Thai-Norwegian Business Review 3-2010 by Thai-Norwegian Chamber of Commerce

Thai-Norwegian Business Review 2010 â&#x20AC;&#x201C; 3

Thai-Norwegian Chamber of Commerce

Theme

Energy and Environment Normeca

Global Disaster Management

Contents Normeca: Global Disaster Management Specialist Theme: Go Green

Green Opportunities of Asia

10 11

The blowing Winds of Asia

The Neutrality of Norway

Green Architecture

Liquid Natural Gas

Norwegian Idea – Made in Thailand

It’s in the Bag

Green Power from Eltek Valere

Great Connections – Endless Opportunities

Communication Overload

My Place

Baht continues rapid Upswing

Norway and Thailand sign Air Service Agreement

Welcome Dinner for the Norwegian top Diplomats

Thailand’s Trade Competition Act: Application and Pittfalls

Shanghai World Expo – Norwegian Pavilion

Members Directory

Page 6

Page 20

Page 28

Editor: Vibeke E. Corneliussen Journalists: Eric Baker, Laurence Civil, Emma Long, Jørgen Udvang, Colin Jarvis, Nadia Willan Photographer: Jørgen Udvang Design/artwork: Kristine Hasle Advertising: Elisabeth Bashari Media Commitee: Eric Mallace, Torpong Thongcharoen, Jan Egil Amundsen

Front page picture: Briksdalen valley in Jostedalsbreen National Park, Norway Photographer: Tupungato

Norway, a Leader in sustainable Development

Despite its small size, Norway is one of the world leaders in clean and renewable energy. Norway was one of the first countries in the world to tame hydropower and today 98% of Norway’s electricity needs are covered by hydroelectricity. Historically this led to development of Norway as an industrial player before the discovery of oil and gas deposits in the North Sea. Since then Norway has become the world’s ninth largest oil producer and the world’s third largest oil exporter, and that in itself has meant extreme focus on the Norway’s sensitive coastal environment. These factors coupled with the Norwegian population’s close proximity to nature has led to development of the country’s expertise in the environmental field, something which was highlighted at the Norwegian pavilion at the Expo 2010 in Shanghai and which you can read more about in this issue of Business Review. Norway’s environmental focus is also one of the cornerstones of the Norwegian Government’s Corporate Social Responsibility Policy, with sustainability of the world we live in being covered at length. It was therefore very interesting to follow the debate in Thailand concerning the Map Tha Phut impasse where 76 industrial projects were stopped as a consequence of protests by stakeholders concerned about the environmental impact of these large projects. At the same time, the Thai government had already given green light to most of the projects which were later put on hold, something which caused the general investor confidence to drop significantly. What we can learn from this is that public participation, as guaranteed by the Thai constitution, must continue so that all stakeholders together can work on creating a sustainable environment. Unfortunately, we still see government agencies keeping people in the dark until it is too late to influence decisions. Another part of the Government’s CSR White Paper deals with corruption. While we cannot expect Thailand to match Norway in terms of dealing with corruption, we must help Thailand get to the root of the problem so corruption can be stamped out over time. Earlier this week, I attended a meeting at Government House as part of a Joint Foreign Chambers of Commerce taskforce coordinating issues with the Thai government. Corruption in government procurement was one of the issues raised by Thailand’s Trade Representative, Khun Kiat Sittheeamorn. He appealed to the foreign community to help Thailand deal with corruption. Education and information is one of the key elements in dealing with this sensitive subject, and thus very timely, the Norwegian Embassy, Innovation Norway and the Thai-Norwegian Chamber of Commerce is co-organising a CSR Seminar themed “CSR is more than philanthropy” on 19 January 2011. The seminar will be followed by a seafood networking dinner in the Ambassador’s garden. Please mark this important date in your calendar. It’s time to close for yearend celebrations soon, and I end by wishing all readers and their families a Merry Christmas and a Happy 2011. Sincerely, Axel Blom President Thai-Norwegian Chamber of Commerce

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NORMECA AS: Global Disaster Management Specialist by Emma Long photo by NORMECA

with the Royal Norwegian Army Medical Corp such as anaesthesia machines for mobile hospitals and camp beds.

As of today, the company has offices in Norway, Denmark, Japan, South Korea, India, Pakistan, Thailand, Southern Sudan, Kenya, Haiti, and the USA. It also has partnerships in Turkey and the UAE and operates in a further 169 countries around the world through a strategic alliance with Japanese conglomerate, Marubeni.

Normeca has been at the forefront of global disaster management for over 15 years. It was founded and established in 1983 by President and CEO, Jan Karlsen, who started the company from the basement of his home. Back then, the company focused on importing anaesthesia machines and ventilators, as well as medical equipment to the emergency departments, eventually becoming the largest supplier in its field in Norway for many years. Normeca continued its growth by developing further products in collaboration

In the early 1990â&#x20AC;&#x2122;s Normeca began to focus on the export market and the development of what would become their defining products, the mobile and semi permanent hospital.

orld leaders in disaster management, Normeca AS specialises in the supply, construction, maintenance and management of mobile and semi permanent hospitals as well as the provision of specialist medical field equipment and personnel.

To date, Normeca is the only company in the world that can offer all kind of both semi-permanent and mobile medical solutions including staff and are also the only commercial organisation that has the all important field experience.

Mai Khao in Phuket build within 10 days (Photo by Ms.Gina Karlsen) 8

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Normeca is principally known for its expertise in setting up disaster management facilities around the globe in response to some of the world’s most devastating natural disasters. One such event that brought Normeca to the forefront was the devastating Asian Tsunami in December 2004. Thought to be the world’s worst natural disaster in recent memory, the undersea earthquake that erupted off the coast of Sumatra in the early hours of Boxing Day triggered a deadly tsunami that would end up claiming the lives of approximately 275,000 people. The island of Pruet and its surrounding areas were badly hit and it is thought that up to 8,000 lives were lost in Thailand alone. Normeca were there from the beginning and within a month of the Tsunami, had cleared a jungle and had built and established a Forensic Medical Centre in the Mai Khao area of Phuket. In the immediate aftermath of the tsunami, it was clear that better and safer working conditions had to be created to enable the various Disaster Victim Identification (DVI) teams

to carry out their very emotionally challenging work and allow them to identify victims as soon as possible. There were some 500-600 specialists from over 44 countries and as a result of this centralised facility, they were able to identify up to 5,000 victims. The logistics, coordination and organisation of such an operation are where Normeca excels and it was through this exercise that the company became recognised as world leader in this field. Normeca retained a presence in Phuket for a further 13 months following the disaster. Normeca’s operations are varied and range from supplying the Saudi Arabian Government with 3 mobile hospitals, 2 of which were used during the annual Hajj pilgrimage and are recognised to be the world’s most high-tech mobile medical facilities. One of its most recent assignments has been a commission from the Sudanese Government for 10 semipermanent hospitals and 50 mobile clinics or floating hospitals in South Sudan. Normeca’s operations

Katiko Referral Hospital, Kapoeta, Southern Sudan build in flat pack containers (Photo by Mr.Jan Karlsen) Thai-Norwegian Business Review

are often located in hard to reach destinations such as the site in South Sudan. The conditions of the roads made it a challenge to deliver the construction materials, 80,000 Euros were spent on tires in the first 4 months alone. This was a large scale operation with the first out of 10 hospitals equipped with 180 beds and accommodation units big enough to house 160 hospital staff. The entire site was 90,000 m2. Within the last few years, Normeca has also been operational in Cuba, Haiti and in Indonesia, India, Afghanistan, Iran and Pakistan following the earthquakes there. Normeca is prolific in the development of specialist medical products for mobile/field hospitals and equipment for medical personnel that have been designed and developed in collaboration with institutions like the Norwegian Defence Research Establishments, the Medical Regiment of the Norwegian Army and the Medical Regiment of the Danish Army. Normeca now counts the Armed Forces of Japan, China, Singapore, UAE, Germany, Chile and Canada among its many customers. The company currently is established with three companies in Thailand with the third office being established in Laem Chabang, outside of Pattaya. Jan explained that when undertaking an operation, there are often hundreds of subcontractors and suppliers that have to be coordinated and managed, so this is the purpose of the Leam Chabang office. Labour costs are high in Norway and in order to manage the logistics of the South East Asian projects, some part of the activities will be moved to Thailand within the next three months. Another collaboration underway in Thailand is the development of ambulances with Thai vehicle modification company, CarryBoy. Using the CarryBoy ambulance model, Normeca will then fit it out and be exported to operations in the region. 10

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Although this alliance is not yet operational due to negotiations with the Board of Investment (BOI), Jan hopes that production will soon be underway. When one considers the scale of Normeca’s worldwide operations, you have to remind yourself that the President, Jan Karlsen, created Normeca out of his home basement. It is an amazing achievement. Jan has always been involved in the medical field and began his career in medical sales and was one of

MultiSpace Mobile Hospital to Saudi-Arabia (Photo by Mr. Jan Karlsen)

Norway’s first ever “paramedics” in the very early seventies. He began the business by importing anaesthesia machines and the empire grew from there. Along with his many contacts and in particular, his close relationship with the Medical Corp of the Royal Norwegian Army, the business has gone from strength to strength. Normeca remains a truly Norwegian company and is 93% owned by Jan and his family. A major Danish company owns 5% and a Turkish organisation holds the rest. It is, however, in Jan’s words a ‘family business’. This is an outstanding organisation with a tremendous record and reputation in disaster management and they are warmly welcomed to the membership of the Thai-Norwegian Chamber of Commerce.

