Bangkok--Jun 6--MFA
Distinguished friends from the German Business Community,
Ladies and Gentlemen,
Guten Tag,
I thank Dr. Klaus Wucherer for the kind introduction.
I am very delighted to be here and to have this opportunity to meet you.
I also wish to thank the Federation of German Industries for organizing this event.
Thailand and Germany have enjoyed close and fruitful relations for more than a century. And over the years, Germany has been Thailand’s key business partner.
Germany is Thailand’s number one trading partner from Europe. Our combined trade volume amounted to some 3.2 billion US dollars last year.
Germany is also one of Thailand’s largest foreign investors. In the first 4 months of 2008 alone, Foreign Direct Investment (FDI) from Germany was close to 43 millions US dollars in 10 projects approved by our Board of Investment — an increase of over 178 per cent compared to the same period of last year, and the second largest from Europe. I hope that Germany will be foreign investor number one in Thailand in the near future.
Frankly, I want to see these numbers growing. Because the benefit of such growth is mutual.
But I do not think I have to reassure you that Thailand is the right place for your business. But I am here to reassure you that this is the right time for the German business community to work with us and increase your presence. So here is my message to you:
First, the uncertain period after the coup was over. Thailand is back on track.
We have a democratically-elected government — a government that is fully committed to democratic values and the rule of law — a government that is determined to make our people’s life better and our economy stronger — and a government that is ready to work closely with our friends all over the world.
You may have seen street demonstrations and critical reports at present. But these are political differences which we have to accept as part of being a democracy. They have not affected the overall stability of Thailand, nor that of the Government.
After all, while on this European trip, I have watched on TV worse demonstration in France, and even in Brussels yesterday. I hope you don’t encounter such irritants in Berlin, not while I am here at least.
Second, the Thai economy remains stable, thanks to our solid fundamentals. We continue to see a bright outlook despite challenges from rising prices of commodities, particularly petrol. We are on the road to achieve quite a respectable growth of 4.5-5.5% this year.
Third, towards foreign investors, the direction of our policy is clear: Thailand is investors-friendly.
The Government is working to make the business environment even friendlier as well as more transparent and fair.
As the first big step to regain investor confidence, we lifted the 30% reserve requirement on short-term capital inflows. We have put laws and regulations under review to see how to make them more conducive to domestic and foreign businesses alike. These include the proposed amendment of the FBA — Foreign Business Act. If any changes are to be made to this Act, they will be done to make our investment regime more open and fair — not more restrictive. I also wish to underline that the Thai Government is committed to our international obligations, including in the area of the protection of intellectual property rights.
The Government has also designated 2008-2009 as “Thailand’s Tourism Year” and “Thailand Investment Year”.
The revived mega projects are bigger than ever, including the mass transit system which involve the construction of 9 subway lines in Bangkok and its vicinity. Of these nine projects, three have already been approved by the Thai Cabinet to start the process of bidding. Moreover, we will be investing in the double-track rail project, which will connect our rail system with southern China in the North and Dawei Deep Sea Port in Myanmar in the West. We are also in the process of studying the Land Bridge project to link the Indian Ocean with the Gulf of Thailand.
All these will not only help boost domestic investment but also offer vast opportunities for foreign investors, particularly the many efficient German companies.
Ladies and Gentlemen,
It is not only our economic dynamism and our Government’s commitment that make me confident that Thailand is the place for your business.
Also important is the fact that Thailand is increasingly integrated and connected with Southeast and East Asian economies. Through bilateral and regional free trade agreement regimes, including with ASEAN, China, Japan and India. That’s a market of 567 million in Southeast Asia plus at least over 2.6 billion to our North and West. We are also expanding networks of road, rail, air and sea networks. Thailand can serve as the logical gateway for your business to existing as well as emerging markets in our region, and beyond.
nd as you may know, ASEAN is currently negotiating an FTA with the EU.
In addition, by 2015, the ten countries in Southeast Asia will become an ASEAN Economic Community. Ten countries, one economy — competitive and fully integrated with the world economy.
Closer to home, Thailand is also expanding linkages with our neighbouring countries in the Greater Mekong Sub-region, or GMS. Through the East-West and North-South Economic Corridors, Thailand will be linked with Cambodia, Laos, Myanmar, Vietnam and southern China.
Both our natural location and regional infrastructure development make Thailand a gateway into the rest of the Mekong sub-region, Southeast Asia and beyond.
