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

Thai-Norwegian Business Review 2009 â&#x20AC;&#x201C; 1

Financial Crisis: Norwegian Industry still going strong in Thailand

Thai-Norwegian Chamber of Commerce

Q-FREE: Speed up Bangkok Traffic

Contents Norwegian Business Centre

Vibeke Lyssand Leirvåg – Glowing

12 Page 6

Nera – Bridging Business and Societies 19 WebOn – E-business

dtac – 3G Key Gold

Norconsult

24 Page 12

Baezeni – Your World in 3D

Q-free – Speed up Bangkok Traffic

Members Directory

Page 24

Editor: Karine Slørdahl; editor@norcham.com Journalists: Alexander Pithie, Satirat Dam-Ampai Photographers: Jørgen Udvang, Satirat Dam Ampai Design/artwork: Too small Co., Ltd., Karine Slørdahl Advertising: Elisabeth Bashari Media Commitee: Eric Mallace, Anders Nordin

Tront page picture: The Norconsult Brigde, Bangkok by Jørgen Udvang

Managing through turbulence DNV was established in 1864 as a ship classification society, but has diversified into a multi-faceted certification and consultancy organisation, spanning 130 countries on all continents. DNV is one of the world leaders in all its enterprises and takes great care to earn an image of high-tech, deep competence and uncontested integrity. DNV performs statutory ship surveys on behalf of 130 maritime administrations and is accredited by over twenty national accreditation bodies for management system certification. Classification and Statutory Certification of Ships and other Floating Installations - 17% (129 million GRT.) of world fleet in class as of early 2009. - 20% of ships ordered in 2008 - 70% of maritime fuel testing market Certification of Materials Components, Equipment, Systems, Machinery, Pipelines, Process Plants etc. Certification of Oil & Gas Offshore Installations, Pipelines Risk Management Consultancy and Assessment Asset Integrity Management and Risk Based Inspection Programming Certification of Management Systems to standard like - Quality - ISO9001 - Environment - ISO14001 - Occupational health and safety - OHSAS18001 - Information security – ISO/IEC 27001 - Automotive – ISO/TS 16949 - Food safety – ISO 22000 As of early 2003 DNV has more than 8% of world market for management system certification and more than 80 national accreditations and 70,000 certificates issued worldwide. In the forefront with new and innovative assessment and certification services, such as Risk Based CertificationTM, as exclusive approach to management system certification.

Fact & Figures Year Established: Norway 1864, Thailand 1988 Number of Employees : Worldwide 9,000

hailand was sadly rocked by political polarisation and demonstrations which culminated with the eight day occupation of Bangkok’s airport at the end of last year. The demonstrators attracted world attention and the damage to Thailand’s economy and reputation was enormous. The closure of the airports came at the worst possible time, right at the start of the peak tourism season. The tourism industry which contributes more than 20% of Thailand’s GDP, suffered tremendously and potential tourists are wondering if it is safe to travel to Thailand. Since then the political situation has calmed down and tourism is slowly picking up again. Thailand has a new Government led by a confident Prime Minister Abhisit Vejjajiva who is actively trying to restore the international confidence in Thailand and who works hard on attracting foreign investors by showing that Thailand still has a lot to offer. Liberalisation of investment laws and compliance with international treaties are on the government’s agenda. The Joint Foreign Chambers of Commerce (JFCCT) recently hosted a lunch for the new Prime Minster and his Government with almost 1,000 foreign investors attending. In his key note address, the Prime Minister assured the audience that Thailand was back on track and that the Government was doing everything possible to kick-start the economy again. A number of issues were brought to the Prime Minister’s attention, among them the need for Thailand to open up and unlock the ICT potential in the country. For several years there has been concerns that the telecommunications sector has not had the opportunity to support overall economic growth and development in the country. As a consequence, Thailand is lagging behind neighbouring countries in ICT development. Fair competition has still not yet taken hold in this sector, a key factor in attracting domestic and foreign investment. The months ahead will show if the Government’s promises will be followed up with action. As stakeholders in Thailand’s economy, we will be happy to support the Government’s liberalisation efforts in levelling the playing field for the country’s citizens and investors alike. Finally, in the current issue of Business Review, you will also be able to read about the auspicious opening of the Norwegian Business Centre which took place on 24 February. Please do make use of the centre which is here to support members and new Norwegian initiatives to Thailand alike. We certainly look forward to welcome you. Sincerely, Axel Blom President Thai-Norwegian Chamber of Commerce

Thai-Norwegian Business Review

Norwegian Business Centre Thouroughly Blessed

by Karine Slørdahl photo – Jørgen Udvang An auspicious date and time had to be found to make sure that the Norwegian Business Centre got off to a good start. The Brahmins consulted their astrological charts and decided that Tuesday, 24 February was the most suitable date to hold the Official Opening Ceremony, despite the fact that activities had been running for quite a while at the Norwegian Business Centre. In line with tradition the event started with a Buddhist ceremony in the morning with five monks officiating at the blessing ceremony. All staff members at the office were present, so also the President of the Chamber and Managing Director of Blue Business Solutions, Axel Blom and the Executive Director of the Chamber, Ingeborg Steinholt. Among the guests visiting the morning ceremony were two of the board members, Maj. Choakdee Dhamasaroj, CEO of Nera (Thailand) Ltd. and Dr. Paisan Etitum, Managing Director of Thai Transmission Industry. The Executive Director of the Finnish Chamber of Commerce, Mrs. Supatra Buranatham did also participate in the event. For some of the people present it was a new experience, others were more certain about the procedure. But all in all it was a beautiful Ceremony and the Business Centre is now ready to face all future activities and support Norwegian businesses in Thailand. 6

Thai-Norwegian Chamber of Commerce

– and Officially Opened

Roar Wiik Andreassen from dtac and Maj. Choakdee Dhamasaroj from Nera

Rolf Næslund of Carbon Reduction Technologies and Hauslo from Aibel

Eric Mallace – the happy General Manager of Jotun

Mai Ellegård and Khun Pennapar Kanthawongs from Euro-Center together with Ingeborg Steinholt

Dr. Kristian Bø

H.E. Ambassador Merete Fjeld Brattested, Kirsi Ranin from SAS and Frank Fodstad from Telenor

Anne Marie Hauslo from the Norwegian Consulate in Pattaya

Caroline Vamnes

Mr. Jan Egil Amundsen from DNV and Mr. Jan Erik Svensson from AKVA Group

H.E. Ambassador Merete Fjeld Brattested cut the ribbon

In addition, it was also a chance to meet both the staff of the Norwegian Business Centre and to forge new, important connections.

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Executive Director of the Chamber, Ingeborg Steinholt, with Maj. Choakdee Dhamasaroj and Dr. Paisan Etitum

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Several Chamber members and business associates had taken the time to join this event and their presence was highly appreciated. We also hope they had a good time, with serving of excellent food and refreshments.

Chid Lom

Express-

She also drew historic parallels to the friendly separation of Norway from the Swedish-Norwegian Union in1905. This time, the separation of the Thai-Norwegian and the Thai-Swedish Chamber of Commerce has been carried out in a similar peaceful and constructive manner. Finally she wished all best for the Norwegian Business Centre.

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n the afternoon the Norwegian Ambassador, H.E. Merete Fjeld Brattested was in charge of the Ribbon Cutting Ceremony. She held an excellent speech pointing out the importance and benefits of the collocation of Thai-Norwegian Chamber of Commerce and Innovation Norway which is represented through Blue Business Solutions.

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norwegian business centre

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All Season s Place

Axel Blom and Ingeborg Steinholt have every reason to be proud of what they have accomplished; The Norwegian Business Centre has really turned out nice and has the potential of becoming a great place for everyone involved in Thai-Norwegian Business Relations. 8

Thai-Norwegian Chamber of Commerce

H.E. Ambassador Merete Fjekd Brattested, President of the Chamber and Managing Director of Blue Business Solutions, Axel Blom, and Minister Counsellor Anne Lilleøren

14th Floor, Mahatun Plaza, 888/142 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Tel: +66 2650 8444 (TNCC), +66 2627 3040 (IN) Fax: +66 2627 3042

Breakfast meetings – a way to mingle yet learn by Satirat Dam-ampai

reakfast meetings are ground event organised once or twice a month for the Nordic chambers’ members at the Sheraton Grande Sukhumvit Hotel. They aim to offer expert presentation and analysis on the up-to-date business issues and topics relevant to the members. “I think this event is a great networking venue with good opportunity to hear and learn about interesting topics, meet other business associates, and hear their points of views,” says Ingeborg Steinholt, Thai-Norwegian Chamber of Commerce Executive Director. The first breakfast event in 2009, hosted by Danske Bank in January was successfully attended by 50 members of the various Nordic chambers. The key speakers, Senior Analyst Flemming J. Nielsen and Wealth Manager Michael Blom, gave the audience a presentation and overview of the global economic outlook, particularly in Asia, and gave an investment forecast for the year ahead.

