GTCC Update Q3/2015

3/2015 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

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ASEAN ECONOMIC COMMUNITY AEC: An excellent chance for Thailand to prosper as a regional production hub

Featured interviews: In celebration of 25 years of GTCC Membership

Ice Breaker Networking – GTCC Open House

SAVE THE DATE

3 JUNE 2016

DEAR READERS It is a great honor and pleasure for me to address myself to you for the first time in the GTCC member publication Update. I have already met some of you as GTCC members and friends of the German-Thai business community since I joined the Chamber of Commerce as its new Executive Director at the beginning of August. I am looking forward to suppor ting and working with our members and partners to promote the further development of our bilateral economic relations, and to strengthen GTCC in the interests of our members.

I have been working within the network of German Chambers of Commerce Abroad (AHK) since 2002, first in the Republic of Korea and then in Taiwan. As Executive Director of the German Trade Office Taipei I worked closely with my colleagues in Beijing, Shanghai, Guangzhou and Hong Kong, China as par t of our Greater China Network. Now here in Bangkok, I am very much looking forward to co-operating with my colleagues in the German ASEAN Chamber Network (GACN).

The main focus of this issue of Update is the ASEAN Economic Community (AEC), which is to be launched officially at the end of this year. We look at the opportunities for Thailand to become a regional production hub and at the strategies of foreign investors with regard to AEC. We discuss the expectations of the AEC and the challenges created by the great diversity among AEC members in terms of prosperity and level of development as well as the particular interests of Governments and industries in the various ASEAN countries.

Many German companies in ASEAN – a region with tremendous dynamic growth potential – are preparing for AEC integration by developing a regional business strategy. Against this background the German ASEAN Chamber Network (GACN) was established in 2012. GACN now comprises the German Chambers in Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam. The GACN network (www.aseanchambernetwork.com) is aimed at building an open platform for German companies and their partners in business, politics and administration through which they can engage in open dialogue and initiate regional initiatives.

GTCC is supporting German companies in their activities in other ASEAN countries by conducting regional projects in co-operation with other German Chambers and/or organising business activities and trips (for example, to Cambodia or the Lao People’s Democratic Republic.

I trust you will enjoy an interesting and informative read.

Best regards,

Dr. Roland Wein

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.

Publisher/Editor-in-Chief: Dr. Roland Wein

Subscription is also available at an annual rate of US$75 (airmail). Payment can be made in cash or by cheque to the German-Thai Chamber of Commerce, Empire Tower, 1 South Sathorn Rd., Bangkok 10120, Thailand. Tel.: +66 2 670 0600. Fax: +66 2 670 0601. E-mail address: info@gtcc.org.

Editor & Communications Director: Ratanaporn Bistuer

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.

Circulation per issue : 2,000

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GTCC CHRISTMAS PARTY Tuesday 15 December 2015 17:00 – 21:00 hrs.

The Sukhothai Bangkok Hotel, Garden Villa (outdoor) Join us to celebrate this special occasion with families and friends of the German-Thai business community.

Feast on the vast selection of international dinner buffet and drinks, and appreciate an evening with family-friendly activities including kids’ amusement station as well as live music and lucky draws!

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Greater Mekong Subregion: Growing together CONTENTS

06

AEC: An excellent chance for Thailand to prosper as a regional production hub

15 BMW Group Manufacturing Thailand celebrates 15th anniversary

32 Breakfast talk with Dr. Fuchs

AEC 10 ‘Foreign investors in AEC should consider their regional strategy with care’

12 ASEAN Economic Community 2015: Does reality match the hype?

36 School Development Project introduction

49 BrauBeviale 2015: ‘Street food: From cult to business’

32 German Pavilion at Thailand Innovation and Design Expo 2015

33 Ice Breaker Networking – GTCC Open House

GTDEE INSIGHT

14 AEC will continue to evolve and strengthen well

35 ‘Train-the-Trainer in Business (AHK)’ 38 Memoranda of Understanding signing

BUSINESS BRIEFS 17 Mann and Hummel production plant launch 18 Sanet ASEAN advisors network expands

MEMBERS’ CORNER

beyond 2015

Bangkok office

FEATURED INTERVIEWS 20 Interviews in celebration of 25 years of GTCC membership

CHAMBER ACTIVITIES 30 Site visit to CP ALL

40 Member2Member Benefits 46 New Members Orientation Programme, No. 5

TRADE FAIRS 48 49 50 51 52

Kids India 2015 BrauBeviale 2015 Bazaar 2015 DOMOTEX 2016 INHORGENTA MUNICH 2016

OUR ANNUAL PARTNER:

06 ASEAN ECONOMIC COMMUNITY

AEC: AN EXCELLENT CHANCE FOR THAILAND TO PROSPER AS A REGIONAL PRODUCTION HUB Contributed by Dr. Waldemar Duscha, Germany Trade & Invest

Thailand has already proved itself to be a leading regional destination for several industries and it should further develop its leadership role.

The launch of the ASEAN Economic Community (AEC) is likely to continue to attract strong inflows of foreign direct investment (FDI).

The growing connectivity with neighbouring countries through infrastructure, electricity supply interconnections and logistics has opened important possibilities for Bangkok to position itself as a gateway. In this context, Japan and China are continuing to consistently expand their commitment.

The Kingdom of Thailand is a member of the Association of Southeast Asian Nations (ASEAN).

This regional association, with a population of 625 million people and an aggregate gross domestic product (GDP) of more than US$ 2.4 trillion, has the third-largest economy in Asia after China and India. The move towards regional economic integration will take another important step through the forthcoming implementation of the AEC. In addition to Thailand, the AEC will encompass other nine member countries, i.e., Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore and Viet Nam. ASEAN countries (2013) Country

Population (million)

GDP (US$ billion)

Exports (US$ billion)

Imports (US$ billion)

0.4

16.1

11.4

3.6

Indonesia

248.8

860.8

182.6

186.6

Cambodia

15.0

15.5

9.1

9.2

Lao PDR

6.6

10.3

2.6

3.3

Malaysia

29.9

312.1

228.3

205.9

Myanmar

61.6

54.7

11.4

12.0

Philippines

99.4

269.0

54.0

65.1

Singapore

5.4

297.9

410.2

373.0

Thailand

68.3

387.6

228.7

249.5

Viet Nam

89.7

171.2

132.7

132.1

Brunei Darussalam

Source: ASEAN Secretariat.

UPDATE 3/2015

ASEAN ECONOMIC COMMUNITY 07

ASEAN (2013) Population (million)

625

Gross domestic product (US$ billion)

2,395

GDP per capita (US$)

3,832

GDP growth (real, per cent)

5.2

Export of goods (US$ billion)

1,271

Import of goods (US$ billion)

1,240

FDI (US$ billion) Foreign visitors (million)

122 83

Source: ASEAN Secretariat, December 2014.

The goal of the AEC is to transform ASEAN into a region with free movement of goods, services, investment, skilled labour and free flow of capital. The AEC will officially be launched on31 December 2015 and its goal of regional economic integration will be realised by 2020, founded on the three pillars of security community, economic integration and socio-cultural co-operation.

‘THE PATH IS THE GOAL’ Meeting deadlines is, however, not easy. The ASEAN members are highly diverse in terms of prosperity and development, and their political will often does not correspond to the particular interests of the national industry associations. The challenge is immense and, in this sense, the AEC should not be seen as the final destination but as a gradual process of rapprochement.

Much has been achieved so far. Today, the majority of goods in the ASEAN countries can already be traded free of import duties. One hundred per cent of the tariff-rate quotas will be eliminated on the effective date that the AEC becomes effective. Import duties are scheduled for elimination with flexibility by 2018 for the less developed CLMV countries (Cambodia, Lao People’s Democratic Republic, Myanmar and Vietnam). Moreover, the ASEAN Free Trade Agreements with major trading partners such as Australia, China, Japan, India, New Zealand and the Republic of Korea are particularly important for the regional production companies, and represent another advantage of location.

By mid-2015 Thailand officially announced that it was ready for full co-operation under the AEC. Thailand had achieved 90 per cent of the 540 measures contained in the “AEC Blueprint 2015”, while the rest are expected to be completed by the end of 2015. The National Single Window for handling the export-import of goods traffic transfers with other countries through a single electronic data transmission also needs to be fully implemented. In addition, Thailand will be required to allow foreign equity participation of not less than 70 per cent in certain service activities, such as financial and telecommunications services.

However, some key challenges remain for ASEAN to overcome.

In particular, they include the areas of human capital, education, management and the development of small and medium-sized enterprises for better integration. The latter will be accomplished inter alia by new regional Business Clusters or the five Special Economic Zones (SEZ) near the border.

However, the crux of the matter is that eliminating non-tariff barriers (NTBs) or implementing the harmonisation of standards and regulations remains cumbersome. In 2014, the ASEAN Secretariat listed 3,900 goods with trade barriers. Most of them belong to the agricultural products and foodstuffs sectors, and, at some distance behind, the machinery, electronics and electrical engineering sectors.

The overwhelming majority of NTBs are related to customs surcharges (70 per cent), followed by technical measures (25 per cent).

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08 ASEAN ECONOMIC COMMUNITY

sector are hard disc drives, integrated circuits, air conditioners and refrigerators. In addition, the food industr y, under the marketing concept of “Kitchen of the World”, has also firmly positioned itself as a favourite in international markets. Last but not least, Thailand has developed a strong regional presence in some services, especially logistics and “medical tourism”.

HIGH FOREIGN INVESTMENTS

STRATEGY TOWARDS GROWTH However, the predominant opinion is that the establishment of the AEC will send a strong signal of the willingness to strengthen the economic power of the region as a whole and thus help its member countries to integrate into the global economy. Many foreign businesses have been preparing for AEC integration ahead of time and now have long-term business strategies that are tailored specifically to the ASEAN region.

This approach was recently documented in a flash sur vey among approximately 150 companies, conducted by the German-Thai Chamber of Commerce during a Business Lunch in Bangkok. The survey found that some two-thirds of the par ticipating companies said they had already extended their commitment to the region or planned to do so in the foreseeable future.

Diversifying regionally goes hand-in-hand with Thailand’s increasing importance as a manufacturing hub for key industrial products, primarily with regard to the automotive industry. In that sector, the product champions of Thailand are pickup trucks and eco-cars.

In 2014, 1.9 million vehicles rolled off their conveyor belts, two-thirds of which were exported (US$ 16 billion), while automotive parts exports totalled US$ 17 billion during the same period.

The industry for electronics and electrical engineering achieved an annual turnover of US$ 100 billion in 2014, with an export share of 55 per cent; the flagship products in this

UPDATE 3/2015

Foreign direct investment inflows to East and South-East Asia are likely to continue increasing in the future – primarily due to the region's rapid growth and the expansion of infrastructure. This was the key statement of the “World Investment Report 2015” by UNCTAD, which stated that, in 2014, FDI inflows to East Asia rose by 12 per cent to US$ 248 million, while South-East Asia recorded a 5 per cent increase in inflows to US$ 133 million. Thailand, with US$ 13 billion, was ranked fifth behind China (US$ 129 billion), Hong Kong, China (US$ 103 billion), Singapore (US$ 68 billion) and Indonesia (US$ 23 billion).

The UNCTAD report noted that investment in infrastructure had been on the rise, in particular in intra-regional connections, with FDI being a major driving force. This is a clear indication that connectivity between countries and economies is intensifying, especially in energy, telecommunications, transport and water management. Thailand, with a total cumulative inflow of US$ 15 billion in the transport, logistics and telecommunications sectors, enjoys the second place in ASEAN behind Singapore with US$ 37 billion, according to the UNCTAD report.

The “ASEAN Business Outlook Survey 2015”, conducted by the American Chamber of Commerce in Thailand, also provides an optimistic assessment. In this sur vey, 66 per cent of the respondents said that ASEAN markets would become more important to their companies’ global revenues during the next two years, while 89 per cent forecast increased trade and investment during the coming five years. Similarly, a majority of 81 per cent believed that ASEAN integration would be impor tant to helping their companies do business in the region.

