Thai-Norwegian Business Review 1-2013

Thai-Norwegian Business Review 2013 – 01

Thai-Norwegian Chamber of Commerce

Special Feature

Manufacturing in Thailand: Is there a future?

Jotun paints Thailand even more colorful

For a more colourful world, we’re taking steps to be a little greener

At Jotun we constantly innovate protection. As we take continuous steps to better protect your property, we’re also taking even greater steps to better protect our environment. We call it Jotun GreenSteps - steps that make a significant difference to the world we all share. Steps like waste and hazardous material reduction, product innovations that reduce energy usage, new processes that lower our carbon footprint and creating more products with lower volatile organic compound emissions.

For more on Jotun GreenSteps, simply visit jotun.com, and learn about our journey towards a greener, more colourful world.

Jotun Thailand Ltd. (02) 750-355 Jotun Powder Coatings (Thailand) Ltd. (038) 468-744 to 5

www.jotun.com

Contents President’s foreword

5

Seafood under the stars

6

Opening of the Danish-Norwegian Embassy Office in Yangon

8

Jotun opening their first shop in Myanmar

10

8

Special Feature: Manufacturing in Thailand: is there a future?

12

Sustainability is key: An independent economist assesses the future of manufacturing in thailand

13

Aibel: Ensuring good quality

17

Putting Norway’s label on Thailand

20

Thailand’s auto industry: rebirth of a giant

22

Fallout from the 3G auction: Fortuna spins her wheel

24

Building Bangkok’s bridges: NorCiv minds the gap

26

Jotun paints Thailand even more colorful

32

Telenor secures a long-term future in India

34

Letter from Chiang Mai: Making Chiang Mai a better place

38

Noncompetition provisions in employment relationships

40

IMG of Norway expands its Vietnam manufacturing facility

42

Thailand’s economy at a glance

43

Members’ directory

45 Editor: Kristine Hasle Journalists: Eric Baker, Colin Jarvis, Nadia Willan Artwork: Andrew Spaulding Advertising: Elisabeth Bashari

Front page picture: Jan Skogseth, president and CEO in Aibel AS, Norwegian Ambassador to Thailand, Katja Nordgaard and Lars Røssland, CEO of the Gudrun Photographer: Kristine Hasle

17

34

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25/09/2012 09:17

President’s foreword A new year with new opportunities and new challenges came off to a great start with The Chamber’s first activity this year; Seafood under the Stars on 6 February. This year we had almost 200 happy guests and fantastic seafood supplied by Kim Chua Group, generously sponsored by the Norwegian Seafood Council and Jotun. In this respect, I would like to convey a big thanks to H.E. Ambassador Katja Nordgaard for letting us use her beautiful garden once again.

2013 also brings changes to the Chamber daily life; after three years, it’s time to say goodbye to Kristine Hasle, our Executive Director who will leave Thailand for Norway this summer. We are in the process of recruiting her successor and interviews are taking place as your read this magazine. Kristine has been a very active Director, she has balanced the Chamber activities, media work and administrative tasks well and she will certainly be missed. I would like to express my sincere thanks to Kristine for the excellent work she has done during her three years in Thailand.

Another change is also approaching; after six years as President of the Chamber, it’s time for me to step down and for someone else to take over. I will be happy to continue as a Board Member, provided, of course, that I am elected by the members. During my six years in office, we have come a long way; from a small joint Scandinavian secretariat, we have moved on to a fully-fledged independent Chamber, housed at the Norwegian Business Centre on Ploenchit Road. Our member’s magazine, Thai-Norwegian Business Review has an increasing number of readers, and we are getting a lot of positive feedback from other chambers. We have more activities in the Chamber than ever before among which the fact-finding mission to Myanmar in May 2012 was a pinnacle. We had a chance to meet President U Thein Sein in addition to almost all the senior ministers in his Cabinet. I am indeed grateful to you as members, to our staff and to those who have kindly sponsored our activities throughout my tenure at the Chamber.

I end on this note, wishing both the new Chamber President and the new Executive Director all the best of luck in steering the Thai-Norwegian Chamber of Commerce toward new heights.

Sincerely, Axel Blom President Thai-Norwegian Chamber of Commerce

Thai-Norwegian Business Review

5

Seafood under the stars

By Thai-Norwegian Chamber of Commerce Photos by Saksit Sukhasvasti Na Ayudhya

A

lmost 200 people joined Thai-Norwegian Chamber of Commerce’s annual event Seafood under the Stars on 6 February. The good atmosphere in the Norwegian Ambassador’s garden, the excellent food provided by Norwegian chef Katsutoshi Ishibashi and Kim Chua Group in addition to the soft jazz from the Thai Navy Band made perfect frames for our biggest event of the year.

Kim Chua group and Norwegian Chef Katsutoshi Ishibashi served lovely, fresh seafood flown in from Norway. The salmon was served Norwegian, Thai and Japanese style. Thank you to the Norwegian Seafood Council and Jotun who gently sponsoring this event. Thank you to Sheraton Grande Sukhumvit who gave us amazing service, and to our members who brought their business associates, colleagues and friends. Representatives from many industries were present; the environmental sector, the renewable energy sector, the oil and gas sector, the marine sector, the ICT sector and not least the tourism sector were all represented. This shows the diversity of Norwegian industry.

The Scandinavian Tourist Board (STB) was also present at the dinner, they had earlier that day had a workshop to attract Thai tourists to travel to Norway. Ambassador Katja Nordgaard attended the STB workshop the same day and commented in her welcome speech at the Seafood-Din6

Thai-Norwegian Chamber of Commerce

ner that she was surprised to learn that Thais are avid shoppers in Norway, spending more money in Norway that the Italians and the Dutch. Thai tourism to Norway is growing and there are more direct flights between Norway and Thailand with Norwegian starting Thailand operations in June in addition to Thai Airways’ direct flights to Oslo.

