Update Q3/2013

3/2013 http://thailand.ahk.de

T H E M AG A Z I N E O F T H E G E R M A N - T H A I C H A M B E R O F C O M M E R C E

GREATER MEKONG SUBREGION IN FOCUS Greater Mekong Subregion: Growing together

We provide premium vocational training!

Bayer Thai site visit and Ice Breaker Meeting All Chambers in the Eastern Seaboard

DEAR READERS Welcome to this third issue of Update magazine, which focuses on the Greater Mekong Subregion (GMS). Covering an area of 2.6 million km2 and with a combined population of approximately 326 million, the GMS is a significant economic area within which great opportunities exist.

Following the opening up of the Republic of the Union of Myanmar in 2011, coupled with the easing of trade and economic sanctions imposed by the European Union and the United States on that country, it has been constantly in the limelight and attracted countless international players from the trade and investment domain.

You will find the article, “DB Schenker pioneering global logistics services in Myanmar, strengthening Lao PDR presence”, useful in gaining additional insight into business in those two countries. In addition, the accompanying article, “On the verge of change: Lao PDR’s journey towards regional integration” by the European Chamber of Commerce and Industry in Lao PDR (ECCIL)” provides an interesting window on what the Lao PDR is doing, as the region moves towards the launch of the ASEAN Economic Community in 2015.

Finally, a more detailed report on economic development in the GMS is provided in “Greater Mekong Subregion: Growing together” by Germany Trade & Invest, which outlines development projects and figures in the subregion.

In the Business Briefs section, the Chamber introduces its German-Thai Dual Excellence Education (GTDEE) programme, which is a partnership between Germany and Thailand aimed at promoting “German-made” dual vocational education in Thailand. Also in this section are articles about vocational programmes currently being offered by leading German companies in Thailand, which include BMW Group Thailand, Robert Bosch Ltd. and Siemens Ltd., Thailand.

During this year’s third quarter, our members and friends also enjoyed two interesting visits to the distribution centre of Haefele (Thailand) Ltd., as well as Bayer Thai Co., Ltd. The latter visit was followed by the GTCC Ice Breaker Meeting, All Chambers in the Eastern Seaboard, which was attended by more than 100 members and friends from other chambers of commerce. These visits and other events are covered in the Chamber Activities section. In the meantime, don’t forget to save the dates in your diary for our highlight events during the remaining months of this year, including the GTCC Oktoberfest Night 2013!

Last but not least, for industrial players, see what is happening in the trade fair arena in the last section of this issue of Update. This includes trade fairs that recently took place as well as the upcoming Spielwarenmesse 2014, the world’s leading toy fair in Germany.

With best regards,

Jörg Buck Executive Director Update is published quarterly by the German-Thai Chamber of Commerce and distributed free of charge to members and qualified non-members in Thailand and abroad.

Subscription is also available at an annual rate of US$75 (airmail). Payment can be made in cash or cheque to the German-Thai Chamber of Commerce, Empire Tower, 195 South Sathorn Rd., Bangkok 10120, Thailand. Tel.: (+66) 02-670-0600. Fax: (+66) 02-670-0601. E-mail address: info@gtcc.org.

Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber.

Update welcomes story and photo contributions from members and non-members alike. Articles may be reproduced with acknowledgement, except for those taken from other sources.

Publisher/Editor-in-Chief: Jörg Buck Editor & Communications Director: Ratanaporn Bistuer Advertising Director: Pimtip Faktorngpan Design & Layout: Sorapol Liengboonlertchai Sub-Editor: Tony Oliver Circulation per issue : 2,000

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Greater Mekong Subregion: Growing together CONTENTS

06

Greater Mekong Subregion: Growing together

20 Regional connectivity to aid Thailand’s transformation

32 We provide premium vocational training!

43

Breakfast Talk on perspectives for ASEAN industrial growth

51 Spielwarenmesse 2014 The Spirit of Play

GREATER MEKONG SUBREGION

CHAMBER ACTIVITIES

06 Greater Mekong Subregion: Growing together 14 DB Schenker pioneering global logistics services in Myanmar, strengthening Lao PDR presence 16 On the verge of change: Lao PDR’s journey towards regional integration 20 Regional connectivity to aid Thailand’s transformation 22 Mae Sot firm wins international support for refugee children learning centres 24 New Thai PPP law improves prospects for private participation in infrastructure projects

40 40 41 42

BUSINESS BRIEFS 32 We provide premium vocational training!

36 BMW Group Thailand begins local assembly of MINI Countryman

38 Krones displays future of filling and packaging technology at drinktec

Seventh Thailand Life Sciences Business Forum Joint Chambers Luncheon with Mr. Isara Vongkusolkij Site visit at Häfele (Thailand) Ltd. Bayer Thai site visit and Ice Breaker Meeting All Chambers in the Eastern Seaboard

43 Breakfast Talk on perspectives for ASEAN industrial growth

TRADE FAIRS 49 BIOTECHNICA 2013 50 ITB Asia

51 Spielwarenmesse 2014: The Spirit of Play 52 Drinking milk and milk-based beverages offers great potential for growth in the dairy industry

06 GREATER MEKONG SUBREGION

GREATER MEKONG SUBREGION: GROWING TOGETHER Contributed by: Dr. Waldemar Duscha, Germany Trade & Invest

Bridge across the mekong river

The countries in the Greater Mekong Subregion (GMS) want to significantly expand their infrastructure. Huge investments in eight sectors are planned for the third development decade up until 2022. As in the past, these countries continue to operate on the strategy of developing regional corridors. New developments are the multi-sector approach and the greater involvement of the private sector. In particular, this includes investments in the energy and transport sectors as well as urban development, worth at least US$ 6.5 billion.

The GMS comprises Association of Southeast Asian Nations (ASEAN) member countries Cambodia, the Lao People’s Democratic Republic, Myanmar, Thailand and Viet Nam as well as Yunnan province and Guangxi Zhuang Autonomous Region of China. The

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GMS was established in 1992 on the basis of an Economic Co-operation Programme (GMS Programme) with the support of the Asian Development Bank (ADB). The region covers an area of approximately 2.6 million square kilometres and has a combined population of 326 million.

The GMS Corridors Network

In the first two decades of the GMS programme (1992-2011), 56 investment projects with a total project cost of US$ 15 billion were implemented. Funding came largely from ADB (US$ 5.1 billion); the remainder has been provided by the GMS national Governments (US$ 4.3 billion) and other development partners (US$ 5.6 billion).

The projects involved roads, airport and railway improvements, hydropower for crossborder power supplies, tourism infrastructure, urban development and communicable disease control. From the point of view of ADB, the overall rating of the GMS programme is successful as a flexible, resultsoriented vehicle for promoting regional co-operation and contributing to economic growth, pover ty reduction as well as fulfillment of regional public services.

MORE PROSPEROUS BY GMS INTEGRATION Undoubtedly, the GMS programme is helping the participating countries/regions achieve outstanding economic perfor mance .

According to the Bangkok Bank, the GMS has the potential to become one of the world’s fastest-growing areas, with about 7 per cent annually during the past decade. The growth trend is expected to continue in 2013 and 2014; in fact, the International Monetary Fund has projected GDP growth in Thailand to reach 5 per cent and even increases of between 6.7 and 6.9 per cent in the four "CLMV" countries (Cambodia, the Lao People’s Democratic Republic, Myanmar and Viet Nam).

From 2000-2009, intra-GMS trade increased by 22 per cent – more than it exports to (+17 per cent), and imports from (+16 per cent) non-ASEAN countries. Thailand's trade with Cambodia, the Lao People’s Democratic Republic and Myanmar grew during 20022012 from US$ 2.2 billion to nearly US$ 15.7 billion (table 1).

Source: ADB.

Cityscape of Hanoi city in Viet Nam

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Table 1. Thailand's trade with neighbouring countries (US$ million) 2002

2007

2012

Thai trade with Cambodia Thai exports

527 516

1,406 1,357

4,032 3,782

Thai trade with Lao PDR Thai exports

491 398

1,784 1,314

4,848 3,610

Thai trade with Myanmar Thai exports

1,232 325

3,263 962

6,801 3,127

Total Total Thai exports

2,250 1,239

6,453 3,633

15,681 10,519

Source: United Nations Comtrade.

Thanks to that generally positive assessment, the GMS countries had endorsed the new "GMS Strategic Framework, 2012-2022" by the end of 2011. Conceptually, development along the three main economic corridors (east-west, north-south and southern) will be continued, and nine road corridors that will form the network have been identified. The new GMS Strategic Framework proposes eight priority development sectors, i.e., agriculture, energy, environment, human resource development, telecommunications, tourism, transport infrastructure, as well as transport and trade facilitation (table 2).

Table 2. GMS programme sectors Sector

Programmes, initiatives, strategies, objectives and measures

Agriculture

- Core Agriculture Support Programme, 2011-2015 (CASP II) - Focus on food safety, energy costs, the effects of climate change and competitiveness

Energy

- Aims to establish a competitive and integrated regional power market - Establishment of the Regional Power Co-ordination Centre - Co-operation in energy efficiency, renewable energy, gas and coal

Environment

- GMS Core Environment Programme and Biodiversity Conservation Corridors Initiative, 2012-2016

Human resource development

- GMS Human Resources Development Strategy 2013-2017 - Focus on health, education, labour and migration

Telecommunications

- GMS Information Superhighway Network Initiative

Tourism

- GMS Tourism Sector Strategy, Mid-Term Review and Road Map 2011-2015 - Promotion of the GMS as a single destination - Offer of multi-country tour circuits

Transport infrastructure

- Development of the priority transport corridors - Upgrading of water navigation systems, railway networks and seaports - Transport strategy for multi-modal linkages

Transport and trade facilitation

- Programme of Actions for Transport and Trade Facilitation - Cross-Border Transport Agreement

Source: Asian Development Bank.

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The old town of Hoi An. Viet Nam What is notable is the fact that the next generation of investment programmes will compr ise multi-sector infr astr ucture investments, both in urban development as well as in rural and integrated area development. This entails more investment in urban ser vices (sewage and waste management), rebalancing in transpor t (railways and multi-modal transport) and green technologies plus smart investments in energy and telecommunications. Policy and institutional reforms should aim for more effective use of infrastructure in areas related to transpor t and trade facilitation, the development of the regional power market or sustainable natural resource management.

The results of the project study, "Regional Investment Framework" (RIF), were presented at the eighteenth GMS Ministerial Conference in Nanning, China at the end of 2012.

Significant changes are made in the energy and transport sectors, urban development and migration, to which the new RIF proposes the adoption of a multi-sector approach. It was decided to draw up a list of investment projects for consideration at the next Ministerial Conference in the Lao People’s Democratic Republic towards the end of 2013.

BILLION FOR INVESTMENT PROJECTS According to ADB estimates the investments under RIF will be at least US$ 6.5 billion. Thus, the additional road and port projects are

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expected to cost around US$ 1.5 billion and the development of corridor cities more than US$ 500 million. Regardless of RIF, it must be considered that the road and rail projects, amounting to more than US$ 3 billion, are already needed for 2013-2014.

For the energy sector, seven projects are in the pipeline plus a project for the modernisation of biofuel technology at a total cost of US$ 2 billion. In agriculture, US$ 600 million is to be provided for food safety and green infrastructure as well as for environmental protection and biodiversity, while an additional US$ 260 million is being set aside for human resources development (education, communicable disease control and AIDS prevention).

The energy sector plays an important role, and will become even more significant together with the problems of energy security and climate change. In this regard, the GMS Energy Report advises the GMS countries to expand and strengthen co-operation in establishing an integrated regional power market. This implies the need to analyse national development plans and regional priorities as well as major national projects that will have a regional impact.

Until now, an interconnection of systems has not been established; only national branch pipelines in other countr ies (mainly hydropower) are in place so far. Specific steps recommended by the ADB are (a) a 500-kV transmission line in the Lao People’s Democratic Republic to transport electricity from the hydropower plants to neighbouring countries, and (b) a direct link between Thailand and Viet Nam as these two countries have the largest GMS power grid systems.

Transpor tation corr idor s should be transformed into real economic corridors, which would require a multi-sector approach.

This would call for structuring by priority corridors, then a determination of multisector investment in terms of urban design and industrial development, potentially including the consideration of special economic zones.

ADB performs several functions in the GMS programme . It acts as a secretar iat, co-ordinator and political catalyst; it also helps with financing and provides technical

advice. Until 2011, ADB supported a total of 177 technical assistance projects costing US$ 286 million. "ADB was, and remains, the primary driving force behind the GMS", confirmed a foreign consultant to GTAI. The other donors are the Governments of 15 countries (including Germany) and 15 multilateral institutions, such as the European Union, the European Investment Bank, the Food and Agriculture Organisation, the International Labour Organisation, the United Nations Development Programme, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the World Health Organisation and the World Bank.

with the private sector, and promote publicprivate political dialogue. The GMS-BF currently focuses on issues of trade and transport facilitation as well as the reduction of trade barriers that impede free competition by SMEs in the subregion.

Within the framework of the new strategy, it must be emphasised that the private sector is getting more involved. The lead management has been assigned to the GMS Business Forum (GMS-BF), which was established with the help of ADB, ESCAP and the national Chambers of Commerce. The independent, non-governmental organisations should mobilise the resources required to implement future RIF projects, support the networking

Greater Mekong Subregion Business Forum (GMS-BF), LNCCI Building, Kaysone Phomvihane Ave., Phonphanao Village, Saysettha district, Vientiane, Lao People’s Democratic Republic.

Tel: 00856-21-720-437; Fax: 00856-21-720 -438, website: www.gmsbizforum.com (W.D.).

Contact addresses for further information: Asian Development Bank, GMS Secretariat, Supervisor: Arjun Goswani, Director of Regional Co-operation and Operations South-East Asia (SERC), 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, the Philippines.

E-mail: agoswami@adb.org, www.adb.org.

Phnom Penh, Cambodia

Can Tho, Viet Nam

Vientiane, Lao PDR

Thai farmer planting on the paddy rice farmland

Public ferry docking in the Mekong Delta, Viet Nam

Mandalay rush-hour, Myanmar (Burma)

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EUROCHAM CAMBODIA LAUNCHING THE FIRST GREEN BUSINESS FORUM IN THE KINGDOM Contributed by: EuroCham Cambodia

GREEN GROWTH IN THE PRIVATE SECTOR

Green growth, sustainability, energy efficiency … Buzz words in a global economy increasingly aware of the necessity to include environmentally friendly practices in every aspect of economic enterprise.

As a developing country, Cambodia is still at a very early stage in the process. Rapid economic growth, combined with a lack of efficient infrastructure, few legal requirements and standards and a heavy reliance on natural resources ignored the benefits of an efficient approach towards sustainable business practices.

