Nepal's government has invited Thai companies to invest in the areas of infrastructure, agricultural products and medical services.
Kriangkrai Tiannukul, vice-chairman of the Federation of Thai Industries (FTI), said the agency has been in talks with the Nepalese government on bilateral trade and cooperation.
"We think Nepal has a lot of potential because it borders India, the largest market in South Asia, a region with a population of around 1.6 billion, and can link to China, which has more than a billion people," Mr Kriangkrai said. "Both countries have high economic growth and Nepal should benefit from this."
Nepal is an emerging market for many industries that Thai investors are interested in.
The Nepalese government kick-started an investment policy to develop the country after a devastating earthquake in 2015. The magnitude-7.8 quake claimed 8,857 lives.
"Nepal's government wants the FTI to work alongside the private sector in many industrial groups to bring in Thai companies seeking business opportunities," he said.
Mr Kriangkrai said Nepal is interested in Thai products for their quality and fair prices for Nepalese people.
The country needs power plants and construction of buildings and transport systems.
Moreover, processed agricultural products will be a high-potential sector for Thai companies that already generate high export value annually.
"Nepal's government wants to produce agriculture products to reduce imports from overseas countries, as well as aiming to set up medical services to serve local demand," Mr Kriangkrai said.
According to the Thai embassy in Nepal, the country had a population of 28.5 million people as of last year, with GDP of $21.19 billion (669 billion baht) and a GDP per person of $743.22.
Nepal's real GDP growth in 2017 was at 2.7%.
Thailand and Nepal had a trade value of $67.25 million in 2017. Thai exports to Nepal were worth $66.65 million in 2017 and import value was $0.60 million.
"The Thai government has promoted Thai investors to invest in and expand their business overseas, while Nepal is the new opportunity," Mr Kriangkrai said. "However, the private sector should conduct a feasibility study in terms of market sentiment in Nepal, as it is a developing country that has many logistics problems."