“Since there are several places in Asia Firexpress has not yet penetrated. I think with the presentation today, we will do even more focus on the Asian markets.” he concluded. The next meeting was on February 17 with John Fotiadis, Director of the International Trade & AntiDumping Group at Tilleke & Gibbins International who talked about and updated members as to how to best utilize the Free Trade Agreements (FTA) between Thailand and other countries; Australia, Japan, China, India, ASEAN, New Zealand, for example. Besides breakfast meeting, the Thai-Norwegian Chamber of Commerce also arranges Christmas dinner, the Annual General Meeting followed by a dinner, and occasionally dinner talks and excursions. “We plan to expand our activity level, but so far the breakfast meetings are the main events.” said the Executive Director.

“I was very impressed by the presentation with lots of details and information about the world economy. It was interesting and useful,” said one of the participants Poul Skov-Petersen, Firexpress Asia Sales Director.

Thai-Norwegian Business Flemming Nielsen, Den Danske Bank, January 2009Review

Vibeke Lyssand Leirvåg – all for the Love of Jewellery by Karine Slørdahl photo Jørgen Udvang These days, Vibeke Lyssand Leirvåg is working extra hard to get her new collection and customer contracts ready before the imminent arrival of her two new world citizens! But this is not her first birth. In 1995 she proudly gave birth to her first baby – Felicia, her very own jewellery business. But her story starts a little earlier when Vibeke was just a thirteen-year-old schoolgirl in Norway who started working in a jewellery factory in Os just outside

Bergen. It has to be said that since her first encounter with the jewellery business, she has been completely consumed by it, and even back then, every chance she had at weekends or on school holidays she would work with and learn more about her first love - Jewellery. Then just twenty years old, she came to Bangkok working for a Norwegian company where she had the opportunity to learn about making jewellery and doing business right here in Thailand. By the time she was twenty-five, she was running a department with no less than 100 employees. Then after five years in the Land of Smiles she returned to Norway, thinking that her adventure here was finished but only to discover that after getting used to the big city life of exotic Bangkok, Os was now just too small. So not surprisingly her stay in Norway lasted only eight months, and during that short time she returned to Bangkok no less than six times. In the end she figured it would be better - or at least more economical - to just settle down in Bangkok. She has never regretted that decision. So we return to the year 1995 and Vibeke has moved back to Bangkok where she takes her first tentative steps to start her own jewellery enterprise - the Felicia jewellery factory. At first she only planned to work on certain parts of the process - the designing, development and moulding of jewellery components at the start of the process, and finalising the product at the other end. But she quickly discovered that in order to achieve the high standards she wanted to offer, and that her customers required, she had to handle the whole production process start to finish. Bangkok is the ‘Mecca’ of jewellery production where it is the country’s third largest export, but nevertheless Vibeke felt it was better to stay small and thus keep full control over production, this in a country noted for its clever copying and imitations. Today she is still doing 96 percent of her own production and by keeping her high standards, has achieved steady and continuous growth.

“

I find that I often have more in common with the husbands working in Thailand than with the wives. Shopping and manicure is just not my field 12

Thai-Norwegian Chamber of Commerce

”

Working for Felicia recuires absolute concentration.

Scandinavian Society Siam, Nordmanns Forbundet and the Thai-Norwegian Chamber of Commerce. “I used to have a lot of friends to hang out with and we were all very close. But all of a sudden within two short months in the spring of 2001, I had to say goodbye to seven couples who were among my best friends. That was very hard and the whole community kind of came apart,” Vibeke says. Fortunately her sister has also settled here in Bangkok but no matter, finding new friends is not always easy. “I find that I often have more in common with the husbands working in Thailand than with the wives. Shopping and manicures are just not my field,” she giggles. Vibeke also finds it difficult to put any effort into a relationship when she knows it will probably be just for a short time.

Felicia now has about 100 employees working in the factory and 150 home workers. A home worker is someone who works from his or her own home, and who comes in every so often, takes home some pieces to finish, and then comes back the day after with delivery of the finished work. These workers and all the others are carefully chosen for the task. Vibeke never takes on people without experience although many are without a full education. Lately Vibeke has also employed three deaf people as part of a Corporate Social program. But of course they are not there only because they have a handicap, but have earned the right to claim the job through their hard work and because they are good at what they do.

artistic heritage with her grandfather once one of the greatest artist in the field of traditional Norwegian rose painting. At Felicia Vibeke is not only handling the contracts, the customers, and making sure everything is in perfect conditions, she is also a designer, or as she likes to put it, the product developer of many of the pieces Felicia makes for demanding international customers. “Some of my customers have their whole line figured out, but a lot of them need help and inspiration, or a new design from scratch,” she smiles. And Vibeke does everything.

The financial crisis has had a big impact on the Also important to Vibeke is that everybody works jewellery business and a lot of companies are suffering well together. Even though most of her employees are accordingly. However Felicia’s experiences otherwise Thai, Vibeke has managed to introduce some of the and 2008 was one of the best years ever for Vibeke’s Scandinavian team spirit to bear, and in slow times business. And even though one of her most important encourages her employees to find something to do customers actually entered bankruptcy proceedings instead of waiting for new tasks. towards the end of last year, Vibeke is not at all worried about the It has not been easy being It is going to be a couple of rough mounts future. a businesswoman in a country where most of the now, but I expect everything to turn around April, “It is going to be businessmen are men – a couple of rough and I still expect a growth even this year despite the rumours that months but I expect it’s really the Thai women everything to turn running most businesses, sending the men out front around by April, and I still expect a growth even this but by being a serious business woman and focussing year,” Vibeke says confidently as she finalises new on the quality excellence of her products, Vibeke contracts with two new customers, contracts which has become a highly respected member of the Thai will more than make up for the unfortunate client she jewellery business community. lost.

“

Vibeke has been schooled the hard way, learning by doing. She has always been a creative person, which is not so strange really when you consider she has an

Thai-Norwegian Chamber of Commerce

”

So, how about the private person Vibeke? She was well known in the local Scandinavian community for a long time invariably attending most social events and joining every possible network - on the board of the

Vibeke is now getting ready for her next step in life together with her fiancé Paolo Conselvan. Both are nervously anticipating the arrival of their twins who are due to arrive shortly, and they are just as moving into a totally renovated apartment only two minutes from the Felicia office and factory in the Silom area. Vibeke is very much looking forward to her new status, but all doubt aside, Vibeke will not be a stay-at-home mom for long. She intends to keep in touch with the company and the customers during her short maternity leave and is already planning to turn one of her office meeting rooms into a nursery in order to be able to ‘keep the show on the road’ and her customers are patiently waiting for her return, a sign of just how much they appreciate her work.

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Norway Touches Young Thai Graduate’s Heart by Alex Pithie photo: Mercy Centre

t the heart of Bangkok’s notorious Klong Toey slums, Father Joe Maier’s Human Development Foundation (HDF) is a beacon of humanity in a sea of poverty and squalor. But as well as building schools and homes for the underprivileged children and other noble work, the HDF arranges sponsorships for poor Bangkok children to learn in schools, from kindergarten onward. With outside voluntary financial help and gentle coaching, the Center works to help the children succeed as far as they can within the education system. Currently, they have more than 600 sponsored children studying in schools in Bangkok and more than 25 children now enrolled as students in vocational colleges and universities here and abroad in countries like Norway.

But Father Joe’s volunteers found the young girl in a dreary slum and impressed by her obvious intelligence, helped sponsor her attendance at one of their costfree community pre-schools. The bright young girl eventually outshone her peers and was selected to receive a scholarship from HDF to further her education in high school. She received additional funds to pay for high school tuition by winning several scholarship awards and after high school, was selected to receive a full scholarship for a two-year International Baccalaureate Program at the Red Cross Nordic United World College (RCNUWC) in Norway. Imagine the culture shock of a young Thai girl born and bred in steamy Bangkok and suddenly whisked away to the still backwaters of rural Norway! Opened in 1995, the college is located in the beautiful fjord region of western Norway at Haugland near the village of Flekke. The college is about 150 kilometers north of Bergen and 40 kilometers west of Førde, and is home to 200 students, aged 16-19, all selected on merit from more than 80 countries.

“The longer we can keep poor children in school, the more likely they will avoid drugs, crime, and teenage pregnancy,” says Father Joe. One of the children plucked from the squalor of her Klong Toey home when she was sixyears-old was Wanwisa Promsote. She has been sponsored by the HDF since then and plans to graduate soon with a Master of Neuroscience from a leading US university! “My father was the only source of income in our family. My mother received no formal education because her parents could not afford the cost of educating all their children. As the only daughter among brothers, and given our financial constraints, my mother’s story could have easily been mine as well.”

