GTCC e-UPDATE: 16 August 2016
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Editorial Dear Members and Friends, We are very proud to present the first edition of the German-Thai Chamber of Commerce's bi-weekly email newsletter to you. It is designed to provide readers with the latest information on GTCC events and updates on Thailand's economic development, industry sectors, investment, green technology, bilateral business relations, ASEAN growth and prospect, including the major movements of our members. We have signed you up for this e-UPDATE in the hope that you will find the content useful. If you have any feedback or noteworthy news, please share with us. Thank you and enjoy reading! Best regards, Dr. Roland Wein Executive Director
Thailand Economic Factsheet
Upcoming GTCC Events Register now for our upcoming events: 19.08.2016 Site Visit to SIG Combibloc & Eastern Seaboard Networking 24.08.2016 Ice Breaker Networking - SME Special 26.08.2016 Western Seaboard Networking 31.08.2016 Kick-off GTCC YP Network Evening x Grab 08.09.2016 GTDEE International Conference on Dual Vocational Education and Training
As of August 2016
09.09.2016 Stammtisch Bangkok Get-together Update Magazine 13.09.2016 GTCC Meets the German Ambassador
14.09.2016 Chiang Mai Networking Dinner 16.09.2016 GTCC Site Visit to Liebherr & Eastern Seaboard Networking by Beluthai 22.09.2016 Phuket Networking Dinner 28.09.2016 Executive Breakfast Talk: “Labour Law Matters – How to Avoid Labour Disputes in Thailand”
Q3/2016: Bangkok Megacity Feature: Bangkok becoming a megacity as BTS Skytrain expands to urban satellite areas; Bangkok facing major challenges as a megacity; Huge potential of construction and infrastructure sectors for Thailand’s AEC hub role // Business Brief // Chamber Activities // GTDEE Insights // GTCC Gala Night 2016 // Trade Fairs // Members' Corner
Economy Thai GDP expanded 3.5% in Q2 The Office of National Economic and Social Development Board (NESDB) announced that Thai economy in the second quarter expanded by 3.5 per cent and predicted that the full-year economic growth would reach 3-3.5 per cent. It also indicated that the second-quarter economy expanded by 0.8 per cent from the first quarter, boosting the first-half growth rate to 3.4 per cent. (The Nation, 15/08/2016) More Thailand ranked 65th in International Property Rights Index Thailand was ranked 65th in the 2016 International Property Rights Index (IPRI), moving up four places from the previous year. The index, entirely dedicated to the measurement of intellectual and physical property rights, covers 128 countries which represent 98 per cent of world gross domestic product and 93 per cent of world population. The 2015 index covered 129 countries. In the 17 sub-categories, Thailand ranks the highest, 7th, in the "Registering Property" area, and the lowest, 108th, in the "Political Stability" area. (The Nation, 11/08/2016) More
Preferred Benefits
"Niche", at Siam Kempinski Hotel Bangkok is offering GTCC members a 10% discount on Food & Beverage. Niche is a venue for fun-filled informal dining where guests may chosing their favorite ingredient and decide upon an Asian or non-Asian presentation. Niche is certainly a new social place to be seen.
