“There are very few New Investments from Germany”

09.07.2008

This year Thailand has launched a new initiative for attracting foreign investments. “In contrast to recent years German companies are currently not making full use of the many market potentials,” says Stefan Bürkle, General Manager of the German-Thai Chamber of Commerce.

A wider opening of the market for foreign investors is being discussed in Thailand at the moment. What is the current status of the debate?

The government that came to power in early 2008 has started to make the Thai economy more accessible for foreign investors. A tightening of the ‘Foreign Business Act’ as had been considered by the previous government is out of the question. The Industry Minister intends to promote foreign investments more and has proclaimed the ‘Thailand Investment Year 2008/2009’. And this is not only a flowery phrase. He really spends a lot of time on the needs of foreign companies. In the last three months alone there were three meetings with the foreign chambers of commerce. Such things were not common previously.

Which industries would Thailand prefer the West to invest in?

The interest is general. In recent years the areas environmental protection, know-how transfer and automotive industry were in focus. Many companies have made huge investments in these areas in the past.

Apropos know-how transfer. How well is intellectual property protected in Thailand?

This is exactly one of the reasons to be here and not in China. I wouldn’t go so far as to say there is no violation of intellectual property rights taking place at all. The problem exists everywhere. But it is not a national sport here. In addition the legal instruments against violations are functioning quite well.

What is your opinion on the current German interest in direct investments in Thailand?

Around 500 German companies are already active here. They are present in a broad range of sectors. Thailand has a very diversified industrial structure. The Bayer corporation for example has invested several hundred million EUR in their polycarbonate production, Triumph operates a classic textiles manufacturing facility with approximately 6,000 employees. Or take a look at Grohe. This manufacturer of bathroom fittings had started a small production a few years ago and has in the meantime grown to employ 1,200 people. Unfortunately the present situation is not quite as good. There are very few new investments from Germany. Their share in this year’s foreign direct investments has been one percent until now. There is potential for more.

From 8 to 11 November 2008 you are organising the German Technology Symposium (GTS) for the ninth time. What can participants expect?

This is going to be a new kind of show. We have moved into a new exhibition centre: more chic, more modern and situated in the middle of Bangkok. The GTS has over the years transformed itself from a mere technology event to a mixed event under the theme ‘Germany presents itself’. The slogan ‘By Engineers, for Engineers’ was no longer correct. Therefore we decided to create a second exhibition which allows to take all non-technical areas completely out of the GTS and make it a real technical event again. We wanted the clear target to be technology transfer and consequently selling German technology again! In contrast the brand new ‘Germany Lifestyle and Travel’ which takes place in parallel to the GTS is a promotion event for German consumer goods and travel to Germany. These are future markets which have gone nearly unnoticed in the past. In the past Germany always defined itself exclusively as an exporter of machines, plants and luxury cars. This is not wrong but incomplete. Now there are additional new growth sectors such as lifestyle products or food. Thailand is one of the largest food importers in the world. In the past two years, for example, imports of German food products have doubled. And in the first four months of 2008 they have gained another 60 percent. Among others many winegrowers who present themselves at the ‘Germany Lifestyle and Travel’ would like to benefit from this. In addition the Thais are the third largest Asian foreign tourist community in Germany – after the Japanese and Chinese. And they spend a lot of money.

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