Dr. Nils Schmid, Deputy Minister-President and Minister of Finance and Economics of the state of Baden-Württemberg, was accompanied by delegations from the legislative and private sector on a visit to Thailand from 27 to 29 April 2014. During the visit, Dr. Schmid paid a courtesy call on the Prime Minister and Minister of Defense. He further met with Mr. Kittirat Na-Ranong, Deputy Prime-Minister and Minister of Finance, Mr. Niwattumrong Boonsongpaisan, Deputy Prime-Minister and Minister of Commerce, Mr. Chaturon Chaisang, Minister of Education, and Mr. Sihasak Phuangketkeow, Permanent Secretary of Ministry of Foreign Affairs.

Upon the meeting, the Prime Minister informed Dr. Schmid of the government’s commitment to seek a solution to the current political situation that was based on democratic principles through an election. In this regard, the German side reaffirmed her support to the Thai government to uphold democracy and stressed the German confidence in the fundamentals of the Thai economy, as well as the liberal trade policy with pro-foreign investment orientation. Both sides agreed to further strengthen bilateral cooperation to increase Thailand’s competitiveness in the fields of dual and vocational education, processed agricultural products and related businesses, as well as renewable energy.

The meetings with Mr. Kittirat Na-Ranong, Deputy Prime-Minister and Minister of Finance and Mr. Niwattumrong Boonsongpaisan, Deputy Prime-Minister and Minister of Commerce focused mainly on the economic performance of Thailand, free trade policy, and the competitiveness of Thailand.  In addition, during the meeting with Mr. Chaturon Chaisang, Minister of Education, the sides discussed bilateral cooperation with regard to dual and vocational education.

Thailand and Germany commended the long and cordial bilateral ties during the meeting session between Mr. Sihasak Phuangketkeow, Permanent Secretary of Ministry of Foreign Affairs and Dr. Schmid. Germany expressed confidence in Thailand’s economic potential after having had several meetings with high-ranking representatives of the Royal Thai Government and showed interest in expanding German investments in Thailand. The Permanent Secretary also underlined the strategic position of Thailand as a gateway to ASEAN, particularly with regard to the development of connectivity within the Southeast Asian region. Apart from Thailand’s investment promotion policy, the country offers enormous economic opportunities to foreign investments and has strong commitment to democratic values.

The visit achieved its main objectives, both in terms of confidence-building concerning the political and economic situation in Thailand, and strengthening partnerships between private sectors in the automotive industries of Baden- Württemberg and Thailand. The delegations joined the opening of German Booth at the Thailand Auto Parts and Accessories Fair 2014 organized by Ministry of Commerce in BITEC Bangna. Moreover, the Minister was accompanied by experts from vocational colleges of the state of Baden-Württemberg, which mainly specialize in the automotive engineering, in order to seek and foster cooperation with their Thai counterparts.

Baden-Württemberg is the third largest state of Germany, with a significant role in the German national economy. The GDP per capita is higher than the national average and has the second lowest unemployment rate of 4.1 percent. It also has the biggest industrial sector, which accounts for 29 percent of the state income. Around 65 percent of the industries are concentrated in mechanical engineering, automotive, and electrical engineering. The state is also home to many top German companies, such as Daimler, Bosch, Porsche, Würth, Carl Zeiss, and SAP.