ASEAN ECONOMIC COMMUNITY 09

THE BROADER OUTLOOK The long-term regional strategy should already have made considerable headway in this context. “ASEAN Plus” is the new formula that signifies the positioning of Thailand as the central bridgehead linking ASEAN to other Asian economic powers, especially China and Japan. The two high-speed rail routes from Bangkok to Chiang Mai and Nong Khai in the north, planned as collaborative projects with Japan and China on government basis (G2G), will open a new chapter in this regard.

At the same time, Chinese investors have been strongly drawn towards Thailand relatively quickly during the past few years and this dynamic is also expected to continue. In 2014, China became Thailand’s largest supplier with an import share of 16.9 per cent with Japan, the traditional leading supplier, being relegated to second place for the first time. In 2014, the entire external trade with China (import and export) amounted to US$ 63.6 billion, ahead of Japan with US$ 57.5 billion and the United States with US$ 38.5 billion. However, Japan, by far the largest investor with 1,552 companies (April 2014), will continue to use Thailand as its major production base.

China considers ASEAN to be its strategic partner and looks set to double the two-way trade volume of approximately US$ 500 billion from 2015 to 2020. Last but not least, Beijing has demonstrated its stronger interest in the region with the founding of the new “Asian Infrastructure Investment Bank”.

GATEWAY BANGKOK Bangkok is likely to strengthen its role as the gateway to the neighbouring countries of Cambodia, Lao People’s Democratic Republic, Myanmar and Vietnam – together called the “Mekong Five”. This is true particularly in the case of dynamic Myanmar, where China and Thailand are the biggest investors with US$ 14.8 billion and US$ 10.3 billion of cumulative investments, respectively. There are 88 Thai companies in Myanmar, most of which are active in the fields of energy and natural gas, food and beverages, building materials and production of goods.

The foundation for the interconnectivity of the so-called Greater Mekong Subregion (GMS) was laid by the Asian Development Bank more than two decades ago. The GMS embraces the "Mekong Five" countries as well as Yunnan province and the Guangxi Zhuang Autonomous Region in China. In the first two decades since the inception of the GMS in 1992, up to 2011 a total of 56 projects in energy and transport worth more than US$ 15 billion had been achieved. The new GMS Strategic Framework for the next 10 years, with projects worth more than US$ 51 billion, focuses on the development of national and intra-regional transpor t networks along major corridors from north to south, and from east to west.

Japan also intends to walk alongside the ASEAN members in the future, and in mid- 2015 pledged financial aid worth US$ 6.1 billion to the “Mekong Five” countries for the development of infrastructure. However, of all the current projects, the Dawei SEZ in Myanmar is probably the most noteworthy.

The three countries of Myanmar, Thailand and Japan will hold equal shares in Dawei SEZ Development Co, which will run the project. When completed, the Dawei SEZ project, with an estimated infrastructural investment of more than US$ 50 billion covering some 200 km2, will be the largest industrial zone in South-East Asia. In addition, the new deep-sea port there will create a key gateway connecting the Mekong region with the Indian Ocean, Africa and the Middle East.

www.thailand.ahk.de

10 ASEAN ECONOMIC COMMUNITY

‘FOREIGN INVESTORS IN AEC SHOULD CONSIDER THEIR REGIONAL STRATEGY WITH CARE’ Contributed by Rödl & Partner Ltd.

One of the major objectives of the Association of Southeast Asian Nations (ASEAN) is the establishment of the ASEAN Economic Community (AEC) in order to integrate South-East Asia’s diverse economies. With more than 625 million people, ASEAN offers a large potential market for German companies doing business internationally.

In addition, ASEAN has the world's third-largest labour force (after China and India) of comparably young age. The trading bloc is increasingly receiving manufacturing capacity from China, and some member States present an attractive prospect as a consumer market.

At the thirteenth ASEAN Summit in November 2007 in Singapore, ASEAN leaders adopted the ASEAN Economic Community (AEC) Blueprint, which advanced the AEC launch target from 2020 to 31 December 2015. The AEC goal for regional economic integration by the end of 2015 envisages the following four key characteristics: (a) creating a single market and production base; (b) the increase of competitiveness; (c) the promotion of equitable economic development; and (d) the full integration of ASEAN into the global economy. The goals imposed by the AEC include the free movement of goods, services, investments, capital and skilled labour within ASEAN.

MOVEMENT OF GOODS Under the ASEAN Trade in Goods Agreement (ATIGA), which governs the free movement of goods, the Common Effective Preferential Tariff scheme has cut rates for more than 99 per cent of tariff lines on goods coming from ASEAN members. Local content of at least 40 per cent must be generated in a member State.

UPDATE 3/2015

While the ASEAN-6 implemented the scheme in 2010, Cambodia, the Lao People’s Democratic Republic, Myanmar and Viet Nam have to reduce their tariffs by 2015. Most ASEAN members, however, will maintain various non-tariff barriers, such as productrelated impor t licensing requirements or specific safety standards for imported goods.

Such trade barriers need to be carefully considered when planning shipments within ASEAN.

FOREIGN INVESTMENT The AEC will also facilitate and improve conditions for foreign direct investment projects. The related ASEAN Comprehensive Investment Agreement (ACIA) entered into force on 29 March 2012. ACIA aims to c re ate a fre e and o p e n invest m ent

ASEAN ECONOMIC COMMUNITY 11

environment through the consolidation and expansion of existing agreements between the ASEAN countries. It replaced the ASEAN Investment Area and ASEAN Investment Guarantee agreements in order to establish international best practices while expanding some principles that were already governed by the previous agreements. This will enhance the attractiveness of ASEAN as a single investment destination.

The agreement’s scope of application requires that an investment must be made by either a natural person of an ASEAN member or by an ASEAN-based juridical person, and is subject to further definition in ACIA. It should be noted that ACIA specifies precise definitions of authorised investments and investors, rather than overall investment regulations from which any business type or investor may benefit.

German and other overseas entrepreneurs should note that a juridical person in an ASEAN member that is controlled by a third-country national is generally included as an allowed investor, although subject to some conditions such as substantive business operations to be carried out by the company located in ASEAN. A mere holding entity would thus not be sufficient under ACIA regulations.

ACIA covers almost all forms of investment, excluding only the reservations made by members in the agreement’s schedule of reser vations. Liberalisation provisions, however, currently do not appear ambitious and cover only the five main sectors of manufacturing, agriculture, fisheries, forestry, mining and quarrying as well as services incidental to these sectors.

The focus of ACIA is, among other aspects, on national and most-favoured nation treatment, free capital transfers, restrictions of expropriation and respective compensation rules, co-operation on investment facilitation and transparency as well as the implementation of a general investor-State arbitration.

A disputing investor may present a case that it has suffered a loss or damage from the breach by the host ASEAN member of its obligations under ACIA at the International Centre for the Settlement of Investment Disputes (ICSID) based in Washington, D.C. and operating under the World Bank.

Previously, such ICSID proceedings were merely governed by bilateral investment protection treaties that ASEAN members entered into individually. Any other disagreements concerning ACIA interpretation are subject to the existing ASEAN State-to-State dispute settlement mechanism under the Protocol on Enhanced Dispute Settlement Mechanism.

MOVEMENT OF LABOUR The AEC aims to permit an improved mobility of workforce. Achievements can be seen with regard to qualified service professionals in the region. Common standards concerning professionals have been mutually arranged for, among others, medical practitioners, accountants, nurses, engineers and architects. This might ultimately lead to greater flexibility and reduced costs for employers; however, various administrative burdens have yet to be overcome and the issue remains politically sensitive. Free movement for jobs requiring lower qualifications (for example, factory workers) is currently not permitted.

BUSINESS PROSPECTS Once the AEC has been successfully implemented, standardised legal and regulatory frameworks will make it significantly easier to do business within ASEAN. Anyway, the launch of AEC should be considered as an ambitious milestone on a continuing road, rather than an end in itself. It might be several more years before ASEAN, with its heterogeneous political and economic systems and interests, can realistically be considered as a fully-integrated economic community.

Some items of the AEC Blueprint might even remain untouched in the few next years (for example, the removal of non-tariff barriers or free market access for foreign investments). An understanding of this situation is crucial for foreign investors who should carefully consider their regional strategy in order to successfully navigate through the changing ASEAN investment landscape.

Contact details: Rödl & Partner Ltd. Tel: +66 2 670 0670 bangkok@roedl.pro www.roedl.com

www.thailand.ahk.de

12 ASEAN ECONOMIC COMMUNITY

Andreas Richter (second right) recently participated in a panel discussion in which he provided the Thai perspective on the topic of “ASEAN Economic Integration” at Interlaw’s 2015 Asia-Pacific Meeting in Singapore. The discussion was chaired by Ms. Deborah Kay Elms (left), Executive Director of the Asian Trade Center. The other panelists included Mr. Eitaro Kojima, JETRO (second from left), Mr. Anthony Egerton, Partner, Huntington Partners LLP, (third from left), Ms. Ooi Bee Hong, Partner, Lee Hishammuddin Allen & Gledhill, (third from right) and Mr. Oliver Tonby, McKinsey & Company (right).

ASEAN ECONOMIC COMMUNITY 2015: DOES REALITY MATCH THE HYPE? Contributed by Andreas Richter, Partner, Blumenthal Richter & Sumet Ltd. The ASEAN Economic Community (AEC) was meant to be established on 1 January 2015, with the goal of creating a single market to provide businesses with access to more than 625 million people in the ASEAN region. However, realising that the deadline could not be met, and despite all the official buzz that was created around “AEC 2015”, the implementation date was eventually moved to 31 December 2015. With less than four months to go until the new target date is reached, the question of where we stand in terms of achieving a free flow of goods, services, capital, investment and skilled labour is critical.

Opinions var y on each member State’s read in es s fo r e c o n om i c i n t e g r a t i on .

Companies, especially smaller and mid-sized businesses, are having trouble keeping up with the latest developments and with preparing for the changes to come. Scepticism in the private sector has started to replace the initial excitement about the prospect of a single market as uncer tainty is growing about how committed many of the region’s Governments actually are to the idea.

While Thailand’s official position has been made clear – “we are ready on our par t” and “we have met all our commitments” – concern has been raised in the Thai media

UPDATE 3/2015

t h a t t h e A EC re p re s e nts a s ignific ant competitive threat to Thai companies and workers, and that Thai people are unprepared due to a lack of sufficient English language skills.

NON-TARIFF BARRIERS STILL WIDELY USED So, what has been achieved to date and what can be expected of the AEC? In Thailand, we can see that customs tariffs on goods traded between ASEAN members have been significantly reduced to a low level or almost zero. Within the region, however, improvements to tr ade facilitation by integrating customs clearance and harmonising standards are lagging; non-tariff barriers are still widely used or are newly erected in the form of quotas, standards or licensing rules.

The foregoing obstacles contribute to a relatively low rate of intra-ASEAN trade; of the total US$ 2.6 trillion worth of trade conducted by ASEAN members per annum, only 25 per cent represents trade among ASEAN members. By way of contrast, 75 per cent of European Union trade is among European Union members.

In Thailand, especially, little progress has been made concerning the liberalisation of foreign

investment, not least in the service sector.

Despite all the roadmaps and agreements stating that ASEAN members will be permitted equity ownership of up to 70 per cent in other member countries’ service companies, no laws have been amended in this regard. Thailand has always permitted foreign nationals to own manufacturing operations, thereby complying with the AEC’s aims. However, from the additionally agreed upon 128 sectors scheduled to be liberalised, only retail and wholesale businesses have been opened to foreign majority shareholding so far.

If it was ever the intent of the AEC to open borders for the free movement of labour, it is still highly unlikely to happen, at least in the foreseeable future. Under the Mutual Recognition Act signed by the ASEAN members, the signatories agree to recognise the qualifications of cer tain professions of

ASEAN ECONOMIC COMMUNITY 13

other States. Despite having agreed upon such mutual recognition, Thailand will not waive the requirement for obtaining work permits and visas for ASEAN nationals seeking employment in the Kingdom. Moreover, it intends to administer examinations conducted in the Thai language for these professionals, which, in reality, will negate the idea of the Mutual Recognition Act completely.

