H.E. Mr. Kosit  Panpiemras 

Deputy Prime Minister and Minister of Industry
Remarks on Development of Biotechnology in Thailand 2007

In 2006, Thailand's GDP grew by 5 percent, despite the impact of the appreciation of the Thai Baht and the volatile crude oil prices. The economic expansion was fueled primarily by export which totaled US$ 128 billion, with the agriculture and manufacturing sectors being the key contributors. Greater market access and trade facilitation have played an important part in this impressive growth, as Thailand has already concluded numerous free trade agreements and is negotiating other agreements that will expand free and fair trade. 

Thailand's macro fundamentals and fiscal policy remain sound. Inflation is currently around 2 percent while external debt has fallen to 32 percent of GDP from 44 percent in 2005. Foreign Direct Investment (FDI) remains strong and this is expected to  continue throughout 2007. 

To promote sustainable growth, the Thai government is transforming the economy from resource-based to knowledge-based one. It is nurturing specific sectors including bioindustry, to take the economy to the next level. Bioindustry interacts with the other established sectors in Thailand, such as  agriculture and food. Its development have a positive impact on these industries, thereby contributing both directly and indirectly to the nation's growth. As the Chairman of the National Biotechnology Policy Framework Committee, I am pleased to report that we are making good progress. In particular, we are seeing the emergence and development of new businesses in the bioindustry, which was one of the goals set forth in the plan. Approximately 40 new biotech companies have been launched, of which a quarter are in the agri-biotech field.
 
The bioindustry, as a whole, is investing more in R&D. Foreign investment in this area has also grown. Within the last few years, companies such as Shisedo, Airproduct Asia and Alltech have all established dedicated R&D operations in Thailand. Companies providing services in the bioindustry have also increased in number, riding on the growth of the industry. Some notable players include Health Concepts International Co. Ltd., Stem Cell for Life Co. Ltd., Hemotrans Co. Ltd., Delphi Health Services Co. Ltd., Thai Nippon Vegetable Co. Ltd., and TÜV SÜD PSB (Thailand) Limited.
 
I would like to congratulate all the bioindustry companies the have invested in Thailand. I believe we are moving in the right direction and I will continue to support the development of bioindustry. 

H.E. Mr. Kosit  Panpiemras 
Deputy Prime Minister and Minister of Industry