Economy Business Environment Finland Thailand Trade Visions

Interview with Finland’s Minister Ville Tavio on Thailand’s Sustainable Development and Free Trade Negotiations with the EU: What Do Finnish Companies Stand to Gain?

Ville-Tavio-and-Miika-Tomi

Ville Tavio (right), Minister of Foreign Trade and Development and Miika Tomi (left), Deputy Head of Mission at the Embassy of Finland, attended a dialogue and seminar with TFCC at the Pacific City Club in Bangkok. 

Finland-Thailand-70-Years-Diplomatic-Relations

Clean Tech & Free Trade for Sustainable Tomorrow 

Finland’s Foreign Trade and Development Minister Ville Tavio Discusses Thailand’s Progress Towards Sustainable Development and Free Trade Agreement with EU and Finland 

As Finland and Thailand celebrate 70 years of diplomatic cooperation, Minister Ville Tavio assesses the two countries’ economic relationship and how Finnish companies can benefit from Thailand’s growing interest in strengthening trade relations, especially in the field of Circular Economy. 

In an interview with the Thai-Finnish Chamber of Commerce (TFCC) and Vision Finland (VF), Minister Tavio noted that more than 50 Finnish companies operate in Thailand, and 150 through local representatives. Moreover, interest towards Thailand is growing, as evidenced by the recent export promotion trip to Thailand, which included around 20 business representatives from the circular economy field, including Waste to Energy, Biomass to Value and EV Battery Recycling. He also opened a Finnish Salo Tech Thailand solar panel factory in Rayong. 

The anniversary year is an opportunity to open doors for Finnish companies to present their expertise directly to the most prominent Thai decision-makers,” said Minister Tavio.

03 Ville Tavio speaking

Ville Tavio: Profile of a Minister and Advocate for Economic Growth

  • Finnish politician and Minister for Foreign Trade and Development. 
  • Born on 25 June 1984 in Lappeenranta, Finland. 
  • Studied economics at the Prince of Songkla University in Thailand in 2010. 
  • Master of Laws degree from the University of Turku, Finland in 2012. 
  • Ten years of experience in municipal politics in Turku. 
  • Joined the Finns Party in 2012. 
  • Member of Parliament of Finland since 2015. Served as a member of the Foreign Affairs Committee, the Grand Committee, and the Legal Affairs Committee. 
  • Served as a Chair of the Finland-Thailand Parliamentary Friendship Group and initiated the founding of the Finland-Thailand Friendship Group of the National Assembly of Thailand in 2016. 
  • Known for his efforts to strengthen Finland’s economic ties and promote trade relations, particularly in Asia. He recently went on trade missions to India, Kazakhstan, and Thailand and joined a WTO Ministerial Conference in the United Arab Emirates. 

Breaking Barriers: Driving Towards EU-Thailand Free Trade Agreement (FTA) 

Minister Tavio commented on Thailand’s new economic policy, which was recently featured with Thai Prime Minister Srettha Thavisin on the cover of Time magazine, regarding how Finland could benefit from it. In response, the minister emphasised establishing a Free Trade Agreement (FTA) between the EU and Thailand. “It would be best to conclude an FTA between the EU and Thailand, where Finnish products could enjoy reduced import duties in many areas,” he said. An FTA would enable the win-win situation, where Thai companies would also be able to compete better in the EU’s internal market of 450 million consumers.” 

Minister Tavio clarified the ongoing negotiations for a Free Trade Agreement between the European Union and Thailand. He noted that the talks, which started again in 2023, are still in their early stages, and it is challenging to predict their outcome or when they will end. 

However, he added that Finland strongly supports creating an ambitious free trade agreement, which provides the best conditions for the companies of both parties to grow their business by opening up market opportunities and maintaining competitiveness. 

A comprehensive agreement would also be a good framework for building and developing bilateral trade relations that benefit both parties,” said Minister Tavio. The agreement would increase trade diversification and resilience.” 

There have been two negotiation rounds: the third round will happen in June and the fourth in autumn. Despite the positive attitude and good spirits in conducting the negotiations, the minister emphasised that much work is still left, and the negotiation process will deepen in the second half of the year. 