Energy and the Environment The Touchstones of our Generation

reen is everywhere. Green energy, green technology, greenhouse gases, green architecture. The environment and the impact that the worldâ&#x20AC;&#x2122;s use of energy has on it has become the cause of our generation. It is a stark reality that the natural resources of the planet are slowly dwindling, so, governments and organisations around the world are striving to find alternative sources of energy that are sustainable and kind to the environment. In other words, the world is going green. As individuals, we are conscious of our carbon footprint and are ever more aware of what our environmental legacy for future generations will be. Organisations around the world are now measured by how environmentally friendly and conscious they are and how they are using renewable and sustainable forms of energy in their areas of business. Norwegian DNV has taken on a global leadership position in helping companies manage their environmental programmes and to assess new opportunities in renewable energy and clean technology. For this issue of Business Review, we take a close look at these vital issues where Norway and Norwegian companies play a pivotal role. We have profiles and interviews with companies and individuals who are at the forefront of this new way of doing business. Alternative sources of energy such as wind power are examined as well as cutting edge technologies aimed at carbon reduction. We also meet with members to the Chamber, such as Eltek Valere, who specialises in providing green power solutions. Learn about carbon credits and how they can help you do business and read about how Norway won a prestigious award in environmental design at the recent World Expo 2010 in Shanghai, China which championed urban sustainability as its theme. We also touch upon the use and distribution of liquefied natural gas (LNG) and its prominent rise as an alternative fuel within the South East Asian region and how Norwegian companies are taking advantage and seizing new opportunities in this emerging market. Letâ&#x20AC;&#x2122;s go green.

Green Opportunities in Asia by Eric Baker photos by DNV

he establishment of a clean technology centre in Singapore by independent foundation Det Norske Veritas (DNV) in March is another signal that Southeast Asia is taking calls for green, sustainable businesses seriously. The centre is in Singapore’s Science Park and was built to support the island nation’s goal of becoming a global clean technology hub in 2015. It hopes to partner with industry and the government on projects dealing with renewable energy, green shipping and offshore solutions, green ports, climate change adaptation and carbon markets, and electro-mobility supporting Singapore’s urban solutions initiative. The centre will also conduct technology qualification, develop recommended practices and carry out risk and asset management services. It is staffed by 25 research engineers and advisers, with the goal of increasing that number to 100 in five years.

Singapore has allocated nearly S$700 million to develop five sectors in clean technology: R&D, skills enhancement, grooming local enterprises, branding its industry internationally and growing a vibrant industry eco-system. The island hopes to contribute S$3.4 billion to gross domestic product and create 18,000 jobs by 2015 through the investment. Bjorn Tore Markussen, the managing director of the centre, said Singapore’s water and solar sectors have grown rapidly and regional interest led to the development of the centre by the Oslo-based foundation. DNV has been in Singapore for over 40 years and is increasingly focused on Asia, with 80 offices and 2,000 employees in the region. At the opening ceremony in March, Singapore’s Minister for Trade and Industry Lee Yi Shyan said the country is positioning itself as a living laboratory where companies could come to develop, test-bed and commercialise clean tech solutions.

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On June 3, the Maritime and Port Authority of Singapore and the clean technology centre signed a partnership agreement to initiate and promote research, development and test-bedding projects in the areas of maritime environment and clean technologies. ”We are delighted to work with MPA,” said Remi Eriksen, the chief operating officer of DNV’s Division for Asia Pacific and the Middle East, at the signing. ”We firmly believe that Singapore’s collaborative model, involving businesses, academic institutions and government agencies will contribute to Singapore’s fast growing clean tech industry and as a maritime knowledge hub.” ”As an independent foundation with a strong technology base and risk management as our core area of expertise, DNV will fill a unique role in creating trust and confidence among players in the industry as new technologies and solutions evolve in the clean technology arena.” The impetus to develop clean and sustainable technologies in Asia already has a foothold:

• Thailand hopes renewable energy will provide up to 40% of required energy in 10 years.

• The Philippines want to become the top

geothermal energy producer in the world and the top wind energy producer in Asean by 2013.

• South Korea, by investing 2% of its GDP annually until 2014, aims to capture 8% of the global clean tech market.

• India and China plan to install 20 gigawatts of solar power each by 2020.

DNV estimates the global market for clean sustainable resources is US$850 billion now and will reach $2 trillion by 2020. The Norwegian organisation decided to focus on Asia because it is the world’s fastest developing region and by 2020 is expected to account for one-third of world trade. As the world’s busiest port by total volume of ships handled, Singapore was a natural fit for DNV’s Asia base. Shipping still accounts for 90% over the world’s goods movement, but it is responsible for only 2.7% of car14

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bon dioxide released, 10-15% of nitrogen oxides and 4-9% of sulfur oxides. It is considered one of the most environmentally friendly forms of transport. The twin demands of becoming greener and also saving money as oil prices seem destined to rise provided DNV with a mandate. It works with shipowners, operators, yards and financial institutions providing various services from technical qualification of green shipping solutions to due diligence and risk management services for green ship projects. DNV believes shipping can achieve carbon-neutral growth by 2030 with no additional costs for the industry. Useful techniques include more efficient operations through weather routing systems and speed optimisation, the introduction of more efficient technology such as better-designed engines, propellers, hull forms and coatings, a change of fuel usage from the heavy fuel oils being used now to natural gas and later biofuel and fuel cells, improving infrastructure to enable faster turnaround times and increased port capacity and improved co-operation between players, including charterers and owners on contractual issues. New ecoefficient ship designs which incorporate innovations in all areas such as engine and propulsion, machinery and hull shape can also help to reduce emissions. Various measures such as slow running the main engine would cut fuel consumption by 3%, a bigger propeller would reduce it by 5%, a custom-made hull designed for a specific route would take 8% off and waste heat recovery would shave off another 9%. The Maersk Line slow-steamed their vessels and cut engine loads by 10%, resulting in savings of up to 20%. Mr. Markussen pointed out another area with huge potential to cut emissions is shifting to natural gas as a fuel for short sea and inland waterway shipping. This can produce significant emission reductions compared to using fuel oil. DNV estimates that sulfur oxides and particulate matter can be completely cut out while nitrogen oxides can be reduced by 90% and carbon dioxide by 20% if natural gas is used. Much of the short sea fleet of RoRo vessels, ferries and even offshore supply vessels in Europe is already being transformed using this green fuel. This holds much potential for Asia where the infrastructure is still underdeveloped and the concept of short sea shipping is not fully understood.

Thailand is making more of a name for itself in the carbon trading sector. Clean Development Mechanism (CDM) projects should gather momentum in the kingdom now that the Finance Ministry has agreed to waive or cut taxes for carbon trading revenue, putting it on a par with Asean rivals in promoting investments in the industry. ”This incentive indicates the government has taken seriously the need to promote green investments,” said Natee Sithiprasasana, chairman of the Thai Clean Development Mechanism Association and chief executive of AT Biopower Co, to the Bangkok Post on October 26. Thailand currently ranks fourth in terms of approved CDM projects from a host nation. However, the country still trails Indonesia and Malaysia in terms of projects that have won approval from the UN Framework Convention on Climate Change for carbon credit trading. “CDM projects will be entitled to the tax incentives for only the first three years of operation, equal to Malaysian government grants,” said Sirithan PairojBoriboon, executive director of the Thai Greenhouse Gas Management Organisation (TGO), to the Bangkok Post. The incentives are both certified emission reduction credits and verified emission reductions. Revenue

generated from carbon credit sales is now subject to normal corporate income tax of 30%. CDM allows industrialised nations to buy carbon credits from projects in developing countries to meet their emission reduction commitments under the Kyoto Protocol by 2012. The TGO has approved 118 CDM projects with a combined carbon emission reduction of 7.38 million tonnes per year. Another 229 projects are in the pipeline, with 30% biomass, 30% biogas and the rest solar and wind farms and mini-hydro plants. IRPC Plc, Thailand’s leading petrochemical company, is seeking TGO approval for its energy efficiency programme with the capacity to lower carbon dioxide emissions by 400,000 tonnes a year, which would make it the largest CDM project in the country. Mr Sirithan told the Bangkok Post the TGO was working with its South Korean counterpart to develop the capacity of the Thai Industrial Standards Institute as the first local carbon credit authorising auditor, known as a designated operational entity (DOE). By having an authorised Thai DOE, the process to verify CDM projects will be faster and cheaper for developers. To date, Malaysia is the only country in Southeast Asia with such auditors.

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The blowing Winds of Asia by Lawrence Civil

ind energy makes sound economic sense. In contrast to other generation sources, the price for the fuel needed over the total lifetime of a wind turbine is well known: it is zero. This takes away a substantial part of the investor’s risk. Wind farm owners, however, know how much the electricity they generate is going to cost. No conventional energy technology can make that claim.

Photo by Robin Strand/Innovation Norway

According to the Global Wind Energy Council there is a growing global demand for emission free wind power that can be quickly installed anywhere in the world. The United States has passed Germany to be the number one market in wind power and China’s capacity has doubled for the past four years. Wind energy is the only power generating technology that can deliver the necessary cuts in CO² in the critical period leading up to 2020 when the greenhouse case must peak and decline in order to avoid dangerous climate change. There are three key areas in the world that are driving wind energy development; they are North America, Europe and Asia. Here in Asia the strongest market is China followed by India then Japan. China’s growth in wind energy started when The Renewable Energy Law came into force in 2006. This marks a major shift in energy policy by stipulating for the first time that the grid companies have an obligation to buy the full amount 16

