Portugal is keen to attract investment from Southeast Asian countries and also to see its own companies use Thailand as a springboard to other Asean markets.
However, greater awareness of the opportunities is needed on both sides as trade and investment between the European nation and Asean is still low, said Pedro Siza Vieira, minister assistant to the prime minister of Portugal.
"Portugal is a very welcoming destination for investment. In the context of the European Union, it is the most open destination for foreign investors … and contrary to other destinations, we do not discriminate between nationals and foreigners and we do not discriminate between EU investors and non-EU investors," he told Asia Focus during a recent visit to Bangkok.
"Nevertheless, the flows of investment and trade are still very, very low. We would like very much to encourage better knowledge by Portuguese companies of the Thai market and also of Thailand as platform for this region as a whole. Our focus is to increase that awareness."
With a population of 10.3 million, Portugal has a gross domestic product per capita of around US$19,800. Its economy expanded by 2.7% last year, the best performance since 2000, as domestic demand recovered and investment soared.
Economic recovery in the European Union has also helped exports. The country is now looking to diversify its export destinations and Southeast Asia is a prime target.
Mr Siza Vieira was in Bangkok last month to commemorate the 500th anniversary of the first treaty between Thailand and the Portuguese in the 16th century. It is the oldest treaty between Thailand and any western country and also the oldest treaty Portugal has signed with any Asian country.
"We have just last year opened a delegation of our trade and investment agency here in Bangkok, with a precise focus on ensuring that Portuguese companies have a better awareness of Thailand and the region," he said.
Software development, infrastructure building and energy are areas in which Portuguese companies have expertise and capacity, and the government is encouraging them to do business with this region.
"In the past two decades, there has been a significant surge in the digital economy in Portugal, in particular software development, with companies servicing industries such as automotive, healthcare and financial services, and we believe these companies are looking for opportunities to expand and grow," said Mr Siza Vieira.
At the same time, he said, Asean companies can use Portugal as a platform to expand in the euro zone as well as to other Portuguese-speaking nations including Brazil, Mozambique and Angola.
The Agency for Investment and Foreign Trade of Portugal (Aicep) has an extensive network worldwide and now has four branches in Asean: in Bangkok, Kuala Lumpur, Jakarta and at the Portuguese embassy in Singapore.
"Our food and wine are also improving their profile in the world as we have been improving our exports to the EU and the US," said the minister. "We know that this region appreciates good quality products at prices which I would say are reasonable in comparison with other origins."
The average price of a bottle of Portuguese wine in Thailand is 2,400 baht, with prices ranging from 675 to 7,500 baht, according to the website Wishbeer. That makes them more affordable than products from France, Italy and Spain. The most renowned Portuguese wine is Port, long a favourite in the UK and now undergoing a revival there. Many of the great Port houses in Portugal are British-owned.
"Portugal's time seems finally to have arrived," Nick Oakley, the founder of Oakley Wine Agencies, told a beverage industry conference in June. "The country has been tipped to be 'the next big thing' for the last 25 years and it never seemed to happen, but it's happening now, and in a big way."
Looking forward, Mr Siza Vieira foresees that a greater focus on exports will be one of the main drivers of the expected increase in trade and investment between Portugal and Asean.
The country plans to increase its exports from 47% of GDP to 50% over the next few years. "For that to happen, we need to diversify our export markets and we have identified Southeast Asia as one of the regions in which our promotion and awareness efforts must be done," he said.
Thailand's trade with Portugal was worth $211.4 million in 2015 with top export products from Thailand including cars and parts, garments, plastic beads, electrical machinery, air-conditioners, paper and rubber products. Thailand had a trade surplus of $104.2 million that year.
"We work closely with the trade and industry associations in Portugal and the first goal is to make sure that companies come, showcase their capabilities, mix and match with local players but of course it is a distant destination," said Mr Siza Vieira.
Portuguese companies are mostly small and medium enterprises (SMEs) and they need institutional support through trade associations, embassies and trade missions.
Portuguese companies "always seek local partners" who know the business and the ground on which they operate, said the minister. He encourages Asean firms to contact the Aicep office or the Portuguese embassy in their respective country to establish relationships that could lead to new opportunities.
The minister said many Portuguese people speak English and are fluent in Spanish as well, so the language barrier is mnimised. In recent years the country has seen an increase in investors from South Korea, China, Thailand and other countries, thanks to its openness.
"Language should not be a problem. There also shouldn't be any sort of restrictions on investment or regulations. As I said, it is a very open country and a very open economy."
Portugal, he notes, is also "one of the safest" places in the world. The Global Peace Index in 2018 ranked the country the fourth most peaceful on the planet after Iceland, New Zealand and Austria respectively.
Portugal has been spared the violence seen in other European countries over the past decade, and visitors who used to travel to the eastern Mediterranean and North Africa are now choosing Portugal instead, he said.
Tourism is a major contributor to GDP in Portugal, one of the five most visited countries in Europe, and the largest employer in country, with almost one million direct and indirect jobs, according to the World Travel and Tourism Council.
"The best thing is to visit the country," said Mr Siza Vieira. "Our experience is that, once visitors go there, they would like to stay because they recognise [that] a very diverse country in a relatively small space is charming."