After the opening speech, a short film of the Norwegian nature, made by visitNorway, was shown to the guests followed by beautiful pictures from Norway’s many tourist attractions rolling on the big screen for the rest of the evening.

Thai-Norwegian Chamber of Commerce would like to thank Ambassador Katja Nordgaard for hosting this dinner.

Clockwise from top left: Team Yara; Norwegian Representatives from the Tourist Sector; tncc President Axel Blom and Chef Katsutoshi Ishibashi; Khun Boonchai Bencharongkul (dtac), Tore Johnsen (Telenor) and Khun Choakdee Dhamasaroj (nera)

Thai-Norwegian Business Review

7

Opening of the Danish-Norwegi text and photos by Kristine Hasle

N

orway’s Prime Minister Jens Stoltenberg and Denmark’s Prime Minister Helle Thorning-Schmidt opened the joint diplomatic office Sunday, 4 November in Yangon, Myanmar.

120 guests from government, politics, business, development, international organisations, civil society and the diplomatic community attended the opening of the new diplomatic office in Yangon. In addition to the Norwegian and the Danish Prime Ministers, the Minister of Foreign Affairs of Norway, Espen Barth Eide, the Norwegian Ambassador to Myanmar, Katja Nordgaard and the Danish Ambassador to Myanmar Mikael Hemniti Winther together with eight Myanmar ministers were present at the event. The Swedes have announced that they will join the embassy office in a while, making this is Scandinavian diplomatic compound. The Norwegian Ambassador to Myanmar, Katja Nordgaard, will continue to reside in Bangkok.

June, I was honored to receive Nobel Peace Prize Laureate Daw Aung San Suu Kyi in Oslo. Soon I hope to receive president U Thein Sein in Norway. The President has already kindly accepted my invitation, said Jens Stoltenberg.

During the last year and a half, Myanmar, under the leadership of President U Thein Sein, has entered on a reform path that has opened the country to the outside world. Norway was quick to recognize the reforms and was the first Western country to remove sanctions against Myanmar. The main task of the

Prime Minister Jens Stoltenberg said in his opening speech that Norway has been working for decades for democracy to return to Myanmar. “We have supported both individuals and organisations that have been working for human rights and democracy, abroad and within the country,” he said. This was Jens Stoltenberg’s first visit to Myanmar.

Prime Minister Stoltenberg praised the new Government under President U Thein Sein and its remarkable reform process towards political, economic and social transformation. “Yesterday, I met with the President. I commended his visionary leadership and I encouraged him to continue the path towards peace, democracy and inclusiveness. Within the last year we have received four ministers and parliamentary president U Shwe Mann in Norway. In

8

Thai-Norwegian Chamber of Commerce

U Htet Nyi (Kevin), Honorary Consul General for Norway in Myanmar, H.E. U Than Htay, Union Minister for Ministry of Energy and Axel Blom, Country Representative for Innovation in Thailand and Myanmar

ian Embassy Office in Yangon

Danish Prime Minister Helle Thorning Scmidt and the Norwegian Prime Minister Jens Stoltenberg

Norwegian Diplomatic Mission will be to follow up the various aspects of the increasing bilateral relationship, including Norwegian assistance projects. The embassy office will also facilitate Norwegian investments in Myanmar. Several Norwegian companies are showing interesting in starting up in the country, and Jotun opened their first Multi-Colour Centre 5 November.

“During the last year and a half, Myanmar, under the leadership of President U Thein Sein, has entered on a reform path that has opened the country to the outside world.�

Thai-Norwegian Business Review

9

Jotun opening their first shop in Myanmar

J

text and photos by Kristine Hasle

otun has entered Myanmar, and together with their partner, Unique Innovative Trading, they opened the first Multi-Colour Centre in Yangon on

the 5th of November. Norway’s Minister of Foreign Affairs, Espen Barth Eide, presided over the opening of the centre. Jotun is the first Norwegian company starting up a business in Myanmar.

“When Jotun is opening up a shop in Yangon, it will benefit all parts of the society. It will create jobs to the people and give the society skilled workers and money to spend.”

Foreign Minister Espen Barth Eide, Norwegian Ambassador to Myanmar, Katja Nordgaard, CEO of Jotun, Morten Fon and Jotun’s Regional Director for South East Asia, Peder Bohlin together with local politicians marked the opening with a number of activities from ribbon cutting, hand printing using Jotun paints and finally a ceremony to reveal the

signage of the centre. It was a truly colourful opening with traditional Myanmar dancers, puppet show and colourful balloons.

From left: Jotun’s Regional Director for South East Asia, Peder Bohlin, Foreign Minister Espen Barth Eide, Katja Nordgaard, two local politicians and CEO of Jotun Morten Fon

10

Thai-Norwegian Chamber of Commerce

The Foreign Minister congratulated Jotun with the very first Multi-Colour Centre in Myanmar. He mentioned the remarkable development which the

Jotun

country has undergone during the last 18 months, when he first visited Myanmar. He emphasized President Sein Thein’s important role together with the opposition leader Daw Aung San Su Kyi, and how the country has been opening up to the rest of the world. Norway has been assisting Myanmar in the peace and democratisation process, and was the first county to lift the economic sanctions related to trading with the country.

Mr Barth Eide stressed the importance of corporate social responsibility when doing business in a country like Myanmar. “It is important to earn money in a responsible manner. When Jotun is opening up a shop in Yangon, it will benefit all parts of the society. It will create jobs to the people and give the society skilled workers and money to spend. In addition, paint is needed to give the Yangon a colourful facade.” He said that foreign investments are important components for democratic reforms. “This can result in better economic times for a sorely tried people.”