However, things are looking up as a number of government and multilateral organisation initiatives are being implemented. The “National Energy Efficiency Policy, Strategy and Action Plan for Cambodia” has been

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developed in a joint project between EUEI PDF (European Union Energy Initiative Partnership Dialogue Facility) and MIME (Ministry of Industry, Mines and Energy) and is now waiting for the adoption process by the Royal Government of Cambodia.There is also a “National Council of Green Growth” which aims to develop a sustainable economic society with natural resource and environment sustainability. A law on “Environmental Impact Assessment” is also currently being drafted.

Multilateral organisations are actively engaged in green growth in the Kingdom via a number of private sector development projects, such as UNIDO’s Greener Factories project.

Partners are assisted in the implementation of the TEST methodology, an integrated approach developed by UNIDO to initiate a cycle of continuous improvement of the environmental, economic and social performances of companies. It has helped nu m e rous fac to r ie s b e c o me mo re environmentally sustainable and actually cut costs in the long term.

In terms of the private sector in Cambodia, green business is still at the embryonic stage.

Due to the lack of over arching legal frameworks and regulations that would ensure that certain standards of energy efficiency and environmentally-friendly practices are met by companies operating in the country, even international companies often become more relaxed about their green and sustainable chapters when operating in Cambodia. This does not come as a surprise, taking into consideration that a key reason for international companies entering and operating in Cambodia is the low cost of operation; investing more capital to expand environmentally-friendly practices is usually not a priority.

However, things are changing. The potential offered in the renewable energy sector especially solar power - has not gone unnoticed by the private sector. On the one hand, a strong reliance on inefficient and expensive, resource-reliant production and the dependency on the supply of electricity from neighbouring Viet Nam, in addition to an insufficient supply which results in frequent power and a friendly investment climate, on the other, present many opportunities to conduct profitable businessin the sector.

The construction sector also offers much potential for further development of green business. As the building boom in Phnom Penh continues, energy efficient practices are

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becoming increasingly important, not only because energy efficient buildings appeal to the CSR chapters of companies, but also because they translate into long-term financial benefits. However, there is a key obstacle when it comes to energy efficient building: the lack of a National Green Building Code.

Currently, companies have to follow standards set by other National Codes, such as LEED and Lotus; effectively, not all energy-efficient buildings are being built by the same standards – there are no checks on whether the necessary criteria to be energy efficient is being met.

As the domestic market and the export potential grows it is becoming necessary for companies to meet international criteria, many of which are related to sustainable and environmentally-friendly standards and practices accepted all over the world. One such example is the EU, which recently introduced the Forest Law Enforcement, Governance and Trade (FLEGT) which provides a number of measures to exclude illegal timber from markets, to improve the supply of legal timber and to increase the demand for responsible wood products. The EU has also introduced the EU Timber Regulation, which bans illegally produced wood products from entering the EU market.

For Cambodia, which currently benefits from the “Anything but Arms” initiative, allowing tariff free exports to the EU, it is important to respect such initiatives in order to take advantage of the full growth potential of its export activities to the EU market.

EuroCham GREEN BUSINESS ACTIVITIES It is in this context that EuroCham Cambodia is actively engaging in providing support to businesses with environmentally friendly activities to take advantage of the opportunities while overcoming the major obstacles and promoting the importance of Green Business through its lobbying activities.

In fact, a Green Biz Committee already exists under the EuroCham umbrella, bringing t o g e t h e r c o mp anie s fro m d iffe re nt backgrounds, which all have a common interest in green business development: solar panel producers and distributors, construction firms, sustainable wood producers, or businesses which aim to make their activities greener and to operate in a more sustainable way.

The Committee is focused on advocating on a number of issues which are the most serious obstacles in developing and expanding green business further in Cambodia. Feed-in tariffs, VAT exemptions, import taxes and the creation of a green building code are currently the main priorities. The Committee aims to work on a specific set of recommendations, to be included in the EuroCham White Book at the beginning of 2014. These recommendations will be used to advocate to the Government and raise awareness of the issues to bilateral and multilateral organisations. The Committee also provides feedback on relevant draft laws and offers a platform on which European businesses can share best practices and adopt greener business ethics through an extensive support network.

VISION 2013 In addition to the Green Biz Committee, EuroCham Cambodia is launching Vision2030, a full-day Green Biz event bringing together key public and private sector decision makers to share best practices and discuss opportunities for innovative, competitive and lucrative green business opportunities. As the first in a series of planned annual events, Vision2030 will be held on December 6th and is an opportunity to meet the key players operating in this exciting market in a conference setting.

More specifically, Vision 2030 aims to: Identify how sustainable and efficient practices can be combined with business to achieve profitable, environmentally-friendly investments; Share best practices of green business: - Facilitate sustainable agriculture and forestry management; - Ecotourism; - Build on experiences of energy efficient construction; - Efficient transport and logistics; - Recycling and waste management; - Highlight the benefits of renewable energy solutions; - Carbon trade and auditing; Present business opportunities in the areas of sustainable development and green economy; Highlight the importance of green and sustainable practices in business; Introduce to the public EuroCham Cambodia’s Green Biz Committee.

If you would like to learn more about Green Business in Cambodia, the EuroCham Green Biz Committee or Vision 2030 sponsorship opportunities, please contact Ms Lauren Skarkou (tel: +855 (0)10 881 950, email: project.manager@eurocham-cambodia.org).

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GERMAN TECHNOLOGY CONTRIBUTING TO FARM MECHANISATION IN SOUTH-EAST ASIA Contributed by: Jan-Klaus Tobias, CLAAS Regional Center South East Asia Ltd. Ranked among the top five manufacturers of agricultural machinery, CLAAS is today the biggest family-owned company in the industry, generating an annual turnover of about Euro 3.4 billion. CLAAS, which is celebrating its 100th anniversary this year, has always been one of the leading innovators in agricultural mechanisation. This not only applies to its presence in Europe, where CLAAS developed the first combine harvester suitable for European conditions in the early 1920s and 1930s, but also globally. In fact, since that time, CLAAS has gone on to shape farm mechanisation by providing German technology to farmers world-wide.

As the population in South-East Asia is

expected to grow substantially by 30 per cent up to 2050, and as food patterns are drastically changing to greater consumption of meat and dairy products, food supplies will more and more become an issue. The apparently simple and obvious solution to this challenge would be to just increase the food and feed production, in order to address these major changes in demand.

However, that will not be the only challenge; due to strong economic growth and the for thcoming integration of markets (i.e., the ASEAN Economic Community in 2015), more and more people are migrating to cities as they would rather work in airconditioned factories than working day after

day in the tropical heat in the paddy or sugarcane fields of Thailand and the other South-East Asian countries.

Given these two major trends – increased demand and scarcity of farm labourers – into account, professional farm management and farm mechanisation, like that in Europe and North America, will become essential to feeding the people of South-East Asia adequately in the future. Certainly, such a transition will take time, par ticularly as cur rent far m income does not allow substantial investments in new technologies.

Therefore, the onus will be on the suppliers to provide products that will enable market demands to be met.

CLAAS, as a long-experienced specialist in farm mechanisation, has adapted is product range to match the needs of farmers in So uth-Eas t A s ia. Fo r e x ample , t he CROP TIGER is a compact combine harvester designed and engineered in Germany, but produced in the fully CLAAS-owned subsidiary in India. Tested and used in more than 30 c o untr ie s in the sout her n hemisphere, this machine comprises simple technology, durable design and an affordable cost of ownership. In addition, its tractors and other products manufactured in the Republic of Korea are providing a full product line-up, thus fully serving the needs of local farm communities.

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GREATER MEKONG SUBREGION 13 Mr. Harald Link (3rd left) Chairman of B.Grimm recently endowed fund support of Bt 1 million to World Wide Fund for Nature (WWF-Thailand) for the project of ‘Tiger Conservation in Thailand’ received by Mr. Stuart Chapman (4th left) WWF GreaterMekong Regional Representative; Mr. Petch Manowpawitr (Far right) WWF-Thailand Conser vation Progr am Manager and witnessed by Ms. Kanchana Silpa-archa(2nd left) and Mr. Pakorn Thavisin (Far left) at Alma Link building.

B.GRIMM SUPPORTS WWF-Thailand's TIGER CONSERVATION PROJECT Contributed by: Darin Nuntaratn, B. Grimm As part of its objective of “Doing business with compassion”, B. Grimm recently took the decisive step by providing fund support of Bt 1,000,000 to World Wide Fund for Nature (WWF-Thailand) for protecting the ecological integrity and connectivity of the Dawna Tenasserim Landscape, which is one of the most important tiger habitats worldwide.

The contribution is mainly aimed at the conservation of endangered species such as tigers through law enforcement and protected area management as well as capacity-building and empowerment of the local communities through various activities.

These include the Junior Protector school outreach activity, the anti-poaching local

campaign, patrol activities, suppor t and welfare of rangers as well as meetings and experience-sharing among related government and non-governmental organisations.

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DB SCHENKER PIONEERING GLOBAL LOGISTICS SERVICES IN MYANMAR, STRENGTHENING LAO PDR PRESENCE Contributed by: Schenker (Thai) Ltd The recent positive political developments in Myanmar provide DB Schenker with a unique oppor tunity to share its exper tise and experience with that countr y’s business community. DB Schenker Yangon has received numerous inquiries during the past few months from overseas suppliers, buyers and potential investors for information on Myanmar.

While strictly following the specific international compliance requirements with regard to Myanmar, DB Schenker has maintained its own operation in Yangon since 1999. Yangon (formerly known as Rangoon) is the former capital and economic centre of Myanmar (formerly Burma).The capital was moved in 2005 to a green-field location in Naypyidaw approximately 320 km north of Yangon.

DB Schenker is a pioneer and, so far, the only multinational logistics provider with its own operational set-up in Myanmar. Officially registered as a branch office of Schenker (Thai) Ltd., it currently has 12 employees. A wide range of logistics services are provided, such as ocean freight, airfreight, customs clearance, warehousing, buyer’s consolidations, hanging garments, global projects/oil and gas,

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domestic/international trucking, packing/ re m ov a l s , and fair s and e x hib itio ns .

In addition, DB Schenker in Yangon is the only airfreight agent in Myanmar holding an IATA DG certification.

On the import side, the main commodities currently handled are consumer products, telecommunications and medical equipment, machinery and spare parts, supplies for projects and O&G industries, raw materials etc. The main export commodity at present is garments While most ocean freight is currently transshipped at Singapore and air cargo at Bangkok, more and more carriers are expected to provide services to Yangon including wide-body aircraft and feeder/shorthaul container services.

International trucking ser vices between Thailand and Myanmar are offered via the Mae Sot/Myawaddi border point. However, as the road infrastructure on the Myanmar side is still being improved, this form of transpor tation is, however, still quite challenging and it is not currently possible to utilise truck containers. Thai and Myanmar

trucks are not allowed to cross the border of their neighbour, which means that all cargo must be trans-loaded.

Electricity supply can be a problem. DB Schenker’s office in Yangon has its own diesel generator, at its teakwood furnished house near the airport, and is often in use due to power cuts. Another negative point is that Internet connections are frequently hampered due to technical issues; however, this is no longer due to security reasons as was the case in the past.

The Myanmar economy will not explode overnight and patience is still needed (various laws are currently under review or amendment). However, DB Schenker is definitely in a pole position to grow with the opportunities that this resource-rich country offers. Myanmar has a potentially large consumer market of 60 million people – a similar sized population as that of Thailand.

STRONGER PRESENCE IN LAO PDR Meanwhile, in the Lao People’s Democratic Republic, DB Schenker has established its own legal entity and will now operate under the name of Schenker (Lao) Sole Co., Ltd., to

GREATER MEKONG SUBREGION 15 better serve its customers across the region.

Although present in the country since 2001 as a representative office of Schenker (Thai) Ltd., the process of establishing a legal entity highlights DB Schenker’s strong commitment to its customers in the Lao PDR. The fullyowned company will enable DB Schenker to expand its service offerings and operational capabilities while being more competitively priced.

In the first phase of its planned investments in the Lao PDR, DB Schenker has invested in establishing a 3,000 m2 logistics facility in the capital, Vientiane. The distribution centre will service customers across key industries such as telecommunications, consumer goods and garments.

DB Schenker is also putting in place a comprehensive human resource development programme to increase the knowledge and capabilities of its local logistics professionals.

RICH HISTORY IN INDOCHINA On the occasion of the signing agreement, Mr. Victor Lim, DB Schenker’s Managing Director for Thailand, Myanmar and the Lao PDR said: “This is an important milestone in our rich history in the Indochina region. This step is to enable our customers to take the full advantage of the upcoming ASEAN Economic Community regulations and be competitive in the region”.

With regard to the impact on DB Schenker’s international land transportation services in Asia, the “Landbridge service”, Mr. Lim added that “with the Lao PDR holding a key geographical position and sharing its borders with some of the most important economies in the region, it is imperative that we expand our international trucking services to give our customers the choice of using the most cost-effective mode of transport for their goods”.

Mr. Jochen Thewes, CEO of DB Schenker in Asia-Pacific commented: “Being the pioneer international logistics provider to set up a branch office in Myanmar and now a whollyowned operating company in the Lao PDR,, and with the strong heritage and footprint in operating in these emerging markets, cu sto me r s w ill be n e fi t f ro m o u r comprehensive exper tise and established Indochina network to strengthen their AsiaPacific business strategies.”

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Nam Theun 2 hydropower dam located in Khammouane province, Lao PDR. © NTPC; photo by Stanislas Fradelizi.

ON THE VERGE OF CHANGE: LAO PDR’S JOURNEY TOWARDS REGIONAL INTEGRATION Contributed by: Muriel Schäfer, Associate Advisor, European Chamber of Commerce and Industry in Lao PDR (ECCIL) If you have ever sipped a Beer Lao to the sound of chirping birds on Vientiane’s Mekong promenade, sitting on a plastic chair and watching the sun set over a rather quiet capital, you might have noticed the bumper sticker on a passing tuk tuk: “Lao PDR. Please Don’t Rush.”

“Prime investment target” was probably not the first thing that came to mind. So why does this small domestic market, one of the two least developed countries in the thriving Association of Southeast Asian Nations (ASEAN), spark any interest in foreign investors? What is its role in the Greater Mekong Subregion, nestled along the Mekong between Cambodia, Viet Nam, Thailand and China as the only landlocked country among them?

While it is true that in comparison with its neighbours, the Lao People’s Democratic Republic offers a small domestic market of just 6.5 million inhabitants, it is also true that the communist country has seen continuous growth rates averaging 7 per cent annually during the past 10 years, with a strong resilience against exter nal shocks. By

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Infobox 1. Special Economic Zones Since 2010, the Lao PDR has been designating certain geographical areas, covering 13,500 hectares, to attract foreign direct investment. The Government offers incentive schemes targeted at companies operating in financial services, transport and logistics, industry and trade as well as housing and services. Investors benefit from a one-stop government service and can either step in as developers of the zone itself or set up shop directly. Of the 10 special economic zones, 4 are being developed by Chinese corporations, either 100 per cent privately or in co-operation with the Lao Government. introducing the New Economic Mechanism in 1986, the ruling Lao People's Revolutionary Party (LPRP) decided to move towards a market-oriented economy – and while the regime has been the subject of international criticism over governance and transparency issues, it has provided a politically stable environment in which to do business. Relative to its economic size, the levels of foreign direct investment have been quite substantial. For 2013, the World Bank forecasts an inflow of US$ 2.6 billion, three-quarters of which are to be invested in resourcerelated projects.