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of energy produced from renewable sources. This guaranteed buyer accounts for the annual doubling growth of wind energy. “In 2009 China installed more wind turbines than all of Europe and by 2017 could have the world’s largest total capacity,” said Angelika Pullen, spokeswoman for the Global Wind Energy Council, an industry group. China is the second largest producer of wind power, after the United States. With its large land mass and long coastline, China has exceptional wind resources. Researchers from Harvard and Tsinghua University have found that China could meet all of their electricity demands from wind power through 2030. Wind power works as a renewable energy source in China, but how is wind energy performing in Thailand? Wind power generation was introduced into Thailand in 1983, mainly due to the field test work by Electricity Generating Authority of Thailand (EGAT). Their tests showed the mean wind speed varies from 2.5 m/s in the Northern part up to 4.0 m/s in the Southern part of Thailand. At some specific sites off Phuket Island the monthly wind speed varies from 4.0 to 6.1 m/s. The Thai government’s policy has been to promote the use of more renewable options but in the early days the opinion was that average wind speeds were too slow to make it economically viable. Now, however, sufficient wind speeds have been found in selected areas and are being used to generate electricity. One of the key players is Wind Energy Holding who is emerging as a major wind-power generator, with four or five projects on the cards that will require a combined investment of tens of billions of baht. “We have spent up to two years on feasibility studies. There’s huge potential in terms of wind energy, but the government’s ‘adder’ is the key incentive for this investment,” said Watcharapong Khemkaew, Project Development Manager of the Thai-owned company. The adder tariff is a special purchasing rate that is higher than that for conventional fuels. Another project is the Kao Kor Wind Power Project in Petchabun province with an installed capacity of 60 megawatts. Commercial production is due to start by 2012 and they have already signed a contract with Electricity Generating Authority of Thailand to buy the power they produce. German wind developer Pro Ventum International is teaming up with GE to build a 90-megawatt wind farm about 250 kilometres northeast of Bangkok. Pro Ventum has signed a memorandum of understanding

for GE to supply 36 2.5-megawatt wind turbines to the Thep Sathit Wind Farm in the Chaiyaphum province of Thailand. Simultaneously GE also is looking into a potential equity investment in the project. When it becomes operational Thep Sathit Wind Farm has the potential to be one of the first wind farms of this scale in Thailand and the greater ASEAN region. “This project will support the Thai government’s policy to promote cleaner energy,” says Dr Wannarat Charnnukul, Thailand’s Minister of Energy, which calls for the country to use renewable resources for 20 percent of its power generation by the year 2020.” Supportive government policy will encourage more investments in the renewable energy industry. “Thailand’s multi-year incentives have made wind energy development a competitive proposition for potential investors. This MOU is testimony to how long-term policies that match the life cycle of an investment, are driving the growth of renewable power generation,” said Kovit Kantapasara, GE Energy’s country executive for Thailand and Indochina. “Renewable energy is important to Thailand as the country diversifies its power generation portfolio and reduces its dependence on imported fossil fuel.” DNV (Det Norske Veritas) is an independent foundation established in Norway in 1864 with the purpose of safeguarding life, property and the environment. Its Asia Pacific base, established for over 40 years is in Singapore. DNV amongst other things, helps defining internally recognized standards for future energy solutions and DNV has been contributing to the successful growth of the wind energy industry for over 25 years. This is a sector with several technical, environmental and financial challenges that the developers need to thoroughly understand. We spoke with Søren Karkov, Director of Clean Energy for DNV Clean Technology Centre in Singapore about some of the issues they are addressing about wind energy. “All human activity creates some form of impact on the natural environment,” says Karkov. Wind power is one major alternative energy source to help achieving the 2020 target of the Kyoto agreement but one criticism is the number of injuries and deaths turbine blades cause to local bird life. To better understand potential negative effects on nature and to develop new knowledge to avoid them the wind industry is contributing widely to further research.

Bangkok Office: 10th Floor Vibulthani Tower 1, 3195/15 Rama 4 Road, Klongton, Klongtoey, Bangkok 10110 Thailand Tel: +66 2 661 3486 Fax: +66 2 661 4385

Mill Location: 64/3 Moo 3, Asian Highway, Phokruam Amphur Muang, Singburi 16000 Thailand Tel: + 66 3 653 111 Fax: +66 3 653 1100

torpong-t@papcothai.com www.norskeskog.com

“One essential tool in preventing problems before they arise is proper sighting.” How to position a wind turbine for optimum performance may be a simple question but the answer is far more complex with multiple technical factors to be considered such as mapping of vegetation within the area and measuring raw wind resources in or near the site for minimum a year. Other requirements include digital elevation data for the project region, sodar or lidar data or studies to assess the wind characteristics on the site and electrical line loss study. Software is used to simulate the wind farm layout. Proper sighting fulfilling these and many other requirements should result in preventing significant impacts on wildlife. Many people consider global climate change to be the most serious threat to wildlife. Wind power is one of the key solutions to mitigating this threat. Thus, large-scale wind power integration affects the natural environment in highly positive ways. The power of wind is the most promising of all renewable energy sources; its resources are limitless; it enhances the concept of energy independence; it can generate more MegaWatts in a short period of time than fossil fuel generators and; most importantly is a CO² neutral form of energy which plays a proactive role in reducing green house gas emissions. The future of the World’s future energy source is blowing in the wind.

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The Neutrality of Norway by Nadia Willan

orway is boldly stepping into its carbon footprint and attempting to eradicate it with a pledge for carbon neutrality by 2030. Not only that, but the country is investing some 500 million euros to do so. Asia is one of Norway’s key locations in which to purchase carbon credits following the rise in carbon offsetting projects designed to reduce the country’s greenhouse gas debt to the environment.

Photo by Yngve Ask/Innovation Norway

In 2007 Norway committed to the Kyoto Protocol to stop the increase of carbon dioxide levels by reducing four greenhouse gases, with the biggest pollutant being carbon emissions from the massive increase in industry around the globe. Norway has undoubtedly gone one step further in its 2030 promise.

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Carbon offset is created through investment in projects that reduce greenhouse gases. In many cases, including Thailand, this is through renewable energy and biomass projects. The result of this offsetting is the creation of carbon credits. If a company produces twenty tonnes of greenhouse gases and offsets twenty one then that one tonne extra is certified as a carbon credit. These carbon credits can then be sold at market value to reduce a company’s and a country’s carbon footprint. Carbon offsetting does appear to be a real effort in reducing greenhouse gases, although it has come under criticism from environmental groups who see this offsetting as a way of appeasing an initial wrong, trying to make amends for wrongdoing rather than stopping the bad behaviour in the first place. It has to be said that commendable as Norway’s efforts might be, the country is responsible for a lot of carbon emissions from the oil and gas industry to reduce in the first place - somewhere around 500 million tonnes. However, Kristin Halvorsen, during her tenure as Minister of Finance for Norway, up until recently sees the 2030 ambition as a positive one. “International emission trading will be an important instrument to reduce global greenhouse gas emissions. Norway intends to make full use of the carbon markets to secure effective and affordable reductions in Greenhouse gas emissions. Norway will actively contribute to the development of this market.” Whether by pressure from the international community or spearheaded by a global environmental consciousness Norway is attempting to step up to the carbon neutrality benchmark. As a leader in the journey to carbon neutrality, Norway hopes to stimulate growth in the carbon credits market in Thailand. Its main areas of interest are in projects involving renewable energy, energy

efficiency and fuel switches from CO2 intensive fuels to cleaner ones. Thailand is an obvious choice for Norway to look at investing in companies trying to offset carbons and earn carbon credits. Given that this part of Asia is primarily involved in agricultural related businesses, the potential to buy a good chunk of credits here is promising. However, there is perhaps a heavy leaning towards biomass in Thailand and renewable energy projects from biological material and less emphasis on other forms of energy efficiency such as wind farms and solar power. However, with investments in carbon offsetting, an influx of carbon credit buying in Thailand has stimulated business to produce what the buyers are looking for. These Clean Development Mechanism (CDM) projects are on the increase in Thailand which seems to be making a real commitment to solar power production. In the early part of the decade, the bulk of Thailand’s carbon emissions were in energy production, however this still only represented less than 1% of the total global emissions of CO2 in this sector. In more recent times however, Thailand’s political instability aside, has some big CDM projects on the slightly less polluted horizon. A massive $120 million usd project is underway to produce the biggest wind farm in South East Asia, which

will allow for Norway and other Kyoto Protocol countries to invest. In fact there are over 120 CDM projects in Thailand that have been approved by the Thailand Greenhouse Gas Management Organization. However, when looking at the near future Norway and other developed countries will need to ensure that they are investing in the right way. “As the Kyoto Protocol has not been extended or replaced there is uncertainty as to whether projects registered after 2012 will qualify under CDM. Countries like Norway need to make sure they undertake all the necessary due diligence to ensure that any CDM project investment meets all the relevant criteria and secondly, will be registered with the UN before the end of 2012,” says Steve Pearmain from SLP Environmental, based in Bangkok. In terms of reaching the carbon neutral point by 2030, Norway can certainly not rely on countries such as Thailand or the rest of ASEAN. However, an industrialized country like Norway can make great reductions by focusing on what might be considered less well-developed countries such as Thailand. Norway is pitching at the right time in a country that is thriving on stimulating new business through the carbon credit marketplace and both countries are benefitting from the trade in meeting their declarations of environmental damage control. The extent of that investment in Thailand in the next couple of years remains to be seen.

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Green Architecture – Good Housekeeping and reducing by Lawrence Civil

he Green prefix has become eco chic. The majority of the world’s population is aware of global warming and the ideology of reducing their carbon footprint, yet building green is still regarded as a luxury few think that they can afford. But Green architecture is more than a fashion statement; in fact many architects agree that smart, sustainable buildings are the most cost-effective kind of construction. Laurence Civil looks at some examples of how green architecture is successfully working in Thailand.

his neighbours unless you are paying close attention to the solar panels on the roof. Externally confirming yet internally rebelling against traditional Thai construction technique. By using solar energy rather than grid electricity he was able to use air-conditioning ducts 15 times smaller than the norm. The challenges he faced were not so much making alternative energy to work but gaining acceptance for his alternative building technique from the local authorities from whom he needed building permission. So why was this Thai university professor so unusually alternative energy savvy? While teaching for 20 years at the University of Michigan he did research into a sustainable lifestyle. He knew what would work in Michigan, the challenge he faced on his return to Thailand was how he was going to apply it here when the two climates are so different. Back there he was using alternative energy to add heat to the house, here the reverse, using heat transfer from the air-conditioning to heat the water for the house and pool. He achieved this by fitting 62.5 m² of solar panelling to the roof of his house which generates in excess of his household energy needs. He is therefore able to sell the surplus energy to the electricity authorities generating an additional monthly income of THB 1,000. Go green and bill the energy authorities, a key selling point for the cause. The profit and loss account of Dr Soontorn Bio-energy home is looking good but it may be too early to say he is yet making money out solar power as the capital investment in the solar panels is still being paid off. His faith in what he believed in was rewarded recently when the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) presented Soontorn with a regional award.

