Thai businesses to enter and invest in Nepal’s market with confidence.”

Shinawatra added that both sides recognise the importance of people-to-people contact through cultural and tourism cooperation. “We welcome the positive growth in tourist numbers between our countries and aim to further enhance collaboration, particularly in spiritual and medical tourism or a joint tourism campaign,” she said. “Additionally, we acknowledge the contributions of the Thai private sector, including hotel, hospital and airline businesses, to Nepal’s service sector and tourism industry.”

This is a Nepali prime minister’s first bilateral official visit to Thailand in 65 years of diplomatic relations.

During the talks, both prime ministers expressed their satisfaction over the state of bilateral relations and vowed to further strengthen the relations for mutual benefit. They underscored the importance of enhancing cooperation in areas such as trade, tourism, investment, connectivity and people-to-people ties,” the Nepali Embassy in Bangkok said in a statement. “In addition to bilateral relations, both the prime ministers agreed to strengthen cooperation at regional and multilateral levels.”

Oli and Shinawatra also discussed cooperation in agriculture, with Thailand offering to share its expertise in agro-processing and technology with Nepal. They also signed the memoranda of understanding for such a cooperation.

Both sides identified the ample opportunity for promotion of Buddhist tourism. Thailand also pledged different scholarships and training slots to Nepal in areas like public health, human resource development, hospitality industry, agriculture and many more.

Speaking at a joint press conference in Bangkok following his meeting with Shinawatra, Oli expressed confidence that the visit would enhance cooperation in culture, tourism, education, energy, and other sectors. He said discussions were held on expanding the 65-year-long diplomatic ties and strengthening people-to-people relations.

Oli also expressed optimism that Thailand’s investment in Nepal’s tourism sector, including hotel business and aviation services, would be prioritised in the coming days.

“Nepal and Thailand share deep ties in agriculture, trade, tourism, and culture,” Oli said. “I invite Thai investors to invest in Nepal.”

He added, “Nepal and Thailand have strong trade and tourism relations, and we will now collaborate on international issues, including climate change.”

Oli further stated that he invited Thai Prime Minister Shinawatra to visit Nepal and expressed confidence the visit would take place soon.

Earlier, the spokesperson of the Thai government, Jirayu Houngsub, had stated that the official visit of the Nepali Prime Minister would be a good opportunity for both countries to elevate comprehensive relations and cooperation in various areas, especially trade and investment, agriculture, public health, tourism, and service industries.

“The two leaders will also exchange views on global challenges, such as climate change, and discuss cooperation at a multilateral level,” he said during a press conference in Bangkok.

After the delegation-level talks between Oli and Shinawatra, Nepal and Thailand signed eight agreements and memoranda of understanding. Foreign Minister Arzu Rana Deuba and Thailand Minister for Tourism and Sports Rosawang Thienthong signed an agreement on tourism cooperation.

Meanwhile, Deuba and Thailand’s Minister of Culture Sudawan Wangsuphakijkosol signed an agreement on cultural cooperation to strengthen cultural ties.

These two agreements were signed at the government level. The private sectors and educational institutes of Nepal and Thailand also signed six agreements during the visit—an agreement on education cooperation between Kathmandu University and Siam University of Thailand to promote academic collaboration; and an agreement between the Nepal Netra Jyoti Sangh and Thailand's Mahidol University under Ramathibodi Hospital for cooperation in eye care services.

Meanwhile, a Memorandum of Understanding (MoU) was also signed between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Thai Chamber of Commerce and Board of Trade to enhance trade relations following an agreement between the Confederation of Nepalese Industries (CNI) and the Federation of Thai Industries (FTI) to promote investment opportunities.

A MoU between the Nepal Chamber of Commerce and the Tourism Council of Thailand to collaborate in trade, tourism, and civil aviation was also subsequently inked. Likewise, Nepal’s Janata Agro and Forestry and Thailand’s Kasetsart University signed an agreement to increase food production through biotechnology. The Janata Agro is a consortium of several investors who have been investing in Nepal’s agriculture sector.

During the joint press conference, the Thai prime minister stressed the importance of connectivity, which, she said, is key to economic growth.

“Both of us welcomed the role of Thai airlines in connecting our peoples through more frequent operations, the resumption and launch of new direct flights from Bangkok to Kathmandu and expansion to Lumbini,” she said. “In addition to our bilateral engagement, I express my sincere appreciation to Nepal for supporting Thailand’s chairmanship of Bimstec. With continued solidarity among Bimstec member states, we will work together to ensure that Bimstec remains a meaningful and relevant organisation.”

Later in the day, Vitidnan Rojanapanich, the president of the Thai Nepal Friendship Association (TNFA) who is also the first Thai Everest summiteer, called on Prime Minister Oli.

On Thursday, Oli will hold a breakfast meeting with prominent Thai and Nepali business leaders, address an event in Asian Institute of Technology and hold bilateral meetings with Sri Lankan Prime Minister Harini Amarasuriya and Armida Salsiah Alisjahbana, the executive secretary of United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

On the same day, Oli will hold bilateral meetings with Bhutanese Prime Minister Dasho Tshering Tobgay and Myanmar’s Chairman of the State Administration Council Senior General Min Aung Hlaing, who appointed himself the country’s prime minister in August 2021.

In the evening, Oli will attend an official dinner hosted by the Prime Minister of Thailand in honour of Bimstec leaders.

Meanwhile, on Friday, the prime minister will attend the opening session of the sixth Bimstec summit, will witness the signing ceremony of the Bimstec Agreement on Maritime Transport Cooperation and participate in the opening of the summit and a welcome address by the Bimstec chair. There will then be adoption of the agenda followed by statements by the heads of the state/government/delegation from Bangladesh, Bhutan, India, Myanmar, Nepal, and Sri Lanka.

Later, Oli will attend a function to be held to adopt the declaration of the sixth Bimstec summit. The prime minister will also attend the summit lunch being held for leaders and delegations. On Friday evening, Oli will hold a bilateral meeting with Indian Prime Minister Narendra Modi and later he will visit the Nepali Embassy in Thailand.