The abundant resources of the Lao PDR have traditionally been the backbone of the country’s economic growth. Yet, treasures hidden under the country’s mountainous terrain not only make for excellent mining opportunities and hydropower generation potential, but also for an interesting backdrop to attract tourists.

In mining, gold and copper are the major export commodities among the various riches of the largely unexplored country. In 2012 and 2013, those exports suffered from volatile market prices, which are set to rebound by 2014. Although the Lao Government has decided not to

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issue any new mining licences until 2015, it is promoting investment by matching interested investors with existing mining licence holders.

Bustling with upgrades and new developments, the hydropower sector seems to never stand still. It is the Government’s self-proclaimed goal to become the “battery of South-East Asia”. With an estimated potential of 30 GW, this goal appears to be well within reach.

Currently 20 dams, with Nam Theun 2 (1,070 MW) as the biggest of them, operate at an installed capacity of 3,000 MW – a mere 10 per cent of the overall estimated capacity.

Investments in hydropower and related construction activities will continue to grow as was most recently marked by the start of construction work on the controversial Xayaboury dam (1,285 MW) on the Mekong mainstream.

In 2012, 70 [per cent of all hydropowergenerated electricity in the Lao PDR was expor ted to Thailand. While the sector bears high growth and export potential, its sustainability is challenged by the Government’s land, relocation and

compensation policies as well as by its environmental impact assessments.

So far, activities in the resource sector have not detectably restrained growth in the service sector: In 2012, the Lao PDR attracted about 3.3 million tourists, about the same number as that welcomed by neighbouring Cambodia. Viet Nam had about twice as many visitors while Thailand hosted almost seven times the number of visitors. The majority of visitors are citizens from these neighbour countries, including China.

However, the small share of international visitors from outside of the region has proved to be more profitable; while they constitute a meagre 14 per cent of all visitors, they generate 54 per cent of the country’s entire tourism revenue (US$ 500 million in 2012).

Further regional integration should help the Lao PDR to push its revenue per tourist by developing sites, prolonging stays and raising the country’s profile as a travel destination by offering cross-border packages.

Next to Cambodia and Myanmar, the Lao

PDR is one of the three remaining poorest countries in South-East Asia. While its status as one of the “least developed countries” (LDCs) implies certain limitations concerning the ease of doing business, it also entitles the Lao PDR to participate in preferential trade agreements. In addition, the Lao PDR currently benefits from the Generalised System of Trade Preferences (GSP) with the European Union, which waives all tariffs and quotas for most imported Lao goods. The biggest beneficiary of GSP has been the Lao garment industry, which exports 80 per cent of its production to the European Union.

Even with the monthly minimum wage raised to US$ 77 equivalent, the Lao garment industry is still competitive with its neighbours.

The export-oriented branch of the industry currently comprises about 100 manufacturers and has high growth potential. However, the industry’s ambitious target of reaching an export value of US$ 500 million by 2015 might experience some hiccups due to the scarcity of (qualified) workers and – possibly later on – the end of the GSP agreement.

The Lao Government wants to graduate

View From Wat Phusi – World Heritage site and former capital, Luang Prabang. © Viphavanh Chounlamany.

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18 GREATER MEKONG SUBREGION That Luang, the capital’s main stupa. © Viphavanh Chounlamany.

from LDC status by 2020 and will remain eligible for preferential trade treatment until then.

In the meantime, making the best of the country’s landlocked situation and turning it into a strategic land link is a hot topic on local and regional political agendas. Co-operation efforts with the Lao PDR’s main trading par tners, China, Thailand, Viet Nam and Cambodia, have moved beyond co-operation in the GMS to the “Chao Phraya-Mekong Economic Co-operation Strategy (ACMECS),” which is aimed at closing the development gap within ASEAN and, further on, towards integration with the ASEAN Economic Community (AEC) planned for 2015.

In order to ease regional trade facilitation, several policy and infrastructure developments are currently in progress. The two economic corridors, East-West from Viet Nam (Danang) to Thailand (Phitsanulok) and Myanmar (Mawlamyine), and North-South from China (Kunming) to Thailand (Bangkok), are subject to constant additions such as the establishment of new border crossings. To boost regional connectivity, two railway projects are planned – a US$ 7.7 billion land link from Boten (China) to Vientiane, and a US$ 5 billion

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project linking Danang (Viet Nam) and Thailand. The contract for the latter has been granted to the Malaysian company, Giant Consolidated.

Despite all regional efforts for better integration, a considerable amount of uncertainty concerning AEC remains. Potential contradictions of local laws and procedures with regional frameworks will have to be ruled out. Furthermore, the Lao PDR will not be exempt from its domestic challenges. A strengthened rule of law, improved in-country infrastructure, better transparency and reduced corruption in bureaucracy as well as the availability of qualified human resources will be vital to its competitiveness.

An important milestone in gaining more trust among investors was the country’s accession to the World Trade Organization (WTO) in early 2013, which grants access to effective trade dispute mechanisms. With further integration into the regional economy, the Lao PDR will see some interesting developments towards a more enabling business environment in the years to come. So, maybe while enjoying your next sundowner on Vientiane’s Mekong promenade, maybe a government car will pass you by, sporting a brand-new bumper sticker saying: “Lao PDR. Land of ample opportunities and success”.

Infobox 2. Economic growth outlook for Lao PDR (est.)

2012

2013

GDP (billion US$)

9.2

10.3

GDP growth (real) (%)

8.3

8.0

GDP per capita (US$)

1,446

1,587

4.3

7.3

Inflation

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KSB PUMPS INVOLVED IN NAM KAM RIVER BASIN DEVELOPMENT PROJECT Contributed by: KSB Pumps Co. Ltd.

KSB Pumps Co., Ltd. is a major player in pumps, valves and related systems. The company has been operating in the Thai market since 1989. As a leading specialist in providing systems for the transportation of water, KSB has been involved in several projects in the Greater Mekong Subregion.

In particular, KSB Pumps is proud to be part of the important Nam Kam River Basin Development Project, which was initiated by His Majesty King Bhumipol Adulyadej with the goal of developing this rural area in Nakhon Phanom province of north-eastern Thailand.

The objectives of the project are to ensure development of the area and the local agricultural sector, initiate economic growth in the region and create better welfare for the local population.

KSB Pumps aims to participate in future projects by supplying its innovative products to assist in suppor ting and accelerating development in all regions of Thailand.

For more information, please contact KSB Pumps Co., Ltd. at 57 Moo 14, Suwinthawong Road, Kratumrai, Nongjok, Bangkok 10530 tel: +66 (0)2-988-2324; mobile tel: +66 (0)85-245-9017; fax: +66 (0)2-988-2213 and 4; or via the Internet at info@ksb.co.th, www.ksb.co.th and www.ksb.com

KSB Pumps has been involved in delivering pumps for the following irrigation stations: The Baan Na Ku Project – KSB supplied six units of the vertical Each pump has a capacity of 0.75m3 per second and is 8 metres in height. The project was completed in 2011.

The extension of the Nachuek Project – Nachuek was supplied with two units of the SNW 500-505 pump, which has a capacity of 0.53m3 per second and is 14 metres in height. The installation will be completed this year.

The Nakraduo Project – this project will also be supplied with two units of the SNW 500-505 pump and installation will be completed this year.

The Namyam Project – this project will be supplied with three units of the SNW 500-505 mix flow vertical tubular casing pump, with a capacity of 0.62m3 per second and a height of 22.5 metres.

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REGIONAL CONNECTIVITY TO AID THAILAND’S TRANSFORMATION Contributed by: Lisa Vongchingtrong* Centred in the middle of the Greater Mekong Subregion (GMS) with direct access to the Gulf of Thailand and the Andaman Sea, Thailand is located in a strategic geographic position with key trade routes throughout the region. The Government of Thailand is taking full advantage of the nation’s geographic location as it prepares to launch a series of aggressive infrastructure development projects aimed at improving regional connectivity.

Ultimately, these infrastructure developments, coupled with carefully-planned industr y clusters and investment incentives, form part of the Government’s long-term mission to move Thailand away from a labour-intensive economy to a new, value-added position higher up the supply chain.

Thailand’s central location within the GMS puts the nation between the planned northsouth pan-Asian freight railway network and East-West Economic Corridor that stretches from Viet Nam to Myanmar. The long-awaited pan-Asian railway will stretch from Kunming in southern China all the way to Singapore, and pass directly through Thailand.

The Asian Development Bank’s (ADB) EastWest Economic Corridor between Viet Nam, Thailand, and Myanmar also provides another opportunity for further trade. According to former Board of Investment (BoI) SecretaryGeneral Dr. Atachka Sribunruang, an example of Thailand’s project to link Myanmar with western Thailand includes a highway

connecting Myanmar’s long-delayed Dawei deep-sea port with Thailand’s popular Laem Chabang deep-sea por t on the Eastern Seaboard.

Road transportation is the most developed mode of transport in Thailand and strongly supports border trade between neighbouring countries Malaysia, Myanmar, the Lao People’s Democratic Republic and Cambodia.

According to the Thai Ministry of Commerce, Thailand maintains a high level of crossborder trade with an annual average growth rate of 13 per cent in cross-border trade compared with the international average of 8 per cent annual growth.

Thailand’s ports also provide trade routes across international waters to markets in Europe, India and the United States, with key ports such as Laem Chabang and Bangkong.

Thailand’s largest port, Laem Chabang, is ranked twenty-third in the world’s top container por ts by the World Shipping Council and ships 6 million Twenty-Foot Equivalent Units (TEUs) annually.

added economy. According to industry research giant Business Monitor International, the project includes plans to expand 45 highways from two to four lanes and doubletrack rail networks by 2,773 km, which would allow trains to travel in both directions at the same time.

One of the largest projects is the construction of four new high-speed railway lines from the Bangkok to the provinces of Nong Khai, Chiang Mai, Rayong and Padang Besar. These routes, stretching throughout Thailand, are expected to improve supply chain connectivity as goods produced in manufacturing estates away from city centres can be efficiently transpor ted to Thailand’s key por ts and shipped to Europe and the United States.

Earlier this year, Prime Minister Yingluck Shinawatra unveiled an ambitious US$ 67 billion plan to increase public spending on several large-scale infrastructure projects from 2013 to 2020 as part of the National Development Strategic Plan. The Plan’s objective is to lift Thailand’s economic growth annually during the next decade and ultimately transform the nation into a higher value-

*Lisa Vongchingtrong is a summer analyst at Tractus Asia Ltd., a leading Asian FDI advisory firm. Additional information about Tractus can be obtained from the company’s website: www.tractus-asia.com.

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GREATER MEKONG SUBREGION 21 ‘BMW increases local engagement’ “ASEAN has identified the automotive industry as a key driver to industrialise the member countries, create employment and strengthen educational programmes. In Thailand, BMW Manufacturing is seen as a business partner that brings the latest technical expertise and high-end technology to the country. We feel a deep responsibility to support educational activities in order to enhance the competitiveness of Thailand. To demonstrate our commitment to the region, BMW has increased its local engagement.” – Mr. Peter Wolf, Managing Director - BMW Manufacturing (Thailand) Co., Ltd. German luxury car manufacturer BMW operates a large assembly plant in Thailand, producing all core BMW series models, both for domestic markets and regional export.

BMW is investing in expanding its capacity in Thailand following the announcement of the ASEAN Free Trade Agreement.

Thailand is ASEAN’s automotive hub and produces 2.5 million cars annually, with about half being manufactured for export. The domestic automotive cluster features agencies such as assemblers, components and module makers, and educational and technical institutions to assist the industry’s high-value supply chain.

The Government of Thailand is partnering their aggressive infrastructure development programme with investment programmes designed to improve the countr y’s competitiven e s s . Acco rd i n g t o t h e Government’s most recent annual Competitiveness Repor t, investment programmes of more than US$ 72 million are already in place to increase development and transform the nation into a value-added economy. Government efforts to attract investment also include advantageous BoI in centives an d an e x t e n s i ve cl u s t e r programme for key industries.

Thailand is taking full advantage of its geographic location to give itself a competitive edge over other nations and drive its transformation into a value-added creative economy. Investment in infrastructure and regional connectivity will improve trade routes and reduce logistic costs and time. At the same time, further development of industrial estates and clusters as well as supportive incentives from BoI, such as corporate tax reductions, give Thailand a competitive advantage in addition to a geographic edge in the GMS.

BoI plans to refocus its strategy for future growth by promoting new regional industrial clusters with the aim of increasing Thailand’s competitiveness. When a draft of this plan was introduced to investors in 2012 it included de-zoning the investment areas of the country and establishing knowledgebased and industry-focused clusters. The introduced plan was initially met with negative feedback from investors, and BoI is in the process of revising the strategy. However, exact details of the new strategy have not been released yet.

Companies in targeted sectors that currently receive incentives are, however, unlikely to be affected by the new changes. The sectors expected to experience high growth include automobiles, electronics, food processing and medical device industries, among others.

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MAE SOT FIRM WINS INTERNATIONAL SUPPORT FOR REFUGEE CHILDREN LEARNING CENTRES Contributed by: Jan Glasmeier Dipl. Ing. Arch., co-founder of a.gor.a architects Mae Sot-based architecture firm, a.gor.a architects, with support from Bayer Thai Co. Ltd., Building Trust International UK and Migrant Education, has constructed two moveable classroom buildings in Tak province for Burmese refugee children. The two migrant learning centres, Hope School and New Road School, are located in the Pho Phra and Mae Ramat areas of Mae Sot, near the border with Myanmar.

With the help of the local Ironwood team, the primary steel structure for both schools was constructed in three weeks. Old tyres were used for the buildings’ foundations while waterproof concrete composite boards were installed as the raised classroom floor. Insulated metal sheets were used as roof panels.

With the roof and floor installed at the New Road site, the construction team began building the walls. After a successful meeting with Bayer AG in Bangkok, a.gor.a architects received the highly welcome news that the company would provide the wall material for both the Hope School and the New Road School. The material to be used was twinwalled polycarbonate, which has the benefit

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of being lightweight, durable and ultraviolet resistant, and which will allow the classrooms to be kept cool and light.

material as well as advised on the most suitable fixtures in order to ensure the product remained watertight.

A member of the Bayer team, from the company’s Bangkok office, kindly agreed to visit Mae Sot bringing with him a wealth of knowledge about how to install the material.

He explained the best methods of using the

The next step was to construct the wooden panels, which would hold the plastic sheets in place. When all the panels were finished they were taken to the two learning centre sites to be installed while classes continued for the

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students in the old cramped building. The wooden panels were built with sections to be used for windows, which add extra ventilation and light when needed in the classrooms.