GTAI News Branche kompakt: Thailand bietet vor allem im Hightechsegment Chancen für deutsche Maschinenbauer Zurzeit schwächelt Thailands Maschinennachfrage zwar vor dem Hintergrund der aktuellen konjunkturellen Entwicklung. Langfristig will das Land seine industrielle Basis aber vertiefen und diversifizieren und hat dazu ein Konzept entwickelt, das sich auf zehn Wachstumssektoren stützt. Ausländischen Direktinvestitionen fällt dabei eine tragende Rolle zu. Dadurch dürften sich auch für deutsche Anbieter neue Geschäftschancen eröffnen, vor allem im Hightechsegment. (08/08/2016) More Vertrieb und Handelsvertretersuche - Thailand Thailand besitzt einen blühenden Handelssektor. Die wesentlichen Katalysatoren liegen im Wandel des Lebensstils, der regionalen Diversifikation "Upcountry" wie auch der Integration der ASEAN-Region. Der Markt wird dominiert von wenigen Großkonzernen, die ihre Stellung in allen Handelsformaten kräftig ausbauen. Internationale Markenprodukte positionieren sich zunehmend stärker, vor allem in den mondänen Shopping Malls der touristischen Hochburgen. (27/07/2016) More Thailands digitale Ökonomie kommt auf Touren Thailand bewegt sich sichtbar in Richtung einer digitalen Ökonomie. Treibende Faktoren des Cyberbooms sind Cloud Computing, Big Data oder Social Media auf der technischen Basis der landesweiten Ausdehnung des Breitbandnetzes. Immer mehr Auslandsinvestoren reagieren positiv auf die 2015 eingeführten neuen Förderanreize des BOI und dürften wesentlich zum digitalen Wandel beitragen. Zudem wird die Position Thailands als regionaler IT-Hub in der ASEAN-Region gestärkt. (21/06/2016) More
Jaispirit Co., Ltd. is offering GTCC members a 20% discount on all services together with 15 months for the one year subscription of 'Managed Hosting' instead of 12 months, and additionally 2 months free 'Managed Hosting' for every successful referral of a new 'Managed Hosting' subscription.
Glossary AEC
Asean Economic Community
BJC
Berli Jucker
BOI
Board of Investment
CP
Charoen Pokphand Group
DITP
Department of International Trade Promotion
EEC
Eastern Economic Corridor
EV
Electric Vehicle
IHQ
International Headquarter
PHEV
plug-in hybrid electric vehicle
PTT
Petroleum Authority of
Companies & Industrial Sectors IBM to open innovation centre in Thailand US-based giant IBM plans to open a full-fledged innovation centre in Thailand later this year to combine its cognitive computing technology with customer experience and design thinking. In addition, IBM and its Thai partner Digital Ventures will organise the world's first IBM Watson Business Case competition here later this year to promote financial technology or "fintech" start-ups. (The Nation, 15/08/2016) More Japanese firms keen on Thai digital economy Japanese enterprises have shown high interest in investing more in Thailand’s “digital economy” and foresee the government-supported industrial clusters as engines for strong economic growth, according to Commerce Minister Apiradi
Tantraporn. Thailand's policy could serve Japan's "Thailand Plus One" strategy, under which Japan will use Thailand as a major manufacturing and export base as well as cooperate with third countries. (The Nation, 3/08/2016) More Berli Jucker to use Big C network in ASEAN Berli Jucker Plc (BJC), a consumer product manufacturer under Thai Beverage (ThaiBev) Group, will pool its synergy with Big C Supercenter Plc to expand its business across the Indochina market. The strength of Big C's retail network will help reinforce BJC's expansion via networking links abroad, particularly in Cambodia, Laos, Myanmar and Vietnam. After BJC bought Big C for over 200 billion baht the goal is to fulfil the group's objective to operate several retail formats: convenience stores, hypermarkets, cash and carry stores, health and beauty shops and drugstores. (Bangkok Post, 11/08/2016) More Mazda Thailand appoints first Thai president Mazda Sales (Thailand) has appointed Chanchai Trakarn-Udomsuk as its first Thai president, while promoting a new generation of Thai executives to top management positions in every department. Having been involved with production of Mazda vehicles at the AutoAlliance Thailand plant in Rayong province for more than 20 years, Chanchai is considered as a pioneering executive in Mazda who was there since the AAT plant was built. He has vast experience in