GREAT OPPORTUNITY, EXTREME DIVERSITY

aftermath of the stock market turmoil at the end of August, not only sceptics see the developing economies at the beginning of a prolonged downward trend, also resulting in meager growth prospects for the SouthEast Asian region.

AEC 2015 is an investment in ASEAN’s f u t u re – it wo uld b e a s hame if the opportunity were to be missed.

Contact details: Andreas Richter Partner, Blumenthal Richter & Sumet Ltd. Tel: +66 (0)2-022-1000 richter@brslawyers.com www.brslawyers.com

Without doubt, South-East Asia is a region of great opportunity; however, it is also one of extreme diversity, and uneven political and economic development. This development gap may render the idea of “one integrated mar ket and a single production base” unbalanced and fragile (a situation mirrored by the Eurogroup's recent experience with its own single currency project). Formidable challenges lie ahead that will require investment in human resources development and industrial innovation as well as significant improvements in productivity, in order to maintain the current economic growth rates as a catalyst for economic integration.

Amid all the excitement and opportunity, the region and its leaders have to develop a sense of ownership regarding ASEAN and commit defin itively to th e v i s i o n of com m o n prosperity. AEC 2015 may best be considered as a process rather than a destination, and one that requires a considerable amount of short-term sacrifice. However, time is of the essence in driving this process of integration, as the period of economic prosperity for developing countries may soon be over, if it has not already come to a halt. The BRIC nations have lost their shine as growth engines of the global economy; a missed opportunity as they failed to reform their inefficient economies – which are plagued by corruption, insufficient infrastructures and high private debt – during times of economic boom.

While the developing countries are currently reemerging as drivers of the global economy, grow th r ates in A SE AN a re s h r i n k i n g drastically. Region wide, financial markets and currency exchange rates are under pressure; over the last 12 months, for example, the Malaysian Ringgit has lost more than 25 per cent of its value to the US Dollar. In the

http://thailand.ahk.de

14 ASEAN ECONOMIC COMMUNITY

AEC WILL CONTINUE TO EVOLVE AND STRENGTHEN WELL BEYOND 2015

Contributed by Mr. Jakkrit Srivali, Director-General, Department of ASEAN Affairs, Ministry of Foreign Affairs The launch of the ASEAN Economic Community (AEC) at the end of 2015 will be a milestone in South-East Asia’s economic integration. Together with the two other pillar s – the ASEAN Political Secur ity Community (APSC) and the ASEAN SocioCultural Community (ASCC) – the AEC promises to deliver on the bread-and-butter issues that are crucial to the achievement of shared prosperity and sustainable development for all countries in the region.

ASEAN has already made significant strides in its economic integration, such as tariff elimination and facilitating trade in goods.

The AEC rests on a foundation built over the past several decades, including earlier ASEAN initiatives such as the ASEAN Free Trade Area (AFTA) and the ASEAN Framework Agreement on Services (AFAS). ASEAN’s economic integration is an ongoing process and can be expected to strengthen and evolve further beyond 2015.

One key goal of the AEC is to enhance intraASEAN trade and become a single market and production base. Average intra-ASEAN tariffs fell from 13 per cent in 1993 to nearzero in 2013. ASEAN has eliminated nearly all tariffs, with only a few sensitive products remaining on the list. ASEAN has also been

UPDATE 3/2015

working to eliminate non-tariff barriers and promote facilitation of cross-border intra-ASEAN trade, including eliminating unnecessary impediments to trade.

A more integrated ASEAN can be expected to enjoy greater economies of scale in production and improved efficiency through specialization. Enhanced market access and reduced transaction costs across ASEAN countries have enhanced ASEAN productivity and competitiveness. According to a joint study by the Asian Development Bank (ADB) and International Labour Organization, the AEC could generate 14 million jobs by 2025.

Wealth distribution projections also appear positive. The ADB predicts that the size of the middle class in ASEAN will more than double by 2018, and will rise to 65 per cent of the population in 2030. Increased income and employment creation will fur ther enhance ASEAN’s attractiveness as a large consumer market of more than 625 million people (9 per cent of the world’s total population).

The next key steps towards full realization of the AEC include liberalization of trade in services, investment and labour mobility.

In most ASEAN economies, services have

been increasing as a share of GDP. As a result, AFAS will improve the efficiency and competitiveness of ASEAN by progressively improving market access and removing restrictions. The AEC will continue efforts to create more efficient services suppliers in the post-2015 period. The growth of the services sector will add to ASEAN’s growth mo me ntum. Me anwhile , the ASEAN Comprehensive Investment Agreement provides an investment regime that offers stronger legal protection for foreign investors.

Deepening economic integration within ASEAN has enabled it to be outward looking and better equipped to actively engage in FTAs with external par tners. ASEAN’s emergence as the de facto FTA hub in the broader Asian region through the Regional Comprehensive Economic Par tnership (RCEP), currently being negotiated, is a testament to ASEAN’s resilience and continuing evolution.

In the post-2015 period, the AEC can be counted on to build upon its achievements and continue to work to further improve the lives of its millions of people.

16 BUSINESS BRIEFS

BMW GROUP MANUFACTURING THAILAND CELEBRATES 15th ANNIVERSARY On 2 September 2015, BMW Group Manufacturing celebrated 15 successful years of production in Thailand at the BMW Group Manufacturing plant in the Amata City Industrial Estate, Rayong province. Hosted by Mr. Jeffrey Gaudiano, Managing Director of BMW Group Manufacturing Thailand, the event welcomed Deputy Permanent Secretar y of the Ministr y of Industr y, Dr. Somchai Harnhirun, together with key stakeholders and other business par tners in marking this major milestone in the BMW Group’s long-term par tnership with Thailand, both as a market and a production hub.

Mr. Jürgen Maidl, Senior Vice-President of Logistics, BMW Group also came from the company’s Munich headquarters especially to deliver a keynote address at the event. He emphasised the fact that the “Rayong plant as well as Thailand play a very important role in our sales strategy and our engagement with the ASEAN and Asia market”.

This year has seen BMW Group Manufacturing Thailand begin expanding its BMW Motorrad exports to China as well as Malaysia.

Further export activities within ASEAN will be explored.

DORNBRACHT: CULTURING LIFE Arkitektura Co., Ltd. organised a special event, “Dornbracht: Culturing Life” on 30 June 2015 at Dusit Thani Bangkok. During the event Ms. Ricky Schulze, Executive Director of Dornbracht South-East Asia Pte., Ltd., the representative of Dornbracht, marked the launch of Dornbracht’s latest collection, CL.1. that was introduced to the market this year in March at ISH 2015 in Frankfurt, Germany.

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BUSINESS BRIEFS 17

MANN AND HUMMEL PRODUCTION PLANT LAUNCH Mann and Hummel Thailand invited customers, suppliers and business par tners to celebrate the Grand Opening of the company’s new production plant, located in Rayong province at Hemaraj Eastern Seaboard Industrial Estate, on 3 September 2015. Mann and Hummel, Thailand launched its manufacturing activities in mid-2014 to serve local automotive customers. Production at Mann and Hummel Thailand is initially focusing on air induction applications – mainly air cleaner systems, air intake manifolds and air ducts. The factory covers 4,000 m2 and the employment level will soon reach 100 team members. Mann and Hummel Thailand is also selling filters in the after-sales distribution network.

The opening ceremony was attended by several international guests from the MANN+HUMMEL Group, including Mr. Thomas Fischer, Chairman of the Supervisory Board, Mannfred Wolf, President and General Manager, Automotive and Industrial Business, Josef Parzhuber, Group Vice-President, Asia Pacific.

The MANN+HUMMEL Group is a global leader in providing filtration solutions as well as a development partner and original equipment supplier to the international automotive and mechanical engineering industries. Employing 16,000 people at more than 60 locations worldwide, the company recorded a turnover of about Euro 2.8 billion in 2014.

The group’s product por tfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters, technical plastic par ts, and filter elements for vehicle servicing and repair. For the general engineering, process engineering and industrial manufacturing sectors, the company’s product range includes industrial filters, a series of products to reduce carbon emission levels in diesel engines, membrane filters for water filtration, and filter systems.

ABC CELEBRATES 15th ANNIVERSARY On 1 August 2015, ABC Asian Business Consulting Co., Ltd. celebrated 15 years of operating in Thailand at the Amari Hotel in Pattaya. More than 180 invited guests enjoyed live music and singing, fine dining and dancing in a cozy atmosphere that ensured the event was most enjoyable and memorable for all the guests.

ABC Asian Business Consulting Co., Ltd. was founded on 3 August 2000 to advise foreigners from mostly Western countries on living, working and investing in Thailand. Since that time, the company has assisted as well as established good relationships with our many clients, local authorities and institutions such as Chambers of Commerce.

The company is delighted to have achieved such good results.

www.thailand.ahk.de http://thailand.ahk.de

18 BUSINESS BRIEFS

SANET ASEAN ADVISORS NETWORK EXPANDS BANGKOK OFFICE The Sanet consultants network, with five sister companies and liaison offices in the members of the for thcoming ASEAN Economic Community (AEC), has expanded its headquar ters in Bangkok with the inclusion of a second business centre. Sanet now offers the services of a total of 23 employees, and modern workplaces and conference rooms covering a total of 600 m2.

The headquar ters is located close to Suvarnabhumi International Airport, making

it easily accessible to clients and visitors in just a few minutes after their arrival in Bangkok.

Sanet ASEAN Advisors offers Western companies support in making foreign direct investments (FDI), as well as assistance in m a r ke t e ntr y and mar ke t re s e arc h, restructuring, feasibility studies and personnel searches in the members of the forthcoming AEC.

In 2011, the business segment was expanded to representing technically sophisticated companies, for example, those in the sectors of special purpose machinery manufacture, railway engineering and the automotive industry. Sanet has also added eight business units for German companies with special sales staff dedicated to these principals. The new facilities serve to expand this business segment together with technical distribution.

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FEATURED INTERVIEWS 20

IN CELEBRATION OF 25 YEARS OF GTCC MEMBERSHIP The German-Thai Chamber of Commerce is delighted to be able to announce that 10 companies are currently commemorating their twenty-fifth year of GTCC membership.

Notwithstanding the fact that the Chamber now has more than 550 members, we are grateful for every one of them, as without their participation the successful operation of the GTCC would not be possible.

Therefore, because the Chamber feels honoured to have 10 companies celebrating 25 years as GTCC members, we have taken this opportunity to interview several of them in order to share their thoughts and visions in this issue of Update. In connection with the main topic of this issue, the interviews also included questions regarding their views on the various oppor tunities that will be provided by the for thcoming ASEAN Economic Community (AEC).

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As the introduction of the AEC may well bring about radical changes in Thailand’s economy, companies need to be prepared for any related challenges as well as be ready to take advantage of the new opportunities. Therefore, the interviews provide interesting and helpful information about their preparations for the AEC and how their businesses will be affected.

In addition, the interviews provided the opportunity for them to provide insights on their personal experience of doing business within Thailand’s economy.

The main objective of the AEC is to create economic integration by establishing a common market that will allow a free flow of goods, services, investments and skills. The AEC is expected to be launched by the end of 2015.

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COMMERZBANK AG SEES A BRIGHT FUTURE FOR ITS BUSINESS IN THAILAND Mrs. Piyakanit Yen-Ura, head of the Commerzbank AG Representative Office in Bangkok, explains how the company views the future for its business in Thailand and the expected influence of the forthcoming ASEAN Economic Community (AEC).

GTCC: Mrs. Yen-Ura, Commerzbank AG is a leading international commercial bank represented in more than 50 countries – what do you think makes Thailand special? Do you think Thailand is an outstanding country for doing business?

Mrs. Yen-Ura: It depends on which areas of business you are talking about. Thailand is special and outstanding for certain business fields, but definitely not all. For Commerzbank’s country-oriented focuses and strategies, Thailand is truly a promising country and we expect to see even more positive changes and rapid go-ahead once the uncertainty caused by unclear political circumstances has diminished.