During the opening ceremony both new buildings were fully furnished. The teachers and pupils were clearly delighted with the new classrooms, and offered a very big “thank you” to ever ybody who par ticipated in making these two school projects possible.

In addition to constructing educational facilities for migrants and refugees, a.gor.a architects have also been commissioned by the community-based Mae Tao Clinic in Mae Sot to design temporary dormitories and training classrooms for its new Training Centre Campus. Mae Tao Clinic is a health centre that provides free health-care to Burmese refugees and migrants.

The armed conflict that has persisted for decades in the Karen State of Myanmar results in a daily flow of refugees and immigrants to Thailand. In Thailand’s town of Mae Sot, a few kilometres from the border, with Myanmar, numerous schools and orphanages offer accommodation and education for the refugees and immigrants. One of these centres, the CDC School (Children Development Centre) under the tutelage of the Mae Tao Clinic organisation, hosts more than 500 students.

The lack of space and, in many cases, the need for immediate accommodation for new students has forced the school to present a new model of temporary low-cost dormitories that are easy to assemble and can be built by using as many recycled materials as possible.

The Embassy of Luxembourg in Bangkok has funded the construction of four dormitories.

The first dormitory was built in April 2012 in just four weeks. With a capacity of 25 students, the building fits in well with the local environment in which it is located. The interior layout ensures an open and airy space that offers semi-privacy and includes storage space for the students. The building materials used are locally available and well-known to their users, thus allowing for easy maintenance and low maintenance costs.

The main expenditure for a temporar y dormitory is on the structure which is made

from recycled timber and which represents 70 per cent of the total construction cost of the building. However, most of that expenditure recoverable as the structure can be re-sold in the future for 80 per cent of its original price. Bamboo and thatch are also used for walls, floors, and roofs. Although these materials are not intended to last more than two years without any pre-treatment, they are easily obtainable during ever y season of the year and the cost is affordable for the local people.

The architectural firm, a.gor.a architects, was founded in 2012 by Albert Company Olmo, Jan Glasmeier and Line Ramstad. Based in Mae Sot, Thailand, the firm works with marginalised groups, community-based organisations and non-governmental organisations along the ThaiMyanmar border. In addition to working on several school projects, a.gor.a architects have teamed up with a local construction group, Gyaw Gyaw, and are acting as consultants in the designing and construction of the new Mae Tao Clinic.

Contributor Jan Glasmeier is undertaking volunteer activities in Mae Sot for several communitybased organisations such as Mae Tao Clinic, Social Action Woman and Gyaw Gyaw, among others. He was a lead architect ]for Arup Singapore during the construction of the Singapore Sports Hub, and worked for Foster + Partners in London on the Masdar City master plan in Abu Dhabi, UAE. Jan is aware that ecological and economical impacts will drastically influence the way we live today and in the near future, and that we are all committed to finding new and creative ways to react rapidly to those changes.

In Thailand, he aims to promote the use of alternative and sustainable materials, and participates in the construction of the new Medical Training Centre of MTC, temporary CDC dormitories etc. He has also raised funds for several charity projects by expanding the network of donors among international architectural firms. Jan graduated in 2006 with a Diploma in Architecture from the Technical University of Darmstadt in Germany.

For further information, contact a.gor.a architects at Interrakiree Road, 798/2 Soi 40, Mae Sot 63110, Tak province, Thailand (tel.: +66 (0)8-807-44229; e-mail: jan.glasmeier@gmail.com; website: www.agora-architects.com).

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NEW THAI PPP LAW IMPROVES PROSPECTS FOR PRIVATE PARTICIPATION IN INFRASTRUCTURE PROJECTS Contributed by: Robert Fitzgibbons and Matthew Christensen, DFDL By enacting new legislation earlier this year, the Government of Thailand seeks to resuscitate its public-private par tnership programme as part of its new infrastructure initiative. Public-Private Partnerships ( PPPs) are projects pursued by a co-operative effort between the public and private sectors; most commonly in the form of joint ventures (JV).

PPPs represent a concerted effort to: Attract private investment into public sector projects in order to augment public resources and alleviate the financial co n s tr ain ts e n cu m b e r i n g p u bl i c infrastructure projects; Bring private sector efficiency and innovation together with public resources and effective oversight; and Streamline the development of major development projects.

Prominent examples of previous PPP projects in Thailand include the Bangkok Mass Transit

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System and the Metropolitan Rapid Transit.

OUT WITH THE OLD Until this year, public-private partnerships were governed by the Private Participation in State Undertaking Act, B.E. 2535 (1992) (previous Act). Uncertainties deriving from a lack of clarity, significantly limited the effectiveness of the previous Act. Although the objective was to ensure transparency in large-scale projects (valued at more than Baht 1 billion) with State participation, internal governmental processing procedures proved to be convoluted and unnecessarily timeconsuming, thus hindering implementation.

The previous Act was focused almost exclusively on limited model types, such as the build-operate-transfer (BOT) and buildtransfer-operate (BTO) methods, while most notably omitting JVs. Private sector confidence was undermined by unanswered questions regarding inconsistencies in interpretation as well as the circumstances under which the

State could unilaterally amend the contract terms.

In addition, an absence of mechanisms by which to supervise project implementation combined with insufficient technical, administr ative and legal suppor t left government agencies with limited abilities to oversee large and complex PPPs.

IN WITH THE NEW Repealing the previous Act, the Private Joint Investment in State Undertaking Act, B.E. 2553 (2013) came into force on 4 April 2013

GREATER MEKONG SUBREGION 25

and is intended to breathe new life into public-private infrastructure investments.

Although it includes language reminiscent of its predecessor, the Act adopts a fundamentally different approach by centralising authority and responsibilities under a single Committee of Private Investment in State Undertakings responsible for all facets of PPP projects.

Previously, multiple agencies oversaw various project components, consuming up to four years of processing time from the feasibility study to the ground-breaking ceremony. The new Act is expected to shor ten the processing time to a more manageable 7-12 months.

The scope of application is far broader than addressed in the previous Act, as the new legislation focuses on joint ventures, which are defined as being between the State and a private individual by means of licensing or the granting of a concession. A new chapter also addresses the amendment and renewal of JV agreements. This chapter was undoubtedly added to respond to private sector concerns as to the circumstances that would allow government agencies to unilaterally modify JV agreements. The terms of contract renewal were largely unaddressed by the previous Act. Also, unlike the previous Act, the implementation of the new Act as well as its rules and regulations are subject to continuous monitoring and supervision.

To alleviate the lack of support mechanisms under the previous Act, Section 49 of the Act establishes a fund under the Ministry of Finance to support the preparation of the Strategic Plan, the government agencies in proposing a project in line with the Strategic Plan, the preparation of studies and analysis of projects, and the appointment of advisors.

The Act also requires that government agencies retain the necessary expertise for each project they oversee.

Nonetheless, there remain problems which could handicap the success of the Thai PPP programme. These include (a) the lack of criteria to govern the selection and prioritisation of PPP projects, (b) the absence of criteria for selecting private par ticipants for State under takings, (c) the absence of standardised terms for JV agreements, (d) the absence of appropriate risk allocation guidance and (e) the failure of the Act to address private sector concerns about the Government’s ability to unilaterally modify JV agreements. This last concern is particularly troublesome as the private sector will be reluctant to participate and invest in PPP projects without due reason for confidence in the sanctity of the JV agreements.

However, it is premature to reach any definitive judgments on the strengths and weaknesses of the Act. As Thailand begins to embark on a number of ”Mega Projects” including a national high-speed rail system and plans for mass transportation in other major cities, yet-to-be-issued announcements and regulations will prove critical in the Act’s implementation. If the foregoing concerns can be successfully addressed, PPP projects in Thailand will have a promising future.

For further details on DFDL Legal&Tax and its services, please contact Email: Rob.fitzgibbons@dfdl.com or Matthew.c@dfdl.com

A SIGNIFICANT STEP FORWARDS The new Act undoubtedly represents a significant step forwards in creating a more conducive environment for the promotion of Public-Private Par tnership projects.

The Act addresses concerns about the incompleteness, inconsistencies and uncertainties of the previous Act.

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26 GREATER MEKONG SUBREGION

TRANSPORT SECTOR DEVELOPMENT GETS PRIORITY Contributed by: Ministry of Transport of Thailand

The Greater Mekong Subregion (GMS) programme is the result of co-operation among Cambodia, the Lao People’s Democratic Republic Myanmar, Thailand and Viet Nam as well as Yunnan province and the Guangxi Zhuang Autonomous Region of China. The GMS was established in 1992, with the Asian Development Bank (ADB) acting as the main sponsor. The GMS region covers a total area of approximately 2.6 million km2 – about the size of Western Europe – with a population of some 320 million. The region is prosperous and has extensive natural resources. Moreover, the GMS members are the centre of communications and trading for the South Asian, East Asian and South-East Asian regions.

The goals of the GMS programme are to promote trade, investment, industry, agriculture and services, which will result in a higher rate of employment and a better standard of living. It will promote and enhance technological co-operation and education. The programme also promotes the efficient use of natural resources, which increases the GMS region’s potential. Through the strategic use of the 3 Cs – connectivity, competitiveness, and community – the programme is boosting the GMS members’ economies to a global level.

The GMS has nine co-operative sectors that include transportation, telecommunications, energy, trade, investment, agriculture, environment, tourism and human resources development Transportation, in particular, is an essential mechanism for creating a prosperous economy because it helps to increase trading, investment and tourism; for that reason, of the nine sectors, the transportation sector has been most successfully developed. The development of the transportation sector is also improving the standard of living for the population located along the East-West, North-South and Southern Economic Corridors.

The GMS members have also approved the GMS Cross-Border Transport Agreement (CBTA), which will eliminate all limitations on cross-border transpor tation all limitations on cross-boder transportation procedure among member countries. As a result, the process of transporting people or cargo is being made more efficient.

In addition, this will further reduce costs by eliminating the necessity for unloading at the border crossings.

THAI MINISTRY OF TRANSPORT ROLE The areas of involvement of Thailand’s Ministry of Transport in the GMS Strategic Framework 2012-2022 are described below.

Basic structure The East-West Economic Corridor (EWEC) connects areas in eastern Viet Nam with Thailand and Myanmar via the Lao PDR using the R9

UPDATE 3/2013

ELEVEN FLAGSHIP PROGRAMMES The GMS programme comprises 11 major programmes: North-South Economic Corridor East-West Economic Corridor Southern Economic Corridor Telecommunications backbone Regional power interconnection and trading arrangements Facilitating cross-border trade and investment Enhancing private sector participation and competitiveness Developing human resources and skills competencies Strategic environment framework Flood control and water resource management GMS tourism development. route that crosses the Mekong River on the second Thai-Lao PDR Friendship Bridge between Mukdahan and Savannakhet.

The Government of Thailand is currently assisting Myanmar with the following projects: (a) The permanent repair of the first Thailand-

GREATER MEKONG SUBREGION 27

Myanmar Friendship Bridge crossing the Moei/Thungyin River; (b) construction of the foot of Dawna Range (Thinannyinaung) – Kawkareik Road; and (c) the improvement of the road from Myawaddy-foot of Dawna Range.

The Nor th-South Economic Corridor comprises two routes, Yunnan-Lao PDRThailand and Yunnan-Myanmar-Thailand.

Currently, construction of the Four th Thailand-Laos Friendship Bridge across the Mekong River is underway, which on completion will connect Chiang Khong and Houayxay. The bridge construction is part of the R3 route construction project to connect Kunming in Yunnan province with the Lao PDR and Chiang Rai in Thailand. Funding for the project is being provided by the Governments of China (50 per cent) and Th ailan d ( 5 0 per ce n t ). W h e n t h e construction is completed, the R3 route will be beneficial because it will reduce the cost of transportation, and will make trading, tourism and commuting between the GMS and third-world countries more convenient.

The Southern Economic Corridor covers the development of the routes that connect Thailand, Cambodia and Viet Nam. Thailand assisted Cambodia in developing its Route 48 (Koh Kong - Sre Ambel) and Route 67 (Sa ngam - Anlong Veng).

Transport Facilitation The GMS members have developed a set of rules and regulations as par t of the CBTA that make the logistics and transportation system more convenient and efficient. The CBTA will be fully enforced when all the member countries have ratified 20 Annexes and Protocols. In the meantime, ADB decided on carrying out a test run of the CBTA in the Lao PDR-Viet Nam, Thailand-Lao PDR and Thailand-Cambodia cross-border areas while waiting for the ratification process to be completed.

Thailand earlier signed Memorandums of Understanding (MoU) on 5 July 2005 with the Lao PDR and Cambodia regarding the “Initial Implementation of the CBTA” (IICBTA) at the Mukdahan/Savannakhet and Aranyaprathet-Poipet border-crossing points.

On 23 August 2007, an IICBTA MoU was signed by Thailand, the Lao PDR and Viet Nam on the Mukdahan-Savannakhet (Thailand and Lao PDR) and Dansavanh-Lao Bao (Lao PDR and Viet Nam) border-crossing points. These

procedures were conducted in accordance with the CBTA concerning the East-West Economic Corridor. On 11 June 2009, Thailand, the Lao PDR and Viet Nam officially began allowing cross-border transportation, which is an important first step towards implementation of the CBTA as well as the building of additional transportation links in the GSM. As for the Thailand-Cambodia transportation link at the Aranyaprathet-Poipet border crossing, both sides agreed to issue a total of 40 licences for transportation links from as early as 14 June 2012.

There are also plans for a Thailand-Lao PDRChina MoU to be signed that will enable transportation to use the routes throughout Bangkok, the Lao PDR and Kunming. This is to guarantee that the Chiang Khong-Huay Sai (fourth) Friendship Bridge can be fully utilised by cross-border transport, and that commuting and transportation through GMS countries by the R3 route will be more efficient.

Greater Mekong Railway Association All the GMS members have agreed on the establishment of the Greater Mekong Railway Association (GMRA), which aims to create a seamless GMS railway network. They are considering the technical standards of the railways in each GMS member, co-operation in terms of commuting and transporting people and cargo, supervision of the railway infrastructure, standards to ensure better quality of service, among other aspects.

Currently, the GMS members are considering the draft final MoU for the establishment of the GMRA. The goal is to assign the GMRA MoU during the annual 19 GMS Secretariat Meeting on 19 December 2013 in Vientiane.

REGIONAL INVESTMENT FRAMEWORK Significant transport sector projects under the Regional Investment Framework (RIF) – which is part of the GMS Strategic Framework 2012-2022 and is scheduled to be finalized this year – include an Aranyaprathet-Poipet Bypass Road and infrastructure improvements, a Mae Sot-Myawaddy Border Crossing Project and infrastructure improvements, construction of a new Den Chai-Chiang RaiChiang Khong railway line, additional improvement of upper Mekong River navigation from Landmark 243 (China and Myanmar) to Luang Prabang in the Lao PDR. RIF helps in the for mulation of a comprehensive pipeline of investment and non-lending projects, based on sector assessments and country needs. Since 1992, the GMS programme has invested about US$ 15 billion in projects covering sub- regional roads, airports and railways, power facilities, tourism infrastructure and communicable disease prevention. The ADB share was more than US$ 5 billion.

