Remarks by H.E. Mr. Sompong Amornvivat Deputy Prime Minister and Minister of Foreign Affairs of the Kingdom of Thailand at the Gala Dinner to Commemorate 150 Years of Commercial Relations Between the Kingdom of Thailand and the Federal Republic of Germany, 10 November 2008 (19.00 hrs.), World Ballroom, Centara Grand
His Excellency, Ambassador Schumacher,
Dr. Wucherer,
Mr. Fitschen ,
Distinguished Guests,
Ladies and Gentlemen,
I am honoured to be here this evening to celebrate the 150th Anniversary of Commercial Relations between the Kingdom of Thailand and the Federal Republic of Germany. I must say that dinner and wine have been very enjoyable. And you have been gracious hosts. So I will not take up too much of your time with my remarks.
Ladies and Gentlemen,
Thailand and Germany have enjoyed close and productive relations for more than a century. It all began on the 25th of October 1858, when the Kingdom of Siam signed a Treaty of Friendship, Commerce and Navigation with the Republics of Bremen, Hamburg, and L?beck. Today, the relationship is very strong.
Germany is now one of Thailand’s key business partners and our number one European trading partner. Last year, our combined trade volume was some 6.79 billion US dollars.
Germany is also one of Thailand’s largest foreign investors. In the first half of this year alone, Foreign Direct Investment (FDI) from Germany was close to 44 million US dollars — an increase of over 40 percent compared to the same period last year. For Thailand, Germany is the second largest source of Foreign Direct Investment in Europe. I hope that Germany will become Thailand’s number one foreign investor in the near future.
This brings me to the message I have for you today: Thailand is still a good place to do business in the region. Let me give you three reasons why.
First, the Thai economy remains stable despite both internal and external turbulence. This is because our economic fundamentals are solid and sound. Any impact from the current political situation will be short-term. And, so far, the impact of the global financial crisis on the Thai economy has been much less than on many other economies. Maybe this is one of the positive outcomes of the Tom Yum Kung Crisis 10 years ago, which has made us very well equipped to handle similar problems. We are on the road to achieving a respectable growth rate of 4.25 to 5 percent this year. Next year, growth is forecast to be between 4 and 5 percent.
Nevertheless, the Thai Government remains vigilant. In mid-October, the Government adopted a package to minimise the impact of the global crisis and boost domestic growth. I look to our friends from the Chamber of Commerce and Federation of Industries to help make this a success.
On the international front, at the 7th ASEM Summit in Beijing last month, Thailand shared with countries in Europe and Asia our commitment to promote cooperation to address this global challenge, particularly greater financial cooperation within the region.
Second, Thailand is investor-friendly. And the Government is working to make the business environment even more friendly, transparent and fair. You are probably aware that the Government has designated 2008 to 2009 as “Thailand Tourism Year” and “Thailand Investment Year.”
I see three areas of potential for our cooperation. They are infrastructure and transportation; energy and the environment; and vocational education. I have asked my colleagues at the Ministry, both here in Thailand and in Berlin, to liaise with our German counterparts on ways to promote cooperation in these areas.
Regarding infrastructure and transportation, the revived mega projects are now bigger than ever. They include the construction of nine subway lines in Bangkok and its vicinity as well as the rehabilitation and extension of existing rail lines to connect with southern China and the Dawei Deep Sea Port in Myanmar. All these will offer great opportunities for German companies, whose expertise is very well known in Thailand.
As for energy and the environment, due to unstable oil prices and global warming, Thailand is now in urgent need of a green solution. Last year, the Government established the Thailand Greenhouse Gas Management Organization (TGO) as the national focal point to supervise Clean Development Mechanism (CDM) projects and greenhouse gas reduction. So far, we have 10 registered CDM projects with the United Kingdom, Denmark, and Japan. We would like to see more participation from Germany, who is a world leader in alternative and renewable energy and a major player on environmental issues.
And in the area of vocational education, I hope that Germany will continue to provide opportunities for Thai students at various levels to pursue their studies in your country. I also hope that you will cooperate with us in the development of vocational education in Thailand. After all, this Symposium shows that Germany has much excellence in science and technology to share.
And third, Thailand’s strategic location makes it a good place to do business. As a result of bilateral and regional Free Trade Agreements (FTAs), Thailand is becoming more integrated with economies in East and Southeast Asia. So far, we have entered into FTAs with ASEAN, China, Japan and India. This makes Thailand a combined market of over 3 billion people.
Ladies and Gentlemen,
I hope that I have made a convincing case as to why the German business community should increase its presence here in Thailand. Let us continue our close cooperation. Let us work to forge a truly strategic partnership. And if the success of the “German Technology Symposium and Exhibition” as well as the “Germany: Lifestyle and Travel 2008” is any indication, I am confident that this vision of mine will be realised in the not too distant future.
On this note, may I now invite all of you to join me in a toast to the enduring ties of friendship and cooperation between our two nations and to a brighter future for all of us.
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.