German firms are being urged to invest more in Thailand, particularly in the 10 S-curve industries chosen by the government as targets for development.
Commerce Minister Sontirat Sontijirawong, who met German Ambassador to Thailand Peter Prugel yesterday, said the ministry has called on Germany to invest more in Thailand. Mr Sontirat particularly pressed for German investment in the automotive sector -- one of the 10 S-curve industries -- due to its expertise.
The S-curve comprises 10 targeted industries: next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
"At the meeting, the two parties were very keen to expand cooperation in trade and investment," said Mr Sontirat, citing the 156-year history of diplomatic relations between Thailand and Germany.
There are more than 600 German companies operating in Thailand.
In 2016, Germany was Thailand's 13th-largest trading partner and its biggest one in the EU, with total two-way trade reaching US$10.4 billion (330 billion baht), up 5.2% from a year earlier.
Exports from Thailand reached $4.47 billion, with imports totalling $5.86 billion, resulting in a $1.39 billion trade deficit with Germany in 2016.
Key exports from Thailand include gems/jewellery, computers/parts, integrated circuits, automotive/parts and rubber, while imports from Germany include machinery, automotive/parts, chemicals, electrical machines/parts and medical products.
German direct investment in Thailand during 2005-16 totalled $14.9 billion. The value in 2016 was $3.39 billion, mainly from automobiles, elevators/escalators, electronics, electrical engineering, chemicals/plastics and pharmaceuticals.
Thai direct investment in Germany during that period was worth $8.52 billion, hitting $1.76 billion in 2016 alone.
Key investors include Thai Union, Charoen Pokphand Group, Pranda Jewelery, Central Group, Boon Rawd Brewery and Nusasiri Plc.