In addition to traditional GMS projects, RIF proposes multi-sector al, secondgeneration projects, including: urban development along existing transport corridors; better road, rail and sea links; building up national power grids; the promotion of regional food handling guidelines; establishing sustainable tourism projects; boosting environmental planning and management; and shoring up human resource capacity.

These investments are expected to help the GMS members to transform transpor t corridors into economic corridors.

Opening ceremony of the Thailand-Cambodia route on 14 June 2012.

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INTELLECTUAL PROPERTY TIPS AND WATCH-OUTS AND LEGAL FRAMEWORK IN LAO PDR Contributed by: ASEAN IPR SME Helpdesk

HOW DOES THE LAO PDR IP LEGAL FRAMEWORK COMPARE WITH INTERNATIONAL STANDARDS? Prior to Lao PDR's accession to the World Trade Organisation (WTO) on 2 February 2013, the country’s intellectual property laws went through considerable amendments. IPRs in the Lao PDR are governed by the Law on Intellectual Property No. 01/NA of 20 December 2011 (“IP Law”), protecting copyright and related rights, patents, petty patents, industrial designs, trade marks, trade names, layout designs of integrated circuits, geographical indications, trade secrets, and plant varieties. The new IP Law is based on the World Intellectual Property Organization (WIPO) model law and the requirements of the Trade Related Aspects of International Property Rights (TRIPs) Agreement. Following promulgation of the new IP Law in 2012, it is expected that the Prime Minister will issue guiding decrees on the implementation

and interpretation of the new legislation. Major IPR treaties signed by Laos include the Paris Convention for the Protection of Industrial Proper ty, the Patent Cooperation Treaty, and the Convention Establishing WIPO. With the Lao PDR IPR legal framework still in the early stages of development, with guiding decrees on the implementation and interpretation of the IP Law yet to be passed, protection and enforcement of IPR in the Lao PDR is still relatively weak. However, the law offers a fairly efficient system for registration of most major IPRs. In the following sections we provide you with a number of tips and “watch-outs” for SMEs planning on protecting their IP in the Lao PDR.

IP TRIPS AND WATCH-OUT The Lao PDR only joined WTO in February 2013.

A new and comprehensive intellectual property law was approved by the National Assembly of the Lao PDR in 2011 and promulgated in 2012 covering most areas of IPRs. However, the enforcement of the new IP Law will not be effective until the Prime Minister has issued guiding decrees on the implementation and interpretation of the new law. Currently, many of the provisions in the IP Law are general and/or vaguely drafted, and guiding decrees are needed to clarify such provisions. Overall, however, the new IP Law significantly strengthens the position of the major IPRs in the Lao PDR.

COPYRIGHTS TIPS AND WATCH-OUTS While there is no system to formally register copyright in Lao PDR. and protection arises automatically, copyright owners can obtain a ‘Certificate of Information’ which legally documents the existence of the copyright and its owner. This is recommended for copyright owners because the cer tificate can be used as evidence in enforcement proceedings.

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GREATER MEKONG SUBREGION 29

PATENTS, PETTY PATENTS, AND INDUSTRIAL DESIGNS TIPS AND WATCH-OUT The time from filing a registration to the granting a patent or petty patent could be relatively long. After having conducted a formal examination of the application, the authority will examine the application as to substance, based on a search of existing technical knowledge. If the application has previously been subject to a search or examination by another authority (in another country), a copy of such search or examination may be submitted by the applicant and to be requested to be accepted in lieu of conducting a search in the Lao PDR. If no such previous search/ examination has been conducted (or is submitted), the Lao authorities will under take the examination within 32 months for inventions (patent application) and 12 months for utility innovations (petty patent application) from the filing date or priority date. The applicant bears the costs for such search or examination. Registr ation applications for industrial designs, however, are not examined as to substance.

TRADE MARKS: TIPS AND WATCHOUTS IN LAOS Trade marks must be used in Laos for the registration to be maintained. The minimum period of use to avoid non-use cancellation is 5 years.

TRADE SECRETS TIPS AND WATCHOUTS IN LAOS Until the IP Law, enacted in 2011, trade secrets did not enjoy protection in the Lao PDR. Trade secrets may be enforced through court actions where the proprietor may claim damages for an infringement. Trade secrets may also be protected through confidentiality clauses being incorporated into employment contracts, or through a

separate contract on the confidentiality of trade secrets or other agreements.

CUSTOMS TIPS AND WATCH-OUTS Currently, the Lao PDR has no a formal customs recordation system. However, if the IPR owner knows of a shipment containing counterfeit goods, he/she may inform customs and file a motion by submitting an application form provided by the customs and pay a bond or deposit. Only counterfeit trade mark goods and pirated copyright goods may be informed with the customs.

Prima facie evidence of infringement is required to file such information.

ENFORCEMENT TIPS AND WATCH-OUTS As court litigation is generally a costly and time-consuming option for the enforcement of IPR, other viable and more effective options to enforce your IPRs in the Lao PDR could be reconciliation, mediation, administrative settlement, settlement through the Economic Dispute Resolution Committee or international dispute settlement.

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INTELLECTUAL PROPERTY TIPS AND WATCH-OUTS AND LEGAL FRAMEWORK IN CAMBODIA Contributed by: ASEAN IPR SME Helpdesk

HOW DOES CAMBODIA’S IP LEGAL FRAMEWORK COMPARE TO INTERNATIONAL STANDARDS? Cambodia was approved for WTO membership in September 2003.

However, due to internal political difficulties, Cambodia did not join the WTO until July2004. Prior to its WTO accession, Cambodia began to take steps to ensure that its IP laws were in compliance with its WTO member commitments. The Law Concerning Marks, Trade Names and Acts of Unfair Competition (“Trade Mark Law”) was enacted in 2002 with a procedural sub-decree passed in 2006. The Law on Patents, Utility Model Certificates and Industrial Designs (“Patent Law”) was passed in 2003 with a procedural sub-decree issued in 2006, and the Law on Copyrights and Related Rights (“Copyright Law”) was enacted in 2003.There is not yet any regulation in the field of trade secrets; however, the Ministry of Commerce is currently in the process of preparing a Law on Trade Secrets

and Undisclosed Information. Other remaining laws to be passed include a Law on Geographical Indications and a Law on Integrated Circuits and Layout Designs.

Cambodia is also a member of the Paris Convention for the Protection of Industrial Proper ty, which takes precedent over domestic Cambodian regulations in the case of conflict between the two. In addition, Cambodia is a member of the WIPO Convention, the Agreement of Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Convention on Biological Diversity. Although Cambodia has established many new laws in the field of IP, it will be a number of years before Cambodia comes into full WTO compliance.

Cambodia’s IP legal framework is still in the early stages of development, and enforcement of IPR in Cambodia remains a problem. Nevertheless, there are procedures in place with respect to registration and enforcement of IPR, which are relatively efficient and which can be used by anyone who wishes to protect their rights in Cambodia.

The in the following sections we will provide you with a number of tips and “watch-outs” for SMEs planning on protecting their IP in Cambodia.

IP TIPS AND WATCH-OUT Cambodia’s IP laws are not yet in full compliance with the country’s WTO commitments. Although Cambodia’s IP laws are in the early stages of development, there are fairly efficient procedures in place for registering and enforcing major IP rights (trade marks, patents and copyright).

There is still no regulation in place in the field of trade secrets.

However, a new piece of legislation is currently being drafted.

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COPYRIGHTS TIP AND WATCHOUTS Although copyright in Cambodia arises automatically, it is recommended that you voluntarily register the copyright with the Cambodian Ministry of Culture and Fine Arts for purposes of evidence in future administrative or judicial proceedings.

PATENTS, UTILITY MODELS AND INDUSTRIAL DESIGNS TIPS AND WATCH-OUTS The Cambodian Government may revoke patents, utility model cer tificates and industrial design certificates, and/or shorten the time of protection. The Cambodian Government is also granted the right to exploit a patented invention itself, or allow third parties to do so, for the purpose of promoting “public interests”, including national defence, nutrition, health and development.

TRADE MARKS TIPS AND WATCHOUTS Cambodia’s Trade Mark Law was only recently adopted. As a result, there are still significant gaps and uncertainties with respect to the Trade Mark Law’s application and interpretation.

TRADE SECRETS TIPS AND WATCHOUTS There is not yet a law specific to trade secrets in Cambodia. However, as with trade secrets in other countries your business should take sound inter nal measures to ensure your trade secrets are not accidentally or intentionally leaked to competitors or to the public.

CUSTOMS TIPS AND WATCH-OUTS Only clear-cut cases of infringement may be subject to border control measures.

The law does not provide a procedure for suspension of customs clearance for goods that infringe patents, utility models or industrial designs.

ENFORCEMENT WATCH-OUTS Initiating civil procedures in a Cambodian Civil Court can be time-consuming and expensive due to systematic problems in the Cambodian judiciary. However, the civil court does have the authority to grant damages. For copyright and trade marks, taking border control measures is a viable option to enforce their rights in Cambodia. Border control measures, however, are not available to patent owners, or owners of utility model certificates and industrial designs.

The China IPR SME Helpdesk is a European Commission funded project that provides free, practical, business advice relating to China IPR to European SMEs. To learn about any aspect of intellectual property rights in China, visit our online portal at www.chinaiprhelpdesk.eu. For free expert advice on China IPR for your business, e-mail your questions to: question@china-iprhelpdesk.eu. You will receive a reply from one of the Helpdesk experts within seven working days. The China IPR SME Helpdesk is jointly implemented by DEVELOPMENT Solutions and the European Union Chamber of Commerce in China.

Address: EuroCham Indonesia / ASEAN IPR SME Helpdesk Wisma Metropolitan I, 13th Fl., Jl. Jend. Sudirman Kav.29-31, Jakarta 12920, Indonesia Telephone: +62 21 571 1810

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32 BUSINESS BRIEFS

‘WE PROVIDE PREMIUM VOCATIONAL TRAINING!’

An increasing number of investors are viewing Thailand as one of the most attractive investment destinations in ASEAN. The investment volume in infrastructure recently announced by the administration of Prime Minister Yingluck Shinawatra has further strengthened the positioning of the Kingdom.

However, it is evident more investment is vital, as the productivity as well as innovative potential of the Thai industry must be improved at the same time in order to remain competitive in the region. According to the latest Global Competitive Report 2013, other ASEAN countries are, in fact, gaining in ranking. This undoubtedly indicates that one of the most important investments will be in eradicating the growing lack of qualified skilled labour at the national level.

The result of a survey carried out earlier this year among more than 500 members of the German-Thai Chamber of Commerce highlighted the importance of skilled labour, par ticularly as AEC 2015 is approaching rapidly and “the competition of talent” is on.

Everyone is in need of highly-skilled workers.

More than 80 per cent of the sur vey participants indicated that the lack of qualified workers was threatening the future growth and development of their businesses.

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Therefore, this shortage could be one of the most critical issues facing Thailand when compared to other countries in the Association of Southeast Asian Nations (ASEAN). Based on the views and opinions of the private sector, an initiative to tackle this issue must be taken urgently; it is widely accepted that the outcome of vocational training in Thailand will be improved once the “dualized” system based on German high-quality standards is implemented.

What does “dualized” mean? Vocational education and training is deeply embedded and widely respected in German society.

The system qualifies skilled labour in a broad spectrum of professions. The dual vocation education system is, without doubt, one of the driving factors behind the successful competitiveness and innovation capabilities of German Industr y. The German dual education system is 100 per cent demanddriven and considers companies as learning places. In addition, the system offers a tailored framework and curriculum, including learning plans for training in a company as well as an apprenticeship mentor to guide the student in the company.

Based on an individual initiative by GTCC member companies, and in co-operation with the German Embassy in Bangkok, this year GTCC have launched the “German-Thai Dual Excellence Education” or GTDEE programme. GTDEE is based on the existing Thai system but is designed to enable the active involvement of participating companies in the education process in order to ensure the highest standards and a clear premium approach.

The programme is officially co-ordinated by the German-Thai Chamber of Commerce in partnership with GIZ. In order to make GTDEE a success stor y, it will strongly demand-orientated and focus on the various tasks and categories that are required in Thailand’s workforce. The GTDEE programme will “dualize” the existing system and integrate the concept of work-based and s c ho o l-b as e d le ar ning to pr epa r e apprentices for a successful transition to fulltime employment.

The “war” for talent is already becoming intense across South-East Asia. Once skilled workers are able to move freely in ASEAN as a result of the introduction of the ASEAN Economic Community (AEC) in late 2015, it is likely to become much more intense.

Therefore, in partnership with the private sector and GIZ, we will work with Thailand’s Office of Vocational Education Commission (OVEC) to review and design courses for selected vocational schools in Thailand.

GTDEE students will have a balanced opportunity to study while gaining work experience at participating companies under contracts covering remuneration and scholarships during their apprenticeship. The dual system is exclusively “designed in Germany”. Under this initiative and programme, we are determined to ensure that our contribution generates sufficient numbers of highly-skilled workers to support the successful transition and strengthening of Thailand to becoming one of the most competitive ASEAN countries.

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SIEMENS, OVEC SIGN CO-OPERATION AGREEMENT ON DUAL EDUCATION Contributed by: Siemens Ltd. Thailand In line with the fast pace of Thailand’s growing employment opportunities in the infrastructure and cities sector, Siemens Ltd., Thailand and the Office of Vocational Education Centre (OVEC) signed a “co-operation agreement on dual education” recently at the Siemens Limited Thailand Office in Charn Issara Tower II. The signing ceremony was attended by Mr. Katrat Upayokin, Head of the Infrastructure and Cities Sector Rail Systems and Mobility Division, Siemens Ltd., Thailand, and Dr. Chaiyaprek Saereerak; Secretary-General of OVEC. The purpose of the programme is to help prepare and increase the opportunities for

vocational students to successfully gain highly sought-after job positions in the infrastructure and cities sectors, i.e. BTS and MRTA. The curriculum, which has been jointly designed

by Siemens Railway Service and Tanyaburi Technical College, is aimed at strengthening the students’ theoretical knowledge of rail systems. The course combines in-class lessons as well as practical on-the-job training by Siemens’ railway system experts.

Mr. Katrat Upayokin, Head of Infrastructure and Cities Sector Rail Systems and Mobility Division, Siemens Ltd., Thailand, explained during the agreement signing ceremony that “Siemens Ltd., Thailand has always been aware that education plays an important key role in the people and overall country’s development.

For that reason, we have implemented many types of activities in the past to support youth education”.

With regard to the Gover nment’s infrastructure development project this year, Mr. Katrat said “Siemens believes that rail transpor tation development will add significant success to the project. Since resources in the field are one of the most crucial key elements to achieving the objective of the project, we sincerely believe that this dual education programme will create a strong sustainable basis for the future of the skilled workforce – as well as the railway project in Thailand – in the long term.”