Thai-Norwegian Chamber of Commerce

“I love Norway and the blissful scenery and the wonderful people who took care of us and taught us so much. My time in Norway and my experience at RCNUWC helped me understand many of the transformational powers of education. It was education that brought students from diverse backgrounds and races together at RCNUWC, and I was able to put my childhood hardships in a broader perspective.”

Wanwisa Promsote

“Knowing now from experience that education is the key solution to better changes, I started volunteering back home at the

HDF as a tutor for Biology, Chemistry and Math for children from the Klong Toey slum community, in order to prepare them for the I.B. scholarships at United World Colleges.” “I truly enjoyed my teaching experience at HDF and later at my U.S. university where I tutored fellow students. Tutoring slum children and university students opened windows in my life; it made me realize that I have always loved sharing what I have learned and experienced in life. I felt a mixture of pride and nostalgia when I saw how some of my students at HDF were making their own transitions from the slums of Klong Toey to a world filled with opportunities. Some of my students are presently studying at UWC; others are UWC graduates who are now enrolled in U.S. colleges. From these experiences, being a teacher became my professional goal, which has become stronger over time, reinforced by both my personal teaching and academic experiences, especially in the sciences.” ”Meantime, I became genuinely interested in how our brain and body function and collaborate after my grandmother suffered from a stroke that left half of her body paralyzed. During my first studies abroad at James Cook University, Australia, I volunteered at a stroke support group at Kirwan Health Campus, where I gained opportunities to share and exchange my personal experiences with stroke victims and their families. I was able to acquire a better understanding of stroke in terms of cognitive functioning, motor outcome, behavior and quality of life. With a greater sense of fundamental knowledge on how our brain functions, I decided to major in Neuroscience at St. Lawrence University, where I was introduced to molecular and cellular aspects of the scientific study of the brain and nervous system. “Soon I hope to do my masters degree at the University at Maryland after I graduate from St. Lawrence U, and one day I hope to graduate with my master’s degree and pass on my knowledge as a lecturer in the neurosciences.”

Voluntary Effort Saves Children’s Lives and Futures The Human Development Foundation and the attached Mercy Centre from a non profit organisation in Bangkok. With voluntary help, they build and operate schools, improve family health and welfare, protect street children’s rights, combat the AIDS crisis, respond to daily emergencies, and offer shelter to orphans, to street children, and to children and adults with AIDS - always together, hand in hand and heart to heart with the people they serve. The compassionate volunteers work to help the children and communities of the many slums of Bangkok. Together with their neighbors here in the slums, they create simple-but-progressive solutions that touch the lives of thousands of the poor every day. You can help them today, by completing an online donation form, and take a first step in making a difference. If you would like to learn how you and your business can work with them to support the activities at the Mercy Centre, please contact:

The Human Development Foundation 100/11 Kae-ha Klong Toey 4, Dhamrongratthaphiphat Rd., Klong Toey, Bangkok 10110 Thailand Phone: (662) 671-5313 Fax: (662) 671-7028 E-mail:info@mercycentre.org Web site :www.mercycentre.org

Thai-Norwegian Business Review

We give local ideas global opportunities! Our vision ”We give local ideas global opportunities” Through our presence in Thailand, we seek to assist and promote entrepeneurs and enterprises who are in the process of expanding their business to Thailand, either by entering the Thai market, or by establishing production or other presence in the country. Our services Among our services are: • Identifying Business Opportunities • Market Reports and Industry Investigations • Networking with Government • Partner Search • Assistance with formal procedures Together with the Thai-Norwegian Chamber of Commerce, Innovation Norway has established a Norwegian Business Centre, centrally located in Bangkok, and can offer a one-stop service for Norwegian business in the process of establishing in Thailand.

Contact information, Bangkok We have offices in all Norwegian counties and in more than thirty countries. T: T: F: bangkok@innovationnorway.no

+66 2627 3040 +47 2139 9009 (direct line) +66 2627 3042

www.innovationnorway.no

Address: Mahatun Plaza, 14th Fl. 888/142 Ploenchit Road Lumpini, Pathumwan Bangkok 10330 Thailand www.visitnorway.com

Engineering Information Communication Technology In 1876 Alexander Graham Bell invented what was later known as the first practical telephone. Since then the phone has evolved beyond the recognisable. In the seventies we started to use portable phones, however it is disputable how mobile they where to begin with. Now they are so small, you’re not even sure where you’ve put it. This is not exceptional for the phone industry, similar remarkable development has happened within the ICT industry and in the rapid development in personal computers regarding processing and storage capacity. Today we experience a golden age for all types of information technology as well as all fields of engineering. Use of technology has become an important part of all peoples daily life and in Thailand we have many Norwegian companies driving innovation and technology development. In this issue of the Business Review we would like to introduce some of them.

Nera – Bridging

Businesses and Societies Major Choakdee Dhamasaroj

by Satirat Dam-ampai

Telecommunications has nowadays become the backbone of instant communications - everything is linked and information is available at our fingertips - anytime and anywhere. Nera (Thailand) Ltd., a subsidiary of the Norwegian Nera Telecommunications Ltd. in Singapore, plays an important role in linking businesses and societies with its advance wireless technologies and services.

era (Thailand) is a solution provider with technological expertise in telecommunication transmissions and info-communications. The company offers a comprehensive range of products and services from telecommunication systems, satellite communications, microwave transmission networks, information technology networks, broadcast infrastructure, payment systems, and wireless solutions. According to Major Choakdee Dhamasaroj, Senior Vice President and Country Manager of Nera (Thailand), Royal Thai Armed Forces and Total Access Communication (dtac) are the biggest customers of Nera microwave transmissions in Thailand. “Nera (Thailand) has carried out an implementation of many Armed force projects for a few consecutive years already,” he added. Other major clients of Nera satellite communications and transmission products and systems include Electricity Generating Authority of Thailand (EGAT), Communication Authority of Thailand (CAT Telecom), Telephone Organisation of Thailand (TOT), and dtac, just to name a few.

“Nera transmission business is mostly project-oriented with a six-month-to-two-year life cycle, and such work is our ‘bread and butter’ for day-to-day business,” Khun Choakdee says. “That includes electronic payment terminals with point of sale systems for credit cards, debit cards, and other smart card application,” he explained. Nera (Thailand) has already penetrated the point of sale terminal market for three years, with approximately 40,000 sale and rental units and a 30 percent share in the market. Nera’s clients on this segment are private merchandisers, credit card companies, financial institutions, and major banks such as Kasikorn Bank, Siam City Bank, and Bangkok Bank. “With more than 50 employees, computerised workflow and an around-the-clock helpdesk offering the best customer service at a modest price, we have a combination of the latest technologies and great service for our customers,” Khun Choakdee said. After-sales services and maintenance are significant, as is transparency, he noted underlining the point with the fact that Nera (Thailand) is the only company available for customers to check work progress online on its website at anytime. “We also exchange skilled engineers between Nera offices around the world, whenever other offices require them and our experts are available. This teamwork approach we consider our strong competitive advantage,” Khun Choakdee concluded.

WebOn - Expert Norwegian Knowledge in e-business by Alex Pithie photo WebOn

marketers to get up to speed, while delivering all of the capabilities that experienced web analytics professionals need.

WebOn, a young and growing Norwegian software company was established in 1995 to help pioneer e-commerce software and later Product Information Management (PIM) systems in Norway. The company’s main focus today is e-commerce and solutions for the effective management of product information (PIM), viewed and analysed in multiple channels.