Jotun A/S is Norway’s leading producer of paints, coatings and powder coatings. It owns 74 companies in 43 different countries and has 38 production facilities in 22 countries. In addition, Jotun has agents, branch offices and distributors in more than 80 countries.

CEO of Jotun, Morten Fon, explained that Jotun’s Multi Colour Centre is the first stepon the road to open up a new factory in Myanmar. Jotun’s general strategy is to open shops in new markets and from there they build an organisation. When time is ready, they start producing paint. Jotun has already found a suitable location for building a factory north of Yangon. The goal is also of course to make Jotun a “well-known brand in Myanmar”, said Mr Fon.

Thai-Norwegian Business Review

11

Special Feature

Manufacturing in Thailand: is th Thai-Norwegian Business Review has been looking at different companies doing business in Thailand, to find out why people choose to do business here. Thailand has many advantages to offer international companies ranging from its geographical location, key industrial clusters as well as a growing domestic market, skilled labour, well developed distribution channels and high standards of quality.

One of the challenges Thailand is facing, is the lack of labour. The unemployment rates have decreased from 1.4% in 2007 to 0.7 % in 2011. Thai-Norwegian Business Review has been talking with Saowaruj Rattanakhamfu, an independent economist in Thailand Development Research Institute (TDRI) to find out more about the Thai workforce and what the future will bring.

Paul McKay, Managing Director of Skanem, says that the main reason for choosing Thailand is its geographical location, and as a hub in South East Asia. From Thailand, Skanem serves their customers in China, Australia, India and Vietnam.

Aibel tells us that the quality of work that is produced in Thailand is very good.

Aibel achieves its success through high standards of safety, quality and on time

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Thai-Norwegian Chamber of Commerce

deliveries. All their customers have returned to use Aibel on more projects.

Aibel is able to deliver the quality a client demands.

Jotun emphasizes the distributing network is widening as the identity of retail outlets evolves. Jotun products are now making a strong presence through modern trade dealers such as Home Pro, retailers who also cater to the domestic market as well.

Thailand is still going strong. Not because it’s a lower-cost production country in Asia, but it is easy going, it has the right infrastructure, the right communication channels and excellent workers – perfectly situated in the heart of South East Asia.

here a future?

Sustainability is key: An independent economist assesses the future of manufacturing in thailand text and photo by Eric Baker

A

s one of the more developed economies in Asean, Thailand has occupied a precarious position for economists since its recovery from the 1997 crash. The partial driver of its development was manufacturing, in particular low-cost production. But as wages and GDP increase, does manufacturing still have a future in Thailand, especially considering frequent cries of labour shortages in certain industries?

The Business Review asked Saowaruj Rattanakhamfu, an economist and research fellow at the Thailand Development Research Institute (TDRI), an independent think tank, for her thoughts on the matter as it aligns with her areas of interest.

“Thailand is facing a big labour shortage, especially for unskilled labour,” said Dr Saowaruj.

“Our unemployment rates have

decreased continuously from 1.4% in 2007 to 0.7% in 2011, with the number of unemployed dipping significantly from 509,000 to 264,000 in that period. The unemployment rate of unskilled labour is even lower, at less than 0.3%.”

Thailand’s labor shortage will likely be exacerbated in the future as the country has been a net aging society since 2004, with the share of labour performed by those over 60 increasing from 6% in 2001 to 8% in 2010, she said.

“Thailand is facing a big labour shortage, especially for unskilled labour. Our unemployment rates have decreased continuously from 1.4% in 2007 to 0.7% in 2011.

— Dr Saowaruj Rattanakhamfu

Thai-Norwegian Business Review

13

Special Feature: Manufacturing in Thailand: is there a future?

Continued from page 13

In 2011, the Bank of Thailand reported the top five sectors with the most severe labour shortages were (1) textiles, garment, and leather; (2) electronics and appliances; (3) food products and beverages; (4) rubber products and plastics; and (5) the construction sector.

Labour force and unemployment rate in 2009

Country

Of course a labour shortage only drives wages higher, and wage rates in Thailand were already higher than in Indonesia, Vietnam, Cambodia, Laos and Myanmar.

According to a survey by the Japan External Trade Organization (JETRO), in 2011 the monthly salary for factory workers in Bangkok was US$286, much higher than in Jakarta ($209), Ho Chi Minh City ($130), and Yangon ($68). This is really a big problem for unskilled labour-intensive industries such as garments, textiles and leather goods, said Dr Saowaruj.

Monthly salary of factory workers in main cities in ASEAN (2008-2011) (in USD) % of manufactured exports

60

53.8

52.3 46.6

50 39.9

44.5

40 30.5

30 20 10

27.4 6.2

26.7

25.6

27.5

27.5

26

24.6

25.3

24

4.8

6.2

2008

2009

8.9

0 2006

2007

China Malaysia Thailand Vietnam

2010

Source: JETRO. The 19th – 21st Survey of InvestmentRelated Costs in Asia and Oceania (2008-2011)

This means Thai entrepreneurs in unskilled labour-intensive industries often must relocate or expand their production base to border provinces or neighbouring countries with lower wages and higher labour supplies, she noted. For example, Vietnam had a labour force of 50.1 million and an unemployment rate of 4.6% 400 in 2009, while Myanmar had a labour force of 27.6 350 million and an unemployment rate of 344 4%.