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34 BUSINESS BRIEFS

Photo shows (back row, from left): Jörg Buck, GTCC; Reiner Steffan, Robert Bosch Ltd.; Karl-Heinz Heckhausen, GTCC; Phongsakdi Chakshuvej, B. Grimm Joint Venture Holding Ltd.; Peter Vandlik, Robert Bosch Ltd.; Annette Severy, German Embassy; Dr. Prasert Klinchoo, Director, E-Tech; Jirasak Yaovatsakul, Thai-German Institute; Maneerat Machula, BMW (Thailand) Co.,Ltd. and Krisda Utamote, BMW (Thailand) Co., Ltd.

BOSCH LAUNCHES MECHATRONICS APPRENTICESHIP PROGRAMME Contributed by: Robert Bosch Ltd.

Technology Plant, Thai-German Institute (TGI) and Eastern Technological College (E-Tech).

Bosch, a global supplier of technology and services, recently launched its Mechatronics Apprenticeship Programme (BMAP) in Thailand with the objective of building up a local highly-skilled technical workforce. The programme is part of the German-Thai Dual Excellence Education programme (GTDEE), which was launched recently. The first three qualifying diploma students from Eastern Technological College (E-Tech) are now undergoing a two-year dual vocational training course at the Bosch Packaging

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The BMAP project is a collaborative effort between three parties – the Bosch Packaging Technology Division (Bosch), the Eastern Technological College (ETech) and the ThaiGerman Institute (TGI). Bosch, as the BMAP project initiator, provides the funding, practical training, and specialised skills and knowledge regarding mechatronics, which is in especially high demand as production increasingly calls for skills in both electronics and mechanics.

TGI will provide tailored-made training sessions while E-Tech will impart theoretical knowledge to BMAP apprentices.

During their first year, the students will learn about the basic skills of mechatronics and the

business operations of packaging technology.

In their second year, the apprentices will undergo a higher level of skill sets with job rotation opportunities to various divisions of Bosch in order to enhance their practical experience.

BMAP commenced in June 2013 with the first three pioneer qualified apprentices.

Apprentices receive a monthly salary, an allowance and other benefits from Bosch in accordance with the company’s policy, in addition to the scholarship for the entire two-year vocational diploma programme. The apprentices will also have an opportunity to visit the headquarters of the Bosch Packaging Technology Division in Germany and will gain better job prospects after their graduation.

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Photo shows (from left): Phongsakdi Chakshuvej, B. Grimm Joint Venture Holding Ltd.; Peter Vandlik, Robert Bosch Ltd.; Matthias Pfalz, BMW Group Thailand; Rolf Schulze, Ambassador of the Federal Republic of Germany to Thailand; KarlHeinz Heckhausen, GTCC; Maneerat Machula, BMW Group Thailand and Phd. Rachaneekorn Makkasaman, Kanchanaphisek Technical College Mahanakorn

BMW SERVICE APPRENTICESHIP PROGRAMME HOSTS OPEN HOUSE Contributed by: BMW Group Thailand

The BMW Service Apprenticeship Programme was initiated in 2012 with selected technical schools in order to provide apprenticeship programmes for technical students. In 2013, BMW Group Thailand began the second year of the Service Apprenticeship Programme by hosting an Open House at the BMW Group Thailand Training Centre.

Students and their parents were invited to the Open House to learn about the benefits and educational advancements available through the programme. During the event, German Ambassador to Thailand Rolf Schulze and the President of the German-Thai Chamber of Commerce (GTCC) were invited to share their views about the success of the dual vocational programme.

In an initiative to begin later this year, a dual vocational programme is

being planned by BMW Group Thailand in co-operation with GTCC, to establish a certificate programme for those who successfully pass the training programme. German-Thai Dual Excellent Education (GTDEE) Certificates will be awarded as proof of each student’s educational grounding in those areas relevant to their individual expertise.

German companies such as BMW Group Thailand, Bosch and B. Grimm are committed to joining this new initiative to address growing concerns over the shortage of skilled labour. GTDEE will form the foundation for providing practical on-the-job training to students, and will act as a benchmark for a premium dual educational programme in the future.

For fur ther information, please contact BMW Group Thailand at 1-800-269-269 or www.bmw.co.th

GTCC-THAI SENATE MEETING ON VOCATIONAL EDUCATION On 3 September 2013, President of the Senate of the Kingdom of Thailand Nikom Wairatpanij (eighth from left) warmly received Dr. Ingo Winkelmann, Chargé d’Affaires of the German Embassy in Bangkok (sixth from right), Karl-Heinz Heckhausen, GTCC President (fifth from right) and accompanying delegates at a Senate hearing held to exchange views on German-Thai co-operation in vocational education. During the hearing, German experts from the Cultural Ministr y of Baden-Wür ttemberg and from the National Academy for Training and Human Resources Development in schools, GTCC executives and representatives from German companies addressed members of the Committee of Vocational Education of the Senate with detailed keynotes on vocational education in Germany and the recently-introduced German-Thai Dual Excellence Education (GTDEE) programme in Thailand.

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Photograph shows (from left): Rolf Schulze, Ambassador of the Federal Republic of Germany to Thailand; Peter Wolf, BMW Manufacturing; Dr. Atchaka Sibunruang, Ministry of Industry; Matthias Pfalz, BMW Group Thailand; Karl-Heinz Heckhausen, GTCC; Jatupon Puttaviboon, MINI Thailand; and Krisda Utamote, BMW Group Thailand, during the MINI OPEN HOUSE at BMW Manufacturing Thailand marking the assembly of three MINI Countryman models – MINI Cooper, Cooper D and Cooper SD

BMW GROUP THAILAND BEGINS LOCAL ASSEMBLY OF MINI COUNTRYMAN Contributed by: BMW Group Thailand In response to increasing domestic and regional demand for premium cars from the MINI brand, the BMW Group has, for the first time, begun assembly of the popular MINI Countryman at its state-of-the-ar t manufacturing plant in Amata Industrial Estate in Rayong province. This is yet another important and successful milestone for BMW Group Thailand as well as for the MINI since 1959 when the first model was built in Oxford, United Kingdom.

A special ceremony attended by dignitaries, the media and BMW Group Thailand personnel was held at the plant to mark the moment the first unit rolled off the assembly line. The MINI Cooper Countryman, MINI Cooper D Countryman and MINI Cooper SD ALL4 Countryman, the three models to be assembled locally, were presented to the guests and media at the launch scene.

The new MINI assembly capability will help to meet the steadily increasing demand for MINI cars in the Thai market. BMW Group Thailand aims to surpass the highest-ever records of 501 units in 2012 and to support steady MINI volume growth in coming years.

Speaking at the event, BMW Group Thailand President Matthias Pfalz said: “BMW Group Thailand’s decision to begin assembly of the hugely popular MINI Countryman here in Thailand is in line with our product strategy.

Commencing local assembly of the MINI

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Countryman in Thailand is in response to the growing interest within the countr y in innovative and high-quality vehicle concepts.

It is also a concrete demonstration of the ongoing commitment that BMW Group has to Thailand, and our continued belief in Thailand’s strong fundamentals as an automotive hub for ASEAN.” For the newest addition to the BMW Group Thailand assembly plant, BMW Manufacturing Thailand Managing Director Peter Wolf said: “Since our BMW Manufacturing Thailand plant’s opening in April 2000, we have well established ourselves as one of BMW Group’s most efficient and flexible assembly facilities, which is in large part due to our highly skilled and dedicated Thai workforce.

BMW Manufacturing Thailand is very proud to now assemble the MINI Countryman, thus maximising our quantitative measures on production and new job creation as well as maintaining our qualitative measures of BMW Group quality standards for both BMW and the MINI.”

EFFICIENCY AND FLEXIBILITY BMW Manufacturing Thailand began its operations in 2000 and has since taken on the assembly of five model series (3 Series, 5 Series, 7 Series, X1 and X3), and a total of 22 model variants. The facility, which has a production area covering around 75,000 m2, is located in the Amata Industrial Estate in

Rayong province , approximately 114 kilometres south-east of Bangkok. It currently employs more than 400 workers and management staff.

State-of-the-art machine technology, highlyskilled employees and advanced manufacturing processes provide all the necessary ingredients for the production of premium cars, all of which meet the same stringent worldwide quality standards applied to the production of all BMW Group models. Since its commencement in 2000, BMW Manufacturing Thailand has played a significant role in enhancing the competitiveness of BMW in the Thai mar ket, a trend likely to be accelerated with the introduction of the MINI Countryman.

INTERNATIONAL PRODUCTION EXPANSION The ramping up of international production and assembly capacity is primarily aimed at providing a rapid and flexible supply line for the increasing number of customers in emerging markets such as Thailand. MINI delivered a record 301,526 vehicles to customer s wor ldwide in 2012, with remarkably growth of more than 31 per cent, specifically in the Asian continent compared with the previous year. Sales of MINI in Thailand reached the highest-ever record at 501 units in 2012. The MINI brand will continue to broaden its global perspective

BUSINESS BRIEFS 37 during the coming year s, and the strengthening of its international production network is intended to assist in that process.

INDUSTRY LEADER IN SUSTAINABILITY The BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles with its BMW, MINI and RollsRoyce brands. As a global company, the BMW Group operates 28 production and assembly

facilities in 13 countries, and has a global sales network in more than 140 countries.

In 2012, the BMW Group sold about 1.85 million car s and more than 117,000 motorcycles worldwide. As of 31 December 2012, the BMW Group had a global workforce of 105,876 employees.

established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. As a result of its efforts, the BMW Group has been ranked industr y leader in the Dow Jones Sustainability Indexes for the past eight years.

The success of the BMW Group has always been built on long-term thinking and responsible action. The company has therefore

For further information, including specifications and prices, please contact MINI Thailand at 1-800-269-269 or at www.mini.co.th.

ASIA-PACIFIC FORUM BAVARIA FOCUSES ON THAILAND Thailand was the partner country at the eleventh Asia-Pacific Forum Bavaria, held on 10 July 2013 in Nürnberg. The event was opened by Thailand’s Minister of Industry Prasert Boonchaisuk. In his address to the participants, in Nürnberg Minister Prasert pointed out that Germany had been Thailand’s most important European trading partner in 2012 and that high potential still existed for investments in automotive and chemistry industry, renewable energy as well as biological and medical technologies. In addition, he said, Thailand could provide many qualified specialists.

During his speech, Minister Prasert also announced the reduction of fiscal constraints to trading and the improvement of Thailand’s infrastructure. Seapor ts as well as railways and roads would be upgraded until 2020.

Organised by Außenwirtschaftszentrum Bavaria and IHK Nürnberg, the event is one of the biggest of its type held in Germany. This year, some 320 visitors participated in the lectures about business-making in Asia, Australia and New Zealand.

GTCC, PTT DISCUSS CO-OPERATION On 30 July 2013, Mr. Karl-Heinz Heckhausen, GTCC President (right) and Mr. Jörg Buck, GTCC Executive Director (left) paid a courtesy visit to Dr. Pailin Chuchottawarn, President and CEO of PTT Public Co., Ltd. (centre), to discuss PTT development, strategic goals in the area of green industry, technology and vocational training. Furthermore, as PTT’s Research and Technology Institute is directly responsible for the R&D collaboration with the automotive industry, the visit led to a subsequent meeting with German car manufacturers, suppliers and GTCC executives to discuss common points of co-operation in the area of advanced fuels, bio-fuels and lubricants, including natural gas application.

Photograph shows (from left): Jörg Buck, GTCC; Dr. Pailin Chuchottawarn, PTT Public Company Limited and Karl-Heinz Heckhausen, GTCC

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At drinktec, Krones shows the future of filling and packaging technology.

KRONES DISPLAYS FUTURE OF FILLING AND PACKAGING TECHNOLOGY AT DRINKTEC Contributed by: Krones (Thailand) Co., Ltd.

At drinktec 2013, held in Munich from 16 to 20 September, Krones AG showcased its corporate capabilities in Hall B6 as usual. The complete-system vendor for beverage filling and packaging technology has optimised its field-proven kit while at the same time exploring completely new approaches – always with the goal of offering its customers the best possible solution.

Krones emphasises that it will continue to drive forward with development thrusts that provide even more dependability, ensure consistently high levels of quality and give the products concerned enhanced visual appeal. Realising that investments must pay off, the world’s market leader offers solutions that are efficaciously sustainable, energy-saving, cost-effective and resource-economical – in fact, solutions that render production operations affordable, efficient and flexible.

The Krones exhibits at drinktec met all these requirements: high-performance lines and monobloc solutions for filling and packaging applications; interesting new developments in labelling technology; and meaningful advances in the field of process technology. Krones also offers innovations for small-scale and mid-tier bottlers who are increasingly discovering drinktec as their “own” fair as well.

Krones has a reputation for striving to create “added value” for its customers, secure values for a strong future, create values with powerful solutions and respects values in effective dialogue.

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COMMUNITY-BASED RENEWABLES: THAI-GERMAN CO-OPERATION IN SUSTAINABLE ENERGY DEVELOPMENT renewables: Thai-German co-operation on sustainable energy development” on 2 September 2013 in Bangkok.

The workshop, which proved very successful, was aimed at sharing Germany’s experiences, discussing the potential of community-based renewable energy projects and exploring the feasibility of 100 per cent renewable energy villages and regions in Thailand.

Guest speakers at the workshop included consultants and representatives of the Federal Ministry of Economics and Technology of Germany, the Department of Alternative Energy Development and Efficiency of Thailand, the Municipality of Saerbeck, the Network of Civil Society - Mae Hong Son, juwi AG, the Bright Management Consulting Co., Ltd., the German Renewable Energies Agency, the University for Applied Science, Berlin and SMA Solar Technology AG.

The German-Thai Chamber of Commerce, together with the Royal Thai Embassy in Germany and German International Co-operation (GIZ), organised a workshop on the topic of “Community-based

Among the topics discussed at the workshop were sustainable energy concepts for communities in Germany and Thailand, “green education”, technology and service solutions for a sustainable energy supply and next steps towards Thai-German cooperation in the use of community based sustainable energy.

BUSINESS VISIT TO MYANMAR BEING ORGANISED Following the opening of the Burmese market politically and economically the country has caught the attention of many foreign investors. Myanmar is strategically located between the two emerging heavyweights, China and India. Moreover, because the domestic market comprises about 60 million people, it offers great potential.

Due to its favourable growth prospects, the textile and clothing industry of Myanmar is capturing most foreign direct investment. However, to remain internationally competitive, the country’s quality standards need to be raised; this will mainly require upgrading the country’s obsolete production technology.

Therefore, given the potential business opportunities that this assessment presents, a fiveday visit by a business delegation to Myanmar is being organised from 9 to 14 November by the German Asia-Pacific Business Association (OAV), in co-operation with the German-Thai Chamber of Commerce. The visit to Myanmar will allow up to 20 German companies to gain a good market insight and access to specific local requirements as well as establish contacts with decision makers in Myanmar’s textile and garment industry. This initiative is also being supported by the German Ministry of Economic and Technology.