“WebOn systems also calculate ROI metrics from automatically imported cost and keyword tracking data, saving you time while we can track all online campaigns, from emails to keywords, regardless of search engine or referral source. We also take the trust people place in us very seriously, and are pledged to safeguard the privacy of corporate data. We understand that web analytics data is sensitive information, so we accord it the ironclad protection it deserves,” says Jon Anders Aas-Haug. “The thing that make us unique is the tools we have to reuse all the product information that is collected in the database to other market channels than ecommerce. We have tools to create paper catalogs automaticly, to create

“The expertise of our 35 employees spans the areas of web development, integration services, design, usability, web analysis and technical operations. This tremendous depth and ability makes us an end-to-end supplier of mission critical solutions with a large capacity for big, complex projects,” says local project leader Ove Linnerud. “In Norway, we work with clients to give them a dynamic and effective web interface with their markets – wherever they are - building a complete and accurate database of all their products which can then be accessed in seconds. We build a completely user-friendly environment for their customers and a fuss-free operation for our client. All this is built using our database templates and our own proprietory software, guaranteeing the client an efficient presentation side and a smooth operating retail business,” he said. Using their skilled analysts and proprietory software the company can build the online business model, then create, save, and edit custom reports that present the information clients want to see organized in the way they want to see it. Drag and drop interfaces let customers select the metrics they want and define multiple levels of sub-reports. “A typical e-commerce application is a WebOn-designed, dynamic HTML web site with a WebOn interface coupled seamlessly to the customer’s database which is built, operated and maintained by us if necessary to make the business as efficient and as profitable as possible, around the clock. 22

Thai-Norwegian Chamber of Commerce

Jon Anders Aas-Haug - the founder and CEO of WebOn

“Nowadays we work hand-in-hand with the likes of Google Analytics too, a system which compliments completely what we do ourselves. Google analytics is a tool to monitor the way the visitors behave when they visit the site, and to analyse and measure how they behave. The information is used to create more effective solutions. WebOn is the first and only company in Norway to be certified by Google for this product,” says Jon Anders AasHaug, the founder and CEO of WebOn (Thailand) Ltd. WebOn offers all the features you’d expect from a highend e-commerce support operation and with our array of tools and analytical capabilities, it’s easy for novice

mobile solutions, to make advanced offers and to create ‘partner shops’. We try to fill the need our customers has to distribute product information in all their market channels,” he said. Although WebOn does not actively seek clients in Thailand, it does have a development centre in Bangkok, where a handful of local and Norwegian programmers help develop web solutions here in Thailand for WebOn clients in Scandinavia. WebOn has long experience from projects with large trading companies with high ambitions and this has contributed in building their knowledge and bespoke solutions, which gives clients and their companies a competitive advantage in the form of increased ecommerce share, increased sales and reduced cost.

Wireless Broadband Access, 3G Key Goal text and photo by Satirat Dam-ampai

hailand’s telecommunication industry has recently been juiced up with the national move to experience and commence the third generation mobile communication systems (3G) which has already been extensively deployed and recognised with its advent new multimedia technologies throughout the word. Total Access Communication (dtac) Chief Executive Officer, Tore Johnsen, says that dtac is keen to partake of 3G license bids to be issued by industry regulators later this year. Mr. Johnsen considers 3G as a natural evolution of wireless communication system for voice and data services from 2G, and particularly wireless high-speed internet access can be the most attractive solution to compete with the fixed broadband alternative. “We have to buy in to 3G and while voice quality between 2G and 3G is not that different, the wireless high-speed data connection to internet either on mobile phones or laptops on the move is the main drive, the killer application in my opinion,” Mr. Johnsen remarks. According to International Telecommunication Union (ITU), Thailand’s fixed broadband internet subscribers per 100 inhabitants in 2007 was less than 2.5 while the neighbouring countries Malaysia and Singapore was nearly five and 20 respectively. In addition, the highest broadband speed using DSL technology in Thailand and Malaysia were offered at 4Mbps, and Singapore got its highest speed at 10Mbps. “As we do not have lot of good broadband alternative in Thailand, wireless High-Speed Packet Access (HSPA) on 3G will be a very good alternative. The 3G networks either on 850 MHz or 2.1 GHz frequencies have the high speed data on top, and this new wireless system will improve customers’ experience on its fast and convenient services.” he comments. The Norwegian executive also foresees the number of 3G subscribers to be at five to ten percentages of mobile phone subscribers at the very beginning, and it would gradually increase over time as people see that they can get a very easy access to the internet.

Thai-Norwegian Chamber of Commerce

Dtac reached its 2.9 million net new customers in 2008, and that makes the latest total subscriber base stand at 18.7 million numbers. The company’s total revenue is THB 67.7 billion increasing by 3.3 percentage over the previous year.

Ready for 3G

The National Telecommunications Commission (NTC) has announced that the board is working on the process to finalise 3G policy and licensing agreements such as appropriate number of licenses, payment method, spectrum bandwidth, and period of validity. However, telecom industrialists have requested NTC to set an official and clear timeline as well as its framework in order to better plan their investments regarding 3G services. Dtac wants to wait until all regulatory issues are sorted out before making a final decision on its next step.

“Otherwise operating the new 3G license on 2.1 GHz is also the option but with shorter coverage than the 850 frequency. You need more stations to cover the same area with 800850 MHz, and there will be some fee incurred too – the levels of which are not yet decided.” The combination of the two options could also be an alternative.

“We have not yet concluded on our business plans as the 3G investments are depended upon the license term, roll-out obligations, and its demand.” says the dtac CEO.

In addition, Mr. Johnsen highlights that the operators need to know on what kind of terms and conditions they can reuse the infrastructure they already have invested in and handed over to TOT/CAT. To build a totally new infrastructure for 3G will be too costly.

According to NTC board member, Mr. Sethaporn Kusripitak, the auction period would be in May or June, and the process would end with the winner result in the third quarter of this year.

“It is crucial not only for us, the operators, but also crucial for the consumers. This cost should be avoided, then all parties should be able to deliver all costefficient service to the customers.”

“Three to six months after that could be the start of the operation.” said Mr. Sethaporn at a recent 3G seminar.

Mobile Network Evolution

Nevertheless, dtac has selected Huawei Technologies Nokia-Siemens Networks (NSN) as its 3G mobile broadband-network suppliers when the network is ready to roll out in the future.

First Generation (1G) analogue system for mobile communications was designed for basic voice calls using frequencies around 900 MHz, no data services. It was first deployed in Norway in 1981.

“Investing in 3G on our existing frequency is one alternative as the 850 MHz frequency is good when it comes to coverage and especially with less capital investment. But we have to pay the revenue share with the Communications Authority of Thailand (CAT Telecom) anyway” explains Mr. Johnsen.

Second Generation (2G) digital cellular systems were built mainly for voice calling and simple data transmission – SMS- with the speed between 9.6 to14.4 Kbps. It provides better quality and higher capacity at lower cost to consumers. 2G was first developed at the end of the 1980s. The most popular 2G wireless technology is known as Global Systems for Mobile Communications (GSM).

The second-largest cellular operator has the concession agreement with CAT Telecom to operate on the 850 MHz bandwidth and the company has to share 25 to 30 percentages of revenue with its regulator over the remaining nine years of its concessionary period.

So-called ‘2.5G’ systems recently introduced enhance the data capacity of GSM and mitigate some of its limitations. These systems add packet data capability to GSM networks, and the most important technologies are General Packet Radio Service (GPRS) and Wireless

Application Protocol (WAP). 2.5G provides data transfer speeds up to 100 Kbps. Third Generation (3G) systems promise faster communications services, including voice, fax and internet, ubiquity with seamless global roaming. International Mobile Telecommunications-2000 (IMT-2000) global standard for 3G has opened the way to enabling innovative applications and services such as multimedia entertainment infotainment and location-based services, for example. The first 3G network was deployed in Japan in 2001. 3G achieves broadband speeds between 100 and 300 Kbps.

What 3G is designed to deliver: • A wide range of market-focused applications • Long-term market-driven creativity, an innovative value chain and real user benefits, driving genuine market demand • Advanced, lightweight, easy-to-use terminals with intuitive interfaces · Instant, real-time multimedia communications • Global mobility and roaming • A wide range of vendors and operators, offering choice, competition and affordability • High-speed e-mail and Internet access Source:http://www.3gnewsroom.com

Thai-Norwegian Business Review

Setting the ‘Norconsult Plus Plus’ Record Straight – and what a record! by Alex Pithie photo Jørgen Udvang

Norconsult – In Step With Thailand

o that there is no confusion, since day one, the Norwegian engineering ‘institution’ Norconsult in Thailand has offered multi-discipline consulting engineering services covering all phases of a project from the earliest pre-investment and feasibility studies, through planning and design, tendering and construction supervision, to project implementation, operations and maintenance. And since the days when Norconsult first arrived in Thailand in 1979 establishing yet another satellite of the immensely successful Norwegian parent company, the Thai entity has built a reputation second to none for the work it has handled in designing and building some of the most sophisticated bridges in Thailand and Asia including long span, suspension and cable-stayed bridges and in developing and designing a range of projects embracing major road building, industrial estates, factories and towering condominiums.

