European businesses are keen to invest more in pharmaceuticals, mass transit systems, double-track rail and a high-speed rail network.
But they called on the Thai government to offer additional privileges and treatment on par with Thai firms.
The European Association for Business and Commerce (EABC), led by President Stefan Molnar, met yesterday with Kobsak Pootrakool, minister to the PM's Office, to propose the Thai government support additional tax measures for foreign companies that invest in pharmaceutical manufacturing here as well as the inclusion of drugs on Thailand's innovation list.
The groups also asked the government to allow foreign companies that form joint ventures with Thai partners be entitled to the rights and benefits enjoyed by the Thai companies.
The EABC said such a policy would help enhance the innovation ecosystem to support Thailand 4.0 and attract top talent here, driving R&D efforts.
As part of the government's efforts to promote innovations among Thai companies, state agencies are required to set aside 30% of their procurement budget to buy products that are in listed as Thai innovations.
But Mr Kobsak reiterated that the Board of Investment of Thailand has offered tax privileges for companies that invest in R&D.
He said the EABC also proposed the government improve investment-related regulations, liberalise the visa regime for skilled labourers and cut non-tariff measures.
EABC agreed to support the resumption of Thai-EU free trade agreement (FTA) talks.
Negotiations for a Thai-EU FTA were formally launched on March 6, 2013.
The goal was to form a comprehensive FTA covering tariffs, non-tariff barriers and other trade-related issues such as services, investment, procurement, intellectual property, regulatory issues, competition and sustainable development.
Talks were suspended after the military coup on May 22, 2014.
In June 2015, the EU said it would delay signing an agreement on closer economic and political ties and demanded Thailand's swift return to democracy.
Last December, the bloc said it had agreed to resume political contact at all levels.
The Commerce Ministry reports the EU is Thailand's third-largest trade partner, with two-way trade totalling US$44.3 billion (1.47 trillion baht) in 2017, up 10.4% from 2016.
Thai exports to EU totalled $23.7 billion last year, an increase of 7.5%, with imports worth $20.60 billion, up 13.8% year-on-year from 2016.