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40 CHAMBER ACTIVITIES

SEVENTH THAILAND LIFE SCIENCES BUSINESS FORUM The Thailand Centre of Excellence for Life Sciences (public organisation), which is under the auspices of the Ministry of Science and Technology, organised “The 7th Thailand Life Sciences Business Forum” in co-operation with the GermanThai Chamber of Commerce on the topic of “Thailand-Germany Business Opportunity” on 17 June 2013 at the Century Park Hotel, Bangkok.

The forum was aimed at promoting and developing co-operation between agencies, both domestic and international, as well as developing business opportunities in the life science industry.

GTCC Executive Director Jörg Buck, who participated as one of the guest speakers, gave a presentation that introduced GTCC. In his remark, he pointed out that research and development (R&D) was the backbone of German economic success and that the country was a leading large industrialised nation that was strongly specialised in the production of R&Dintensive goods.

Mr. Buck added that Germany was on its way to achieving the 3 per cent goal specified by the European Union within the coming years as more than twothirds of the nation’s expenditure was accounted for by research-intensive private business.

Bearing in mind the importance of education, research and innovation as key areas to sustainable growth, he stressed in his conclusion the need for both the Government of Thailand and experts to focus on science, technology and innovation development to enhance Thailand the country’s competitiveness in global markets, particularly in view of the planned integration of the ASEAN market by the end of 2015.

JOINT CHAMBERS LUNCHEON WITH MR. ISARA VONGKUSOLKIJ GTCC, in co-operation with AustCham and other partnering Chambers of Commerce, organised a joint luncheon on 18 June 2013 at the Hilton Sukhumvit Hotel. The event was opened by the recently elected Chairman of the Thai Chamber of Commerce (TCC) and Chairman of the Board of Trade of Thailand (BOT), Mr. Isara Vongkusolkij.

Speaking in his capacity as TCC and BOT Chair, but drawing on his experience as one of Thailand's top 10 most successful business people, Mr. Isara gave a presentation on the topic of “BoT priorities and outlook for business in Thailand”.

UPDATE 3/2013

CHAMBER ACTIVITIES 41

GTCC-TICC JOINT CHAMBERS LUNCHEON ON “THAILAND: ASEAN HUB FOR GREEN TECHNOLOGY” GTCC, together with the Thai-Italian Chamber of Commerce (TICC) organised a Joint Chambers Luncheon on the topic of “Thailand: ASEAN Hub for Green Technologies” on 18 July at the St. Regis Hotel Bangkok. During the event, Mr. Hans-Dieter Westphal, Managing Director of Retech Energy Co., Ltd. and a member of GTCC, shared his views on “Renewable energy based on waste”. He was followed by Mr. Benjamin Sutch, Chief Operating Officer of Frigel Asia Pacific Co., Ltd., whose presentation focused on “Green strategies for reducing dependence on water and energy”.

SITE VISIT AT HÄFELE (THAILAND) LTD. As part of the GTCC special site-visit activity, Häfele Thailand, the leading distributors of furniture fittings, architectural hardware, sanitary and home appliance products in Thailand, welcomed more than 50 GTCC members and friends at its distribution plant on Bangna-Trat Road on 25 July 2013.

The participants were greeted by Mr. Frank Heyer, Supply Chain Director of Häfele Thailand, who explained in detail the background and relevant operations of the company.

Photo courtesy: John Le Fevre / The Establishment Post http://www.establishmentpost.com/

http://thailand.ahk.de

42 CHAMBER ACTIVITIES

BAYER THAI SITE VISIT AND ICE BREAKER MEETING ALL CHAMBERS IN THE EASTERN SEABOARD Courtesy of Bayer Thai Co., Ltd., the GTCC organised a special site visit to the company’s MaterialScience factory in Map Ta Phut, Rayong, on 16 August 2013. Almost 50 GTCC members and friends were present to listen to the presentations, made

by Stefaan De Vos, Site Manager, and Albrecht Ruhnke, Head of Procurement at the Map Ta Phut Plant, which covered the history of Bayer AG and the operations of the chemicals production facility in Map Ta Phut.

The group was then given an interesting tour of the state-ofthe-art production plant before heading off to enjoy their evening at the Ice Breaker Meeting All Chambers in the Eastern Seaboard, jointly organised by GTCC, AmCham and other partnering Chambers of Commerce, with the support of Hemaraj Land and Development Plc.

Photo courtesy: John Le Fevre / The Establishment Post

UPDATE 3/2013

Photo courtesy: John Le Fevre / The Establishment Post http://www.establishmentpost.com/

Photo courtesy: John Le Fevre / The Establishment Post

CHAMBER ACTIVITIES 43

‘ICE BREAKER LIVIN’ LES ANNEES FOLLES EXPERIENCE On 29 August 2013, GTCC, the Franco-Thai Chamber of Commerce and the Thai-Italian Chamber of Commerce joined hands in organising a business networking event among members and friends of the three Chambers of Commerce at Le Derrière @ Q Bar, Bangkok. The event provided an opportunity for new members of each chamber of commerce to introduce themselves at the onset of the evening.

The more than 130 guests attending the event were later introduced to the new rendezvous spot, Le Derrière, set in a unique 19th century French boudoir atmosphere right in the hear t of Bangkok. Three lucky guests went home with special lucky draw gifts provided by the organising chambers.

BREAKFAST TALK ON PERSPECTIVES FOR ASEAN INDUSTRIAL GROWTH

Photo shows (from left): Dr. Florian Kirschner, Evonik (Thailand) Ltd.; Andreas C. Richter, Blumenthal Richter & Sumet Ltd.; Yuphin Boonsirichan, Mercedes-Benz (Thailand) Ltd.; Karl-Heinz Heckhausen, GTCC; Wolfgang Schaefer, Continental AG; Matt Bradley, Ford ASEAN; Thomas Chambers, Continental Automotive (Thailand) Co., Ltd. and Jörg Buck, GTCC

GTCC and Continental Automotive (Thailand) Co., Ltd., in co-operation with AmCham, Automotive Focus Group, BCCT and FTCC, hosted a Breakfast Talk with keynote speaker, Mr. Wolfgang Schaefer, Continental AG’s Chief Financial Officer, on 4 September 2013 at the Four Seasons Hotel, Bangkok. At the Breakfast Talk, which was attended by more than 80 guests, Mr. Schaefer shared his insights

Wolfgang Schaefer, Continental AG’s Chief Financial Officer

on the development of Continental Automotive and its product focus and goal for the future, speculation on the mega trend in the automotive industry, emerging countries, consumption and worldwide production as well as the implementation of the automotive industry in AEC 2015 and related plans of Continental Automotive (Thailand).

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44 CHAMBER ACTIVITIES

GTCC GALA DONATIONS PRESENTED TO DHV AND CHITRALADA SCHOOL Following the grand launch of the GTCC Annual Gala Night 2013 on 30 May, which was attended by close to 300 guests, GTCC representatives recently handed over the donations successfully raised at the event to representatives from Chitrada School (vocational section) and Deutschen Hilfsvereins e.V. (German Help).

CHITRALADA SCHOOL VOCATIONAL PROGRAMME

Shows (from left): Phongsakdi Chakshuvej, B. Grimm Joint Venture Holding, Ltd.; Jรถrg Buck, GTCC Executive Director; Thanpuying Angkarb Boonyatthiti, Chitralada School; Dr. Santanee Pasuk, Chitralada School and colleague.

The programme was founded in 2004 by Her Royal Highness Princess Maha Chakri Sirindhorn who initiated the expansion of the school to include vocational education for professional students. The teaching at Chitralada Vocational School was formed as a partnership between schools, private industry and the Institute of Technology. The school receives support from various industries, which allows students to be educated both at the school and directly in the industries. The school offers courses in fields ranging from commerce, computer science and retail business to industrial electronics, electrical and mechanical disciplines to food and nutrition.

ABOUT DEUTSCHER HILFSVEREINS e.V. (GERMAN HELP) German Help is a new organisation that was established in June 2006 by the former Ambassador of the Federal Republic of Germany to Thailand. He realised that problems Germans face here exceed the services the embassy can offer. While there is a comprehensive social security system in Germany, the benefits are exclusively restricted to people residing within the borders of the country. German citizens living abroad are not covered.

The objective of German Help is to assist Germans who have problems in Thailand. It provides the infrastructure consisting in an office, a social worker and an administration officer.

People can call in with inquiries and receive advice or counselling as requested. The organisation is financed by corporate and private donors as well as fundraising events.

Shows (from left): Frank Boer, DHV; Jรถrg Buck, GTCC Executive Director; Sirirat Sukarapak, DHV; Karl-Heinz Heckhausen, GTCC President; Dr. Chumpol Thiengtham, DHV; and Watchara Anusarsanakun

UPDATE 3/2013

Samitivej Liver and Digestive Institute

A healthy liver and digestive track are essential to your good health.

Our team of liver & GI specialists are using cutting-edge technology to detect and treat liver and digestive conditions in better, faster, and more precise ways than ever before.

Screening & Prevention: Fibroscan, Manometry, Wireless Capsule Endoscopy, Gastroscopy, Colonoscopy, etc.

Treatment: non-surgery (For cancer: Endoscopic Ultrasound (EUS), Endoscopic Retrograde Cholangiopancreatography (ERCP), Percutaneous Ethanol Injection (PEI), Transcatheter Oily Chemoembolization (TOCE), Transarterial Embolization (TAE), Radiofrequency Ablation (RFA), etc.) and surgery such as pancreato-biliary surgery, laparoscopic surgery or liver transplantation

For futher information, please contact: Liver and Digestive Institute, Samitivej Sukhumvit Hospital, Tel. 0-2711-8822-4, info@samitivej.co.th

46 MEMBERS’ CORNER

NEW GTCC MEMBERS Between 1 July 2013 and 30 September 2013, the Chamber welcomed 17 new members.

AAS Auto Service Co., Ltd.

Emerald Ordinary Partnership

36/9, 16-18 Vibhawadi-Rangsit Road, Sanam Bin Donmuang, Bangkok 10210, Thailand Tel: +66(0)2 522 6655, Fax: +66(0)2 552 8508, Website: www.porsche.co.th, E-mail: Wijittra@porsche.co.th

81 Chalamninit 5 Left, Chalaemnimit Road, Bangkolaem, Bangkok 10120, Thailand Tel: +66(0)2 688 5141, +66(0)81 988 6851, Fax: +66(0)2 867 3536, E-mail: tworawatana@yahoo.com

Activities: The sole authorised importer and distributor of Porsche cars in Thailand.

Activities: Importer electrical appliance and look for German water filter machine

Chamber representatives: Winthorn Bunnag, Ms. Panitchada Posayanonda

Chamber representative: Worawattana Thirapongphaiboon

ABN AMRO Bank N.V. Level 25, One Raffles Quay, South Tower, Singapore 048583, Singapore Tel: +65 65 978 866, Website: www.abnamroprivatebanking.com, E-mail: horst.hagemann@sg.abnamro.com Activity: Banking Chamber representative: Horst Hagemann

GĂźnter Busch ALD Vacuum Technologies GmbH, 173/18 Asia Centre Building, 17th Floor, South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Tel: +66(0)86 328 1089, Website: www.ald-vt.com, E-mail: guenter.busch@ald-vt.com

C.E.T.A. Clean Element Technologies Asia Co., Ltd. 85/1 Soi 22, Sukhumvit, Klongton, Klongtoey, Bangkok 10110, Thailand Tel: +66(0)2 259 1072, +66(0)86 070 7882, Fax: +66(0)2 259 1073, Website: www.ceta.asia, E-mail: b.kuhne@ceta.asia Activities: Water treatment and renewable energy Chamber representatives: Georg H. Bernd Kuhne, Lutz Fredrik Happich

Kampangphet Viwat Construction Co., Ltd. 1 Soi 2, Tessabanrangsarit-Tai Road, Lardyao, Chatuchak, Bangkok 10900, Thailand Tel: +66(0)2 580 6972-86, Fax: +66 (0)2 591 2775, Website: www.kpv.co.th, E-mail: attasith@kpv.co.th Activities: Construction and contractor Chamber representative: Attasith Damrongrat

Kim Chua Group Co., Ltd. 3059, 3059/1-3 Sukhumvit Road, Bangjak, Prakhanong, Bangkok 10260, Thailand Tel: +66 332 8040, Fax: +66 331 6891, Website: www.kimchuagroup.com, E-mail: pumin@kimchuagroup.com Activities: KCG focused on importing and retailing food products such as butter, cheese, and canned goods.

Chamber representatives: Pumin Dhiranusornkit, Tong Dhiranusornkit

Michael Loefler 889/152 Rama 3, Baan Klang Krung Grande Vienna, Bangkok 10120, Thailand Tel: +66 (0)92 263 5649, E-mail: michael.loefler@gsteel.com

Mode Sathorn Hotel Managed by Siam@Siam 144 North Sathorn Road, Silom, Bangrak, Bangkok 10500, Thailand Tel: +66(2) 623 4555, Fax: +66(2) 623 4666, Website: www.modesathorn.com, E-mail: seniorsm@modesathorn.com Activities: Hotel and hospitality industry Chamber representatives: Pinit Krisanavanit, Thawee Kugasemrat

UPDATE 3/2013

MEMBERS’ CORNER 47

PGM-Technic Co., Ltd.

RMA Group Co., Ltd.

16/106 Green Place, Chaloem Phrakiat Thi 9, Soi 28, Yak 3-1, Bangkok 10250, Thailand Tel: +66 (0)2 751 6729, +66(0)87 348 3709, Fax: +66 (0)2 751 8512, Website: www.pgm-technic.com, E-mail: info@pgm-technic.com

283/74 Home Place Office Building, 15th Floor, Sukhumvit Road, Klong Ton Nua, Wattana, Bangkok 10110, Thailand Tel: +66(0)2 762 8500, Fax: +66(0)2 712 7509, Website: www.rmagroup.net, E-mail: carlo.crosetto@rmagroup.net

Activities: Service and engineering for the container glass industry - Manufacturing and sales of equipment for the glass industry and other fields of industries

Chamber representatives: Carlo Ciosetto, Ralf Sauter

Activities: Regional operating services

Chamber representatives: Klaus Wolff, Chuda Thaneekul

SmartCast Technologies Ltd.

Powertech 2004 Co., Ltd.