As corporations with global reach and interest, you know that these present abundant opportunities for trade, investment and other economic activities. I urge you to seize the opportunity presented by Thailand.
Now is the time. Thailand is the place.
Ladies and Gentlemen,
Looking at the various industries, we can see a lot of opportunities for German investors in Thailand. Already German automakers have had a significant presence in Thailand. We hope this will expand further. And we hope so too for other areas of investment.
Allow me to name a few and without prejudice:
One potential industry is pharmaceutical. Thailand is world renowned in traditional and herbal medicine which, when combined with Germany’s top pharmaceutical companies, represents a future in safe and effective alternative drugs and healthcare. The result of which will ensure affordability and accessibility.
Renewable energy is another key area. Last year the government has established Thailand Greenhouse Gas Management Organization (TGO) as the national focal point to supervise the Clean Development Mechanism (CDM) projects and greenhouse gas reduction. So far, we have 10 CDM projects with the United Kingdom, Denmark, and Japan. We would like to invite more participation from Germany who is one of the world leaders in renewable energy and a major player in environmental issues.
In addition, Germany also has an edge in education. More cooperation with Germany in vocational training will contribute greatly to development of Thailand’s human resources in much needed areas, such as engineering, science and technology.
Last but not least, let me also add that, recently, Thai Airways International, Thai Airfreight Forwarders Association (TAFA), and the Munich Airport have signed an MOU to open a distribution centre in the Munich Airport for distributing Thai agricultural products to Bavaria and Eastern Europe. I hope the added service such as this will be used to the fullest.
Having said that, Ladies and Gentlemen, I hope that what I have conveyed to you and the views we will exchange later this afternoon will give you enough encouragement and confidence to strengthen and expand your business ties with Thailand.
Nevertheless, I know Germans are pragmatic, results-oriented and very direct. So, should my persuasion skills fail to convince you, I do urge you to visit Thailand to explore first-hand, at your own leisure, all the relevant opportunities and potentials for your business and investment.
Then, I am confident that you will accept my invitation to increase your business interactions with us and use Thailand as an investment base in Asia.
Thank you.
Prime Minister at the Ministry of Foreign Affairs
Press Division, Department of Information Tel.(02) 643-5170
Fax. (02) 643-5169 E-mail : div0704@mfa.go.th End.
-PM-
Distinguished friends from the German Business Community,
Ladies and Gentlemen,
Guten Tag,
I thank Dr. Klaus Wucherer for the kind introduction.
I am very delighted to be here and to have this opportunity to meet you.
I also wish to thank the Federation of German Industries for organizing this event.
Thailand and Germany have enjoyed close and fruitful relations for more than a century. And over the years, Germany has been Thailand’s key business partner.
Germany is Thailand’s number one trading partner from Europe. Our combined trade volume amounted to some 3.2 billion US dollars last year.
Germany is also one of Thailand’s largest foreign investors. In the first 4 months of 2008 alone, Foreign Direct Investment (FDI) from Germany was close to 43 millions US dollars in 10 projects approved by our Board of Investment — an increase of over 178 per cent compared to the same period of last year, and the second largest from Europe. I hope that Germany will be foreign investor number one in Thailand in the near future.
Frankly, I want to see these numbers growing. Because the benefit of such growth is mutual.
But I do not think I have to reassure you that Thailand is the right place for your business. But I am here to reassure you that this is the right time for the German business community to work with us and increase your presence. So here is my message to you:
First, the uncertain period after the coup was over. Thailand is back on track.
We have a democratically-elected government — a government that is fully committed to democratic values and the rule of law — a government that is determined to make our people’s life better and our economy stronger — and a government that is ready to work closely with our friends all over the world.
You may have seen street demonstrations and critical reports at present. But these are political differences which we have to accept as part of being a democracy. They have not affected the overall stability of Thailand, nor that of the Government.
After all, while on this European trip, I have watched on TV worse demonstration in France, and even in Brussels yesterday. I hope you don’t encounter such irritants in Berlin, not while I am here at least.
Second, the Thai economy remains stable, thanks to our solid fundamentals. We continue to see a bright outlook despite challenges from rising prices of commodities, particularly petrol. We are on the road to achieve quite a respectable growth of 4.5-5.5% this year.
Third, towards foreign investors, the direction of our policy is clear: Thailand is investors-friendly.
The Government is working to make the business environment even friendlier as well as more transparent and fair.