Thailand has natural abundant daylight giving it great potential for farming solar energy making it the ideal energy source for green architecture. One example of domestic application is the Bio-Solar by Dr Soontorn Boonyatikarn, a Thai professor of architecture. If you walk down his suburban street outside of Bangkok his house appears quite similar to that of 20

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On a much larger scale Architects Woods Bagot designed Ocean 1 Tower in Pattaya, Thailand’s tallest building to be environmentally friendly because it made commercial sense. Going green did add 1% to construction cost but this was accepted knowing that it would be recovered quickly by energy savings. They did this by installing electricity generating solar panels; the windows use glass with automatic shading that reduces internal ambient heat and requires less air-conditioning. The motion of elevators travelling up and down the 91 floors generates energy by itself which has been harnessed; the result their bought in energy consumption is reduced by 98% compared to conventional elevators yet they are travelling faster.

monthly Energy Bills Capturing the towers natural energy allows all the water to be heated without buying in electricity. They can then sell the hot water to tenants at 50% of the normal rate which exceeds their expectation. That initial 1% additional construction cost get paid off within one to years and thereafter the tower becomes more energy self sufficient. Just as with Soontornâ&#x20AC;&#x2122;s house, the heat exchanged from the air conditioning will heat the water, and 80 percent of the water from the showers and taps will be cleaned and used to flush the toilets and fill the fountains and swimming pool. Green architecture isnâ&#x20AC;&#x2122;t just a matter of how you invest money to build but can also be making the best use out of limited existing resources. A group of Thai students built six bamboo woven dormitories for Karen refugee orphans in Noh Bo village on the Thai Burmese border with help from humanitarian design organization TYIN from the Norwegian University of Science and Technology. These prefabricated huts were built using locally harvested bamboo woven together in the traditional local style thereby keeping construction cost to a minimum. Re-cycled car tyres formed the huts foundations. Here is an example of green architecture built by making do with what they already had. Giving donations to the temple is the cornerstone of the Buddhist faith, rarely is it in the form of an item that the giver no longer needs. But in the case of Wat Pa Maha Chedi Kaew temple in Sisaket province 370 miles north of Bangkok, it was the donation of more than 1 million used bottles that became the bricks to build the temple. Bottles are a sustainable material, they never fade, they let in natural daylight and are easy to maintain. Even the bottle caps had a use in decorating the walls. Cosmic energy may sound a little abstract when dealing with a subject as serious as Green energy but it and the likes of Feng Shui play a serious role in Asian architecture and therefore deserve consideration. The Earth has its own energy and Vedic Accenture as used in the construction of The Khmer Temples including Angkor Wat to harnesses this energy. Their practice is based on network of energy lines that cover the globe of the Earth, the energy grid. The lines of longitude and latitude are their conductors spreading

this natural energy around globe. The factors they take into consideration are tailored to the physiology and psychology of the owner and his or her family. They consider location of building on site, including access, and utility supply routes; orientation of building to sun and environment; arrangement of internal rooms, and doors and windows; dimensions of building and environmental components and; the colour, texture, ornamentation of building and environment. Green Architecture isnâ&#x20AC;&#x2122;t just eco chic for the rich with a conscious about how much they are spending rather it is the way we can all have a sustainable lifestyle while reducing our monthly energy bill.

Liquid Natural Gas The Way Forward for South East Asia by Emma Long photos from TORP LNG

iquid Natural Gas, or LNG as it is more commonly known, is a natural gas which, for the ease and accessibility of distribution and storage, has been converted, temporarily, to a liquid form. The use of LNG is of particular relevance when it comes to transportation to areas where no pipelines or necessary infrastructure exist. Floating LNG tankers are used when moving natural gas is not economical or simply not possible due to lack of infrastructure. The LNG market in South East Asia has taken on a significant role as the regions’ energy demands continue to grow. The lack of an extensive pipeline network in the region means that the need for LNG will almost certainly increase. In response to this ever increasing demand, the Norwegian risk assessment company, DNV (Det Norske Veritas), was commissioned by the Norwegian Ministry of Foreign Affairs to make an opportunity assessment of the South East Asian market for LNG shipping and distribution.

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The Government’s liaison for the project is Egil Rensvik, who is the Science and Technology Counsellor for Innovation Norway at the Royal Norwegian Embassy in Singapore. Egil explained that the project came about from a desire to tap into the potential of the huge South East Asian LNG market and an opportunity to use the extensive experience that Norway already had in the search for alternative fuel solutions. He added that there was a growing level of dialogue around the world on environmental and sustainable ways of shipping and how LNG could be used as a green shipping fuel in the future. The assessment focused on key and strategic market areas in the region, with particular emphasis on Vietnam, Malaysia, Indonesia, Singapore, Philippines, Bangladesh, India and Thailand. The report outlined the following key issues: “In the region, oil is the main source of energy supply, however this picture is changing, for several reasons:

• There is governmental attention to diversify

the energy sources to improve the energy supply security; • There are significant gas resources in the region, and the development of these are on the increase. More LNG terminals are being built, and networks of natural gas pipelines are

on the increase in the region;

• There are national and international

agreements to reduce greenhouse emissions;

• Oil is not the only source of energy, but also a more valuable source of raw material to the petrochemical industry;

The report continues “Although networks of natural gas pipelines are being built and being further extended, there are many areas in the region that will still not have access to these. In order for these regions to get access to natural gas, it will have to be distributed as LNG, and probably via small-scale LNG ships. Norway stands out as an example where the growing domestic infrastructure on LNG for shortsea shipping is becoming increasingly competitive. Norwegian stakeholders along the LNG value chain have most definitely gathered unique know-how, which can create a feasible advantage also in the South East Asian region” The opportunities for Norway and Norwegian companies are very attractive. The LNG market in Europe is already well established but the South East Asian market is still relatively young and this allows Norwegian companies the opportunity to expand abroad and take an active part in these potential projects. These opportunities also extend to providing technical and regulatory advice to the region regarding

the distribution and use of LNG. The ‘Norwegian cluster’ (as described in the DNV study) is well placed to provide this. The cluster is a term used to describe all those who are part of the value chain, such as R&D institutions, Universities, suppliers, banks, educators and risk assessors to name but a few. Egil explained that whilst some of these will be in competition with each other, they also come together and pool their collective expertise and know-how to enable those new to LNG to move forward. Egil sees the potential market for LNG as a shipping fuel as a very attractive one for Norway, with possibilities available in the passenger ferry and supply boat market. The next step is then to pursue opportunities in the much larger and more lucrative container ship market. With many actions now arising out of this study, Egil says that the way forward now is to consolidate the information already gathered and to work closely with all those in the value chain to ensure that the projects get underway. So, with green technology and sustainability as the by words for this generation, sourcing new ways of alternative fuel is indeed the way forward for Norway.

Thai-Norwegian Business Review

Norwegian Idea – Made in Thailand by Jørgen Udvang

ne of the challenges when getting a new product to the market is to limit the development and production cost to a level that makes the project economically feasible. That is particularly important with products that are solely developed to save the environment, since they often don’t return a direct profit to the customer. Many people want to save the environment, but there’s a limit; cost has to be reasonable. Redecorating is a very popular activity in Norway. Many Norwegians redecorate their homes frequently, not necesarilly because it’s needed, but because it gives their homes a fresh, new “look”. Add to that the constantly changing trends and the “need” to keep up with the Joneses, and it’s easy to understand that consumption of paint and other redecorating items is on a high level in the Kingdom of Norway. With a background from the recycling industry, Mr. Knut Østbø knows very well that large quantities of hazardous chemicals from paints are dumped in nature every year, endangering nature in general, and contaminating groundwater in particular. He had been carrying with him the idea of a recycling bucket for paint chemicals for a while, when he found a partner, Naeslund International in Bangkok, who could point him in the direction of a manufacturer here, making product co-development and production in Thailand a viable option. The idea behind the product is simple enough: It’s a container for chemicals, airtight to avoid fumes to escape, and with a provision for hanging paintbrushes inside, keeping them moist for next time use. There are lots of challenges surrounding the handling of toxic chemicals, and one of them is the choice of materials. They have to withstand chemicals like turpentine and other thinners, be shock resistant at any temperature, and obviously be easy to maintain and handle, making the container easy and attractive to use, so that it doesn’t end up in the back of a closet gathering dust. A special challenge, Mr. Østbø says, was the rubber seal for the lid. The requirements and the dimensions made a tailor-made solution necessary.

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Co-development and production in Thailand has contributed several advantages to the project. To start with, production in general is much cheaper here than in Norway, and particularly the production of the moulds is an important factor, with prices in the area of 20% of those in Northern Europe. Mr. Østbø also says that working with the Thai suppliers and their engineers has been a pleasure. “They have been extremely flexible and adapted easily to input from our side”. The final product, in bright colours and with rounded corners, has playful but solid impression, and is indeed easy to handle and to use. At the moment, the product is being marketed in Norway, and the Swedish market is currently being looked into. Distribution is mostly through communal recycling stations. The users pay a small fee to receive the bucket the first time, and get a replacement every time he or she brings it in for emptying. The emptying and replacement is free of charge for the user. So far, 6,000 buckets are in circulation, mostly in Norway, but the company sees a large potential also beyond Norwegian borders.

Itâ&#x20AC;&#x2122;s in the Bag! by Colin Jarvis

very long time ago, when I was a small boy of about four years of age, my mother and I would leave the house every morning, and walk down to the local shops to buy food for the day. She would carry a huge wicker shopping basket. This was long before the advent of supermarkets, indeed some shops, such as Sainsburyâ&#x20AC;&#x2122;s, provided chairs for the customers to sit on whilst they placed their orders with the shop assistants behind the counter. I did say it was a long time ago.