Knut Hj. Nielsen Managing Director of Norconsult in Thailand

Their experts are familiar with a variety of working conditions, having carried out assignments

on all five continents. When necessary, Norconsult co-operates with other companies, research institutions and universities, as well as independent experts. Clients are private investors, governments, consortia and major international organisations. Norconsult began its career in Thailand with the design of the New Memorial Bridge. Since then the company has been lead consultant for design of many of the larger bridge and expressway road projects in Thailand, including the Rama III Bridge, the Wat Nakorn-In Project with the Rama V Bridge, the Industrial Ring Road Project with two major cable-stayed bridges over Chao Phraya River and more than five km of precast segmental box girder bridges. The company was involved in the West Corridor and Srirat-Dao Khanong expressway projects in Bangkok. In 1996 the company was reshaped as a Thai-Norwegian joint venture – Norconsult Civil Engineering Ltd (NCE) and with the Thai partners owning the critical 51 pct and the Norwegians the balance of 49 pct. Since then the company and its gifted engineers have gone on to build on early successes and by now in the year 2009, a Thai is at the helm of NCE and the company continues to grow and expand with one of the finest teams of civil engineers on the planet. NRS Consulting Ltd (NRSC) is a separate consultancy and company housed within the main NCE Bangkok offices. NRS was registered in Thailand in 2004 with 51% Thai and 49% foreign ownership and except for the managing director, the entire staff are Thai citizens. The firm employs expertise from its foreign owners whenever required on a case to case basic. NRS today is a world leader in state-of-theart construction equipment for concrete

bridge super-structures. Its sophisticated systems have been used to build more than 500 bridges worldwide. NRS is a highly specialized company and a leading supplier of equipment for costeffective construction of concrete bridges (precast and cast-in-situ) by the advanced shoring method and free cantilever method. NRS equipment and well-developed construction technology have been successfully used since 1970 for over 300 bridges and viaducts in more than 25 countries all over the world. Our world-wide success is well attributed to innovation, practical efficiency and cost-effective use of our equipment and NRS equipment is today involved in the biggest bridge projects in China, Korea, England, Greece, Spain, USA, Thailand, Bahrain and Dubai.

Now locally majority Thaiowned and managed, as a pioneering engineering consultancy from Norway, Norconsult first began to make an impact in Thailand in 1979 with the design of the New Memorial Bridge. Since then the company has been lead consultant for design on many of the larger bridge and road projects in Thailand, notably the Rama III Bridge, the Wat Nakorn-In Project with the Rama V Bridge and more than 5 km of precast segmental box girder bridges. They also helped design the Industrial Ring Road Project with two Norconsult bridge under construction major cable-stayed bridges over the Chao Phraya River. The company also helped design and construct the West Corridor and Srirat-Dao Khanong expressway projects in Bangkok. Today the company is majority owned by Thai staff and is registered in Thailand as Norconsult Civil Engineering Co Ltd (NCE). The new Thai entity designs and builds bridges, railways, highways, underpasses, factories and buildings and does building safety audits, bridge health monitoring and 3-D modelling. In co-operation with the Norwegian partners NCE provides services which include design work for power and water projects, tunnels and underground facilities.

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Baezeni – Make Your World Come to Life in 3D by Alex Pithie illustration by Baezeni

n the Bangkok offices of high powered Thai/ Norwegian engineering specialists NCE, one wing is busy building a virtual world so that engineers can better present or promote their ideas and concepts to customers and governments. These computer engineering specialists build stunning 3D images of engineering projects under planning and bidding or development and ultimately as works-in-progress – as well as outputing 3D web work, animations, modelling, vectorizing and data modelling. But these sophisticated engineering software services are no longer the bailiwick of the Norconsult Civil Engineering Co Ltd (NCE) nor of NRS Consulting Co Ltd (NRS), but both are instead cooperating with the new company - Baezeni Co Ltd - whose main thrust is to deliver 3D engineering software solutions and 3D services using proprietory Novapoint software. The new entity - Baezeni Co Ltd - shares office space in Bangkok with its ‘new’ partners to keep it simple, and to ensure that NCE and NRS still have the best 3D services at hand when bidding or designing new bridges, roads – even cities or major engineering projects anywhere in the world.

Here in Asia Finn Zetterstrom has long been at the heart of the engineering software development business cutting his teeth in early generations of the Vianova proprietory software Novapoint which he has ultimately helped develop to the very high performance and delivery standards the software now achieves around the world today. Small wonder then that he decided he still had enouugh years in hand to take that experience and development skills to the new company, which now represents the software he worked so hard on all those years. “I and my partners have the experience to engage what may be a cliché to some - to try to make a better world through 3D presentations because we build tools that give truthful representations of what a bridge, or a city or a condo actually looks like; or where a project will go and how the environment for example may be physically affected. And with those considerations in mind, then my goal as Business Development Manager and partner is for Baezeni to be by 2015 one of the best reputed international actors in application and development of 3D engineering methodologies and technologies.”

Seems that Zetterstrom’s strategy is very much on track with news that since the company registered its official presence in 2007, it has already completed more than 120 projects covering bridges, road planning, city development and a huge range of new buildings. All were 3D presentations with some 80pct of those projects for clients in Europe. Among the innovative techniques the company can provide are the perfect 3D images of a condominium (or factory), its actual geographical perspective using Google maps, and then allow prospective buyers or architects to introduce specially-designed 3D digital furniture and appliances to see how the finished home looks! “Using our competence and experience and the very latest technology, we want to be recognized for our outstanding quality and delivery on or ahead of schedule, at competitive prices and without sacrificing a sense of fun and enthusiasm or curiosity and initiative. This mix I believe, guarantees we will bring success to our customers - and our partners,” says Zetterstrom. “Our management and staff are a mix of different competence and cultures offering services to customers in many countries based on closer relations and

understanding. This means that we, in relation to you as a customer and partner, can establish ”insourcing” relations rather than the usual outsourcing concept.” The company has also worked out a cooperation agreement with a Chonburi based technical college which teaches only disabled student. Working with the faculty, Baezeni has already instructed and hired a handful of wheelchair bound graduates who might otherwise struggle to find relevant work. Zetterstrom is so impressed with their output and professionalism, he has plans to hire more with a major retouching contract pending and a potentially massive expansion of client demand from Scandinavia in particular. “It’s great to have such genuinely enthusiastic and gifted team players onboard and it certainly strengthens our programming and processing capacity. And we now cooperate on a permanent basis with partners in Hanoi, Taipei, Kuala Lumpur and six European based companies. In this way we offer flexibility and local contacts. In our project teams we now have staff members that master 10 languages: English, Thai, Norwegian, Swedish, Danish, Finnish, Spanish, Vietnamese, Chinese, Malaysian.”

Baezeni is also the distributor and reseller in Asia/Pacific of the high end road- and infrastructure design software Novapoint. Norway’s Vianova Systems AS is the owner and developer of Novapoint and the software today is a complete tool for professional, integrated, civil engineering design and construction – a software with a strong emphasis on infrastructure design. Oslo as it appears in 3D, from the areas around the Central Station... 28

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... and the sea view of the new Opera House

Thai-Norwegian Business Review

Norway’s Q-Free Contracts Speed Bangkok Traffic Norwegian technology wins out against tough competition by Alex Pithie photo and illustration by Q-free

delivery of manual and electronic toll collection systems in Bangkok with the winning bid delivered to a joint venture responsible for the total project between Ch. Karnchang Public Company Ltd. and Loxley Public Company Ltd,.

“Going back a few years I was recruited by Q-Free to take a look at the real potential in Asian markets and the prospects for Thailand to become a major market for our products surfaced. And before too long we were in a position to tender for some interesting possibilities.

The client or end user is Expressway Thailand Authority (ETA), a state-owned company reporting to the Thai Ministry of Transportation. Q-Free is a sub supplier in the project and the work (eventually) involves the total upgrade of all toll plazas in Bangkok, and comprises major future contract potential. The Q-Free contract included roadside systems for 144 lanes for six different toll plazas south of Bangkok city centre as well as 70,000 On Board Units. The contract is Q-Free`s largest ever in Asia.

omething of a veteran doing business here in Asia, Q-Free director Sven Skaug considers his latest contract signing as a major breakthrough in the process of promoting Q-free’s products in what he still considers a tough market. Norway’s Tronheim based Q-Free is a leading global supplier of solutions and products for Road User Charging and Traffic Surveillance.

While his Master’s Degree in Economics has certainly helped in getting the commercial groundwork right, Sven reckons his patience and quiet Norwegian reserve have also been essential in persuading the client to favour the Norwegian technology developed by Q-Free. “As I pursued the potential here, it then became clear I would need to start the process of building a comfort zone for Norwegian technology wins out against tough competiton the clients, reassuring them that we really represented the best in technology and stateof-the-art products, making sophisticated The significance of the contracts comes into sharper technical presentations and even hosting visits to our focus when you learn that BECL is one of several key installations in Europe and Australia. All were all important expressway operators in the Bangkok region, part of the process of winning the client’s confidence and has among its portfolio responsibility for the and getting the work we now have on our books. main connection to and from the new Suvarnabhumi international airport which has over 100,000 toll “That and the support of my team here and from the transactions per day alone. engineers in Norway were critical to my game plan and eventually our yards of patience and determination “And as my boss Øyvind Isaksen says, Bangkok paid off.” represents a growing market within electronic road pricing. And this is the company`s second contract in Most recently on February 10, 2009, after successful a relatively short time – a great boost to our marketing contract negotiations, the Bangkok Expressway strategy.” Company Limited (BECL) awarded Q-Free a letter of intent valued at 61 MNOK for the modernisation The BECL deal comes hard on the heels of the of toll booths on the Southern Outer Ring Road, the company’s first award in Thailand, a contract with contract comprising 44 new automated toll booths on a value of approximately NOK 80 million for the the important road system.