GTCC: The forthcoming AEC will change the way business is conducted in ASEAN due to foreign investment, mergers and acquisitions. How much do you think this will influence your business?

Mrs.Yen-Ura: Very limited influence at this stage.

GTCC: How are you preparing to meet the challenges and opportunities of the AEC? Mrs. Yen-Ura: Commerzbank itself will be only an observer at the beginning stage, i.e., to obser ve the gradual changes and each business sector’s flexibility and adaptability. At the subsequent stage, we will certainly find ways to serve new demands and requirements emerged after the implementation of AEC. GTCC: Some ASEAN citizens envisage the AEC as being similar to the former European Economic Community [which was integrated into the European Union in 2009]. Would you agree with that view?

Mrs. Yen-Ura: Not really, as the establishment backgrounds of ASEAN/AEC and EU/EC are different, as are the dimension and framework of the co-operation and objectives. I rarely see a chance for a single currency for ASEAN, nor an ‘ASEAN Central Bank’.

Another point is the broader range of development levels and economic strength among the AEC member countries, which is much less in the case of the European Union.

www.thailand.ahk.de

FEATURED INTERVIEWS 22

‘OUTLOOK REMAINS VERY POSITIVE DESPITE RECENT NEGATIVE EVENTS’ The high quality of Rodenstock lenses and eyewear has long been appreciated

by Thai consumers. With that in mind, the German-Thai Chamber of Commerce recently asked Managing Director of Rodenstock (Thailand) Co. Ltd and Rodenstock Asia Co. Ltd., Mr. Guenter Raichle, what past and presen t ch allen g e s h i s c o m p a ny has f ace d in T h a i l a n d , a n d w h a t opportunities the establishment of the ASEAN Economic Community (AEC) will present.

GTCC: Mr. Raichle, you have been managing the business for Rodenstock in Thailand for more than eight years now. During that time, in your opinion, what has been the most challenging part regarding Thailand’s economy?

Mr. Raichle: As Managing Director, Rodenstock Thailand Operations I would like to point out that nearly 95 per cent of our lenses, which are manufactured at the Group’s largest production centre that is located at Ladkrabang, are for export, mainly to Europe but also to Australia and other Asian countries. Therefore, the Rodenstock Group does not depend so much on the Thai economy.

However, being able to permanently keep our production uninterrupted is of crucial importance. In that regard, we have faced quite some challenges in recent years, such as political turbulence, the downtown riots and the flooding threat in 2011. The imposition of several curfews caused a significant change in the production timing as we immediately had to change from our regular three-shift to a two-shift schedule to ensure that there were no production interruptions. This created a major challenge on several occasions, something that hopefully will not occur again in the future. We hope that we can operate with strong and sustainable stability from now on, leading to our further prosperous growth in Thailand.

In my other role as Managing Director, Sales (Thailand, Australia and Japan) of Rodenstock Asia, my concern is the Thai economy and how it affects domestic sales of the company’s

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lenses and eyewear. To strengthen the Rodenstock footprint in Thailand, we opened our own Market organisition in 2010 with Sales Representatives selling our products to Independent Opticians and Chain customers. We have an ambitious long term growth plan to become a major player in the Thai Optical market. We have experienced some very negative influences caused by the political instability, riots, coups and declines in tourist arrivals. However, despite all that, we have managed to maintain our premium approach and sales of our outstanding products through the promotional efforts of our very skilled sales force, which has ensured continuous growth. We see that as a great success. We believe that in a stable political and economic environment there will be great opportunities to grow further.

GTCC: Since Rodenstock has its largest production facility in Thailand, do you see any changes following the establishment of the ASEAN Economic Community (AEC)?

Mr. Raichle: From the production perspective it will remain our strategy to keep Thailand as our main mass production and logistic hub. At the same time, we expect shipments of our locally produced lenses to the other AEC countries to be much easier and faster, as the current difficult customs hurdles in some of the surrounding countries make business extremely difficult.

GTCC: In your opinion, what outcome can we expect following the elimination of non-trade barriers?

Mr. Raichle: What we hope to see in the near-future is that the AEC will open the borders for skilled workers and engineers from other countries to become easily available for industry in Thailand, as a shortage of skilled labour currently exists. In addition, we hope that the English skills of Thai students will improve, especially as they will face tougher competition from the neighbouring countries whose students often have better foreign language skills.

GTCC: What is your outlook for Rodenstock (Thailand) as well as Thailand in general, especially regarding the AEC? Mr. Raichle: As I already mentioned, we see it as being very positive for our business as it will make export much easier to the AEC countries. However, as most of our export business goes to Europe it will not have such a significant influence. In addition, it will increase the competitiveness of the whole region, and Thailand will have to settle its internal political issues if it is to keep its leading status in South-East Asia and concentrate on moving the economy forward.

approaches regarding communication among the members, as well as networking and especially acting with one voice by the Chamber members in dealing with the Thai authorities and the Government. In addition, the support given by our German Embassy and Ambassadors has been excellent. I hope that this approach will continue.

GTCC: What has been your impression of Thailand’s economic and trade development and the direction in which it is heading?

Mr. Raichle: This is an extremely difficult and critical question. Due to the permanent changes of political direction and responsibilities, impor tant milestones have been missed. One example is the loss of preferential status in the European Union in the absence of a free trade agreement, to mention only one important topic.

With regard to domestic situation, hopefully Thailand will return soon to democratic political stability in order to concentrate on moving the economy forward and establishing long-lasting stimulation measures that will improve the whole country’s situation. This is also an important basis on which to attract new investor s to Thailand. From my perspective, the upcoming business year of 2016 will be a very challenging one both for the domestic economy and for foreign trade.

GTCC: In what area would you like to see further support from the GTCC in your business development?

Mr. Raichle: Since my first days in Thailand I have had very close contact with the GTCC and have always felt that we receive very good support in communications with the Thai authorities, especially during the several already-mentioned critical periods. I have seen ver y professional and beneficial

www.thailand.ahk.de

FEATURED INTERVIEWS 24

‘AEC: GREAT OPPORTUNITY, BUT TARIFF BARRIER PROBLEMS STILL NEED TO BE RESOLVED’ Staedtler (Thailand) Ltd. was established in 1989 as a subsidiary of Staedtler, Germany in order to more effectively distribute Staedtler’s wide range of writing materials throughout Thailand, including two state-of-the-art manufacturing plants. The Chamber recently had an opportunity to meet with Staedtler (Thailand) Managing Director Mr. Rolf-Dieter Daniel and discuss his views and plans for business in the foreseeable future, especially among the members of the soon-to-be-launched ASEAN Economic Community (AEC).

GTCC: Mr. Daniel, as Staedtler is a company where now more than 75 per cent of the total production capacity is for exports, what opportunities do you see in AEC? Mr. Daniel: The Staedtler Group is already very well established in South-East Asia as well as in Asia and the Pacific as a whole. In fact, our management recognised this region very early as having good growth potential and established companies in various countries in this region.

Staedtler (Thailand) was one of the later companies to be established. Other Staedtler companies in this economic region were established, both as marketing and manufacturing companies, much earlier.

Having said this, tariff and non-tariff barriers for trade still exist; however, with the full implementation of AEC at the end of 2015, we very much hope that these tariff barriers will be eliminated. On the non-tariff barrier front, the situation is more complicated, but with the help of the European Association for Business and Commerce (EABC) activities we also hope that we can remove these obstacles to trade and make manufacturing in ASEAN more competitive.

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GTCC: Are you also selling your products directly to other ASEAN countries?

Mr. Daniel: Staedtler has established a trading hub in Thailand to serve other countries in the region as well as our ASEAN sister companies. As I already mentioned, there are still some tariff barriers that prevent the free flow of goods and this obstacle will have to be solved once AEC comes into existence.

Only with a free flow of goods and services can ASEAN and AEC become a serious economic community that can challenge China, Japan and India.

GTCC: The AEC will reduce the trading cost within ASEAN; do you think this will influence your current exportation rate?

Mr. Daniel: Reducing the cost of doing business within ASEAN is of the utmost importance. Businesses will invest in countries where trade can flow freely, as well as where there are few obstacles to establishing companies and the ease of doing business are concerned. A competitive economy is the key for any investment. If you look at the wider aspect of AEC++ with the added Free Trade Agreements with China, Japan, India, Republic of Korea, Australia and New Zealand, the economic zone of AEC is indeed a great incentive to invest in ASEAN. In this regard, we have just almost doubled our capacity at

25

our two manufacturing plants in Thailand, which shows the positive perspective of Staedtler concerning Thailand and its workforce. Thailand can play a major role in this context but the Government will still have to do more homework in order to make the country the trading and investment hub for ASEAN. GTCC: In your experience, what has been the most challenging aspect in developing business in Thailand so far?

Mr. Daniel: The Thai economy needs to be more competitive. Thailand is now at the point of shifting from being a low-cost manufacturer to employing higher technology in order to remain competitive in the world markets. We are also in the process of upgrading our plants’ machinery to make it more automatic and technology-based. The "middle income trap" needs to be tackled by the Government.

This approach requires a better educated workforce and steps were taken when I was President of the GTCC to establish a pilot programme to introduce our German dual vocational education system. This programme is now well-established within the Chamber and I hope the Government of Thailand will expand this effort in order to produce more and better educated manufacturing staff.

The Foreign Business Act still restricts many service industries – for example, retail and wholesale. We at EABC have been working hard to get the service sector liberalised.

I believe the Government realises that economic growth nowadays comes from services and we hope that such services will be liberalised soon, since it still limits the expansion of our marketing activities in this country.

Political stability is also a key for attracting new investment; this is the one important aspect the current Government has to tackle. For long-established companies this may not be such a big issue, but for new companies and small and medium-sized enterprises (SMEs) this is essential. I hope the Government is aware of this and will find a solution for ensuring a more stable regime.

Red tape will also deter SMEs as they do not have the capacity to employ specialist law firms and accounting experts. Ease of doing business is a good reason for a company to establish a branch in any country. Corruption must also be dealt with, par ticularly with regard to infrastructure projects and suppliers of government tenders. We have seen recently the passing of the Services Facilitation Act, which is a big step forward in the right direction.

In addition, targeting corruption in government agencies is a right move. We hope this drive will continue as it will increase Thailand's competitive index rating. Of course, there are other issues such as intellectual proper ty rights violations, full and just execution of the law, pharmaceutical issues and the power of monopolies in certain industries.

GTCC: How do you see the progress of this Chamber?

Mr. Daniel: During my presidency we were able to secure the services of Mr. Joerg Buck. At that time the Chamber was in a turnaround phase aimed at establishing itself more strongly and making it more member- and service-oriented. We also had some financial difficulties at that time due to low member par ticipation as well as some cost issues. Since then the Chamber has made important steps forward and is well-respected by its members and the business community. The interaction with the German Embassy in Thailand and the Royal Thai Government is excellent, and the GTCC has gained a strong presence in Thailand's business community.

With that in mind, I have to congratulate our outgoing Executive Director and the Board for the excellent development of the GTCC. I wish his successor all the best in continuing along these lines to make the GTCC even stronger and more relevant to Ger man business, both in Thailand and in Germany.

www.thailand.ahk.de

FEATURED INTERVIEWS 26

‘VISION 2020 STRATEGY WILLHELP SIEMENS MEET COMPETITION WITHIN AEC’ In 1900, Siemens AG began its trading relationship with Thailand. In 1995, Siemens Ltd. was established in Thailand in order to pursue business opportunities more easily and effectively. In a recent discussion with the German-Thai Chamber of Commerce President and Chief Executive Officer of Siemens Ltd. Thailand, Mr. Markus Lorenzini explained his company’s approach to business in Thailand and the expected growth in competition from the forthcoming ASEAN Economic Community (AEC).

GTCC:Your company is active in more than 200 countries all over the world, so how do you manage to maintain corporate culture and standards?