The problem was that when my mother was not actually shopping, the wicker basket took up quite a lot of space in the kitchen. Then one day she appeared with a new invention, in fact two. These were simple fabric folding bags with two handles that had the advantage that they would fold up small when not in use and my mother could carry one in each hand, when full, thus giving her a more even load. Then, when I was about 10, supermarkets and selfservice stores started to appear. When my mother arrived at the supermarket she would be presented with a wire basket which she would take to the checkout when she had finished her shopping. The checkout operator would then pack the shopping into plastic carrier bags. A wonderful invention! No longer did my mother have to carry bags to the shops

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at all. Whatâ&#x20AC;&#x2122;s more they could be used for many other things. Kitchen waste could be placed inside them before it was put into the dustbin, thus reducing the smell and the flies. Winter or summer clothes could be stored in these bags when they were not needed. I could use them to make kites, carry my soccer boots, collect apples; I could even use them to fish in the local river and then use them to carry home my catch. Indeed, the plastic bag was a wonderful invention and it became a common and indispensable tool in our everyday lives. In those days we were not aware of the environmental problems. Although we might see the odd bag drifting down the street or across a field, the idea that they would last forever, lurking in the ground, never occurred to us. By the 1970s people began to realise that plastic bags were creating a serious environmental problem. One solution was to ensure that the bags were made out of a plastic that was biodegradable. This seemed like a good idea but it was impossible to tell a biodegradable bag from a non-biodegradable one. Consequently thousands of people, who used plastic bags for storage, would find that eventually the stored items were covered in a coloured powder, the degraded plastic bag, and that the carefully separated contents were now mixed up. As time went on the problem became more obvious as we were using far more bags than previously. By the end of the 1970s and the beginning of the 1980s my mother no longer walked to the shops. She would drive her car to the hypermarket and fill up the station wagon with perhaps 30 or 40 plastic bags full of groceries. By now the number of plastic bags being brought into the house was far greater than we could ever reuse and so they were being thrown away with the rest of the rubbish. This problem did not happen in the United States as traditionally they had used paper bags and sacks. But in Europe, and later in Southeast Asia, our appetite for plastic bags grew and grew. We would expect every retailer to be able to provide us with a suitable plastic bag and would think it strange to have to take a bag shopping. By the year 2000, people in Europe were becoming aware of the huge environmental disadvantages and

the tremendous waste caused by plastic bags. Retailers, too, were keen to reduce the number of bags required as they were paying fortunes supplying these single-use items. The first attempt at a solution was to make single-use bags available but customers were given a discount if they brought back a bag to be reused. The real solution, however, was found to be the “Lifetime” bag. This is again a plastic bag but far tougher than the single-use ones. The customer has to purchase their first bag but if it wears out a new one is provided free of charge. Nowadays in the UK, the supermarkets do not provide plastic bags other than the “Lifetime” bag. This strategy has undoubtedly saved the supermarkets huge fortunes. It has also greatly reduced the number of plastic bags littering the environment. Some bags have even become collector’s items! All in all it is a good strategy that has worked well. What of Thailand? Tesco Lotus hosts 34 million customers per month. On average these customers use two bags per visit. That is 68 million bags per month or over 800 million per year. It would seem that a “Bag for Life” campaign would be good for the environment and save Tesco Lotus a fortune. Tesco Lotus is very firmly committed to environmental responsibility. They are in the process of reducing

their carbon footprint by 50% over the next 10 years. They intend to be carbon neutral by 2050. Their record is impressive and their commitment undeniable but, Khun Saofang Ekaluckrujee, their public affairs manager, says that “Bags for life will not work in Thailand”. Why should this be? Why will it not work in Thailand when it has worked in Europe? The answer, according to Khun Saofang is that consumers in Thailand are not really aware of or do not care about the environment as much as Europeans. If the free plastic bags are taken away the supermarkets believe that their customers will desert in droves. This is not only the view of Tesco Lotus, Khun Phatroj Phatsorpinyosakul, President of Rimping supermarkets, holds the same view. Much as he would like to introduce “A Bag for Life Scheme” he does not see it working, even though his customers tend to be fairly affluent, well educated and with a high proportion of foreigners. It would seem that the scavengers who earn a living by collecting the bags will be fully employed, at least in the foreseeable future and that small boys, who go shopping with their mothers, will be able to go fishing with a plastic bag.

Thai-Norwegian Business Review

The Energy Challenge – Green Power from Eltek Valere by Eric Baker

he need for energy is a given everywhere in the world, and Sven Skaug is excited about how we can increase the availability and quality of power in the future.

The company’s main product line consists of rectifiers and converters, which transforms 230 volt AC power to either 48 or 24 volt DC power, used in telecommunication and industrial applications. Telecommunication customers currently contribute close to 75% of Eltek Valere’s annual revenue. While Eltek does not necessarily produce what the public thinks of when it conceptualises the green movement, green devices would be useless without Eltek products to efficiently convert their power to a usable format. Mr. Skaug said Eltek Valere is playing a vital role in renewable energy, in sectors such as solar and wind power as well as with chargers for electric vehicles. “If the world is serious about electric vehicles, the future looks bright indeed. Today you can travel a distance of 400 kilometres on a fully charged battery, but recharging is a very slow process. Ideally, the car has to be stationary for more than 12 hours, so the battery and charging technologies need improvements. A fast-charge solution will be needed in the future, which could recharge the battery within one hour.” Japan, Germany and the US need to decide on a common platform for these vehicles for Eltek to ensure the batteries are charged efficiently to reduce wasted energy and recharging time.

“When the Thai population learns more about renewable energy and becomes even more mobile, business could start moving very quickly. In this country, everyone either has or wants a car and has a mobile phone,” said Mr. Skaug, the director and country manager for Eltek Valere (Thailand) Co. Mr. Skaug was the regional director for Asia from 2001 to 2005.

If the company name isn’t familiar, it’s because as Mr. Skaug puts it “the consumers have no direct contact with us.” But make no mistake, Eltek Valere is a global leader in energy solutions for telecommunication and industrial applications, and has a growing business in solar power and electrical vehicle chargers. Eltek Valere posts annual revenues of approximately 3 billion Norwegian kroner (US$ 500 million) and expects continued growth in market share and from new business areas. The company has 40 years of market experience and has been doing business in Thailand for the past 15 years. Thai-Norwegian Chamber of Commerce

“The opportunity for solar power is exciting as Thailand is in the solar belt and receives great radiation despite all the rain. The industry feels the first thing that needs to happen is a stable system that supports a feed-in-tariff by the government. The next factor is increasing the efficiency of the photovoltaic modules, which are about 15% today, as well as the efficiency of the power conversion. There are different technologies under development to increase efficiency, but cost is a major factor,” said Mr. Skaug. Eltek Valere offers the highest efficiency in the world for isolated PV Inverters, the item connected between the solar modules and the grid. The current power price in Thailand can reach as low as three baht per kilowatt hour, achieved by subsidies to producers and an abundance of coal, added Mr. Skaug, but these policies are unsustainable. Another possibility for the future is more advanced control units, mainly used in industrial applications but future homes can utilise them as well. These control the power from base stations and back-up power if a base station goes down, said Mr. Skaug. In future homes, when a person walks in, there will be a control panel that will allow you to control

temperature, lights and everything else related to electricity as it will help to preserve energy, he said. A control unit can sense a short circuit, although someone would still have to go to your house to fix it. It can also measure output and provide back-up in case of a power outage. Of course, the major stumbling block at this point is price. But an added deterrent is this equipment needs to be grounded and this requires copper, leading to problems with theft, said Mr. Skaug. Despite his excitement about the future in these fields, Mr Skaug is still realistic about how fast things change in Thailand. Even the well-established telecom industry, its main income driver, is facing indefinite delays because of 3G bumbling by state authorities. So Eltek Valere concentrates on the business matters it can control.

“I think $500 million in annual revenue is a great achievement, without considering future renewable energy revenue,” said Mr Skaug. “We are best in the telecommunication and industrial power segment, and we will stay focused on this sector.” “If a mobile operator wants to put up a cell site for radio transmissions, we are a part of that process, even if we are only 5-10% of the cost. In general, the grid power in Thailand is unstable, and there are lots of power surges. If you don’t have stabilisers and proper protection, the power and telecom systems will easily get damaged.” As for his own future, every time Mr. Skaug thinks he is going to relax and take a break, he gets contacted for more work and opportunities. “The longer I stay in Asia, the harder it gets to move back,” he said.

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Great Connections – Endless Opportunities

ith the theme ”Great connections – endless opportunities”, Telenor Group and dtac focused on strong commitment and good partnerships when celebrating 10 years of successful operations in Thailand on Friday19 November.

During the last ten year of operation dtac has grown the customer base from one million to over 20 million today. The company has focused on building a distinctive culture, empowering and inspiring its employees to secure the ‘Feel Goood’ experience for the customers.

The anniversary theme reiterates Telenor Group and dtac’s long-term commitment in making mobile telephony available and affordable for all Thai citizens, a dedication to the continued development of people and technology as well as an affirmation on readiness for the roll out of 3G and high-speed broadband services.

The anniversary was celebrated all through the day, with events for employees, media and external stakeholders. In the evening, more than 250 people, representing Telenor and dtac’s stakeholders, partners, vendors and employees gathered at the Peninsula Hotel for a 10 year anniversary dinner. The guest of Honor, Mr H.E.Chuti Krairiksh, Minister of ICT, welcomed the guests to the anniversary, before Jon Fredrik Baksaas and Boonchai Bencharongkul shared their impression of 10 years of doing business together. Sigve Brekke and Vichai Bencharongkul then talked about some of their most memorable moments from serving as Co-CEO’s together, before Tore Johnsen and Thana Thienachariya focused on the future, and the endless possibilities for dtac to support in the development of Thailand.

“I believe that dtac and Telenor have played a vital role in connecting people through advanced telecom technologies and introduced several innovative products and services that have benefitted Thailand and Thai people in their daily lives”, said Jon Fredrik Baksaas, President and CEO of Telenor Group. “Our 10 year journey in dtac has been a success which has continued to enjoy strong performance and constant business growth.”

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One decade of Telenor in Thailand – ‘dtac’s Goood 10 Years’ Dtac’s major achievements over the last decade have continued to invigorate the Thai telecom industry. Some of the highlights are as follows:

Meeting the Prime Minister

2000 United Communication Industry PLC (UCOM) enters into partnership with Telenor Group.

Earlier in the day, Jon Fredrik Baksaas, and Sigve Brekke also met with Thailand’s Prime Minister Abhisit Vejjajiva at the Government House to reaffirm Telenor’s continued investment in Thailand over the next decade. During the meeting, Baksaas expressed his disappointment over two matters that remain unresolved in Thailand - 3G licensing and concession conversion.

2001 dtac launched a new commercial brand “dtac” and started adopting a radically different approach to doing business in the Thai market.