managing large organizations particularly in the automotive industry - this is a strong advantage that could further develop Mazda in Thailand with a clear strategy in achieving maximum customer satisfaction. (The Nation, 11/08/2016) More CP All Q2 beats forecast, same store sales at 3-yr high Thailand's largest convenience store chain CP All Pcl posted a 34 percent rise in second-quarter net profit on Wednesday thanks to robust sales, new store openings and lower expenses as consumption picked up in the recovering economy. Net profit was 4.2 billion baht (US$120.90 million) for the April-June quarter, exceeding an average 3.9 billion baht forecast by seven analysts polled by Reuters, and up from last year's 3.14 billion baht in the same quarter. Second-quarter same store sales increased 5.0 percent, the highest rate since the second quarter of 2013, versus 2.6 percent in the previous quarter, while total revenue rose 14 percent from a year earlier to 114.6 billion baht. (Reuters, 10/08/2016) More PTT launched Cafe Amazon franchise in Cambodia CafĂŠ Amazon, a coffee shop chain owned by Thai oil and gas giant PTT Plc, is poised for a major expansion in Cambodia after awarding 19 franchise licences to operate new outlets across the Kingdom. PTT currently has 27 service stations in Cambodia and has announced plans to triple this number by 2020. (The Phnom Penh Post, 5/08/2016) More Luxury condo demand still strong despite overall market sluggishness According to a survey by Knight Frank Thailand, the prices of prime and superprime condominium units in Bangkok increased by more than 5 per cent in the first half of the year, suggesting that those segments are far from being oversupplied. Most buyers of super-prime condos are Thais who buy a unit as a second home that serves their exclusive lifestyle.The foreign buyers of these units are mostly people from Hong Kong, Singapore or Taiwan who have businesses in Thailand. (The Nation, 29/07/2016) More
Thailand KCP
Kusumoto Chavalit & Partners Co
ROH
Regional Operating Headquarter
SEZ
Special Economic Zone
Contact Person
Chadaphan Maliphan Publication and Communication Manager Tel: +66 2 670 0600 ext 2005 Email: chadaphan@gtcc.org
Thailand and ASEAN The Benefits of Regional Management in Thailand Singapore has been the traditional hub for regional management within the region, but as the ASEAN Economic Community comes into fruition, Thailand has been at the forefront of this endeavor. With its highly developed infrastructure, strategic location, educated and cost effective labor source, Thailand presents itself as a great alternative to Singapore. In May 2015, the government authorized tax incentives for businesses in Thailand operating as an international headquarters (IHQ). This is the third law under the Regional Operating Headquarters (ROH) program. (ASEAN Briefing, 5/08/2016) More PM kicks off work on new motorway Prime Minister Prayut Chan-o-cha kicked off construction on a new 196kilometre inter-city tollway worth 84.6 billion baht linking Ayutthaya, Saraburi and Nakhon Ratchasima provinces. The motorway will also improve transport links connecting Bangkok with the northeastern region as well as neighbouring countries including Laos, Vietnam, Cambodia and China's southern region (Bangkok Post, 4 August 2016) More Panel backs B7bn SEZ plan The government approved in principle an energy development plan worth 7.35 billion baht for six locations designated as special economic zones (SEZs): Tak's Mae Sot, Mukdahan's Muang, Nong Khai's Muang, Sa Kaeo's Aranyaprathet, Trat's Khlong Yai and Songkhla's Sadao districts. Cross-border trade prospects are expected to flourish once the government's planned special economic zones (SEZs) start up. (Bangkok Post, 10/08/2016) More DITP looks to Lao PDR for investment opportunities The Department of International Trade Promotion (DITP) has set its sights on Lao PDR for expanding Thailand’s international trade. DITP Director-General has projected Lao PDR’s economic growth for at least 7 percent this year, considered higher than other countries in the region. She foresees its agricultural sector growing 3 percent, its industrial segment expanding 8 percent and service industry to grow by 9 percent. (NNT, 20/07/2016) More Myanmar releases economic policy The policy aimed to foster long-term conservation and the fair allocation of natural resources among regions and states to promote national reconciliation. (The Nation, 2/08/2016) More Myanmar’s KBZ Bank inaugurates its first overseas office in Bangkok Kanbawza Bank, part of the KBZ Group of Companies, held the grand opening of its representative office in Bangkok on 3 August 2016, making it the first