Mr. Lorenzini: For tunately, we have a corporate culture that is deeply embedded here at Siemens. We hold very firmly to providing high performance with a high ethic culture. High performance here means that we provide the best products and services to our customers and end users, together with reliable and sustainable solutions. As for our high ethic culture, we ensure compliance from top management down in order to guarantee sustainable growth.

GTCC: The principal divisions of Siemens comprise industry, energy, health care as well as infrastructure and cities. Which fields do you see as needing the most development at present?

Mr. Lorenzini: We view all four fields as being equally important, and we base that on the current megatrends, from global warming, globalisation, urbanisation to demographic change. Such phenomena are occurring worldwide, especially in mega cities, similar to Bangkok. At Siemens, we have products and solutions to fit all needs of this continuously growing trend, and we are investing heavily in research and development

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to continue to suppor t the sustainable development of city infrastructures around the world.

GTCC: In what areas of partnership do you see Siemens and the GTCC being able to develop further?

Mr. Lorenzini: As we are both German organisations based in Thailand, I think it is imperative that we give back to the society in a sustainable manner. In terms of helping Thailand achieve sustainable growth, it will be important for the public and related parties, such as city planners and key influencers, to understand the weight of this issue. As Siemens is the leading product and service p rov i d e r in the e ne r gy, he alth-c are , infrastructure, and cities and industry fields, we are absolutely sure of the quality of our products. Partnering with a strong organisation such as GTCC, which also sees a similar goal for Thailand, can strengthen credibility as well as provide knowledge and visibility of such areas to the parties necessary for helping to develop Thailand as a sustainable country.

GTCC: What do you think about the AEC? What opportunities and challenges will it bring for your business?

Mr. Lorenzini: In everything, there are always pros and cons. The AEC will provide an

opportunity for the member countries to open up the movement of goods, services, investment and labour, which in turn will help it to become more of an economic powerhouse that is able to better provide for each country’s citizens.

Having said that, the challenges that come with such market openness include an increase in competition from local industry, especially in the case of mature technology such as substations and tr ansfor mer s.

However, we are fully confident in our European standards, which have, for many, many years, been well-proven in various nations around the world, and we are ready to provide the best for Thailand as per the requirements of the city planners.

GTCC: How is Siemens preparing for the future changes that will come with the AEC? Mr. Lore nz ini: T he re will be m or e competition in the AEC markets. However, Siemens is currently implementing its latest programme, ‘Vision 2020’, which will ensure a clearer positioning and better focus on what we are great at, and will make it clear to our key customers what our strengths are, particularly in the automation, electrification and digitalisation fields in Thailand.

In addition, we are also overseeing and focusing more on business opportunities in the markets of Myanmar and Cambodia, where there is much need for infrastructure developments. We are engaging more closely with our customers, to ensure that we can understand and fulfill all their requirements.

www.karcher.co.th

28 CHAMBER ACTIVITIES

MEETING THE REFORMERS – THAILAND MOVING FORWARD The Thai Institute of Directors Association (Thai IOD), in co-operation with GTCC and other partnering chambers of commerce, hosted a luncheon seminar on "Meeting the reformers: Thailand moving forward" on 3 July 2015 at the Grand Hyatt Erawan Bangkok Hotel.

The seminar was aimed at providing a better understanding of the correct direction of the country’s planned reforms among corporate

directors and foreign investors in Thailand to operate their businesses.

This is seen as crucial to ensuring that they are fully confident in conducting their businesses in Thailand as well as in being an important mouthpiece for communicating with, and creating greater confidence among the international community with regard to Thailand’s ability to move forward.

ICE BREAKER NETWORKING – FAREWELL SPECIAL

Following nearly three years as the Executive Director of the GTCC, Jörg Buck bid farewell to members and friends of the German-Thai business community at the Ice Breaker Networking – Farewell Special on 16 July. Dr. Roland Wein, his successor, was also in town and this event provided an opportunity for his first introduction to the GTCC team and guests..

Hosted and generously suppor ted by the Westin Grande Sukhumvit, Bangkok, guests had the opportunity to enjoy the cozy ambiance of the Altitude Room and a charming view of Bangkok’s downtown area from the connecting terrace on the 25th floor. Special appreciation goes to our event sponsors, the Westin Grande Sukhumvit, Bangkok, and Global TV.

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CHAMBER ACTIVITIES 29

ASEAN MID-YEAR ECONOMIC REVIEW 2015 The GTCC co-hosted a Joint Chambers Luncheon Talk on ASEAN’s Mid-Year Economic Review 2015, led by the European Association for Business and Commerce (EABC), on 23 July at the Renaissance Hotel Bangkok.

More than 70 guests from diplomatic missions and the private sector joined the lunch discussion, during which presentations were given by Dr. Ulrich Zachau, Director of the World Bank, Mr. Andrew Durieux, CEO of Consultant Coverage Ltd. (Thailand) and Ms. Usara Wilaipich, Senior Economist, Stand ard Char te re d Bank PC L. The presentations can be downloaded from the EABC website at www.eabc-thailand.eu/.

GTCC BOARD LUNCHEON WITH NEW GERMAN AMBASSADOR

On 20 August 2015, GTCC executives and Board members hosted an exclusive luncheon to give an official welcome to H.E. Ambassador Mr. Peter Prügel of the Federal Republic of Germany to Thailand.

During the luncheon, GTCC President Mr. Phongsakdi Chakshuvej explained the role and activities of the GTCC as well as the Chamber’s co-oper ation with the German Embassy in Bangkok to Ambassador Prügel.

www.thailand.ahk.de

30 CHAMBER ACTIVITIES

SITE VISIT TO CP ALL GTCC, in partnership with CP All PCL, organised a site visit to CP All Distribution Centre Suvarnabhumi on 21 August. This exclusive member visit attracted more than 25 members, who were guided through the facility of the distribution centre.

Established in 1988, CP ALL operates the convenience store business in Thailand under the “7-Eleven” trademark. Currently, there are more than 8,400 7-Eleven stores in Thailand, which serve almost 10 million customers on a daily basis. That makes 7-Eleven the market leader in convenience stores in Thailand.

The Suvarnabhumi distribution centre, which is one of CP ALL’s six main centres, was officially opened in 2006. Covering 20,000 m2, it stores and distributes dry as well chilledtemperature products for 2,500 7-Eleven shops.

These facts were explained to the participants in the site visit together with other interesting information about CP ALL’s operations. During a question and answer session delicious snacks from the 7-Eleven range were served before visiting both the dry and the chilled storage facilities.

The GTCC hosted the third-quarter Eastern Seaboard Stammtisch on 21 August, at which it welcomed more than 120 guests from all partnering chambers of commerce. The event was held on the rooftop of Centara Grand Mirage Beach Resort Pattaya.

The networking was made possible through the support of the hosting hotel, DTC Travel, Guehring (Thailand) as well as ThyssenKrupp Elevator.

EASTERN SEABOARD STAMMTISCH

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32 CHAMBER ACTIVITIES

BREAKFAST TALK WITH DR. FUCHS On 28 August the German-Thai Chamber of Commerce welcomed Dr. Michael Fuchs, member of the German Parliament and Vice-Chairman of the CDU/CSU Parliamentary Group, as speaker at an exclusive breakfast talk at the Shangri-La Hotel in Bangkok. The topic discussed among an intimate circle of exclusive participants was “Germany’s current

role in the world economy”. One of the issues outlined by Dr. Fuchs was Germany’s position in the Euro crisis and the necessity for reforms in Greece. He also discussed the current refugee problem in Europe and emphasised the fact that well-integrated migrants might be a solution for the German demographic problem of a constantly declining bir th rate. Dr. Fuchs also expressed his concern about the short timeframe within which the German Government intends to shift to solely renewable sources of energy, especially in the light of the Ukrainian crisis and Europe’s dependence on Russian gas supplies. In addition to his political activities, Dr. Fuchs is also a successful businessman who founded and owns the company Impex Electronics. Furthermore, he supports the international chamber network as a board member of AHK Hong Kong. He is Chairman of the German Economic Committee of Taiwan and a board member of the Asia-Pacific Committee in Germany.

GERMAN PAVILION AT THAILAND INNOVATION AND DESIGN EXPO 2015 As a supporting partner of the Thai Department of International Trade Promotion (DITP), GTCC invited its members to participate as exhibitors in the Thailand Innovation and Design Expo 2015 (T.I.D.E. 2015) at Queen Sirikit National Convention Centre from 17 to 20 September 2015.

At the leading exposition in Thailand in the area of innovation, creativity and design, Chamber member companies had the opportunity to present their products and services – for example Digital Content, Fashion and Lifestyle, Food and Beverage, Construction, and Automotive and Parts – in the best possible environment. Among the GTCC members par ticipating at the German Pavilion were Bei Otto Co., Ltd., ThaiGerTec Co., Ltd, ThyssenKrupp Elevator (Thailand) Co., Ltd., OIA – Office for Interior & Architecture Co., Ltd., and Quantitec GmbH. A highlight of the event was the welcoming of Thai Prime Minister General Prayut Chan-o-cha at the opening ceremony on 17 September 2015.

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CHAMBER ACTIVITIES 33

ICE BREAKER NETWORKING – GTCC OPEN HOUSE T h e n ew GT CC E xe cu t i ve D i re ct or Dr. Roland Wein, together with GTCC Board Members and a Chamber team organised a second Ice Breaker Networking event for the third quar ter with the theme “GTCC Open House“ on 23 September at Mode Sathorn Bangkok hotel. The event provided an opportunity for GTCC staff to meet and greet members and friends of the GermanThai business community.

The GTCC team, representing key services of the Chamber, including Consultancy Ser vices, Member ship and Corporate Commu n ic atio n s , G e r m a n - Th a i D u a l Excellence Education (GTDEE) and Trade Fairs were present to provide relevant information, highlight membership benefits as well as an s we r q u e r i e s f ro m t h e participants.

In addition, par ticipants were officially introduced to the GTCC Mobile Application, which is available through iOS and Android f ree o f c h ar ge , an d t h e n e w G TC C Marketing Opportunity 2016.

www.thailand.ahk.de

34 GTDEE INSIGHT

THREE AWARD CEREMONIES FOR GRADUATING GTDEE APPRENTICES BMW (THAILAND) BMW (Thailand) Co., Ltd held a certification presentation ceremony on 12 June 2015 for graduate students who had completed their Ser vice Apprentice Programme, under the German-Thai Dual Excellence Education (GTDEE) project, at the BMW Training Centre in Pathum Thani.

The students received their certificates from Mr. Cesar Badilla, BMW Director, After-sales, and Mr. Phongsakdi Chakshuvej, President of German-Thai Chamber of Commerce (GTCC) and Executive Vice-President of B.Grimm (Thailand). During his welcoming remarks, Mr. Phongsakdi emphasised the need for skilled labour and the importance of vocational education in meeting the economic needs of Thailand and the forthcoming ASEAN Economic Community (AEC).

GTDEE is a dual vocational education project, pioneered by GTCC and leading German companies in Thailand. The project helps to build collaboration between entrepreneurs and vocational colleges in allowing students to enroll in a dual-track programme and graduate

with both academic and vocational qualifications comparable with German standards. The project not only enables apprentices to gain working experience with world-leading companies, they also receive benefits and social welfare just like regular employees.

At the end of the event, BMW Group (Thailand) also kindly donated a twin-turbo diesel engine worth 400,000 baht to Kanchanapisek Mahanakorn Technical College for study purposes.

AMATA B.GRIMM On 23 July 2015, Amata B.Grimm Power Plant held a certificate award ceremony for three GTDEE programme graduates. Former GTCC Executive Director Mr. Jรถrg Buck, together with Mr. Don Tayatan, Managing Director of Amata B.Grimm, and Dr. Chai-anant Saengmekha, Director of Chonburi Technical College, presented the certificates. The three students are currently employed by Amata B.Grimm Power Plant.