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Sven Skaug says this deal was an important milestone for him and Q-Free and a breakthrough in the company’s efforts to promote Norwegian technology appropriate for the needs of a dynamic young economy like Thailand.

Q-FREE Technology Q-Free’s technology is developed in Trondheim, Norway, one of the world’s major technology centres of excellence and home to Norway’s most important university for technology and science, NTNU. Q-Free’s focus is on Road User Charging (RUC) and within the RUC market, Q-Free focuses on providing communication and transaction technology and products to safeguard a transport operator’s cash flow. Historically, payment of road tolls meant stopping the vehicle and handing over money to an operator before being allowed to proceed. In Thailand and elsewhere, Q-Free sees a strong motivation to develop concepts and products that optimise the balance between infrastructure utilization and environmental effects.

ETC system configuration

“The first contract was a vital element in the development of the company`s position as an international supplier, and in particular this contract will improve our competitive position in the Asian region too, and as Thailand is a key market for us, we now see the further potential as substantial.” Q-Free offers solutions and products based on state of the art technology, and is the leading supplier within DSRC (tag), ALPR (Automatic License PlateRegistration), GNSS (Global Navigation Satellite System) and Traffic surveillance based solutions, with deliveries in Europe, Asia-Pacific, Middle East and North- and South America. The company has more than 270 employees in 11 locations and representatives in six other countries. Headquarter are in Trondheim, Norway and Q-Free is listed on the Oslo Stock Exchange with the ticker QFR.

Thai-Norwegian Business Review

Thai Publisher – Norwegian Roots by Alex Pithie

t is extraordinary to think that one of Asia’s most important publishers responsible in its’ time for printing an impressive catalogue of books focussing primarily on the history and origins of Asia and its diverse cultures, should have been founded by a Norwegian. But remarkably, Orchid Press was founded in 1981, originally as White Orchid Press, and operated, until his untimely death, by Norwegian Hallvard K. Kuløy, a former United Nations executive who had lived and worked for many years in Asia. Hal had a deep affection for literature and fine books, dating back to his childhood in rural Norway, which found expression in Orchid Press in his unerring taste for selecting and publishing books of great merit, both new works and reprints of classics. Hal grew up in a very rural Norwegian setting and books were an early escape from a somewhat cloistered life on the family farm. Later, Hal spent a significant part of his career working and living in Asia, a region and a population that he came to admire and love. So I believe his initial motivation was drawn purely from a love of books and of reading, and also from a desire to increase the availability of more high quality material on the Asian region. Later, though, Orchid Press evolved somewhat, to include a role as a vehicle for expression of his social and political views. Today, Orchid Press is an energetic publisher dedicated to continuing Hal Kuløy’s legacy, and to providing readers with affordable high-quality editions of important works on the art, culture and religions of Asia. It is perhaps a little surprising that the publisher has a list which contains some 30% plus titles focused broadly on Burma rather than Thailand or other Asian countries. The reasons for this dates back to Hal Kuloy’s time in Nepal where he met and became friends with a young scholar and his wife - Michael Aris and Aung San Suu Kyi. When Daw Aung San Suu Kyi returned to Burma to lead the democratic forces to electoral success in the late ’80’s, Burma suffered through its own ’Tiananmen’, during which the democrats and their student supporters were slaughtered in the streets in their hundreds, a horrendous time for the compassionate Norwegian pubisher.

Hal was profoundly enraged by this act of brutality and spent a significant portion of his remaining years as an activist in support of his old friend and her objectives. Orchid Press, post 1988, became one of the vehicles of this activism. The thought was (and is) that any efforts to retain the spotlight on Burma, its rich traditions and the essential civility of its culture in the eyes of the world can assist in the Burmese people’s struggle against their military oppressors. The present Burmese government perpetuates what it does when the world is not paying attention, so one of our main objectives is to contribute in our modest way to maintaining the world’s awareness of Burma and the plight of the Burmese. Today Orchid Books is the only shop in town offering all titles in print, not only from Orchid Press, but also from other local presses such as Silkworm Publications, White Lotus Press, SDI and River Books. Orchid Books also stocks many other fascinating new, and a small selection of out-of-print, titles on Asian countries, cultures, religions and issues from fine publishers worldwide.

Thailand’s Free Trade Agreement by John Fotiadis, Director International Trade and AntiDumping Group Tilleke & Gibbins International Despite Politics, Thai Governments Remain United Behind Free Trade Agreements as Beneficial Foreign Economic Policy Thailand is a member of the World Trade Organization and subject to the General Agreement on Tariffs and Trade since it became a signatory in 1982. One of the principal purposes of GATT and the WTO was to require its members to extend Most Favored Nation status to all other members. No single member nation was to be favored above others. However, in the exception that swallowed the rule, GATT does authorize free trade agreements (FTAs) as “vehicles of trade liberalization”. Such FTAs can be either multilateral (incorporating an agreement between several nations at once—e.g. ASEAN) or bilateral, constituting an agreement between two nations only. Thailand has itself favored FTAs as a trade policy tool over the past decade. While there have been ups and downs, as a general matter Thailand’s FTAs have proven beneficial to the country as a whole. Thailand has entered into FTA agreements with China, India, New Zealand, Japan and Australia. Discussions continue to expand/finalize new agreements with the US, India, and the EU, among others. Indeed, FTAs are viewed as a means of attracting business to Thailand. This is accomplished in four principal ways. First, reduced tariffs in foreign trade partner nations permit Thai goods to be sold there at lower prices. This increases demand for Thai products in the foreign market. Second, easing of restrictions against foreign investment and services make Thailand more attractive to foreign investors. Third, and oftentimes overlooked, is the means by which FTAs attract investors and business operators from non-party nations to establish operations in Thailand to take advantage of Thailand’s FTA terms. By way of simple example, Japanese auto makers have increased their manufacturing in Thailand in order to take advantage of the reduced duties on sales of cars and auto parts to Australia per the terms of the Thailand-Australia FTA. Finally, the publicity of an FTA triggers a greater focus by investors and business operators to investigate 34

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business opportunities in the trading partner country which is a signatory. In a sense, an FTA works as a marketing tool or promotion of business between the two trading partner nations. Today, the rush to FTAs is intensified by the global economic slowdown. FTAs are seen as a means of reinvigorating trade and business between nations. Next to ASEAN (and the US Treaty of Amity), the Thai-Australian Free Trade Agreement (TAFTA) has gone the furthest thus far of any bilateral FTA in eliminating Thailand’s trade barriers vis-à-vis a particular trading partner. Effective as of 2005, the TAFTA immediately eliminated Thai tariffs on nearly 3,000 categories of items. Another 2,500 items will have Thai duties phased to 0% by next year. Assuming all goes well, the TAFTA is scheduled to eliminate all remaining duties by 2020. Some of the biggest categories of goods which have seen significant export increases (through last year) are automobiles, automobile parts, and other machinery and equipment. Milk, cream and milk powder have, however, been excepted from the terms of these duty reduction. In every FTA negotiation, each nation develops what is termed a “negative list” of all categories of items which such nation feels its domestic producers are not yet ready to compete in an unprotected market. Faced with Australia’s renowned dairy industry, Thailand yielded to pressure from its domestic dairy producers to include milk, cream and milk powder on its negative list with Australia. One of the more surprising concessions by Thailand in the TAFTA was the authorization for Australian citizens to hold up to 60% equity interest in certain business projects such as international exhibition centers, conference halls, public infrastructure construction projects, institutions of higher education focusing on science and technology, large hotels, aquatic parks, marinas, and mines. (ASEAN has entered into a new multilateral FTA with Australia and New Zealand on February 27, 2009. However, this new multilateral FTA does not incorporate the significantly beneficial terms negotiated by Australia in its bilateral FTA with Thailand, executed four years earlier.) This expansion of ownership rights for Australians is reminiscent of the US Treaty of Amity, which grants similar rights to US Citizens (without a 60% equity limitation). However, the US Treaty

of Amity—as an agreement entered into prior to Thailand’s signing on with the WTO and GATT—is deemed in contravention of the terms of the WTO agreements. Thailand was given a deadline through 2005 to terminate the Treaty and replace it with a new US-Thailand FTA. However, this has not occurred and the US Treaty of Amity continues to be quietly implemented on a renewal basis pending further USThailand negotiations. One of the loudest objectors to the US-Thailand Treaty of Amity had been Japan, until recently when Japan got its own FTA with Thailand. The WTO has itself looked the other way, justifying that further action could not be taken due to the recent political upheaval in Thailand. (Of course, the fact that the Japanese FTA was executed with Thailand’s coup government in the midst of this supposed political upheaval did raise some eyebrows).

that it may have given too much. The agreement in its current state contemplates the elimination of tariffs on 3,666 items by the end of 2012 including refrigerators, fans, air-conditioner parts, jewelry, rubber products, and plastic resins. As many nations world-wide compete for what appears to be a continuously decreasing sales market, FTAs are a means for Thailand to channel such sales to its own market above those of competitors. Done with consideration, FTAs can prove quite beneficial in netting a greater portion of the world’s trade for Thailand. Despite the political differences that may have arisen in the course of the Thaksin, Military Coup, PPP and now Abhisit governments, Thailand’s economic policy favoring FTAs has been a consistent and unifying theme, which we can expect to continue for at least the next 2-3 years.