7th Floor, 112/4 Soi Praphinit, Naradhiwasnakarin Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Tel: +66(0)2 402 8274, Fax: +49(89) 41 11 44 222, Website: www.smartcast.co.hk, E-mail: office@smartcast.de

TFD Industrial Estate, 1/11 Moo 5, Tasaarn, Bangpakong, Chachoengsao 24130, Thailand Tel: +66 (0)38 577 182, Fax: +66 (0)38 578 554 ext. 106, Website: powertech2004.com, E-mail: michaelw@powertech2004.com Chamber representatives: Michael Welser, Gerhard Stephan

Rebecca Rencz-Gordon 91 The Habitat Condominium, 15th Floor, Soi Paidee Madee, Sukhumvit 53 Road, North Klongton, Wattana, Bangkok 10110, Thailand Tel: +66(0)87 902 6670, E-mail: mrs.rebecca.gordon@gmail.com

Activities: Play out services Chamber representative: Christian Brenner

Tectura (Thailand) Ltd. 209/1 K Tower, 16th Floor, Sukhumvit 21 Road, Klongtoey Nua, Wattana, Bangkok 10110, Thailand Tel: +66(0)2 664 3255, Fax: +66(0)2 664 3257, Website: www.th.tectura.com, E-mail: naraumol.manistitya@tectura.com Activities: To provide technology, solutions, consulting service, including ERP implementations and solutions, to business worldwide Chamber representatives: Thorsten Leppek, Naraumol Manistitya

REHAU Ltd. 378 Chalongkrung Road, IEAT Lad Krabang Industrial Estate 3, Bangkok 10520, Thailand Tel: +66(0)2 763 5106, Fax: +66(0)2 326 0964, Website: www.rehau.com, E-mail: benjamin.pornnimit@rehau.com Activities: Manufacturer – Extrusion profile – PVC, ABS Chamber representatives: Dr. Benjamin Pornnimit, Frank Switala

Weidmuller Pte., Ltd. 70 Bendemeer Road, #04-03 Luzerne, Singapore 339940, Singapore Tel: +65 9699 5635, Fax: +65 6841 5377, Website: www.weidmuller.com.sg, E-mail: kengyein@weidmuller.com.sg Activities: Sell products in the field of electrical connectivity and electronics.

Chamber representative: Chan Keng Yein

http://thailand.ahk.de

48 MEMBERS’ CORNER

Sponsored by

C C T G E MEET TH IP C ARD! H S R E B M ME As a GTCC Member, we offer you the GTCC Membership Card to enjoy special discounts at GTCC’s events and consultancy services as well as a number of special discounts from participating GTCC members.

Whether it is for your lunch/dinner business meeting or other services, we want to assure you, as our valuable member, enjoy

Name Last Name Company Name

Valid Thru

31 December 2014

special treatment from fellow GTCC members to strengthen your business network and relations.

The list of participating outlets and services is available on our webpage, thailand.ahk.de, together with corresponding benefits and discounts for members to explore! For more information or submission of your offer/discount, please call 02 670 0600 ext. 2008.

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CHATRIUM HOTEL RIVERSIDE BANGKOK

Exclusive offers New theme dinner buffet; Brazilian Barbecue with free flow South American wines at The World restaurant And enjoy the Chinese and Japanese dinner buffet at Ginger restaurant from 18.00-22.30 hrs.

Price: Baht 1,490++ per person (every Saturday night) Time: From now - 31st October 2013

Exclusive offers October Vegetables Celebrating the vegetarian festival throughout October 2013 at Silver Waves Restaurant Vegetarian dishes in Thai style from WoW buffet at River Barge Restaurant

T: +66(0)2 100 6255, please contact: Dining Reservation

T: +66(0)2 307 8888 ext. 1904 or dining.chrb@chatrium.com and www.chatrium.com, please contact: Sommai Yocapajorn

HOLIDAY INN BANGKOK SUKHUMVIT 22

RMA CITY MOTORS

Exclusive offers Meeting package offer start from: Half day package THB 850 net Full day package THB 1000 net

Exclusive offer Ford RMA Hot Deal for All new Fiesta and All new Focus Price: 0% Interest 60 Months Installment or Fiesta 7,xxx Installment Focus 9,xxx Installment

Validity period: from now - 31st December 2013

Offer is valid from now until 31 October, 2013

T: +66(0)2 683 4888 or Pornprapa.Tanakijphairote@ihg.com Please contact: Pornprapa Tanakijphairote

T: +668 3096 2959 or sira.a@cityford.co.th Please contact: Sira Apiamornkarn

ROYAL ORCHID SHERATON HOTEL & TOWERS

SHERATON GRANDE SUKHUMVIT, BANGKOK

Exclusive offers Enjoy an authentic Italian buffet couple with favorite main course.

Exclusive offers Enjoy After Work Free Flow at BarSu Price: Baht 650 net Time: From 18.00-22.00 hrs.

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Free Flow wines at The Living Room Price: Baht 1,050 net Time: From 21.00 hrs. - midnight

T: +66(0)2 266 9124 or events.rosh@sheraton.com

T: +66(0)2 649 8644 or yuthika.c@luxurycollection.com Please contact:Yuthika Charoenrungreaung

WUERTH (THAILAND) CO., LTD.

ROYAL CLIFF HOTELS GROUP

Exclusive offers Super quality 91 piece tool box Special Price: 10,000 baht

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T: +66(0)2 907 8880-7 or Ingeborg.klose@wuerth.co.th Please contact: Ingeborg Klose

+66 (38) 250 421 or reservations@royalcliff.com, relax@royalcliff.com, please contact: Pensiri

For a romantic experience with your special someone at Exotic Paradise Honeymoon from Royal Cliff Beach Terrace Price: 5,100++ per person/ per room for 2 nights and twin sharing Offer is valid from now – 30 November 2014

Members interested in submitting a discount or promotion on respective services and products can send relevant information to Email: vachara@gtcc.org or Tel: 02-670 0600 ext. 2008 Please note that the publication of your offer will be subject to space availability in each issue of Update Magazine.

UPDATE 3/2013

TRADE FAIRS 49

BIOTECHNICA 2013 8-10 October 2013

BIOTECHNICA 2013 will feature new topics and innovative marketplaces in Hannover for three days (8 – 10 October) and once again will serve as the central hub for Europe’s entire biotech sector and its clientele. BIOTECHNICA aims at encouraging a dialogue between suppliers and users along the biotech value-adding chain.

For the twentieth time BIOTECHNICA 2013 will bring exhibitors and trade visitors together to do business. Visitors will be treated to a rich array of displays revolving around the very latest advances in technology and R&D, as well as the latest biotech products and their applications in the fields of medicine, food production, industry and environmental protection. There will also be a wide range of services for the biotech and pharmaceutical sectors. BIOTECHNICA is considered to be one of the most important platforms for bringing innovators together with investors.

As Europe’s leading trade fair for biotechnology, the life sciences and laboratory equipment, BIOTECHNICA is the No.1 event in its field. One of the keynotes of this year’s trade fair will be bio-economics. Switzerland – the first Partner Country to be honored at BIOTECHNICA – will also be a focus of attention For further information, please contact GTCC’s official representative for Deutsche Messe for Thailand at Tel: 02 670 0600 ext. 4004.

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50 TRADE FAIRS

ITB ASIA

23-25 October, Singapore ITB Asia 2013, the Trade Show for the Asian Travel Market, will take place at the Suntec Singapore Exhibition & Convention Centre from 23 to 25 October. Organised by Messe Berlin (Singapore) Pte Ltd and supported by the Singapore Exhibition & Convention Bureau, ITB Asia features hundreds of exhibiting companies from Asia-Pacific, Europe, the Americas, Africa and the Middle East, covering leisure, corporate and MICE (meetings, incentives, conventions and exhibitions) travel markets. The sixth installment of the annual trade show is welcoming back several exhibitors as well as a number of new participants from every sector of the industry, including National Tourism Organizations (NTOs), destinations, airlines and airports, hotels and resorts, theme parks and attractions, inbound tour operators, inbound DMCs, cruise lines, spas, venues, other meeting facilities and travel technology companies.

With a significant increase in National Tourism Organizations par ticipation, visitors can expect to experience a world of opportunities at ITB Asia 2013. Many NTOs make their first time appearance including the Armenian National Tourism Organization, South Pacific Tourism Organization, Greek National Tourism Organization, Beijing Office, Reunion Island Tourism Board and the Federal Agency for Tourism of the Russian Federation.

“This year we will definitely be seeing more destinations being featured. Following past successes at ITB Asia, a number of NTOs are increasing the size of their pavilions while other exhibitors which have previously shared a stand are committing to having their own booth to enjoy more exposure at the show,” said Nino Gruettke, Executive Director of ITB Asia.

UPDATE 3/2013

“Exhibitor demand from Europe, Asia and North America have been particularly strong this year as the tourism industries continue to focus their attention on the Asia travel market. ITB Asia is really the most effective business platform for travel professionals to meet the world at one place,” Gruettke added.

A number of exhibitors have also increased their booth space bookings significantly compared to last year. For example, the Chinese and Japanese exhibitors have more than tripled their exhibition space. The US contingent has doubled its presence from the previous year, and the Russian Federation has increased by more than 70 per cent in the search for more ASEAN travel dollars.

Other new exhibitors at this year’s show include Visit Finland, Kenya Tourism Board and The USA Brand USA Pavilion - Discover America among others. Last year, the show attracted close to 8500 attendees, representing more than 90 countries. ITB Asia is also a partner event of TravelRave, a mega travel and tourism festival week organised by the Singapore Tourism Board.

The show is also complemented by a powerful line-up of conference which includes a wide range of ‘how-to’ sessions on adapting and thriving in this ever-changing environment.

The 2013 programme will have over 3,850 minutes of high-powered content more than 20 sessions during which high-profile speakers and industry experts will present and lead discussions on a range of topics covering all aspects of the travel industry. The show also welcomes several new conference partners including Pacific Asia Travel Association (PATA), Medical Tourism Association, Travel Link Daily, Mix!, American Express and micenetASIA. A unique combination of travel products, target groups and networking opportunities awaits you. Take part and take advantage at ITB Asia 2013. More details are available on the internet at http://www.itb-asia.com For visitor tickets or further information, please contact GTCC’s official representative for Messe Berlin GmbH for Thailand, Ms. Patamaporn Wasuwat at Tel: 02-670 0600 ext. 4010

TRADE FAIRS 51

SPIELWARENMESSE 2014 THE SPIRIT OF PLAY

Nuremberg, 29 January-3 February 2014 Spielwarenmesse, the world’s leading international fair for toys, hobbies and leisure will be taking place for the 65th time from 29 January to 3 February 2014 at Nuremberg Exhibition Centre. This world premier B2B trade fair organized by the fair and marketing services provider Spielwarenmesse eG creates a comprehensive communication and ordering platform for 2,700 national and international manufacturers.

The trade fair will bring together all important players from all over the world as well as international exhibitors and visitors. Every year, the exhibitors at Spielwarenmesse present more than 70,000 new products among the 1 million products exhibited. The presentation of new products and the extensive industry overview provide a valuable pool of information for annual market orientation for 72,500 buyers and toy traders from over 100 nations.

The 65th Spielwarenmesse will be the biggest ever. Thai exhibitors can obtain an initial impression and find out what will be new in Nurember g in advance at “Spielwarenmesse Dialogue”, a formal press conference held by Spielwarenmesse eG and GTCC on 1 October 2013 at The St. Regis Bangkok. Since the available seats are limited, exhibitors wishing to attend this press conference should reserve their seats in advance.

Detailed information about the coming Spielwarenmesse 2014 is available online at: www.toyfair.de For further information, please contact GTCC’s official representative for Spielwarenmesse eG for Thailand at Tel: 02-670 0600 ext. 4005.

http://thailand.ahk.de

52 TRADE FAIRS

DRINK MILK AND MILK-BASED BEVERAGES OFFER GREAT POTENTIAL FOR GROWTH IN DAIRY INDUSTRY 16-20 September 2013, Munich DRINKING MILK IS IN, ESPECIALLY IN ASIA The world’s thirst for milk is growing in the true sense of the word: because in the growth markets milk is indeed mainly consumed as a drink. Not surprisingly, therefore, the dairy industry is keenly interested in the processing, filling and packaging technology for beverages and liquid food on show at drinktec which recently took place between 16 and 20 September. For professionals in the international dairy industry, drinktec has long been a firm date in the diary.

Almost half of the exhibitors at the show were presenting technological solutions for milk processing. When compared with the last drinktec, this sector has thus expanded by around 10 percent.

The major associations, too, have long since recognized that drinktec is becoming ever more important for the milk industry. The Central Association of German Dairy Business Owners (Zentralverband Deutscher Milchwirtschaftler- ZDM) and the Association of European Dairy Industry Learning (Association Européenne des Diplômés de l`Industrie Laitière- AEDIL) used drinktec 2013 as a platform for networking and exchange of ideas. The members also held their association conferences within the framework of drinktec 2013.

DRINKING MILK IS EVER MORE POPULAR IN ASIA Market surveys by Euromonitor underline the globally very positive picture for the dairy industry. Worldwide milk production is expected to increase from the current level of 126 billion litres to around 137 billion by 2015. The forerunners in this trend, with the biggest rates of increase, will be Asia and the Pacific Region. Here Euromonitor sees volumes growing from 31 billion litres today to 37 billion, while consumption in Europe and North America is set to stagnate at a high level. In many of these strong-growth countries milk is consumed mainly as a beverage. In China, for example, the drinking milk proportion of the overall volume of milk processed is more than 90 per cent. In Germany, by comparison, it is at around 20 per cent. That means that the majority of the volume growth needs processing, filling and packaging technology. The positive outlook for the international dairy industry is confirmed by Swedish packaging specialist Tetra Pak. Their research shows that, driven by high demand in the emerging countries of Asia, Africa and Latin America, worldwide consumption of liquid milk products will rise between 2011 and 2014 by an average of 2.9 per cent per year.

UPDATE 3/2013

THE “MIDDLE CLASSES OF TOMORROW” ARE SWITCHING TO PACKAGED MILK PRODUCTS A key part in this growth, according to the latest Tetra Pak Milk Index, will come from the population group that can be described as the "middle classes of tomorrow". This group comprises around 50 per cent of the population of the developing countries and consumes 38 per cent of the liquid milk products. And their thirst for milk is rising rapidly as their prosperity increases: The figure of 70 billion litres in 2011 is set to reach almost 80 billion by 2014. Also many of these consumers are seen as switching in the coming years from unpackaged to packaged milk products. However, there are certain technical hurdles to be cleared in opening up this very attractive market. For example, the kind of products offered has to be affordable, available and attractive for low earners. What s proposed in this context is the use of alternatives to full-fat milk, such as whey or lactic acid, in order to be able to produce nutritious and healthy milk products cost-effectively. Another strategy is to go for smaller pack sizes or simpler packaging.

RISING INNOVATIONS PRESSURE IN NEW PRODUCTS AND NEW MARKETS Globally, in the period from 2011 to 2014, Tetra Pak sees the fastest growth rates in beverages based on lactic acid, in milk for infants and small children, and in aromatized milk. Beverages based on lactic acid are set to rise fastest, with an annual average increase of 11.9 per cent followed by milk for infants and small children at 9.0 per cent p.a. on average. Aromatized milk is in third place, with expansion rates predicted at an annual average of 4.8 per cent.

For further information, please contact GTCC’s official representative for Messe München GmbH for Thailand, Ms. Suvichanee Huszar at Tel: 02-670 0600 ext. 4006