Elevating Trade Ties: The EU-Vietnam FTA Success Story 

When asked about the FTA between the European Union and Vietnam, the minister expressed delight at the significant increase in trade since it entered into force on 1 August 2020. The minister revealed that Finnish exports to Vietnam increased impressively by 126% during the first year, while imports rose by 44%. This growth is due to Vietnam’s 6-7% economic expansion and Finnish companies’ clean transition and innovative solutions. The minister expressed confidence that Vietnam, once a development cooperation partner, is now one of Finland’s largest exporting countries in the region, and this presents exciting opportunities for Finnish companies to increase trade. 

Unlocking Opportunities: How Team Finland is Boosting Trade and Investment in Thailand 

Minister Tavio also described how Team Finland promotes Finland’s trade and investment interests in Thailand. He noted that Finland’s representative office in Bangkok has an experienced export promotion team that helps Finnish companies daily. Team Finland has been diligently working to identify the sectors in Thailand where the need for Finnish solutions is greatest.

“Our goal is to provide Finnish companies with the necessary insights to take advantage of these opportunities, and we have published our findings in the Market Opportunity and Business Lead categories for their convenience.” 

Moreover, Finnpartnership, Finnfund, and Finnvera offer various support instruments to companies. Business Finland supports efforts in Thailand from Singapore. 

The minister acknowledged the non-profit sector’s value-adding contribution to government-led trade efforts. For example, the Thai-Finnish Chamber of Commerce (TFCC) identifying reliable local partners, thus enabling Finnish companies to enter the Thai market more efficiently. 

02 Ville Tavio and Antti Aromaki

Minister Tavio with the President of TFCC, Antti Aromäki. 

Rise to the Challenge: Overcoming Global Climate Issues Through Cooperation 

It would be best to conclude an FTA between the EU and Thailand, where Finnish products could enjoy reduced import duties in many areas.” 

Finally, Minister Tavio discussed how Finland and Thailand can cooperate to meet global challenges such as climate change and sustainable development. He noted that Finnish companies could act as trendsetters by raising Thailand’s minimum level in many different corporate responsibility and sustainability fields. An excellent example is Business Finland’s Zero Carbon Mission project, which has mapped cooperation with the largest Thai conglomerates. 

Also, the Green Climate Fund finances a EUR 38 million climate-wise rice cultivation project in the agricultural sector. The project promotes low-emission rice farming and improves farmers’ adaptation to changing conditions. 

Through their activities, Finnish companies can contribute to sustainable development and act as catalysts for change,” said Minister Tavio.

04 Ville Tavio group photo

Net Zero with Integrity”, a joint seminar of TFCC and JFCCT, was opened by Minister Tavio on 25 March 2024. From left to right: Mr Antti Aromäki (TFCC), Mr Bob Fox (Joint Foreign Chambers of Commerce in Thailand, JFCCT), Mr Ville Tavio, Mr Thachatat Kuvarakul (The Creagy), Dr Wanwipa Siriwatwechakul (Vectors Capital), Mr Natthapong Tantichattanon (KPMG), and Mr Petri Paukkunen (Valmet). 

Key Takeaways 

  • Finland’s Foreign Trade and Development Minister, Ville Tavio, advocates for a Free Trade Agreement between the EU and Thailand to benefit Finnish and Thai companies. 
  • Finnish companies are taking advantage of Thailand’s growing interest in trade relations, particularly in the circular economy. 
  • Team Finland is helping Finnish companies navigate the Thai market, with the non-profit sector, such as the Thai-Finnish Chamber of Commerce, facilitating their market entry. 

Written and photographed by Antti Rahikainen 

anttir modified e1714981142976

Antti Rahikainen, M.Sc. (Electr. Eng.), senior advisor and former president of TFCC, has 31 years of experience in corporate and SME management, mainly in Asia. He supports Vision Finland’s content creation while developing business for them. 

LinkedIn

ripavi saunat

VisionFinland YouTube Channel

Topics