The Japan-Thailand FTA became effective in 2007, eliminating tariffs on 92% of Thailand’s exports to Japan, most notably for fruit and shrimp, and educes tariffs on chicken. While this is certainly advantageous for Thailand, exporters are certainly aware of the strict food import requirements implemented by Japan. In recent years, these food quality import restrictions have been challenged by the US and other nations as a secret strategy by Japan to protect domestic producers from foreign competition. The Japan-Thailand FTA also phases out all tariffs on auto parts by 2011, reduces Thai tariffs on cars with larger sized engines from 80% to 60%, and eliminates tariffs on hazardous waste imports/exports between the two nations. However unlike the Australian FTA, Thailand did not liberalize equity ownership for Japanese investors. Thailand’s FTA with China effective as of 2002 was limited exclusively to 180 agricultural items. Further bilateral discussions to expand trade with China have been postponed for the time being, seemingly in favor of multilateral discussions between China and ASEAN. A similar agreement exists with India since 2003, limited to 84 items but including seafood, synthetic fibers, metals, chemicals and integrated circuits in addition to agricultural items. Recent discussions with India were intended to result in a signed India-ASEAN FTA at the ASEAN summit which just took place. However, at the last moment, India backed out for fear

Thai-Norwegian Business Review

Bangkok Museum Catalogues Counterfeit Capers by Alex Pithie photo Museum of Fakes and Karine Slørdahl

The Museum of fakes collection covers more than 20 categories of goods which among others includes clothing, leather goods, electronics and perfumes

ecent reports in the Bangkok press that a local garage is actually producing copies of Ferrari cars to order, once again put a shiver through the manufacturing community in a region where seemingly nothing is sacred and anything can be copied. The legalities of what the Ferrari copyist is doing are still being decided, but there can be no doubt that many have gone before him if it is deemed to be counterfeiting. In Asia of course counterfeiting is in fact an industry – illegal and reprehensible as it is. And counterfeiting has provided a good living for many crooks over the years. Lawyers too have done well pursuing the counterfeiters and making sure the law is not ignored when an item has the immediate appeal of a legal predecessor already properly copyrighted, licensed and maybe even patented. Tilleke & Gibbins, a long-established law practice in Bangkok has over the years become specialised in the business of challenging the counterfeiters on behalf of a rake of clients in the manufacturing and consumer goods production industry. As the problem escalated in Asia and Thailand in particular, the law firm eventually acquired a considerable volume of counterfeit and pirated goods accumulated over the years from raids conducted on behalf of the firm’s clients. The dodgy goods, used as evidence in court, were then packed away in boxes, taking up valuable storage space while serving no useful purpose whatsoever. With the collection growing rapidly, it became apparent that a way should be found to take advantage of the counterfeit evidence and put it to good use. As luck would have it, Tilleke & Gibbins senior partner David Lyman visited the offices of Anthony R. Gurka of the Hong Kong investigative firm Commercial Trademark Services (CTS). From the early 80s, Gurka had established an impressively displayed collection of infringing goods and it occurred to Lyman that the counterfeit goods held at Tilleke & Gibbins’ offices could very well prove useful as educational tools if properly displayed and accessible for public viewing. Thus inspired, Lyman worked with members of the firm’s Intellectual Property Department and in 1989, the Tilleke & Gibbins Museum of Counterfeit Goods came into existence.

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Initially, the collection consisted of approximately 100 items separated into four categories - clothing, leather goods, electronics and toiletries. However, with new items gathered on a continuing basis from raids overseen by the firm, plus samples of the genuine goods which the firm obtains, the collection has grown and at present, the museum has approximately fifteen hundred exhibits infringing trademark and copyrighted goods, making it the largest one of its kind in Thailand. Today the collection covers more than 20 categories of goods which, in addition to the four already mentioned, include footwear, perfumes, watches, household appliances and equipment, sound systems, car and machine parts, decorative ornaments, foods, drugs, alcohol, chemical products and stationery.

And as hoped, the display of counterfeit goods alongside their – and at Mah Boon Krong you can get all the 20 categories, and then some... genuine counterparts has proven to be of great educational value, which allows the viewer not only an interesting and unforgettable hands on learning experience but Property Organization (WIPO) or the Department also demonstrates the extent and of Technical and Economic Cooperation of Thailand. consequences of the counterfeiting Not only does the museum attract those involved of legitimate goods. in the intellectual property field, but it is also well frequented by Thai and foreign police, Interpol Today, intellectual property officials from the Pacific officers, judges, government officials, law students, Rim countries even visit the museum as part of their clients and other individuals from the private sector. training, usually organized by the World Intellectual

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The Missing Link • Do you wish you understood why certain people

perform very well and others are just getting by or even under-performing? • Do you feel that planning, monitoring and evaluating your subordinate’s performance is easier said than done? • Do you dislike or avoid so-called performance appraisals?

Henrik Essen Henrik Essen is a Consultant and Executive Coach. His work is to help people raise their self-awareness through individual profiling, define specific goals, remove interference, and release people’s potential in order to help them be successful in business and life. Over the years he has helped many of our members using his philosophy and will in three coming numbers of the Business Review share his views on how to excel in Business and in Life. Today he mainly coaches and consults company leaders, senior and middle managers and management teams, but also individual professionals on a private basis. He also work with organizations, implementing what he calls a “Perform to Win” philosophy. Henrik Essen lives in Singapore but works globally. His main services are: • Executive Coaching • Personal Coaching • Personal Profiling • Perform to Win Projects • Career Transition & Outplacement If you wish to know more about the GAC Process please contact Henrik Essen; essen.essen@live.com

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If you do, you are not alone. Today, many managers, including their team members, wish for better ways to do performance reviews. The problem is that they are not sure how to do so. What they lack is a simple yet structured method. This creates frustration for both managers and employees. It’s not enough to tell your staff to do their best after you have clarified their responsibilities and your expectations of them. You need to make a proper and concise plan for the coming year. The plan must include what I call the missing link in order to minimize disappointments and maximize performance. The missing link is the crucial part of each person’s plan for his or her development of necessary knowledge and skills. It’s about clarity, it’s about commitment and, above all, it’s about planned improvement.

What is the missing link and what is it linked to?

It starts with a meeting between the manager and the individual staff member. This meeting is a planning and development meeting as well as an appraisal. You will analyze and discuss work issues, motivation and general attitudes. The key is to follow a simple and effective structure when you discuss and plan for the coming 12 months. You use the same approach during the appraisal. This planning and evaluation structure is called the GAC Model. It has three crucial components, which are all linked together. GAC is an abbreviation of the following: G stands for Goals A stands for Actions C stands for Capacity – The missing link When implemented, the GAC Model will ensure peak performance from your staff because you actively plan for future performance and development. The GAC Model will also help you understand the reason why some of your staff members don’t perform well.

To clarify - If you don’t reach your Goals, it’s because you don’t take the necessary Actions. The reason you don’t take the necessary actions will be found in the missing link, the Capacity you lack. This is all common sense. However, common sense is not common practice. We tend to avoid and forget the missing link. Therefore, we don’t produce a complete plan for each team member. It is the responsibility of both the manager as well as the individual staff member to actively discuss and plan for the next 6-12 months. You need to keep all three components of the GAC Model in mind: Goals, Actions and Capacity.

This is how you produce a GAC-plan:

Goals Discuss and define what the person needs to achieve and when. Strive to define specific, measurable, realistic and time-framed goals. Make sure that you both agree on the goals. These goals are the person’s KPI’s (Key Performance Indicators).

Actions Discuss and define what he or she needs to do in order to reach the set Goals. Remember that goals without actions lead nowhere. Agree on an Action Plan with the right focus, quantity and quality of work tasks. Define key tasks - the most important actions that ensure the delivery of goals.

Capacity Discuss and define the subordinate’s capacity in general and establish if anything needs to be improved or changed. The purpose of this evaluation is to find out if the person has the necessary knowledge, skills, attitude and motivation to complete the Actions, (the A in GAC). Define a Capacity Plan including:

• What, when and how to develop his/her Knowledge and Skills

• What, when and how to improve his/her Attitude, Commitment and Motivation

What are the benefits of using the GAC Model?