300 250

290 241

200

295

298

325

256

263

286

230

236

209

194

186 Chamber of Commerce 14 150 Thai-Norwegian 131 130 147

100

95

99

114

68

Labour force

Unemployment

(millions)

rate (%)

Cambodia

7.7

1.6

Myanmar

27.6

4.01

3

1.27

Indonesia

116.4

7.8

Vietnam

50.1

4.6

Laos

Source: World Bank and ASEAN Secretariat Office

Fortunately Thailand has a very strategic location, as 33 of its provinces are adjacent to neighbouring countries, and it can serve as an East-West corridor connecting Myanmar, Laos, Cambodia, and Vietnam, as well as a North-South corridor connecting southern China, Myanmar, Laos, and Malaysia.

In addition to relocating or expanding, these labourintensive industries should start to produce higher value-added products and link their production networks for sustainable growth, said Dr Saowaruj.

Of course, Thailand needs to prepare a skilled and educated labour force to serve this industry upgrade.

“To facilitate Thai entrepreneurs to invest abroad, the government can play an important role. For example, the EXIM Bank of Thailand should have enough funds to support Thai investors’ outward investment, or be able to set up a risk guarantee mechanism for them. The government could also establish a one-stop service agency to provide information such as rules and regulations related to investment, labour, taxes, marketing research and data, insightful advice, and business facilitation services, similar to Japan’s JETRO,” she said.

Kuala Lumpur Manila Bangkok

“For Thailand’s manufacturing to have a vibrant future, the government should restructure it by focusing more on developing technology and R&D-based industries such as biopharmaceuticals, moving up to higher value-added products, and increasing labour productivity.”

Economic seminars in Thailand often focus on this country avoiding the middle-income trap, meaning once the economy moves from a low-wage manufacturing base, how does it develop the high-technology, high value-added manufacturing, and services sectors? Education plays a vital role, and Thailand really hasn’t made serious efforts at reforms in terms of developing industry or the nation.

% of manufactured exports

“In terms of measuring manufacturing technology development for Thailand, China, Vietnam, Malaysia and Myanmar, Malaysia has the most advanced 60 53.8 technology industry,52.3 followed by China and Thailand, 46.6 50 44.5 with the last group Vietnam39.9 and Myanmar,” said Dr Saowaruj.40 30.5

30

26.7

27.5

25.6

27.5

Malaysia has the highest level of high-tech exports as 27.4 26 20 25.3 China 24.6 a percentage of manufactured exports in24 the group, 8.9 Malaysia 6.2 6.2 10 4.8 which implies the manufacturing sector in MalaysiaThailand is more likely to be competitive in products with high 0 Vietnam 2006 2008 2009 2010 pharR&D intensity, such2007 as aerospace, computers, maceuticals, scientific instruments, and electrical machinery, she added. Of course China’s manufacturing encompasses both high-tech industries with competitive R&D and low-cost labour-intensive industries.

High-Technology Exports (% Of Manufactured Exports) (2006-2010)

The IMD World Competitiveness Yearbook 2012 ranked Malaysia No. 48 in terms of productivity in industry with US$43,622 generated per person employed in industry in 2011. Thailand ranked No. 51 with $35,025 per person employed in industry, while China only generated $21,790 per person employed in industry. No statistics were available for Vietnam and Myanmar.

“This has been pointed out before, but for Thailand’s manufacturing to have a vibrant future, the government should restructure it by focusing more on developing technology and R&D-based industries such as biopharmaceuticals, moving up to higher value-added products, and increasing labour productivity,” said Dr Saowaruj.

400 344

350 300 250

290 241

200

295

298

325

256

263

286

230

236

209

194

150 100 50

131

95

186 130

147 99

16

22

2008

2009

114

68

41

0 2010

2011

Kuala Lumpur Manila Bangkok Jakarta Ho Chi Minh Yangon

“In addition, the services sector is an important input to the manufacturing sector, but services are still highly protected in Thailand while manufacturing faces intense competition. An inefficient services sector can reduce the competitiveness of the manufacturing sector in the long run by attracting lower quality employees from the manufacturing sector, and charging inefficient service costs, such as with telecommunications services. The government should liberalise the services sector, especially those that provide services as a main input to the manufacturing sector, and speed up regulatory reform in the services sector.”

Source: World Bank

Thai-Norwegian Business Review

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Special Feature: Manufacturing in Thailand: is there a future?

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Thai-Norwegian Chamber of Commerce

Aibel: Ensuring good quality text and photos by Kristine Hasle

P

remium member of Thai-Norwegian Chamber of Commerce, Aibel, finalised a huge contract with Statoil autumn 2012. Gudrun, a 6,000 tons platform module was shipped out of Thailand in the beginning of October, making sure a piece of history was written.

The Gudrun project was the largest object ever transported in Thailand. A month later, Gudrun arrived to Haugesund.

The platform deck will be assembled in Haugesund and is scheduled to be handed over to Statoil in the summer of 2013.

Aibel is a large, modern company that is constantly developing. The company has built up a wealth of experience and knowledge over more than a hundred years and has achieved a leading position in today’s oil and gas market. Aibel (then ABB) construction business in Thailand was opened in 1999 to give the company the in-house capability to deliver high quality, competitively priced modules. In 2004, ABB offshore systems was changed to Vetco Aibel, and in 2007 Aibel was acquired by Norwegian investors through Ferd and Herkules Capital. In December 2012, Swedish company Ratos acquired 50 percent of the stocks from Herkules, and Norwegian Ferd owns 50 percent of the the company. Aibel has today 5,500 employees worldwide. Over 95 percent of Aibel’s 300 employees in Thailand are Thais, of whom 50 are engineers.

