me to highlight a number of thailand ’ s fundamental strengths that underpin this positive outlook. first, our corporate sector remains competitive with accumulated robust savings and profitability. this fact is well evidenced by their healthy balance sheets and their ability to explore investment opportunities overseas. net profit of most listed companies in the second quarter 2012 turned out be positive despite damages inflicted by the floods. with strong financial positions and more trade liberalization, an increasing number of firms have gone overseas, as indicated by a marked increase in thai direct investment from $ 3 billion in 2007 to $. 10. 6 billion in 2011. second, supportive fiscal and monetary policy has helped enhance growth while continuously strengthened stability in the thai economy. this achievement has been attributable to responsive fiscal and monetary policy, together with market - friendly regulations aimed at keeping the economy operating close to its potential. the rapid recovery from the great floods last year amid global economic uncertainty has revealed the importance of fiscal stimulus and government efforts in restoring public confidence. at the bis central bankers ’ speeches same time, the expansionary monetary policy stance has helped accommodate business restoration process. third, thailand has a strategically well placed - location for international investors to benefit from rising asian integration. the rise of china and the asean economic community ( aec ) evidently provide enormous opportunities for businesses operating in thailand to expand and prosper from enlarging market size and integrated regional supply chain. automotive and electronics industries are prominent examples that have long gained competitiveness after establishing complex supply chain - hub in thailand and obtaining a critical foothold in the region. finally, the thai financial system has been resilient to the global financial crisis. and the key reason for the banking sector ’ s resiliency is that our financial system remains relatively non - complex. the financial transactions are derived from real economic activities, and hence risks are understandable and manageable, with lending to domestic companies accounting for 70 percent of loan portfolio and the rest is mainly mortgage loan. the direct exposure of thai banks to european countries is also very small. investments and loans made by thai banks to europe are only 0. 3 percent of total assets, while claims on thai banks by european countries are even smaller at 0. 03 percent of total liabilities. nevertheless, we will be watchful of the second round impact of the eu crisis, particularly via impact on exports that could impact asset quality. apart from the existing solid fundamentals outlined above, thailand is currently striving to develop a more efficient financial system to

prasarn trairatvorakul : economic and financial cooperation between china and thailand opening remarks by dr prasarn trairatvorakul, governor of the bank of thailand, at the luncheon to inaugurate the bank of thailand beijing representative office, beijing, 6 april 2012. * * * your royal highness ( princess maha chakri sirindhorn ), your excellencies, distinguished guests, ladies and gentlemen, the bank of thailand is humbly grateful to your royal highness princess maha chakri sirindhorn for graciously presiding over this luncheon to inaugurate the bank of thailand beijing representative office. the bank of thailand is privileged and honoured to celebrate this auspicious occasion at the residence of the ambassador of thailand here in beijing among a group of honored guests who have been part of the long - standing sino - thai relations. today ’ s event provides a unique opportunity to celebrate not only the present achievements, but also to pay tribute to history of the friendship between china and thailand that has spanned over 700 glorious years since the tang dynasty and the sukhothai era. our cooperation first began in the form of trade, which remains to this day the strongest tie between our two nations. along with the flows of trade from china came the cultural heritage, which is why our cultural linkage is deeply rooted – in all aspects of the arts, culture and cuisine. your royal highness, ladies and gentlemen, the long - standing relations between our two economies have provided a solid foundation that shaped our modern economic and financial relationships. trade value between our two countries has grown tremendously over the last decade. with the highest growth recorded among our major trading partners, china has now become thailand ’ s largest export destination and the second largest trading partner. for more than 30 years, thai businessmen have invested in china and i understand that we are the first of the asean countries to invest in china. chinese investment in thailand has also increased significantly and china is now the fourth largest foreign investor in thailand. thai commercial banks have long had a presence in china to better respond to the needs of their customers in china, namely bangkok bank, kasikorn bank, and krung thai bank. likewise, bank of china and icbc, the two largest chinese banks, are already operating in thailand. in addition to these bilateral relations, our cooperative spirit has also extended to the multilateral frameworks. please allow me to name just a few important ones.