As the first big step to regain investor confidence, we lifted the 30% reserve requirement on short-term capital inflows. We have put laws and regulations under review to see how to make them more conducive to domestic and foreign businesses alike. These include the proposed amendment of the FBA — Foreign Business Act. If any changes are to be made to this Act, they will be done to make our investment regime more open and fair — not more restrictive. I also wish to underline that the Thai Government is committed to our international obligations, including in the area of the protection of intellectual property rights.
The Government has also designated 2008-2009 as “Thailand’s Tourism Year” and “Thailand Investment Year”.
The revived mega projects are bigger than ever, including the mass transit system which involve the construction of 9 subway lines in Bangkok and its vicinity. Of these nine projects, three have already been approved by the Thai Cabinet to start the process of bidding. Moreover, we will be investing in the double-track rail project, which will connect our rail system with southern China in the North and Dawei Deep Sea Port in Myanmar in the West. We are also in the process of studying the Land Bridge project to link the Indian Ocean with the Gulf of Thailand.
All these will not only help boost domestic investment but also offer vast opportunities for foreign investors, particularly the many efficient German companies.
Ladies and Gentlemen,
It is not only our economic dynamism and our Government’s commitment that make me confident that Thailand is the place for your business.
Also important is the fact that Thailand is increasingly integrated and connected with Southeast and East Asian economies. Through bilateral and regional free trade agreement regimes, including with ASEAN, China, Japan and India. That’s a market of 567 million in Southeast Asia plus at least over 2.6 billion to our North and West. We are also expanding networks of road, rail, air and sea networks. Thailand can serve as the logical gateway for your business to existing as well as emerging markets in our region, and beyond.
nd as you may know, ASEAN is currently negotiating an FTA with the EU.
In addition, by 2015, the ten countries in Southeast Asia will become an ASEAN Economic Community. Ten countries, one economy — competitive and fully integrated with the world economy.
Closer to home, Thailand is also expanding linkages with our neighbouring countries in the Greater Mekong Sub-region, or GMS. Through the East-West and North-South Economic Corridors, Thailand will be linked with Cambodia, Laos, Myanmar, Vietnam and southern China.
Both our natural location and regional infrastructure development make Thailand a gateway into the rest of the Mekong sub-region, Southeast Asia and beyond.
As corporations with global reach and interest, you know that these present abundant opportunities for trade, investment and other economic activities. I urge you to seize the opportunity presented by Thailand.
Now is the time. Thailand is the place.
Ladies and Gentlemen,
Looking at the various industries, we can see a lot of opportunities for German investors in Thailand. Already German automakers have had a significant presence in Thailand. We hope this will expand further. And we hope so too for other areas of investment.
Allow me to name a few and without prejudice:
One potential industry is pharmaceutical. Thailand is world renowned in traditional and herbal medicine which, when combined with Germany’s top pharmaceutical companies, represents a future in safe and effective alternative drugs and healthcare. The result of which will ensure affordability and accessibility.
Renewable energy is another key area. Last year the government has established Thailand Greenhouse Gas Management Organization (TGO) as the national focal point to supervise the Clean Development Mechanism (CDM) projects and greenhouse gas reduction. So far, we have 10 CDM projects with the United Kingdom, Denmark, and Japan. We would like to invite more participation from Germany who is one of the world leaders in renewable energy and a major player in environmental issues.
In addition, Germany also has an edge in education. More cooperation with Germany in vocational training will contribute greatly to development of Thailand’s human resources in much needed areas, such as engineering, science and technology.
Last but not least, let me also add that, recently, Thai Airways International, Thai Airfreight Forwarders Association (TAFA), and the Munich Airport have signed an MOU to open a distribution centre in the Munich Airport for distributing Thai agricultural products to Bavaria and Eastern Europe. I hope the added service such as this will be used to the fullest.
Having said that, Ladies and Gentlemen, I hope that what I have conveyed to you and the views we will exchange later this afternoon will give you enough encouragement and confidence to strengthen and expand your business ties with Thailand.
Nevertheless, I know Germans are pragmatic, results-oriented and very direct. So, should my persuasion skills fail to convince you, I do urge you to visit Thailand to explore first-hand, at your own leisure, all the relevant opportunities and potentials for your business and investment.
Then, I am confident that you will accept my invitation to increase your business interactions with us and use Thailand as an investment base in Asia.
Thank you.
Prime Minister at the Ministry of Foreign Affairs
Press Division, Department of Information Tel.(02) 643-5170
Fax. (02) 643-5169 E-mail : div0704@mfa.go.th End.
-PM-