In Thailand, Aibel has specialised in the construction of FPSO (Floating Production Storage and Offloading) modules and platforms for customers and their projects world-wide. In addition, Aibel Thailand can supply engineering and integration services as well as

EPC services in cooperation with Aibel in Norway and Singapore. With innovative construction solutions, Aibel Thailand has delivered an extensive number of successful projects over the past twelve years.

Aibel Thailand is located in the Laem Chabang harbour, just north of the tourist destination Pattaya.

Laem Chabang was selected as it is the largest and deepest harbour in Thailand with excellent access to deep water for module load out.

Thai-Norwegian Business Review met Eirik MorkKnudsen, HSE Manager, Aibel (Thailand) Ltd. and Aina Eidsvik, Finance Manager for Aibel’s entities outside Norway and Board Member of Thai-Norwegian Chamber of Commerce to talk about challenges and opportunities they encountered during the Gudrun Project. They are two of few Norwegians working for Aibel in Thailand.

During the one and a half years it took to finish up the Gudrun Project, there were all in all 5,000 people involved in the project. As many as 2,300 people were working on the site at the same time. There are mostly employees of the sub-contractors who are involved in the project. This can be a challenging situation when it comes to Health, Safety and Environment. We asked HSE-manager Eirik Mork-Knudsen about the HSE situation in Thailand, where construction areas have wiggly bamboo scaffolds and pick-ups are overloaded with people on the highways.

Mork-Knudsen explains that there are actually strict rules and regulations for Health, Safety and Environment in Thailand. He is involved in all parts of the production and is a well-known face amongst the employees. HSE is carefully followed up in Aibel, and according to Thai laws, all employees on the management level are supposed to attend a two days course focusing on HSE. There are rules to be

Thai-Norwegian Business Review

17

Special Feature: Manufacturing in Thailand: is there a future?

Continued from page 17

All employees that are hired in Aibel Thailand will have to be approved thorough tests, showing they hold the qualifications they claim to have. This goes especially for the electricians and the welders. followed, but unlike in Norway, Labour Inspections will not warn about their arrival in advance. In fact, inspections are rare, but when accidents occur, consequences can be hard for the companies.

is essential to achieve a perfect result. Aibel has high standards in their production, to ensure the extremely high standard of quality. Thailand receives very good marks in terms of quality of workers.”

According to Mork-Knudsen, HSE is easy to follow up and measure. He says that there is always a nurse on the site, and all injures are reported. After finishing the Gudrun project, Aibel held the exact statistics of how many injuries there had been. There were nine minor injuries, which is a great result.

What happens to when a huge project like Gudrun is completed?

“An important first step for Aibel was to organise safe transport for the workers to the site,” says Mork-Knudsen. “It is a visible and easy step for HSE. We have busses transporting our workers to the site, and we avoid pick-ups.”

Do the Thai employees question the strict rules you are following?

Mork-Knudsen: “Not really. Thai employees seem to accept the rules, they don’t ask for explanations, unlike Norwegian employees. Of course, they are closely followed up by Thai supervisors at all times to ensure the quality.

Another challenge Aibel meets in Thailand is the shortage of labour. In general, the level of education is lower than what you meet in Norway, but finding good welders seem to be easier in Asian countries. All employees that are hired in Aibel Thailand will have to be approved thorough tests, showing they hold the qualifications they claim to have. This goes especially for the electricians and the welders. Good training 18

Thai-Norwegian Chamber of Commerce

Mork-Knudsen: “Another project was commenced earlier in 2012 and run in parallel with Gudrun: Japanese company, Modec, a general contractor specialising in engineering, procurement, construction and installation of floating production systems is one of Aibels highly valued repeat customers. Most of the employees were transferred to this project. The work is to deliver modules to an offshore production vessel and will be installed and operate offshore the Waikiki Pero Inga Fields in Brazil. Aibel is to deliver eight modules weighing a total of 8000 tonnes.

Aibel achieves its success through high standards of safety, quality and on time deliveries. All their customers have returned to use Aibel on more projects. Aibel is able to deliver the quality a client demands, and Aibel gets new customers from content clients.

We deliver quality and our customers know that.

Right now, there are more questions about the capacity to run the projects forward. Within next year, Aibel plans to hire 30-50 more engineers in Thailand and the future for the company does indeed look bright.”

Celebrating Gudrun On 1 October, Aibel and Statoil celebrated the completion of the huge 6,000-tonne platform module Gudrun, after a year and a half of intense activity and heavy lifting.

Employees and invited guests visited the yard in Laem Chabang in Thailand to celebrate the completion of the project.

To mark the achievement of such a significant milestone, representatives of the Norwegian Embassy, Statoil’s Gudrun management and Aibel management joined the celebration in Laem Chabang. Thai-Norwegian Chamber of Commerce and several of its board members were present at the celebration.

The Gudrun modules that have been built in Thailand are complete and ready for the journey to Haugesund. Aibel is now writing a little piece of history. Gudrun is the largest platform module that has ever been built at the yard in Laem Chabang, as well as being the largest object ever transported in Thailand.

“I want to thank everyone who contributed to a good project in Thailand. This is an important project that demonstrates how well Aibel can collaborate across many parts of the organisation,� said Jan Skogseth, President and CEO of Aibel AS at the celebration event.

Putting Norway’s label on Thaila text by Nadia Willan photos from Skanem

P

roducing around 60-80 million labels a month from its Chonburi factory, Norwegian company Skanem certainly seems to be putting its mark on Thai manufacturing. Open just over five years, the factory outside Bangkok is Skanem’s first Asian plant. The 100 year old Norwegian company is one of the largest suppliers of self-adhesive labels in Europe, with the Thai factory becoming a leader in Thailand too. However, while many people presume foreign companies often only develop in countries such as Asia because of lower production costs, the reason is often to simply cater for the local market.