“Telenor believes that the next growth wave in Asia will be fuelled by access to mobile broadband and Internet on small screens, and we are ready to take an active part in the rapid rollout of 3G service in Thailand, We encourage Thailand to focus on launching 3G services, since the technology and handset are available, and a large number of people are looking forward to use it,” said Sigve Brekke. “3G will give Thai people across the country access to broadband mobile internet, which is important for the country to stay at the forefront of the global arena.”

2003 dtac launched “Happy Dprompt”, a prepaid product which allows customers to select one of the four time slots during off-peak hours for discounted tariff rates

2002 dtac unlocked IMEI (International Mobile Equipment Identity) codes to allow all mobile handsets to use dtac network.

2004 dtac received “Deloitte Technology Fast 500 Asia Pacific 2004 Award”; launched HAPPY Festival 2004 Bangkok Countdown event. 2005 dtac received “Mobile Operator of the Year Award” in Thailand from Asian Mobile News Magazine 2006 dtac won “Mobile Operator of the Year 2006 Award” in Thailand from Asian Mobile News Magazine for the second consecutive year 2007 dtac won “Mobile Operator of the Year Award” in Thailand from Asian Mobile News Awards 2007 for the third consecutive year; announced a major brand refreshment with an aim to make customers ‘feel goood’; Telenor Group moved its regional Headquarters to Bangkok. 2008 dtac’s ATM SIM was awarded the best mobile service from the Asia Mobile Award 2009 dtac relocated its headquarters to ‘dtac house’ at Chamchuri Square; officially launched comprehensive service offerings for smartphone. 2010 Telenor Group and dtac celebrates its 10 year anniversary under the theme “Great Connections, Endless Possibilities”.

Communication Overload by Colin Jarvis

importance to the organisation to which they belong. A salutary lesson and one I have not forgotten.

Now we are in the age of e-mail and intranets, it is far easier for anyone to communicate with anyone else within an organisation. Unless your organisation is very well managed I am sure you suffer from what we might term, “internal spam”.

hortly before the days of e-mail I was asked by a major British bank to help them solve the problem of communication overload from which their managers were suffering. Every manager would be sent an envelope, every morning, from head office and it would take them anything up to two hours to wade through all the paperwork. This envelope had the grand title of “Branch Communication Packet”. Its purpose was to ensure that branch managers and their staff had all the information they needed to function. The “Packet” contained information about a change in exchange rates, interest rates, new mortgage procedures, serial numbers of forged banknotes and other vital information for the banking system. It is also contained information from the social club letting people know that there was a new badminton tournament, copies of new sales brochures, staff magazines and other information that was not vital to the running of the branch. It would take the manager most of the morning to sort out the important information from the unimportant and then organise a redistribution of this information throughout the branch. Since the same information was being sent to all managers in this “Packet” it was a relatively simple task to train the people who put the “Packet” together to pre-sort the information and mark it for different people with each branch. I wanted to try to understand why this idiotic situation had arisen in the first place. I asked a number of people who had created some of the least important information why they had chosen to put it in the “Packet” rather than use some other means. I thought the answer would be laziness, a lack of thinking or some other explanation such as this. However, in most cases I found that the people really did feel that the information they were passing to the branch managers was vitally important and needed to be seen by the manager. Even if it was about badminton. They felt that it was vital that all members of staff should be “Kept Informed” and believed that the branch manager was the one person who would ensure that this was done. I had not appreciated, until then, that people usually believe that what they do is of vital

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Have you ever calculated how much time in one day you waste simply by judging which pieces of communication you need and which you can discard? If you calculate the figure for yourself and then multiply it by the number of managers within your organisation you will probably come to realise that the time wasted is very significant. I’m sure you would agree that, what we might term “Communication Overload”, is getting worse and is extremely irritating. The question is how can we stop it? At every communication seminar I run, I always ask the delegates “Why do we communicate within our organisations”? These are some typical answers: • To let people know what is happening. • To keep employees engaged. • To explain what is needed from the staff. • To make people happy. • To keep people informed. The last statement is the most common. I would claim that there are only two reasons why people communicate within organisations. The first, and very important, is for the purposes of social interaction. It is helpful for people who work together to get to know each other and understand each other. Social intercourse helps, indeed is vital to this process. The second reason that we communicate within organisations is, quite simply, to change or maintain a pattern of behaviour. Think about this for a while and try to prove me wrong. You could say that sending the accounts department the latest sales figures and other information has nothing to do with changing behaviour it is to get them to send out the invoices. However I would claim that this is a behavioural activity. We may wish people to work harder. We may need to give them some information that will enable them to

do the job for which they are employed. We may wish to reduce staff turnover and therefore encourage people to stay with the organisation for longer than usual. All of these are behavioural modifications. When people talk of trying to make people within the organisation “Happy” or “Engaged” they are really making assumptions about the behavioural changes they believe will come about as a result of people attaining these states of mind. These expected behavioural changes will include such things as staff retention, greater productivity and more effective teamwork. If you can see the logic of this then it is possible to improve the quality of your internal communication and reduce the volume dramatically. How do you do this? It is really quite simple. You need to ensure that before anyone attempts to communicate with anyone else they ask themselves the simple question, “Who is it I want to do what”?

In other words anyone who is about to communicate with anyone else, other than for social interaction, should be very clear about the behavioural modification they wish to achieve as a result of the communication. Keeping people informed is not a justification for communication. It is an excuse for lazy thinking and it creates more irrelevant communication than almost any other reason. Do I practise what I preach? This article is a piece of communication that, I hope, will be read by some senior managers in Thailand. Did I write this simply to entertain you for a few moments? Very definitely not! What I would hope you will do is to think carefully about how your organisation communicates with all its stakeholders, but particularly internally. I hope you will then be able to reduce your organisation’s communication overload. I hope to modify your behaviour – for your own benefit.

With the compliments of

Attorneys at Law

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My Place: Safari World Mr. Jan Egil Amundsen, managing director in DNV (Det Norske Veritas) in Thailand has no problem choosing his favourite place. “My favourite place is simply Safari World” he says.

“You and your family will quickly find out that one day is to short if you want to visit the whole spectre of attractions. I use to bring my daughter, son and my 3 grand children and they simply love it!” Safari World is more than a zoo, because they have lots of shows that you can watch and it gives you more of a feeling of adventure than a zoo. Safari World stands out as unique in Bangkok for me due to the amount of interesting animals to see as well as you will get so close to them. In the Safari Park you will drive through the open zoo with lots of animals very close to your car, this includes both birds, camels, bears, lions and many more animals. In the Marine Park you are walking around looking at the following attractions: Sea Lion Show, Jungle Cruise, different feeding shows, Cowboy Stunts, Dolphin Shows, Bird Shows, Orang-utan shows, Eggs World, feeding camels and birds by hand etc, etc. When you walk around in the park you nearly become like a young boy again. The shows are at specific time and seem to occur only once a day, since the shows start around 10 am and do not repeat, it is good idea to arrive at opening time 9 am. There are many local food stores spread around the park where you can buy good thai food, coffee, soft drinks and a cold beer as well. Bring your family and friends and have a wonderful day! Jan Egil is passing the relay stick to our fiend Ms. Piyanuj Ratpratsatporn, Tilleke & Gibbins International Ltd.

Photo by Hilde Tellmann

Baht continues rapid Upswing by Eric Baker

s the Thai Baht grows with support from expanding exports, economists, business leaders and consumers are trying to determine if it is merely speculation or grounded in a stronger actual economy. Though growth slowed to 6.7% in the third quarter, this figure coupled with gains of 12% in the first quarter and 9.2% in the second quarter led the National Economic and Social Development Board (NESDB) to raise its 2010 growth forecast to 7.9%, which would be the fastest pace of economic expansion in 15 years. The agency predicts 3.5-4.5% growth next year. The second quarter was when Bangkok had protests for two months that resulted in over 90 deaths and massive property damage from arson. While a stronger Baht certainly helps those with high import content or needing to pay back loans, exports make up some 70% of the economy and the Baht’s rise means these products are less competitive. Business leaders have stepped up their calls for the government to make a greater effort to curb the impact of the strengthening Baht, said Payungsak Chartsutthipol, chairman of the Federation of Thai Industries (FTI), to the Bangkok Post. The Baht has gained 11% against the US dollar for the year to November, the best in Asia outside of the Japanese yen.

The debate has now shifted, as several economists feel most measures will be powerless to stem an inflow of foreign capital when there is so much cheap money floating around the world. The US Federal Reserve, in a policy dubbed quantitative easing, announced in November it plans to buy $600 billion worth of Treasury notes. The BOT recently allowed exporters to make payments in foreign currencies to local companies when settling fees for services and goods. In addition, the BOT has raised the minimum amount requiring approval from US$20,000 to US$50,000 for foreign exchange transactions. The central bank added it was studying measures other countries have taken to manage exchange risks. In October, the BOT took one of those measures by removing the 15% tax exemption for foreigners on income from domestic bonds. The move echoed actions taken by Brazil and South Korea to try to slow inflows into the local debt market. Given that many including Finance Minister Korn Chatikavanij concede that developing nations like Thailand cannot forcibly change the direction of their currency, he has advised exporters and importers to hedge against foreign exchange risk and added it was a good time to invest in the long-term growth of companies through spending on manufacturing processes, equipment and machinery.

The Kasikorn Research Center predicts the Baht will appreciate to 29 to the dollar by the end of this year and 28 by next year.

Though the Thai government has lowered the minimum credit line for hedging and assigned the Small Business Credit Guarantee Corporation to guarantee small and medium-sized enterprises (SMEs) at a ceiling of 50% of the value of the collateral, the Kasikorn Research Center argues the government needs to do more than encourage, as SMEs that export are usually the hardest hit when the Baht has massive gains. These SMEs either cannot access or do not know how to use hedging tools such as forward contracts.

Former Bank of Thailand (BOT) governor Tarisa Watanagase told the Bangkok Post on August 18 that she believes the Baht’s rise is in line with other Asian currencies. The central bank held the position the

Thailand’s interest rates are high compared with those elsewhere in the region, which is encouraging the inflow of money to the country, said FTI vicechairman Thanit Sorat. He said gross domestic product

The Baht was trading at 30.06 to the US dollar on November 25, compared with 33.15 Baht in January. The currency reached a high point of about 29.5 in early November. A US dollar bill now fetches less than 30 Baht at currency exchanges in Bangkok for the first time since 1997.

