Amid difficulties in Europe caused by the spillover of the US financial crisis, an official delegation from Luxembourg will visit Thailand next month to explore investment opportunities in satellites, investment banking and steel.

The 20-member delegation will include officials from Luxembourg's economics ministry and the private sector.

They will meet and discuss investment opportunities with Thai representatives from the public and private sectors, including the Thai Chamber of Commerce and the Federation of Thai Industries.

Pisan Manawapat, Thailand's ambassador to Belgium, Luxembourg and the European Union, yesterday led a Thai delegation to discuss the upcoming visit by the Luxembourg delegation, which is scheduled for November 13-17. He was accompanied by officials from the Board of Investment.

"They want to explore investment opportunities in Thailand. This is good news amid the overall bad news," Pisan said.

He added that Luxembourg is interested in investing in the satellite business, particularly the management of Thaicom. The delegation will also explore opportunities in investment banking.

Luxembourg's investor-friendly financial laws have made the country a magnet for investment from around the world. The country's service sector, including banking, makes up more than 60 per cent of its gross domestic product.

Luxembourg is the location for 156 banks, including international banks with combined capital of €2 billion (Bt93 billion).

Luxembourg is also interested in the steel industry in Thailand, Pisan said.

Steel comprises a major portion of the Kingdom's imports from Luxembourg. Pisan said the Luxembourg steel industry was highly regarded for its unique European technology.

However, total trade between Thailand and Luxembourg is still very small compared to other European countries.

Last year, bilateral trade accounted for only US$30.39 million (Bt1 billion) of Thailand's total international trade worth $292.49 billion. Thai exports to Luxembourg were $22.94 million, while imports came in at $7.45 million. Key imports are machine tools and parts, metal products, steel, plastic products and chemical products. Thailand exports glass, jewellery, clothes, metal and plastic products to Luxembourg.

As of 2005, Luxembourg owned Bt79.6 billion of Thai securities, 97 per cent more than in 2004. Of the total, Bt78.7 billion was in the stock market, Bt461 million in financial derivatives and Bt405 million in the debt market.

However, during the first seven months of this year, Luxembourg invested only $9.88 million in Thai stocks.

During the visit by the Luxembourg delegation, two seminars will be held - one focusing on supporting investment from Luxembourg in general, and the other discussing support for financial and banking investments. At least 300 people are expected to take part in the two events.

The visit was scheduled in August, before the financial crisis hit Europe. Luxembourg, along with Belgium and the Netherlands, last week agreed to inject additional funds totalling € 11.2 billion into financial-service provider Fortis to prevent one of Europe's top 20 banks from collapsing after the US financial crisis erupted.