Australian Paul McKay has been based in Thailand for 16 years and has been the Managing Director of Skanem for just over two and a half years. He explains why production is based here. “We primarily supply to multinational customers based in Thailand but also China, India, Australia and Vietnam. Our major customers have their operations here, from which they service all of South East Asia.” Therefore, it is Thailand as a hub for Southeast Asia and with a growing market and economy that attracts business investment. Manufacturers providing products to these industries are inevitably going to follow.

With 70 staff and a 4,200 square foot facility Skanem is a tightly run ship rather than a huge sprawling operation. The company provides self-adhesive labels to various industries, including personal care, food and beverage, motor oil and pharmaceuticals. Coming from a business development role in the wholesale and retail food industry in Thailand, Paul says there were other reasons why Thailand was

20

Thai-Norwegian Chamber of Commerce

an attractive proposition for its first factory in Southeast Asia. “As well as the market being here along with our major customers’ presence, we were also helped by good promotions by the Board of Investment.”

Skanem’s first foray into the Asian market is a small step compared to its sister sites in Europe. Thailand’s Amata Nakorn Greenfield site has just three printing presses compared to other sites which generally have between six and 14 presses. Paul admits that any growth in Southeast Asia will really depend on customer growth and where opportunities arise, and with a relatively small setup in Thailand it seems that Skanem has not overcommitted to Asia but is perhaps following demand as it evolves in a more organic way.

Like so many business leaders, the advantages and disadvantages of staffing a company in Thailand for Skanem have followed the same pattern. In general unskilled labor is relatively easy to source but skilled employees, in this case skilled printing technicians, can be trickier to find. However, Skanem’s size has perhaps been one of the factors that’s allowed for the majority of the employees to have been sourced locally, with most of the managers being Thai.

Rather than companies seizing Thailand as a low-cost center companies like Skanem are offering competitive salaries and a high level of welfare in a bid to retain staff and serve local markets. Relatively small as the Thai operation might be, the influence of Norway is not really felt in the day-to-day running of the factory. However, customer comments on the high quality of the factory building, offices and environment Paul credits to Norwegian influence.

and

Paul McKay

“As well as the market being here along with our major customers’ presence, we were also helped by good promotions by the Board of Investment.”

A misconception about Thai manufacturing has to be related to quality. Lower-cost production can give the impression that the end product is somehow lesser than in higher production cost countries. However, Thailand does not necessarily offer the lowest costs compared with much of Asia. In actual fact, Paul has found that when it comes to quality more is expected from the local market than people might think.

“We regularly hear comments that the print quality demanded here in Asia is of a much higher level than in Europe or USA. Brand owners, especially in personal care products are very careful on quality but thankfully it is one of our strengths!”

One attraction of production in Thailand, particularly to the local market, is the fact that the country has escaped relatively unscathed from the huge economic

devastations seen in countries around the world. The recession has undoubtedly left many companies reeling at best, whilst others have long been dead in the water.

Thailand’s economic buoyancy is definitely a plus point for Skanem, as Paul explains. “Of course, working in a market and region that continues to expand means we get to focus only on growth rather than trying to manage through a downturn. Growth still has its challenges but I’d rather be facing the challenge of growth rather than contraction so I hope it continues!

It’s a hope and a belief shared by Skanem group management who are also expecting growth in Thailand. They have recently added greater capacity to their site by installing a third printing line from Denmark. The existing building at the factory in Chonburi can accommodate two more lines and following expansion of the building there could potentially be five more lines added.

Skanem has today 16 production sites in 10 countries with over 1200 employees in Norway, Sweden, Denmark, United Kingdom, Germany, Poland, Russia, Thailand, India and Kenya. Skanem serves all segments in need of self-adhesive labels and has two additional sectors; Skanem Moss (Metal Packaging) and Riflex Film.

The Thai market is changing and with the rapid expansion of convenience stores, such as 7 Eleven and Tesco Expres,s across the country, there has been a flurry of printing demands for many more labels for smaller size packs of produce. As Paul sums-up, ‘we believe the market potential is there to see our vision realized.”

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Thailand’s auto industry: rebirth of a giant

by Eric Baker

T

he undeniable pacesetter in Thailand’s economic growth this year has been the auto industry. Any discussion of the future of manufacturing in the country must consider this sector, as several companies recovered from flooding to their factories last year remarkably quickly, as well as the earthquake and tsunami in Japan that limited parts delivery.

The Thai auto industry is slated to set several production, sales and export records this year, and the government clearly places an importance on the sector in its economic agenda. Suparat Sirisuwanangkura, chairman of the auto industry club of the Federation of Thai Industries and senior vice-president of Toyota Motor Asia Pacific, has some theories as to how this turnaround happened.

“Government programmes such as the first-car and first-home tax rebates have certainly stimulated sales, and the crop pledging scheme has increased consumer purchasing power,” said Mr Suparat.

“Though some economies in other countries are struggling, we’ve seen export demand pick up as well.

This year Thailand will export around 1 million units worldwide, while the parts and components sales will tally around 400,000 million baht, leaving the total export value including automobiles approaching 1 trillion baht.”

With production predicted to reach 2.3 million units this year, manufacturers also have to be credited for the quick rehabilitation they engineered to restore full capacity. Production last year dropped to around

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350,000 units due to the March earthquake and tsunami in Japan and the fourth-quarter floods in Thailand.

In addition, the government heavily supports certain segments of the auto manufacturing market with incentives. Thailand is projected to become the world’s 13th-largest auto producer this year, and the government aims for top 10 status over the next five years. But Thailand is the world leader in pickup truck manufacturing, exporting to 130 countries, partly because of government incentives to build this segment, and subsidies that keep their domestic prices low. The government also provides incentives for fuel-efficient “eco-cars”, a segment which has only just started production.