EASTERN TECHNICAL COLLEGE On 18 June 2015, the GTCC, together with Rober t BOSCH (Thailand) and Eastern Technical College (E-Tech), hosted a certificate award ceremony at Eastern Technical College in Chonburi for the pilot batch of three apprentices who have completed the GTDEE programme in Thailand in the field of mechatronics. The certificates were presented by Mr. Jรถrg Buck, former Executive Director of GTCC. Currently, the qualified students are employed by Bosch Packaging Technology (Thailand).

Mr. Buck noted that the programme was proving a major success for vocational education in Thailand as well as in fulfilling the needs of Thai Industry. He also said that he hoped the GTDEE programme would expand and continue to produce more skilled labour to increase competition within the ASEAN.

UPDATE 3/2015

GTDEE INSIGHT 35

‘TRAIN-THE-TRAINER IN BUSINESS (AHK)’ The GTDEE programme organised a six-day Train-the-Trainer course for companies participating in the programme. The course was held from 22 to 27 June 2015 at the Renaissance Hotel, Bangkok. The AHK cer tificate course develops trainers in the transferring of knowledge to their apprentices in an international context.

Nine representative trainers from GTDEE par tner companies participated in the training, which consists of seven modules covering approximately 70 hours. At the end of the course, par ticipating trainers are expected to be able to: transfer knowledge; enhance positive and co-operative working relationships; provide personal and professional guidance to apprentices; monitor quality and evaluation results; give useful feedback; and develop training plans and teaching materials.

The par ticipants were familiarised with the central didactic and methodological aspects of adult education and the significance of

appreciative communication. They gained proficiency in the constructive use of professional visualisation techniques and suitable training methods for effective suppor t and development of employees in learning processes. The course provided guidance in the planning, preparation and conducting of short as well as extensive training and instruction processes in a targeted manner. In addition, the course provided practical knowledge of successful learning techniques and how to handle difficult situations, including those of an intercultural nature.

The AHK training concept of "Train the Trainer in Business (AHK)" was developed under the direction of the GTCC and relevant experts from the following companies and organisations: Appreciative Communication Edwin Lemke, Bonn; DIHK-Bildungs-GmbH, Bonn; and MAN Truck & Bus Asia Pacific, Bangkok.

VTD FORUM AT GOETHE INSTITUTE The GTCC President, Mr. Phongsakdi Chakshuvej, was invited to participate as an honorary panelist of a forum organized by the Association of Former Thai Students in Germany (VTD) to contribute his experiences in German education at a panel discussion held at the Goethe Institute Bangkok, on 14 July 2015. The objective of the forum was to emphasise the benefits of German dual vocational education and what Thailand should learn from Germany.

Mr. Phongsakdi, who is also Executive Vice-President of B.Grimm, a founding member of the GTDEE programme in Thailand, presented the overall project and how it would help in tackling the shortage of skilled labour in the future. In addition, panel member Dr. Atthaphon Sangkawasee, Director of Kanjanapisek Technical College Mahanakorn, shared the experience of being a par t of the successful GTDEE programme. However, panelist Dr. Sirikorn Maneerin, former Deputy Minister of Education, noted that “Thailand’s education reform committee did not look at German’s dual vocational education success but rather that of France and Sweden”.

As Thailand has continued to face a skilled labour shor tage for several decades, the dual vocational education could be the key to success in producing skilled labour according to the needs of companies.

www.thailand.ahk.de

36 GTDEE INSIGHT

GTDEE INTRODUCTORY PRESENTATIONS major global players in the elevator market, the presentation provided a great oppor tunity for students to learn from world-class experts.

Subsequently, the GTDEE team, together with ThyssenKrupp Elevator Thailand, conducted a pre-selection session at the Eastern Technological College (E-Tech) on 27 July 2015.

Before students join the GTDEE programme, the partner company concerned provides a presentation on its business and activities at the partner college. Information concerning the programme’s benefits such as salary, social welfare and scholarships is given to the prospective par ticipants before they make their decision to apply for the GTDEE programme. In addition, the company usually selects a partner college based on location so that students can commute from home to work conveniently.

On 17 July, the GTDEE team together with ThyssenKrupp Elevator Thailand gave a presentation at the Eastern Technological College (E-Tech). More than 100 interested candidates participated in the information briefing. As ThyssenKrupp Elevator is one of the

To join the GTDEE programme, three parties – i.e., the college, company and the GTCC – arrange an admission examination for students.

The test is divided into three parts; a written test; a practical test; and interview with company representatives.

In the morning, students take the written examination followed by the practical tests.

The latter test looks for necessary skills such as problem-solving, teamwork and leadership. In the afternoon, those students who have passed both exams will be eligible for an interview with company representatives.

SCHOOL DEVELOPMENT PROJECT INTRODUCTION In July 2015 GTDEE began a Quality Development Project for vocational colleges in Thailand. During the course of this project, GTCC plans to work closely with partner colleges in the GTDEE programme, the Office of Vocational Education Committee in Thailand (OVEC), GIZ and co-operating companies.

The project objective is to continually enhance the quality of education and school activities at GTDEE partner colleges. It aims to identify the strengths of the school and where the school may require improvements.

The methodology of this assessment will include: developing and conducting an analysis of demand at selected vocational colleges; training for teaching staff, organised and conducted by experts in initial vocational education from Germany and Thailand; and organising workshops in school management for school directors and teachers, particularly with regard to internal school development and human resources development.

In August 2015, the GTDEE team conducted pilot quality assessment at Kanchanapisek Technical College Mahanakorn, Bangkok, and Chonburi Technical College, Chonburi.

UPDATE 3/2015

38 GTDEE INSIGHT

MEMORANDA OF UNDERSTANDING SIGNING During July 2015, three Memoranda of Understanding (MoU) signing ceremonies were held with ThyssenKrupp Elevator Thailand, the Thai-German Institute and BOSCH Automotive, which are among the many companies and organisations that have joined forces with vocational colleges and schools in arranging dual-education programmes.

Such collaboration creates a win-win situation. Students get hands-on experiences, acquiring necessary kills for employment as well as gaining access to the latest types of technology and equipment. On the other side, the participating companies have a better chance of getting skilled labour that matches their requirements.

GTCC-THYSSENKRUPP On 16 July 2015, Mr. Jörg Buck, former GTCC Executive Director, and Mr. Marc Spiegel, Director of ThyssenKrupp Elevator Thailand, signed an MoU on joining the GTDEE programme at the Chamber office.

The MoU covers constructive co-operation in the future between GTCC and ThyssenKrupp Elevator Thailand. The GTDEE project will provide consultancy services to ThyssenKrupp Elevator Thailand to ensure the German standard of quality among participating students.

GTCC-BOSCH AUTOMOTIVE On 29 July 2015, Mr. Jörg Buck and Mr. Santhipharp Khamsa-ard, BOSCH Automotive Human Resources Director signed an MoU for stronger co-operation. BOSCH Automotive, as a GTCC member, joined GTDEE programme in order to develop its own staff in the field of mechanics and mechatronics. The MoU intends to establish stronger human resources development under the service apprentice programme. The GTDEE project will provide educational consultancy services to BOSCH Automotive, while Bosch will have the opportunity to train apprentices in accordance with the company’s needs.

GTCC-THAI-GERMAN INSTITUTE On 23 July 2015, Mr. Jörg Buck and Mr. Jirasak Yaovatsakul, Thai-German Institute Executive Director, signed an MoU at the Thai-German Institute (TGI) in Amata Nakorn Industrial Estate. The primary objective of this MoU is to design and develop training courses in industrial techniques for apprentices under the GTDEE programme.

Co-operation between GTCC and TGI is aimed at establishing full human resources development through training design, training methodology and process, technical projects and other related activities. Further, GTDEE

UPDATE 3/2015

and TGI will work closely together in developing guidelines for the technical skills testing under the GTDEE Programme Apprenticeship Programme in order to ensure that students achieve certification.

40 MEMBERS’ CORNER

MEMBERS ONLY

Company Name

Valid Thru

31 December 2016

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 that, as our valuable member, enjoy special treatment from fellow GTCC members to strengthen

AMARA BANGKOK HOTEL Tel: +66 2 021 8891

A TASTE OF SINGAPORE - SET LUNCH

THB 280++ choosing 1 of 4 signature

Sponsored by

Name Last Name

Show or refer to your GTCC membership card to enjoy these special discounts!

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 e-mail us at membership@gtcc.org

ANANTARA GOLDEN TRIANGLE ELEPHANT CAMP & RESORT Tel: +66 53 784 084

30% Discount

ARKITEKTURA Tel: +66 2 392 5460 to 4

50% Discount for Bedding Products of Hugo Boss Home

dish with soft drink and fresh fruit; Hainanese Chicken Rice, Nasi Lemak, Hor Fun, Hokkien Mee

on best available rate based on the all inclusive "Discovery Package" offer

Validity: now - December 2015

Validity: now - 19 December 2015

Validity: now - April 2016

www.bangkok.amarahotels.com

www.goldentriangle.anantara.com

www.arkitektura.co.th

40% Discount for Bedding Products of Calvin Klein Home and Sanderson

(Only at Siam Paragon Showroom, 3rd Floor)

E!

FRE

CENTARA GRAND AT CENTRALWORLD

CENTARA GRAND AT CENTRALWORLD

GUEHRING (THAILAND) CO., LTD.

Tel: +66 2 100 1234

Tel: +66 2 100 1234

Tel: +66 2 174 5200 to 1

15% Discount for standard meeting

30% Discount for spa treatment a la carte menu (except Nail spa and promotion package)

of 3,299 B. for Drills-Fit-Taps set, Get free a USB Flash Drive, while stock lasts.

package

10% Discount for room rate from

hotel's website

25% Discount for lunch & dinner

Validity: now - October 2015

Validity: now - October 2015

www.centarahotelsresorts.com

www.centarahotelsresorts.com

UPDATE 3/2015

buffet at The World or Ginger

Buy a promotional price

The hard to find in Thailand Taps and Drills Set Tap Sizes : M3, M4, M5, M6, M8, M10, M12 Drill Sizes : 2.5, 3.3, 4.2, 5, 6.8, 8.5, 10.2

Validity: now - December 2015 www.guehring.co.th

MEMBERS’ CORNER 41

LEBUA HOTELS AND RESORTS

RLC RECRUITMENT CO., LTD.

SAMITIVEJ HOSPITAL

Tel: +66 2 624 9999

Tel: +66 2 653 3998

Tel: +66 2 022 2222

10% Discount for all "GTCC" members who sign up with RLC for their Payroll & Outsourcing needs

10% Discount

Guarantee complimentary

upgrade to next category Complimentary late check out at 2 pm (subject to room available) First priority for dinning reservations

OPD for medicine, laboratory work, X-rays.

IPD for room charges, medicine, laboratory

work, X-rays.

(Excluding Vaccination, CT, MRI, Ultrasound, Dental, Special Devices, Special Medication and Doctor’s Fee) No discount applied with insurance.

Validity: now - November 2015

Validity: now - February 2016

Validity: now - December 2015

www.lebua.com

www.rlc-asia.com

www.samitivejhospitals.com

SOFITEL SO BANGKOK

THE PENINSULA BANGKOK

Tel: +66 2 624 0000

Tel: +66 2 861 2888

WUERTH (THAILAND) CO., LTD.

20% Discount on food only at

“Dine Four Pay Three”

Discount is not applicable to special events and cannot be combined with any other promotions.

Discount is not applicable to special events and cannot be used in conjunction with other promotional programmes.

Validity: now - 29 December 2015

Validity: now - March 2016

www.sofitel-so-bangkok.com

www.peninsula.com/bangkok

Chocolab, Red Oven, MIXO, The Water Club and Park Society

for dinner buffet at River Cafe & Terrace

Tel: +66 2 907 8880 to 7

Special rate for Professional Tool Kit, 91 pieces at 15,500 THB plus FREE Bit Assortment 59 pieces Validity: now - December 2015 Wuerth (Thailand) Co., Ltd.

www.thailand.ahk.de

42 MEMBERS’ CORNER

NEW GTCC MEMBERS up to 30 September 2015

German-Thai Chamber of Commerce warmly welcomes 22 new members!