Baht’s strength was justifiable for months before it conceded action had to be taken.

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(GDP) growth this year could be half a percentage point lower than forecast if the Baht continues to rise. The NESDB estimates a 10% strengthening of the Baht against the dollar will negatively affect exports by 2.4% and net exports by 16.6%, but have only a 0.33% impact overall on economic growth. The Board of Investment expects to fall 100 billion Baht short of its 500 billion goal for foreign direct investment this year, a steep drop-off from last year’s 723 billion, the highest figure in 40 years. Industry Minister Chaiwut Bannawat feels much of the slow pace is due to uncertainties about environmental and health regulations experienced with the Map Ta Phut impasse as well as uncertainties related to the political situation. One proposal that made the business world prick up its ears was the Revenue Department’s suggestion to reform the corporate income tax structure by reducing the rate from 30% to 18%, provided the Board of Investment end its tax privileges programme. While some business leaders agreed it was a fairer way to reward companies, Mr Thanit told the Bangkok Post on November 19 it was “insane”. As growth continues to muster, the head of the Thailand Automotive Institute told the Bangkok Post on September 9 that the industry needs another 250,000 workers over the next three years just to meet demand. But for companies that export, they remain fixated on the Baht. Vallop Vitanakorn, vice-chairman of the Thai National Shippers Council, said the central bank should seek co-operation from commercial banks to provide packing-credit loans in both Baht and dollars. Currently the loans are provided mostly in Baht. The FTI is asking the Port Authority of Thailand to lower service fees and customs duties for exporters for three months. It is also proposing the government allow exporters to pay time-charter rates for ships in foreign currency. The heavy inflow of funds into Thailand reflects robust economic growth and relatively low valuations of local stocks, said Yunyong Thaicharoen, head of the Capital Market Research Institute at the Stock Exchange of Thailand (SET), to the Bangkok Post on September 10.

Foreign investment in the local bond market totaled $6 billion from July to October, according to the Thai Bond Market Association, while $1.75 billion has poured in to the SET year-to-date.

Degrees of impact Percentage of industries affected by strengthening of Baht:

• Highly negative: 30 % of all industries • • • •

such as garments, textiles, ceramics and agricultural sectors Considerably negative: 41 % in auto parts, medicine, wood and air-conditioner parts Small impact: 12 % including handicraft and alternative energy Both negative and positive: 5 % in sectors including machinery and steel No impact: 12 % in sectors including automotive and agriculture machinery

Source: FTI economics and logistics department survey, Sept 9

The trend reflects the interest rate differential between Thailand and other countries, particularly at a time when the US Federal Reserve has signalled there will be no increases in its benchmark rate for a long time because the recovery is so weak. However, the Baht›s appreciation will lessen the central bank›s need to increase interest rates to curb inflation in the future. Its Monetary Policy Committee has raised the short-term rate by a quarter percentage point each in two consecutive meetings to 1.75%. «I don›t think it is necessary to use strong measures right now. The inflows reflect the economy›s fundamentals and a catch-up move [from an underperforming market in the first half of the year],» said Dr Yunyong. The economic fundamentals now are different from those in 2006, when policymakers feared that only exports could save the economy after a coup shook investor confidence.

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Norway and Thailand sign new Air Services Agreement

n 15 October 2010, H. E. Mr. Kasit Piromya, Minister of Foreign Affairs of Thailand and the three Scandinavian Ambassadors signed the new Air Services Agreements between Thailand and Denmark, Norway, and Sweden, respectively. These new Agreements supersede the previous Air Services Agreement. The updated agreements appropriately respond to the nature and challenges of the current global aviation market and trends and take into account European Union rules and regulations that have developed since the original agreements were signed. Under the updated agreements, the designated airlines of the three Scandinavian countries and Thailand, i.e. Scandinavian Airlines (SAS) and Thai Airways International (THAI), are allowed to operate with unlimited capacity and frequencies, both for transport of passengers and cargo, and to transit at any point. In addition, other airlines registered in Denmark, Norway, Sweden and Thailand are allowed to operate with unlimited capacity and frequencies between the three Scandinavian countries and Thailand. The previous Air Services Agreement was signed in 1949. The world looked very different back then. Air Services were heavily regulated with bilateral agreements describing types of aircraft, number of seats, food to be served etc. The Air Services Agreement signed in October still carries with it some historical reminisces from that era, but almost all the restrictions have been lifted taking the global aviation market with close to free competition into consideration. SAS started to operate to Thailand on 26 October 1949 and has served the Kingdom well since then. In 1959, a Joint Venture between Thai Airways, a domestic Thai airline and Scandinavian Airlines was signed and Thai Airways International was born. Thai Airways held 70% and SAS 30% of the shares in the Joint Venture. THAI, as we know it today, started

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operating on 1 May 1960, and celebrates its 50th anniversary this year. In the formative years, the senior management of THAI were mostly Scandinavians and so were the pilots as well as the technical staff. Aircraft were leased from SAS and THAI became the first all jet airline in the world in 1963. In 1972, THAI’s first European flights were operated to Copenhagen, after which major points in Europe were added. THAI today operates to 13 European points with Oslo having been added last year. In 1977 the Joint Venture was dissolved and SAS’s shares in THAI were handed back to the Thai government. Both THAI and SAS were founding members of Star Alliance, the world’s largest airline alliance in 1994 and today 28 weekly flights between Scandinavia and Thailand are offered by the two airlines. In addition a number of charter flights are operated to both Bangkok and Phuket. Norwegian Air Shuttle and a new Norwegian airline called Feel Air have both indicated an interest in starting operations from Norway to Thailand, and with the new Air Services Agreement in place, there is nothing regulatory stopping them from doing so.

Welcome Dinner for the Norwegian top Diplomats M

onday, 27 September 2010 the members of the Norwegian Chamber of Commerce, their spouses and business associates gathered for an informal dinner at Sheraton Grande Sukhumvit to get to know our two new top diplomats. Both H. E. the new Norwegian Ambassador, Katja Nordgaard and the new Minister Counsellor Erik Svedahl were introduced and warmly welcomed to Thailand. After a glass of Champagne, some mingling and talking we were seated and the Ambassador had the opportunity to tell us about her thoughts and plans for the coming years. She iterated that she was looking forward to support Norwegian companies and their business interests in the country. The Norwegian government sees Corporate Social Responsibility as an important factor in doing business, and the ambassador would also like to pass that on to the companies in the region. Moreover, she stressed her main goal being to focus on climate change as well as energy and environment in her dialogues with the Thai government. She will also look towards wider regional issues, such as the situation in Thailandâ&#x20AC;&#x2122;s neighbouring countries, especially Burma. In addition she will focus on negotiations in regards to a Free Trade Agreement between EFTA and Thailand. This was a nice evening and it was good to get to know the new leadership team at the Royal Norwegian Embassy in Thailand.

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Thailandâ&#x20AC;&#x2122;s Trade Competition Act: Application and Pitfalls by David Duncan Consultant, Tilleke & Gibbins An earlier version of this article was first published in the Bangkok Post on October 22, 2010.

he Trade Competition Act (TCA), enacted in 1999, applies to all enterprises and business activities in Thailand, with certain enumerated exceptions, such as state enterprises, agricultural and cooperative groups, and government agencies. If you are a business operator in Thailand the TCA is relevant to how you do business. The TCA regulates abuse of dominance, anticompetitive agreements, unfair trade practices, and interference with consumer purchases from foreign suppliers. Upon the eventual passage of a Ministerial Notification setting review thresholds, the TCA would also allow for the review of mergers by the Trade Competition Commission (TCC). This article will focus primarily on three areas of concern for commercial entities: abuse of dominance, anticompetitive agreements, and unfair trade practices. Market Dominance It is often complex to determine market dominance under the TCA, largely because it is necessary to define the particular market at issue. A market can be defined broadly or narrowly, with differing results in terms of apparent market dominance. By a 2007 Notification, the TCC defined market dominance as having greater than 50% market share in the previous year or being one of the top three producers with a combined market share of over 75% in the previous year and, in either case, having at least one billion baht in turnover. However, the Notification provides relief for those with market shares of less than 10%, and turnover of less than one billion baht. Business operators should consider whether they have market dominance in any particular market. If a merger is contemplated, it is also important to consider this question with respect to the potential merger partner as well as the merged entity.Â Note that the law does not make market dominance illegal, but rather it imposes additional obligations on those business operators who have market dominance. 40

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Abuse of Dominance Among other actions, a market-dominant business operator is prohibited from (1) unreasonably setting or maintaining purchasing or selling prices; (2) unreasonably imposing certain restrictions on other business operators with whom it does business; (3) suspending, reducing or restricting services, production, purchases, distribution, deliveries, or importation without justifiable reasons; (4) destroying or causing damage to goods in order to reduce the quantity below market demand; and (5) interfering in the business operations of others without justifiable reasons. Although these are significant and broad restrictions, it is important to note that most are phrased in terms of taking actions either unreasonably or without justifiable reasons. Anticompetitive Agreements It is not only those with market dominance who need to concern themselves with the TCA. Regardless of market dominance, all businesses governed by the TCA are prohibited from contracting with another business operator to form a monopoly or to otherwise reduce or restrict competition. The TCA describes a number of examples of agreements that would be considered to form a monopoly or otherwise reduce or restrict competition. These include agreements that would (1) set sales prices or restrict sales volume; (2) set buying prices or restrict purchase volume; (3) provide for market dominance or control; or (4) provide for rigging bids. Other examples include agreements that would (5) restrict distribution by geographic area or by customer lists; (6) restrict customer purchases by geographic area or vendor lists; (7) restrict manufacturing, purchasing, or distribution, such that quantity would fall below market demand; (8) reduce quality in certain ways; (9) appoint exclusive distributors; or (10) set conditions or procedures in connection with purchase or distribution to provide for uniform or agreed practices. In considering whether a particular agreement is against the law and depending upon the particular offense, the TCC may apply a Rule of Reason analysis, where the TCC will consider the agreement and its effect on the market, or the Per Se concept, where the TCC will only consider the agreement itself. In certain circumstances, a business may apply for and be granted advance permission from the TCC to enter into certain categories of otherwise restricted agreements.