The auto industry may well account for 15% of Thailand’s GDP by next year, according to some estimates, and the country’s GDP growth this year is predicted around 5%.

Automakers continue to set rolling records month after month, both for output and exports, a boom that shows no signs of abating. Thailand’s automobile production in September hit a record high of 228,500 units, the most since the country started assembling automobiles in 1961. The auto industry club of the FTI said September production increased 31.16% over the same month last year.

Exports of Thai-built vehicles in September hit a record high of 98,268 units. Thailand began exporting automobiles in 1988. September exports were worth 47.24 billion baht, up 8.4% year-onyear.

Automakers continue to set rolling records month after month, both for output and exports, a boom that shows no signs of abating. Thailand’s automobile production in September hit a record high of 228,500 units, the most since the country started assembling automobiles in 1961.

In October exports set another record totalling 98,284 units, up 79.71% on the same month last year, and an increase of 0.02% over September.

The export value for the month stood at 47.12 billion baht, an increase of 93.46% on last October.

Car output in October stood at 252,165 units, another new record, and a substantial increase of 410.05% on last October when floods affected most of the manufacturers.

Car exports over the first ten months of the year increased from the same period last year by 21%, to 840,149 units, with a total value of 402.79 billion baht, up 24.56%.

Still, a few storm clouds loom on the horizon as Mr Suparat surveys the landscape.

“Shortages in both skilled and unskilled labour may retard our supply chain advancements,” he

said. “The FTI together with the educational and labour authorities in Thailand are working to solve this problem by supporting more vocational education programmes, but it will take time. I should note that other sectors, especially labour-intensive manufacturing segments like food products and textiles, are going through the same difficulties.”

The government is trying to promote more vocational programmes, painting them in a more positive light for students who may be interested.

But Mr Suparat is still optimistic about the direction the industry is headed.

“We’re confident this momentum will carry through on to next year, when we project approximately 2.5 million units will be produced, with 1.1 million units for export. And our next milestone is to produce 3 million units a year by 2017 at the latest,” he said.

“We don’t anticipate the Asean Economic Community scheduled for 2016 will hurt us, as these markets have already been open for some time with the Asean Free Trade Area agreement. In fact, we expect to gain opportunities for supply chain potential and larger markets with the AEC.” Indeed, confidence in the industry is so high that plans for a long-delayed auto parts testing centre have been accelerated so that Thailand does not have to send parts and vehicles abroad to be certified.

The facility is likely to cost 8 billion baht, and while the details of how much the private sector and the government are each going to pay still need to be ironed out, the centre being put on the fast track means it could be completed by 2016.

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Fallout from the 3G auction: For text by Eric Baker

F

olks in the Middle Ages used to believe in a blind and stupid goddess named Fortuna who capriciously spun a wheel that determined “fate”. People in modern-day Thailand would be forgiven for thinking Fortuna is still operating today, controlling the fortunes of our 3G broadband service.

The 3G auction for the 2.1 Gigahertz broadband spectrum came and went October 16, but it could hardly be called a success for anyone involved, even the three successful bidders. Subsidiaries of AIS, True and dtac all received the maximum allowed spectrum of 15 MHz per bidder for the 15-year licences, with each 5 MHz block carrying a reserve price of 4.5 billion baht. The National Broadcasting and Telecommunications Commission (NBTC) only garnered 41.6 billion baht, some 1.1 billion or 2.7% above the minimum reserve price.

In short order, this led to four investigations into whether there was price collusion or a violation of state procurement laws. The NBTC launched an internal panel to investigate, the National Anti-Corruption Commission also took up the cause, the police’s Department of Special Investigation (DSI) probed the matter as well, and the Ombudsman, at the behest of a group of senators, asked the Administrative Court to rule on whether the NBTC endorsing the auction results was legal.

People were apoplectic about how the auction could raise so little money for the state. But they must not have considered that the auction had the exact amount of bidders for exact amount of licences, meaning no bidder had any incentive to bid beyond the reserve price because three licences would fall to each by default. Industry executives were also invited in to the auction design process for consultation by the NBTC, so some have noted the outcome can hardly be described as shocking.

“People who are challenging the auction need to look at the bigger picture. The auction made the government almost 50 billion baht, and it won’t restrict industry investment. The model is quite smart.

— Jon Eddy Abdullah photo courtesy of dtac

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rtuna spins her wheel For his part, dtac chief executive Jon Eddy Abdullah thinks the focus is misplaced.

“People who are challenging the auction need to look at the bigger picture,” he said. “The auction made the government almost 50 billion baht, and it won’t restrict industry investment. The model is quite smart. The third and final block was priced well, because if it was higher, maybe no one would have bought it. The 16 billion baht in ‘perceived’ losses some have cited from the auction will come back to the state ten-fold in indirect taxes.”

Mr Abdullah points to a network upgrade by dtac that is scheduled to be finished by this year that will lay the foundation for 50% of Thailand to have 2.1 GHz access one year after the licence is received. The licence requires that 50% of the country is covered two years after it is received, with 80% covered after four years.

“We waited 10 years for [3G]. What I’m hoping is that everyone sees the general benefits to consumers, country and government outweigh any small quibbles over the auction process. Some other countries merely had a beauty contest when they handed out licences, content that companies invest in infrastructure,” he said.

The DSI dropped its investigation in November, citing no evidence of wrongdoing, while the NBTC panel came to the same conclusion and the full commission endorsed the auction results. A judgment from the Administrative Court is still pending.

