Remarks
by
H.E. Mr. Surapong Tovichakchaikul
Deputy Prime Minister and Minister of Foreign Affairs
of the Kingdom of Thailand
at Thailand Business Day
Europasaal, Federal Foreign Office, Berlin, 7 June 2013

Your Excellency Mr. Michael Glos,
Ambassador Nongnuth,
Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

Guten Morgen

I would like to thank Ambassador Nongnuth for inviting me to speak this morning. I also thank Mr. Glos for his warm welcoming remarks.

I take great pleasure in coming to the beautiful capital of Germany once again after accompanying my Prime Minister here last year.  Last year was indeed an important year for our bilateral relations. We celebrated 150 years of our relations. We intensified our relations through frequent exchange of  high-level visits and the convening of the Joint Economic Committee Meeting. Our efforts paid off.  For despite the unfavorable international economic environment, the volume of our trade and investment as well as the number of  visiting tourists  increased.  To date, Germany is Thailand’s number one trading partner in the European Union and ranks among the top investors from the EU.  And over six hundred thousand Germans visit Thailand.  

I believe that Thailand and Germany can do more  to make our partnership even stronger. This is due to a number of factors.

Politically, Thailand is back on track. After nearly two years in office, the  Government under Prime Minister Yingluck Shinawatra continues to enjoy strong popular support.  I assure you that the present Government is determined and committed to building national reconciliation in order to lay the necessary foundation for sustained political stability.

Economically, our policy to stimulate domestic consumption as well as public and private investment has helped the Thai economy to grow at a better than expected  rate of 6.4% last year.  We will continue this policy and  therefore,  this year, we expect the economy to continue to grow at around 5.5%.  We are also pleased with the other key economic indicators such as our public debt which is slightly above 40% of the GDP,   our unemployment which is below 1%, and our inflation  which is less than 3%. We have healthy  foreign reserve of 180 billion US dollars. 

Regionally, ASEAN is soon approaching the next level of integration.  By the end of 2015, ASEAN will transform itself into an ASEAN Community.  This will result in ASEAN becoming a production base and single market of some 600 million people. This will also provide new and immense opportunities for interested investors.

To better prepare for this exciting and promising development, Thailand is planning to invest 9 billion Euros in water management projects and 49 billion Euros in  infrastructure development projects to increase regional connectivity. The infrastructure project involves the development of roads, high speed rails, water transport networks and checkpoints for border trade with our neighbouring countries.  This will allow products to be distributed in the ASEAN region and beyond much more quickly and effectively. With this investment, combined with our strategic geographical location, Thailand is ready to become the regional hub of ASEAN and ready to offer foreign investors an excellent opportunity to invest in the future of ASEAN.

Furthermore, Thailand has already started negotiation with the EU on the Free Trade Agreement. The FTA negotiation is expected to be concluded in two years. Once concluded, the FTA will provide easier access to Thailand and ASEAN for German investors.

Ladies and Gentlemen,

Two days ago, I discussed with Foreign Minister Westerwelle on how we could expand and further deepen our bilateral ties. Two potential areas of cooperation were highlighted.

The first concerns the green economy, which we would like to pursue more active cooperation with Germany in sustainable green technology, particularly in the areas of renewable energy, efficient energy consumption, as well as green construction.

The second area is education, particularly vocational education. Thailand has long admired, and is keen to emulate, the dual system of Germany. I believe that cooperation in this area will be mutually beneficial. On the one hand, it will provide German high-tech industries and business in Thailand with the necessary skilled labour. On other hand, it will help increase Thailand’s productivity.  Just last month, Thailand and Germany signed an MOU to establish our partnership in this area.  But good cooperation of the German private sector is crucial to make this MOU work. Therefore, I would like to invite German businesses to work together with us.

Ladies and Gentlemen,
 
In closing, I find that today’s forum is very important and timely.  As Germany and Europe looks beyond its region and more towards Asia, I am confident that Germany will increasingly look to ASEAN, and Thailand.  Therefore, I hope that after today’s seminar, you will learn that Thailand has a lot more to offer. With our location, stability, policies and shared values, Thailand can be your gateway and hub to this fast ever-growing region.

Vielen Dank, Thank you very much.