Adecco Consulting Ltd.

arvato services (Thailand) Ltd.

Central Plaza Chaengwattana (Tower Office) Unit no. 2005-8,20/F, 99/9 Moo 2 Chaengwattana Road, Bangtarad, Parkret, Nonthaburi 11120 Thailand Tel: +66 2 832 3399 Fax: +66 2 832 3300 webmaster@adecco.co.th www.adecco.co.th

305, 307 Chodthanawat Warehouse 1 Unit 3 & Unit 5, Bangna-Trad Km.1 Road, Bangna, Bangna, Bangkok 10260 Thailand Tel: +66 2 021 1900 Fax: +66 2 021 1906 info-thailand@arvato.sg www.arvato.com

Activities The company is principally engaged in provision of the HR consulting, recruitment, employment and career development services.

Chamber Representatives Tidarat Kanchanawat and Brendan Cunningham

Amara Bangkok Hotel 180/1 Surawong Road, Sipraya, Bangrak, Bangkok 10500 Thailand Tel: +66 2 021 8888 Fax: +66 2 021 8891 amarabangkok@amarahotels.com www.bangkok.amarahotels.com Activities Amara Bangkok is the first Amara Property outside Singapore. The 250-room hotel is equipped with a host of facilities and services to meet the needs of time-strapped business travelers striving to look and feel their best for business meets, or individual leisure. Travelers just 10-15 minutes’ walk from Chong Nonsi BTS station, Silom MRT station and major shopping malls.

Chamber Representatives Viranat Silandnda and Kussarin Amonthakonsuwet

UPDATE 3/2015

Activities arvato Asia provides services in the field of ecommerce, SPL and SCM to partners in consumer electronics, high-tech, entertainment, fashion and beauty industry.

Having a strong regional footprint throughout Asia, arvato Asia offers a wide range of services tailored to support client’s sustainable growth and foster strategic relevance in their markets.

Chamber Representatives Suttichai Satrasook and Chang Yao Wen

FLS 1993 (Thailand) Co., Ltd. 53 Moo 9, Talaythong Tower, 14th Floor, Room #1406, Sukhumvit Road, Tungsukla, Sriracha, Chonburi 20230 Thailand Tel: +66 38 494 144 Fax: +66 38 490 558 office.th@flsasia.com www.flsasia.com Activities Heavy lift and oversized cargo handling, full and part charter vessel chartering, project related airfreight charters and container shipments, project supervision and coordination, cargo loading/discharging supervision, port, road and equipment surveys and feasibility studies.

Chamber Representatives Torbjoern Larisch and Mike Meissner

MEMBERS’ CORNER 43

Greatest Pet Care Co., Ltd.

Lemax & Partner Co., Ltd.

11 Moo1 Sambandit, Uthai, Phranakon Si Ayutthaya 13210 Thailand Tel: +66 35 771 339 Fax: +66 35 771 350 info@greatestpetcare.com www.greatestpetcare.com

36F CRC Tower, All Seasons Place, 87/2 Wireless Road, Phatumwan, Bangkok 10330 Thailand Tel: +66 2 625 3085 Fax: +66 2 268 723 info@lemax-partner.com www.lemax-partner.com

Activities Pet food Manufacturers and Distributors.

Chamber Representatives Soros Sakornvisava and Oran Koohapremkit

Kärcher Retail Limited 1005 Srinakarin Road, Suanluang, Suanluang, Bangkok 10250 Thailand Tel: +66 2 021 2838 Fax: +66 2 002 4672 info.th@karcher-asia.com www.karcher.co.th Activities Sales and Service of cleaning equipment.

Chamber Representatives Jeremy Lim and Anocha Lerdlaosakul

Klingspor Bangkok Ltd. 202 Le Concord Tower, 12th floor Unit 1204, Ratchadapisek Road, Huay Kwang, Bangkok 10310 Thailand Tel: +66 2 694 1214 Fax: +66 2 694 1213 chinnaroj@klingspor.co.th www.klingspor.de Activities Klingspor is one of the five leading manufacturers of high-coated abrasives, cutting off-wheel and grinding discs.

Klingspor Bangkok will take care the local sales activities and continue to spearhead the expansion plans in Thailand.

Chamber Representatives Chinnaroj Jungtagulpanich and Laddawan Wongjongjaiharn

Activities Lemax & Partner are international recruiting specialists with more than 20 years of experience in executive search and contract staffing. Our multilingual backgrounds (English, Thai, German, Italian, French and Chinese) ensure the needed cultural understanding of employers and employees in a more and more international work environment.

Chamber Representatives Mauro Mezzina and Axel Surachat Becker

Lepcom Consulting Co., Ltd. 87 M.Thai Tower, All Season Place, Witthayu Road, Lumpini, Pathumwan, Bangkok, 10330 Thailand Tel: +66 2 627 9496 thorsten@lepcom-consulting.com www.lepcom-consulting.com Activities Specialized in Implementation of Cloud ERP and Customer Service Solutions.

Chamber Representatives Thorsten Leppek and Orachat Leppek

Link2europe Co., Ltd. Thailand 245/5 Moo 12, Nongprue, Banglamung, Chonburi 20150 Thailand Tel: +66 80 643 3640 Fax: +66 38 232 054 info@link2europe.tv www.globaltv.to Activities IPTV Solutions, Worldwide Sales Agent for GlobalHDTV. Chamber Representative Peter Schlegel

www.thailand.ahk.de

44 MEMBERS’ CORNER

Mediawok Co., Ltd.

Phytobiotics (Thailand) Co., Ltd.

117/9, Panjit Tower, 6th Floor, Sukhumvit 55 (Thonglor), Klongton Nua, Wattana, Bangkok 10110 Thailand Tel: +66 2 402 6666 Fax: +66 2 402 6665 alex@mediawok.com www.mediawok.com

202 Le Concorde Tower, Rajchadapisek Road, Huaykwang, Huaykwang, Bangkok 10320 Thailand Tel: +66 2 694 2498 Fax: +66 2 694 2499 info@phytobiotics.com www.phytobiotics.com

Activities Mediawok is a TV- and film production company. We are one of the leading international producers for corporate video, television and film in South-East Asia.

Concept, production, camera teams and post production – all with one stone.

Entire productions as well as individual services, all of international quality, are realised creatively, flexibly and in top quality while being reasonably priced.

Activities Phytobiotics (Thailand) Co., Ltd. as a sister company of Phytobiotics Futterzusatzstoffe GmbH at Germany. We offer feed additive products to livestock industries entering the Thailand and SOUTH-EAST ASIA markets.

Chamber Representatives Alexander Grawe and Dirk Wojcik

Pacific Cross Health Insurance PCL 152 Chartered Square Building, 21st Floor, Room 21-01, North Sathorn Road, Silom, Bangkok 10500 Thailand Tel: +66 2 401 9189 Fax: +66 2 401 9187 horst.w@th.pacificcrosshealth.com, tom.t@th.pacificcrosshealth.com www.pacificcrosshealth.com Activities Health, Personal Accident and Travel Insurance, Business lines provided to both individuals and companies throughout Thailand.

Chamber Representatives Horst Wiezorrek and Tom Thomson

Renaissance Bangkok Ratchaprasong Hotel 518/8 Ploenchit Road, Bangkok 10330 Thailand Tel: +66 2 125 5000 Fax: +66 2 125 5001 bkk.ratchaprasong@renaissancehotels.com www.renaissancebangkok.com Activities Hotel, Accommodation, Restaurants, Spa and Fitness.

Chamber Representatives Lars Kerfin and Soo Oftana

UPDATE 3/2015

Chamber Representatives Dr.Thawatchai Poolsawat and Yuttana Choisaeng

Radisson Blu Plaza Bangkok 489 Sukhumvit Road, Klongtoey Nua, Wattana, Bangkok 10110 Thailand Tel: +66 2 302 3333 Fax: +66 2 302 3344 info.bangkok.blu@radisson.com www.radissonblu.com/plazahotel-bangkok Activities Hospitality / Hotel Services.

Chamber Representatives Chomwan Paoratsamee and Chayarop Apisittipich

Stars Microelectronics (Thailand) Co., Ltd. Bang Pa-In Industrial Estate (I-EA-T Free Zone), 605-606 Moo 2, Klongjig, Bang Pa-In, Ayutthaya 13160 Thailand Tel: +66 35 221 777 Fax: +66 35 221 778 oliver-ti@starsmicro.com www.starsmicro.com Activities Production and assembly of electronics components: Microelectronics Module Assembly (MMA), Integrated Circuit Packaging and Testing RFID Solutions, NPI (Design and Development).

Chamber Representatives Oliver Manfred Tillmanns and Tattee Khayim

MEMBERS’ CORNER 45

Thai-Ger Engineering and Service Co., Ltd.

The Westin Grande Sukhumvit, Bangkok

19/177 The Metro, Ramkhamhaeng, Outer Ring Road, Soi Ratpattana 15, Saphan Soong District, Bangkok 10240 Thailand Tel: +66 2 002 7828 Fax: +66 2 019 7828 E-mail: info@thaigeres.com Website: www.thaigeres.com

259 Sukhumvit Soi 19, Sukhumvit Road, Klongtoey Nua, Wattana, Bangkok 10110 Thailand Tel: +66 2 207 8000 Fax: +66 2 651 1080 bangkok@westin.com www.westingrandesukhumvit.com

Activities We design and manufacture customized power and control systems (switchgear) based on customer requirements with German quality. We provide the full service from manufacturing, delivery, installation and commissioning.

Activities The Westin Grande Sukhumvit, Bangkok offers a five-star sanctuary in the heart of Bangkok’s most cosmopolitan business and entertainment district. Steps from Asok skytrain and Sukhumvit subway station, guests are never far from vibrant shopping, nightlife and business addresses.

Chamber Representatives Andre Pierre Berliner and Janjira Prangkaew

Chamber Representatives Martin Raich and Nongluck Narkman

STAUFF (THAILAND) CO., LTD.

Tirathai Public Company Limited 516/1 Moo 4, Bangpoo Industrial Estate, Sukhumvit Road, Praksa, Muang, Samutprakarn 10280 Thailand Tel: +66 2 769 7699 Fax: +66 2 709 3236 sunan@tirathai.co.th www.tirathai.co.th

10, Soi On-Nut 74/4, Pravet, Pravet 10250 Thailand Tel: +66 2 721 7323 to 24 Fax: +66 2 721 7335 sales@stauff.co.th www.stauff.co.th Activities STAUFF (THAILAND) CO., LTD. was established in 2013 and is located in the heart of Bangkok. It is currently serves customers in Thailand and Myanmar on our own and by a tight network of distributors with international standard certified STAUFF Brand pipework equipment and hydraulic components in our well-stocked warehouse, and with experience, highly motivated and qualified staffs.

Chamber Representatives Sineenart Harnwanichkul and Yves Clerc

Franz Richter GTCC MEMBER 2015

89/8 Chang Klan Road, Muang, Chiang Mai 50100 Thailand Tel: +66 53 253 888 franz.richter@shangri-la.com www.shangri-la.com

Activities Tirathai Public Co., Ltd., is a manufacturer of made-to-order transformers for domestic and overseas distribution and service provider of transformer installation, maintenance, and testing.

Chamber Representatives Sumpan Vongphan and Sunan Santichotinan

Thorsten Harenberg GTCC MEMBER 2015

8 Soi Methi Niwet, Sukhumvit Road 24, Klongtan, Klongtoey, Bangkok 10110 Thailand Tel: +66 92 403 0404, +66 94 495 1421 thorsten.harenberg@panalpina.com t_harenberg@hotmail.com Activities Country Head of Energy Solutions of Panalpina World Transport (Thailand) Ltd.

www.thailand.ahk.de

46 MEMBERS’ CORNER

Pacific Cross Health Insurance PCL, Mediawok Co., Ltd.; Adecco Consulting Ltd.; Link2europe Co., Ltd.; Sincere Real Estate Co., Ltd.; Friedrich Naumann Foundation for Freedom Regional Office for Southeast and East Asia; Lemax & Partner Co., Ltd.; Bumrungrad Hospital Public Co., Ltd.; Kärcher Retail Limited; Grant Thornton Services Ltd.; Lepcom Consulting Co., Ltd.; Greatest Pet Care Co., Ltd.; STAUFF (Thailand) Co., Ltd. and Ducati Motor (Thailand) Co., Ltd.