Myanmar bank to establish an international presence. The bank wants to have a presence in all Asean countries in an effort to lure trade and investment to Myanmar, said Nyo Myint, senior managing director of KBZ Group. (The Nation, 4/08/2016) More
Green Technology Cabinet approves plan to promote use of electric vehicles in Thailand The Cabinet has agreed to measures for the promotion of electric vehicles in the country, aiming to see electric buses hit the streets within November this year. The Cabinet was supportive of the promotion plan for three types of electric vehicles, namely electric cars, compact electric cars and electric buses. The plan carries short-term measures to accelerate the Bangkok Mass Transit Authority’s procurement of 200 electric buses and to ensure the vehicles are put to use this November. (NNT, 02/08/2016) More FOMM eyes EEC for EV production Japan's FOMM Corporation is set to establish an assembly plant for its compact electric vehicles (EVs) in Thailand. The company has already found two Thai partners -- Trinex Assets Co and Kusumoto Chavalit & Partners Co (KCP), to help support future investment in Thailand. The new facility would require investment of about 33 million baht to make 25,000 battery electric vehicles (BEVs) a year (exclusive of land and construction costs). Chon Buri and Rayong are preferable as the investment destinations. (Bangkok Post, 15/08/2016) More
Bilateral Business PTT’s new move on electric cars PTT signed a memorandum of understanding with six automakers, showing its commitment to open charging stations for electric cars.The signatories are BMW (Thailand), Mercedes-Benz (Thailand), Mitsubishi Motors (Thailand), Nissan Motor (Thailand), Porsche (Thailand) and Volvo Car (Thailand). (The Nation,
15/08/2016) More Lufthansa's winter plan ups capacity The Lufthansa Group will boost seat capacity for flights through Thailand by 22% under a winter season programme. The move is a response to higher travel demand in the six-month period starting towards the end of October. (Bangkok Post, 13/08/2016) More Mercedes-Benz set for PHEV campaign Mercedes-Benz (Thailand), the local unit of the German carmaker, wants all of its plug-in hybrid electric vehicles (PHEVs) to be locally assembled at its Samut Prakan plant. The company has already ceased assembly of its conventional hybrid electric vehicles (HEVs) in Thailand. (Bangkok Post, 4/08/ 2016) More Continental mulling Thailand for new plant German automotive group Continental will decide by the end of this year whether to choose Thailand as its new tyre-manufacturing site. Sirivan KooAmphorn, general manager of Continental Tyres Thailand, said she was scheduled to meet with the Thai authorities next week to hear what incentives and support the government could offer to the proposed project, in addition to the Board of Investment's privileges. (The Nation, 30/07/2016) More
Member News BMW Group Thailand's new president appointed BMW Group Thailand has announced the appointment of Mr. Stefan Teuchert as its president, effective from 1 September 2016. In his new position, Teuchert's responsibilities will cover the management of all BMW Group Thailand business divisions - including BMW, MINI and BMW Motorrad. (The Nation, 23/07/2016)More Erik Edelmann appointed as President of Henkel Thailand Effective May 2016, Erik Edelmann was appointed President of Henkel (Thailand) Ltd. In this role, Erik legally represents the company and is the spokesperson for the affiliated operations of Henkel Thailand. Erik has been based in Henkel Thailand’s head office in Bangkok since March 2014 More BaanSuay Consult Co. Ltd moved to new office BaanSuay Consult Co Ltd.,(BSC) and staff moved into their new office at Koolpunt 9 Ville in Hangdong, Chiang Mai, on 1 August 2016.BSC is a logistics expert for the Greater Mekong Subregion and represents the German Company TWS AQUA renting out Tank Containers for water supply and storage More
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