Melvær&Lien The Idea Entrepreneur Photo: Tom Haga

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Unfair Trade Practices The TCA also contains a sort of catch-all provision. Specifically, it provides that business operators are forbidden from carrying out any acts that are not free and fair competition and have the effect of destroying, impairing, obstructing, impeding, or restricting other business operators, preventing others from entering business, or causing them to go out of business. The TCC has also provided some compliance guidelines for wholesale and retail businesses. However, it is important to realize that this section applies to other types of businesses, as well. Risk Businesses should heed all applicable provisions of the TCA, as violations may result in civil litigation. Those who allege injury, including business competitors, may bring suit against an alleged transgressor. The TCA also provides some capacity for the Consumer Protection Commission to bring action on behalf of consumers as well as for consumer groups to bring actions on behalf of their members.

In addition, a primary function of the TCC is to receive complaints about potential violations of the TCA. Since the TCA was enacted in 1999, there have been approximately 80 complaints, with the number of complaints varying from year to year. Of the complaints that have arisen so far, approximately half arose from unfair trade practices, while the remainder is split approximately evenly between abuse of dominance and anticompetitive agreements. If a complaint is filed, the TCC may investigate and order the errant company to undertake remedial action. If a violator does not follow the TCC’s order, the case may be referred to a Public Prosecutor. From time to time, public discourse turns to revamping the TCA. This has again arisen in the context of building the ASEAN Economic Community, as moves are made to harmonize and develop each member state’s competition law. Even if such reforms do not come to pass for some time, the current act contains a number of compliance requirements, to which business operators should give their careful attention.

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Shanghai World The Norwegian Each country had its own Pavilion at the Expo where they would show the world how they were addressing the issue of sustainable living. The Norwegian Pavilion wanted to take this issue a step further by addressing how nature interacted with people on a day to day basis and named the pavilion, ‘Norway. Powered By Nature’.

HRH Princess Maha Chakri Sirindhorn of Thailand, photo Richard Wo

A unique feature of the Norwegian Pavilion was the use of laminated wood, made from Norway’s pine trees and Chinese bamboo to construct a series of 15 highly stylised models of Norwegian trees. The ‘trees’ were all of a different height, ranging from 5 to 15 meters, and carefully placed across an area of around 3,000sqm. A canvas was then stretched across the tips of the branches which gave the roof a dramatic undulating span and an airy and spacious feeling.

The theme of the Expo was ‘Better City, Better Life’ and showcased the latest environmental technology from the 191 countries that took part.

The architects behind the design of the pavilion, Reinhard Krop and Siv Stangeland of Helen & Hard Architects, explained the inspiration behind the design, “we wanted to show how wood can be used to innovate architecture and urban concepts. Laminated

by Emma Long

he World Expo 2010 in Shanghai has recently come to a close after a spectacular six months in which it attracted a record breaking 73 million visitors from around the world. On one day alone more than 1 million visitors crossed the Expo’s threshold.

Norway as a country has long been associated with green living and its close relationship with nature. All of its cities exist in close harmony with nature with their close proximity to the sea, the mountains or the forests. Arild Blixrud, General Commissioner for Norway at the Expo explained that the purpose of the Norwegian Pavilion was to “explore the city’s and the city dweller’s contact with nature. Nature is experienced as a source for recreation and inspiration as well as pure physical energy. This is what we mean when we say “Norway. Powered By Nature”

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Expo 2010 Pavilion – Powered by Nature wood is widely used in Norway and we wanted to transfer our knowledge and technology in the hope that tree construction will be reintroduced in China.” It was the hope of the architects that, come the end of the Expo, all 15 trees would be donated to cities all around China. Reinhard and Siv added, “These will be lasting monuments representing Norway’s participation in EXPO 2010, sustainability and the importance of nature to humans”. The pavilion was separated into five different ‘landscapes’ where the visitor could experience the uniqueness of Norway’s nature inspired lifestyle. The five areas were: The coast: This aimed to show the visitor how Norway embraced the use of renewable energy such as the wind, sun and wave power. The city forest: This area represented the Norwegian way of life. How its residents worked and played and used nature in their everyday lives. The fjords: The fjords illustrated the power of the relationship between man and water, addressing such issues as water pollution and purification. The mountains: This area acted as an event hall and business centre where seminars, conference and other events could be held. The Arctic: A Norwegian seafood restaurant was established to showcase Norway’s magnificent fishing industry and highlight food safety and nutrition in an open, beautiful and dramatic Arctic inspired landscape.

A highlight of the Expo for Norway was a visit to the Pavilion by HRH Princess Maha Chakri Sirindhorn of Thailand. The Princess is an active participant of environmental and development issues and on her visit showed particular interest in Norwegian clean water treatment programmes. A lifelong fan of Norway the Princess has visited the country twice, “I would love to visit Norway again” she said, “and this time I want to visit Spitzbergen” On being shown the Coastal Landscape area, the Princess remarked, “you have created a beautiful and interesting pavilion and Norway has such a beautiful coastline.” The Expo certainly showcased the best that each country has to offer when it comes to sustainable urban development, which is why it has been the most successful Expo ever. In recognition of this, it established a series of awards to recognise the designs and talents behind some of the Expo’s most striking Pavilions. The awards were split into three categories; Theme Development, Creative Display and Pavilion Design and, in a final and fitting testament to the creative talents of the architects behind the Norwegian design, the Norway Pavilion was awarded Silver in the Pavilion Design category. A lasting tribute to the people of Norway from the world’s most successful Expo.

The Norwegian Pavilion, Shanghai World Expo 2010, photo Patrick Wack

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Thailand’sEconomy EconomyatataaGlance Glance Thailand’s

10.0 5.0 0.0 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10

Exchange Rates 7.00

1,100 1,000 900 800 700 600 500 400

6.50

THB/NOK

6.00 5.50 5.00 4.50

Manufacturing Index 2000=100 225 200 175 150 125 100

Bilateral trade 2009 Import 847 (1,348) MNOK Export 1,950 (2,112) MNOK

600 400 200

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Clothing

Cars

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Computers

Food

Electronics

2005 2006 2007 2008 2009

Basic Figures: BOI. Comparisons: Wikipedia. GDP/Capita and Thai Population: Wikipedia. Thai GDP and CPI: Bank of Thailand. Quarterly GDP: NESDB. SET: Stock Exchange of Thailand. Exchange Rate THB/NOK: x-rates.com. Manufacturing Production Index: Thailand’s Ministry of Commerce. Bilateral Trade: Statistics Norway. Petrol and BigMac prices as of 30 November 2010

Org. chem

0 Paper

6.69 13.02 14.43 40.00

Stock Exchange Index (SET)

Engineering

Other bits and pieces Petrol/litre (95 E10) NOK: TH Petrol/litre (95 Octane) NOK: NO McDonald BigMac price NOK: TH McDonald BigMac price NOK: NO

6 5 4 3 2 1 0 -1 -2

Fertilisers

67.0 mill 4.9 mill 9,100,000 586,860 71/75 78/82

0801 0804 0807 0810 0901 0904 0907 0910 1001 1004 1007 1010

-2

Thai Consumer Price Index

Thai GDP Growth (%) 15.0

-4

Fish

Mill

Male Female

2005 2006 2007 2008 2009 2010p

Thai Population 2008

80+ 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0- 4

0501 0507 0601 0607 0701 0707 0801 0807 0901 0907 1001 1007

Geography Geographic Area: TH 514,000 sq. km Geographic Area NO: 385,199 sq. km Highest peak TH: Doi Inthanon 2,565 m Highest peak NO: Galdhøpiggen 2,469 m Inland water areas TH: 2,230 km Inland water areas NO: 16,360 km Coastline TH: 3,219 km Coastline NO: 25,148 km

Sources:

-5.0

Some comparisons

Demographics Population TH: Population NO: Population Bangkok: Population Oslo: Life expectancy M/F TH: Life expectancy M/F NO:

Apr10 May10 Jun10 Jul10 Aug10 Sep10

Top 10 Exports 1H/10 %/value USD bill. EDP equipment 10.0%/9.3 Cars and automotive 9.17%/8.5 Precious stones/jewellery 6.4%/6.0 Electronic integrated circuits 4.1%/3.8 Rubber 3.8%/3.6 Refined fuels 3.3%/3.0 Rubber products 3.2%/3.0 Polymers etc. 3.1%/2.9 Chemical products 2.9%/2.7 Iron, steel etc. 2.7%/2.5

MY TH CN ID PH VN IN LA KH MM

10-30% 10-15% 7% 0-37%

100

US NO SG KE TW

Corporate income Tax Withholding Tax Value Added Tax Personal income Tax

GDP/Capita (TUSD)

2006 2007 2008 2009 2010p 2011p

Export Growth 2009 y-o-y -13.9% Export Growth 2010 projected 22.5% Trade Balance USD 19.4 bill Current Account Balance USD 20.3 bill International Reserves USD 138.4 bill Minimum wage (Bangkok) Baht 206/day

May10 Jun10 Jul10 Aug10 Sep10 Oct10

Basic Figures Thailand (2009)

The Firm provides legal services in general commercial practice and renders advice in the wide area of legal environment, i.e. corporate related matter, commercial contracts, merger and acquisition, financial transaction, banking, real estate, foreign investment, project finance, intellectual property, customs, taxation, entertainment, environment, labour law, dispute resolution, litigation, company secretarial service, work permit, immigration, translation of legal related document. The Firm represents multinational companies as well as their executives, and individuals doing business in Thailand from Scandinavia, the Netherlands, England, Germany, etc. and Asia.

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Fact & Figures

Year Established: Norway 1864, Thailand 1988 Number of Employees : Worldwide 8,700 Det Norske Veritas (Thailand) Co., Ltd.:

No. 1, MD Tower, 9th Floor, Room A, Soi Bangna-Trad 25, Bangna, Bangkok 10260 Tel : +66 2 3618288-90 Fax: +66 2 3618291

DNV Corporate Address:

Det Norske Veritas AS, NO-1322 Hovik, Norway Tel. : +47 67 57 99 00 Fax : +47 67 57 99 11 www.dnv.com

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