FIFTH NEW MEMBER ORIENTATION EVENT SEEN AS A BIG SUCCESS On 23 September 2015, the German-Thai Chamber of Commerce hosted New Member Orientation No. 5 at the Mode Sathorn Hotel, at which it welcomed 18 par ticipants. Ser ving as a platform to bring together GTCC new members and representatives, the programme provided participants with an exclusive opportunity to make important connections with each other through a speed networking format.

"It was a well-organised event that, in true German style, got off to a timely start and a timely finish as promised.

The speed networking gave me an opportunity to get to know more executives in a short period than I would have if visiting each one at their work place. We continued to attend the official monthly networking and as usual the GTCC has a better ratio of ‘real’ business people than other Chambers who are swamped by too many members from hotels, packing companies, recruiters etc."

Tom Sorensen, Partner Grant Thornton Services Ltd. “The New Member Orientation Programme serves as a good introductory platform for new members to get to know each other, and it would be great if this excellent platform could also be extended to include current Chamber members as well!”

Jeremy Lim, General Manager Kärcher Retail Ltd. "I arrived at Ducati Motor Thailand at the end of August this year, so the GTCC’s New Member Orientation event, held on the 25 September, was invaluable for me. It not only represented an opportunity for orientation between members, but also for gaining an understanding of the experience of other European expatriates who are living and working in Thailand. During the meeting, I became acquainted with highly-skilled professionals, while making new and important friendships. The GTCC, therefore, is clearly an excellent platform for improved networking, both in business and in personal circles."

Gabriele Piaggio, General Manager Ducati Motor Thailand Co., Ltd.

UPDATE 3/2015

http://thailand.ahk.de

48 TRADE FAIRS

KIDS INDIA FOR GLOBAL TOY INDUSTRY MARKS ITS THIRD SUCCESSFUL YEAR 24-26 September 2015, Mumbai This year’ toy world sector met at the Kids India trade fair in Mumbai for the third time from 24 to 26 September 2015 at the Bombay Convention and Exhibition Centre (BCEC), which is the largest permanent exhibition site of its type for India’s private sector. Many reputable international fairs and exhibitions have already been held at BCEC since it was launched in 1991. The site is conveniently located centrally between the international airports and the city centre, with many hotels, shops and entertainment facilities in the immediate vicinity.

At Kids India 2015 more than 6,000 visitors browsed the stands of more than 150 exhibitors from profitable toy businesses.

Apart from toys, Indian and international exhibitors presented products from the segments of babies’ articles, licences, sport, leisure and hobbies. Many newcomers from the toy industry as well as global players and all-important decision-makers from the Indian toy market were at this B2B event to make business contacts.

Th is year, th e Spo r t s G oo d s E x p or t Promotion Council (SGEPC) offered a reimbursement programme for international buyers who visited Kids India. This support from the Government of India for Kids India clearly underscores the fact that the trade fair has become the most well-established

UPDATE 3/2015

business platform for the Indian toy industry. As Ernst Kick, CEO of Spielwarenmesse eG noted: "We are highly honoured by the trust invested in us by exhibitors, visitors and now also the Indian Government.”

Within just three years, Kids India has established itself as the leading B2B trade fair in India as well as the meeting place for all key decision-makers in India’s toy industry.

For more information and other inquiries, please contact GTCC’s official representative for Spielwarenmesse in Thailand, Ms. Chonlagorn Loypetch at tel: +66 2 670 0600; ext. 4006 or e-mail: chonlagorn@gtcc.org. More details are also available at www.kidsindia.de.

TRADE FAIRS 49

BrauBeviale 2015 ‘STREET FOOD: FROM CULT TO BUSINESS’ 10-12 November 2015, Nuremberg When it comes to food trucks, street food and open-air events the culinary experience is at the forefront. For the past several years these concepts have been developing into a genuine trend. Suppliers and organisers have been springing up like mushrooms.

raw materials, innovative technologies, and efficient logistics and novel marketing ideas.

The expected 37,200 visitors (2014: 40 per cent international share) will come from technical and commercial management areas within the European beverages industry.

How do you actually operate such a food truck? Where do you find the right set of wheels or mobile base? What are the hygiene regulations and provisions? Where are you permitted to sell the food? Answers to all these and other questions on all aspects of business related to this exceptional form of enjoyment will be provided by a new convention on the theme of “Street Food” within the framework of BrauBeviale – initiated and organised by the “father of the scene”, Klaus P. Wünsch.

At BrauBeviale, visiting experts and specialists from breweries and malt houses, wineries, distilleries and dairies, specialists from companies that produce non-alcoholic drinks as well as representatives from the hotel and catering industry, the specialized beverages retail and wholesale trade, and engineering and planning offices are highly qualified.

According to the results of a survey in 2014 by an independent institute, 87 per cent are involved in investment decisions.

The popular trade fair mix of professional presentations and personal meetings in an informal atmosphere impresses through a manageable, clear overview of investments at the fair, three highly efficient trade fair days, compactness both in terms of specialist aspects as well as event duration, the comprehensive range, intensive personal dialogue with decision-makers and the ideal date.

For more information, visit the official BrauBeviale website at www.braubeviale.de or contact GTCC’s official representative for NürnbergMesse in Thailand, Mr. Nupat Khusribanchong at tel: +66 2 670 0600, ext. 3003; or e-mail: nuernberg@gtcc.org.

The two-day meeting will open during the last day of BrauBeviale, the world’s most important international investment goods fair for the beverages industry at the Nuremberg Exhibition Centre. All those who are already operating a food truck or are planning to offer culinary highlights irrespective of the location – whether seasoned, experienced caterers and restaurateurs or newcomers, system caterers, event agencies etc. – should make a note to participate on 12 and 13 November.

BrauBeviale 2015 is expected to attract around 1,150 exhibitors (2014: 45 per cent international share) who will be presenting a comprehensive range of high-quality beverage

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50 TRADE FAIRS

BAZAAR 2015: FAIR TRADE MARKET TO INCLUDE NEW SECTION ON FASHION 18-22 November 2015, Berlin Launched in 1962 as Partners for Progress, the international consumer exhibition for handicr afts, jeweller y, textiles, home accessories and sustainable products changed its name to Bazaar Berlin in 2014. Every year in November, some 40,000 visitors throng the Berlin Exhibition Grounds to purchase exotic articles from around the world. The next Bazaar Berlin will take place from 18 to 22 November 2015 for those visitors who want to “buy things as if they were on holiday.”

In 2014, of approximately 38,000 visitors, 90 per cent bought items to either give away as gifts or to keep for themselves.

At Bazaar Berlin the story of who made an article and where it originated was provided free of charge, and at the newlylaunched Fair Trade Market there were particularly detailed exchanges about the stories accompanying the products.

After five days of lively market activity, 568 producers of goods and traders from 62 countries presented their wares in the halls on the Berlin Exhibition Grounds – exhibiting high-quality handicrafts, carpets, basketware, musical instruments, ethnic and designer jewellery, natural cosmetics, exceptional fashion creations, accessories and much more.

Following the successful launch of the Fair Trade Market at last year’s event, in November 2015 Bazaar Berlin will be taking the idea one step further. For the first time, it is organising a section featuring fair trade fashion, where consumers, trade visitors and retailers can find out about the fair trade collections of numerous suppliers, how the Textiles Alliance came into being, and about the certification of textiles. Visitors can get to know the companies in question and find out where to shop for fair trade textiles.

According to Barbara Mabrook, Bazaar Berlin’s project manager: “Bazaar Berlin has for some time been keen on showing fair trade textiles. However, this is the first time that the topic will take centre stage at this event. It means that Bazaar Berlin is sending a clear message of support for the Textiles Alliance that was set up last October. We also want to make a contribution towards improving the social, economic and ecological conditions within the entire textile and clothing supply chain.”

More details on Bazaar Berlin are available on the internet at www.bazaar-berlin.de/en/.

For further information and other enquiries, please contact GTCC’s official representative for Messe Berlin GmbH in Thailand, Ms. Patamaporn Wasuwat at tel: +66 2 670 0600, ext. 4010.

UPDATE 3/2015

TRADE FAIRS 51

DOMOTEX 2016: THE WORLD OF FLOORING 16-19 January 2016, Hannover The world’s leading trade fair for carpets and floor coverings, DOMOTEX 2016, will be showcasing the latest developments and applications in the area of flooring in Hannover from 16 to 19 January 2016. During the event, some 1,400 exhibitors from at least 60 countries will be vying to impress the international carpet and floor coverings industry with their products and new collections.

DOMOTEX 2015 attracted some 40,000 visitors from 100 countries.

Total attendance was thus slightly higher than for the most recent comparable DOMOTEX in 2013. The majority of visitors at the 2015 event were from European Union countries while a significant upswing was noted in the attendance from the Middle East as well as the South, East and Central Asian regions. DOMOTEX 2015 visitors were also highly qualified, with approximately 90 per cent reporting that they were either buyers or were involved in their companies’ purchasing decisions, and that they had come to Hannover with specific investment plans. More than 70 per cent of the visitors were senior executives.

background will be making the most of the massive industry presence to get an overview of the market and place orders.

Exhibitors and visitors alike can look forward to another well-attended DOMOTEX with a huge international turnout. The organisers have already registered a large number of companies that have made an early decision to take part in DOMOTEX 2016.

More details are available at www.domotex.de/. For exhibitor and visitor inquiries or more information, contact GTCC’s o ffic ial re p re s e ntative fo r De uts c he Me s s e in Tha ila nd, Ms. Kamolchanok Nantaburom at tel: +66 2 670 0600, ext: 4004; or e-mail: hannover@gtcc.org.

The event was also a magnet for buyers from the interior decorating and furniture trades, and attendance by skilled tradespeople and retail professionals was up, compared with 2013. A rise in attendance for architects, interior designers and contract business professionals was also recorded.

DOMOTEX 2016 will have a striking new look, a well-structured layout and a host of new products on display. With exhibits covering everything from traditional wood parquet to other wood floorings, laminates and outdoor decking, trade visitors from every professional

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52 TRADE FAIRS

INHORGENTA MUNICH 2016: ‘INDIVIDUAL, INSPIRING AND INNOVATIVE’ 12-15 February 2016, Munich

INHORGENTA MUNICH, the world’s leading trade show for jewellery, timepieces and lifestyle, will take place from 12 to 15 February 2016.

Three appealing words signal the change – individual, inspiring and innovative. This is the new claim of INHORGENTA MUNICH. They characterise the constructive ideas flowing into the joint endeavours of the trade show, the exhibitors and visitors with the goal of elaborating new and promising offers.

INHORGENTA MUNICH 2015 again underscored the fact that this event is an important order and communication venue for manufacturers and specialist dealers.

A total of 1,055 exhibitors from 40 countries presented their new products from 20 to 23 February. Many of them expressed extreme satisfaction with the course of the trade show, and praised the high quality of the trade visitors and the good level of orders.

The majority of the 233 new exhibitors in 2015 announced that they would participate again in 2016. More than 26,000 visitors from more than 75 countries attended INHORGENTA MUNICH 2015 in order to gather information about new products, trends and developments. About one-third of the visitors travelled to Munich from abroad.

INHORGENTA MUNICH 2016 will further enhance its position as a “trade show for discoverers”. Its product range varies from traditional and avant-garde jewellery and watches to workshop supplies, digital solutions for retailers as well as trend and fashion shows.

More details are available at www.inhorgenta.com/. For exhibitor and visitor inquiries contact GTCC’s official representative for Messe Muenchen in Thailand, Ms. Kamolchanok Nantaburom at tel: +66 2 670 0600, ext. 4004; or e-mail: muenchen@gtcc.org.

UPDATE 3/2015