• It helps you ensure peak performance and results

by setting specific Goals and agreeing on necessary Actions. • It makes it easier to define, discuss and ensure the employee has the necessary Capacity, i.e. correct knowledge, skills, attitude, commitment and motivation. • It will increase overall job satisfaction. One of the reasons we avoid and forget the missing link (Capacity) is because it’s connected to people’s emotions. Talking about sensitive areas such as personal feelings, attitudes, commitment and general motivation can be difficult.

What should you look for when your staff is under-performing?

There are a number of factors that cause underperformance. These factors are called De-Motivators and they make people irritated, stressed, tense, and ineffective. In short, De-Motivators cause general job dissatisfaction. Below are some examples of these factors:

De-Motivators • Comparatively low salary, commission and other benefits • Relationship problems with peers and superiors • Politics, backstabbing and bullying within the company • Lack of necessary work tools, systems and procedures • A culture of “Management by Threat” in the company • General anxiety – for example, fear of making mistakes and loosing one’s job • Lack of information, openness and communication in the company • Unclear company policy, administration, strategy and vision • Poor self-confidence and self-esteem • Lack of trust and delegation from management • Low status and pride in the work role • Poor work environment and work conditions • Lack of life/work balance Try to solve the De-Motivators as soon as possible or you risk having negative-minded staff. If you ignore the De-Motivators, people will start looking for

Thai-Norwegian Business Review

jobs elsewhere. Having said this, we need to realize it is not always possible to solve the De-Motivators immediately. However, this should not stop you from discussing the De-Motivators and having an open and supportive dialogue. Once you have discussed and hopefully solved the DeMotivators, you should focus on factors that create and promote job satisfaction, positive energy, enthusiasm, focus and drive. These factors are called Motivators. Below you will find the 7 Motivators that promote performance and happiness at work. Motivators 1. When you achieve results and succeed in your work role 2. When you receive positive feedback and recognition from your boss and colleagues 3. When you have responsibility and authority to decide 4. When you have a job where you can best utilize your strengths and talents 5. When you have an opportunity to grow and learn new things 6. When you have opportunities for promotion within the company 7. When you have trust and freedom to invent, improve and try new ways of doing the job

Each person is unique and has different needs and issues. You need to find out what is important for every team member. Ascertain what their Motivators and De-Motivators are and then work with them to meet their needs accordingly. If you do this, you will have motivated and performance-driven people. Analyze and discuss the Motivators and DeMotivators with your staff, ideally once a quarter or at the minimum twice a year. Always remember to include the missing link – the C in the GAC Model discussions. When you have individual GAC meetings with your staff, you should emphasize that you expect things to turn out well, that you trust in his or her ability to fulfill the GAC Model plan. Create a positive feeling and show that you believe in your staff’s future success and performance. Yes, the goals are tough, but the GAC Model and process will ensure your staff will perform at peak.

Euro-Center 20th Anniversary 14 January marks the 20th Anniversary for Euro-Center in Thailand and the start of a new era. As the pioneer among EC worldwide going 24/7, Euro-Center Thailand in Bangkok has expanded from a modest office of 15 to over 30 persons with 13 languages spoken in the office (Thai, English, Mandarin, Cantonese, Finnish, German, Swedish, Danish, Italian, Bahasa Melayu, Hindi, Punjabi and Urdu). Being 24/7, EC will be able to assist clients around the clock and the issue of time difference or after office hours will be a thing of the past. A cocktail reception was held at The Siam Society Under Royal Patronage to celebrate this memorable day. Over 100 guests from Embassies, Chambers of commerce, hospitals, travel agencies, hotels, church, airlines and suppliers attended the event in the mid afternoon in the lovely garden at The Siam Society. Guests moved to the main hall where a video presentation showed the different offices and people working in EC worldwide. Peter Weber, Assistance Managers in Thailand was featured in the short video where he spoke English, Danish and Thai, demonstrating the multi lingual skills at EC. Mai Ellegaard, General Manager opened the event with a welcome speech where she spoke about the close relationship between Thai and Scandinavia that started during the reign of King Chulalongkorn the 5th. This was followed by Kenneth Sandén, the Chairman of the Board for Euro-Center Holding where he spoke of the milestones of EC worldwide. The guest of honour, HE Mr Sawad Wattanayagorn, Privy Councillor was not able to attend as he was called to pay an audience to the King. Per Vallbo, CEO of Euro-Center Holding was invited to talk about the current developments and achievements of EC which included the ITIJ Awards in late November 2008 for its outstanding industry expertise and extraordinary achievement in Cost Containment amongst major international cost containment companies. Mai, Kenneth and Per officiated the grand opening of 24/7 and the 20th anniversary in Thailand with a champagne toast and followed by a colorful display of confetti fireworks from the stage. Guests were treated to wines and delicately crafted canapés. Last but not least, guests left with a thank you gift to commemorate this historical day for EC. Euro-Center is the local service office for Europeiske Reiseforsikring in Norway.

My place It seems golf is a very important part of recreation in this country, so also for the Managing Director of Jotun in Thailand, Eric Mallace. This time we took the liberty of asking this charming Scotsman how he would spend his favorite day. “All my favorite places tend to be golf courses, spa’s or restaurants. So I stick to my most favorite which is golf,” he says. “My favorite place in Bangkok is Muang Keow golf course located on Bang Na Trad.” And Eric has good reasons for it:

Practice makes master, Eric in his yard.

“First I love the green open spaces as I was raised in the countryside in Bonnie Scotland. Second; The caddies always bring a smile to my face and remind me how happy they are to receive small gratitudes. Third; There is a cold beer and warm food stop every three holes. Last, but not least I can meet my friends and socialize whilst enjoying a competitive game...” Eric would like to ask Torkild Waagaard as the next person on the hit list, so Torkil you have some months coming up with your favorite place to be mentioned in the Business Review.

Thailand’s Thailand’sEconomy Economyat ataaGlance Glance

2005 2006 2007 2008p 2009p

Q4/08

5.50

Jan09

Jul08

Jan08

Jul07

Jan06

Jul05

5.00 4.50 Jan08

Jul08

Oct08

Jan09

Bilateral trade 2008 Import 1,348 (1,310) MNOK Export 2,112 (1,985) MNOK

600

200

150

Thai-Norwegian Chamber of Commerce

Thai-Norwegian Business Review

Clothing

Computers

Cars

Electronics

Food

Paper

Engineering

Instruments

Fish

0 Fertilisers

100

Apr08

400

175

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 20 January 2009

6.00

200

125

0 -2

Manufacturing Index

Sources:

6.50

2002=100

7.18 11.29 12.50 40.00

7.00

Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09

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

-2

Exchange Rate THB/NOK

1,000 900 800 700 600 500 400 Jan05

65.5 mill 4.7 mill 8,160,522 560,484 71/75 78/82

-4

Stock Exchange Index (SET)

2004 2005 2006 2007

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

Q1/08

-6.0

Q3/08

2 Q2/08

0.0 2009p

-4.0

MY TH CN ID PH IN VN LA KH MM

2.0

2007

4.0

2008p

2006

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

Male Female

Thai Consumer Price Index

6.0

Some comparisons

Mill

8.0

-2.0

Thai Population 2008

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

Thai GDP Growth (%)

2005

Top 10 Exports 2008 %/value USD bill. IT equipment 10.4%/17.3 Cars and automotive 8.9%/14.7 Refined fuel 4.5%/7.5 Precious stones/jewellery 4.4%/7.2 Rubber 4.1%/6.8 Circuit boards 3.9%/6.5 Rice 3.5%/5.9 Polymers etc. 3.2%/5.2 Iron, steel etc. 3.0%/5.0 Rubber products 2.6%/4.2

Jan07

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)

Jul06

Export Growth y-o-y 18.1% Trade Balance USD 12.0 bill Current Account Balance USD 14.9 bill International Reserves USD 87.4 bill Minimum wage (Bangkok) Baht 203/day

Jul08 Aug08 Sep08 Oct08 Nov09 Dec08 Jan09

Basic Figures Thailand (2007)

Sale. Bangkok

Copenhagen/ Stockholm/ Oslo/ Helsinki and more

Economy Extra Business

From

THB 50,000

From

THB 85,000

Travel now – 31 May 2009. *Roundtrip ticket excluding taxes and surcharges. Conditions apply. Subject to availability.

Always with SAS Economy Extra and Business Class Business Class check–in 30 kg baggage Priority boarding Child discount 25% More EuroBonus points Online seat reservation Copenhagen Stockholm Oslo Helsinki Gothernburg Aarhus Kristiansand www.ﬂysas.com/th