BANGKOK – The first German president to pay an official visit to Thailand since 2002 said on Thursday, during his visit on January 24-26, that the country is an attractive investment opportunity.
It also marked the first official visit to Thailand by the Head of a foreign Government under Thailand’s current administration.
At a joint press conference held by Prime Minister and Finance Minister Srettha Thavisin and German President Frank-Walter Steinmeier, the two heads of state announced their intention to develop their relations into a strategic partnership.
German President Steinmeier said that Vietnam and Thailand are both attractive investment destinations for German companies. He pointed out that Thailand has a number of advantages over other countries, including a strong interest in supporting trade cooperation with the European Union and Germany. He also pointed out Thailand’s favorable trade policies and regulations.
Steinmeier added Germany and Thailand enjoy 160 years of friendship, its bilateral trade is worth 14 billion euros last year, and there are 600 Germany companies operating in Thailand.
President of Germany told a press conference he would like to congratulates Thailand for the return of democracy and freedom after the May 2023 election. He also wishes PM Sretta success during his term and welcomed the Constitutional Court’s ruling on Pita Limjaroenrat yesterday. This is a good sign of moving in a good direction for Thailand.
PM Srettha said the two leaders discussed clean energy, which is a key factor in attracting big businesses to invest in Thailand. He also highlighted the role of the Board of Investment of Thailand (BOI), which offers a number of incentives for foreign investors.
The Thai prime minister also pointed out that Thailand has a skilled workforce and a range of amenities that make the country attractive for foreigners to live and work in, including a world-class healthcare system.
“Germany is Thailand’s largest trading partner in the European Union, and Thailand is Germany’s third largest trading partner in ASEAN. The two countries have been mutually beneficial partners for many years. Today we have agreed to develop our relations into a strategic partnership,” said the Thai head of government.
Srettha said that both sides are committed to promoting cooperation in the areas of sustainability, climate protection and energy transition and that Germany is willing to support Thailand in developing renewable energy technologies to increase the share of renewable energy in electricity generation to 50 percent by 2040.
Germany has also committed to expand its investment in Thailand’s electric vehicle industry, which would help Thailand become a regional center for electric vehicle production.
In addition, Germany will promote sustainable agriculture in Thailand to reduce greenhouse gas emissions and cooperate in combating PM2.5 air pollution.
“I am very pleased that the Federal President has brought a delegation from German business with him on this trip. I informed about Thailand’s economic potential and the new opportunities for German companies that will arise after the conclusion of negotiations on a free trade agreement between Thailand and the European Union, which we want to achieve by 2025,” said the PM.
“I have also provided information about Thailand’s policies to promote the circular economy, as well as the Land Bridge project, the upgrade of Thailand’s rail transportation and logistics system, the promotion of Ease of Doing Business, and the enhancement of human resources through the expansion of cooperation in vocational education.”
German companies have expressed their interest in investing in Thailand in the areas of international trade, recycling and production of plastic pellets from waste. They have also provided information on their needs for investment in Thailand. The government will take this information into account in its efforts to attract investment from Germany.