Though the three mobile operators plan to invest a combined 110 billion baht in 3G network construction over the next three years—50 billion from AIS, 40 billion from dtac, and 20 billion from True— immediately following the auction, the NBTC announced plans to limit 3G pricing for both voice and data. Perhaps responding to public outcry over what

Dtac awarded 3G license On 11 December 2012 the National Broadcasting and Telecommunications Committee awarded 3G licenses to AIS subsidiary Advanced Wireless Network(AIS), DTAC subsidiary DTAC Networks and True Corp’s Real Future. In a comment to Thai media upon picking up the license, Jon Eddy Abdullah stated that: “This is a very good day for Thailand and Thai consumers. Under the leadership of the NBTC and the ICT Ministry, Thailand now charges ahead”. The 3G license has a 15 year term, starting from 7 December 2012. NBTC expects the auction winners to start 3G services in April 2013.

were seen as low auction licence prices, the regulator said it would keep 3G service prices at existing 2G benchmarks. The NBTC has the power to enforce this action through the 2010 Broadcasting and Telecom Act. Mr Abdullah was not impressed.

“The industry thinks this is counterproductive,” he said. “We are much more competitive than a regulated regime. Demand for spectrum is skyrocketing. Let the market take care of pricing—we are much quicker than the government.

“We understand that this is a significant change for the country. There are many stakeholders involved, so we should try to work out our differences rather than just impose a rule. If you go back, we are on exactly the same timeline that the NBTC set since it was created, meeting all of its deadlines. For Thailand and this industry in particular, that is remarkable.”

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Continued from page 25

As is often mentioned, Thailand’s much less developed neighbour Laos is rolling out 4G just as we are still arguing over licences for 3G. One semi-serious suggestion was that Thailand hand out the 3G licences for free and then provide incentives for companies to upgrade to 4G. While this would never happen, Mr Abdullah thinks it ignores the progress that has been made in the country.

“People forget that the second we turn on the 2.1 GHz access, we double the amount of machines that can use 3G. Every device that is built now uses 2.1, and some use 1800 or 900 MHz. So that means the spectrum that is still to be auctioned, for 1800 and 900 MHz, can be used for 3G,” he said.

“The consumer doesn’t know what spectrum they are on when they use their phone, so with dtac you pay the same price and get a first-class seat in terms of service.

What the industry will do you’ll have to wait and see, but we’re not going to offer a different price for those people that access 3G service and those that don’t, because you and your phone can’t control what signals you’re picking up.”

Mr Abdullah is quite optimistic about the direction of industry, noting that “you can’t spend everything in the first round of auctions, with 1800 and 900 MHz coming up later. You need to put those national resources to work, helping to build a nationwide network.”

The NBTC has also floated the proposal that it will halve its licence fee to 1% for mobile operators that use locally made 3G equipment such as optical fibres, routers and switchers. Mr Abdullah thinks this idea is unrealistic.

“I’m not sure how they would do this,” he said. “The law is concrete on licence fees. If they wanted to do a tax rebate, maybe. But internationally this is a very competitive market. I don’t see how the local guy could compete price-wise or quantity-wise. Of course, dtac will always support local manufacturers, but we haven’t seen anything real on the ground.”

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Building Bangk NorCiv minds text by Eric Baker photos by Kristine Hasle

A

s our focus in this issue is on logistics and industry, the Business Review thought it important to touch base with NorCiv Engineering, which has consulted on bridge, rail and overpass construction worldwide.

NorCiv still does the bulk of its work here in Thailand, and right now it is consulting with the Bangkok Metropolitan Administration on building a bridge over the Chao Phraya River near Chan Road. The bridge is one of a package of four the BMA is planning in order to ease congestion on Charoen Krung and Charoen Nakorn Roads near Rama III bridge.

NorCiv undertakes a feasibility study, preliminary design, detailed design and land acquisition consultation for the project, and right now it is in the process of presenting options at public hearings. All of which is to say it has nothing to do with making sure whether a project is approved or funded, nor whether construction happens in a neighbourhood where residents are sensitive or opposed to it. But consultants have an odd habit of bearing the brunt of blowback from public hearings when they are tasked with leading them.

“We have no idea of what government sentiment is, and we don’t know what public sentiment is either before we have a hearing,” said Sittisak Imsombat, managing director of NorCiv Engineering. “After the public hearing, we summarise what the response was and have more hearings about what the client or government wants to do. Much of what goes on is political, and some of that can be complicated, but we just try to steer clear of that and do our jobs. Our outlook is that we try to offer something to society.

gkok’s bridges: the gap “People don’t want their residence upset, and even one person can stop construction. Some people do not want an elevated structure such as a beam near their house or business, so the client or government agency has to come to an agreement with these people.

“NorCiv is very seldom the lead consultant for a project, and most of our direct contact is with contractors.”

NorCiv is a registered Thai company with the majority of its sales in Thailand. It is intricately involved in plans to expand mass transit in Bangkok, especially the MRT system.

But in the last couple years, it has Sittisak Imsombat, General Director of NorCiv taken part in a number of jobs abroad, usually from clients that heard good “In the Middle East, they typically cast concrete things about the company by word of mouth. on-site, but this is the first project to use special pre-cast techniques for bridge girders and casement For example, NorCiv is starting a new project in columns. It could take up to three years to complete,” Uganda for the Japanese government. The New said Mr Sittisak.

Jinja Bridge will cross the Nile River and reach 1.2 kilometres, with a main span between columns of But probably NorCiv’s most creative project was 290 metres. Japan will pay 80% of the US$125 million designing the Tjuvholmen underwater parking budget. structure in Oslo. It was cheaper to build the structure underwater because the labour costs are so high in Ital-Thai just received a contract to build the first Norway, he noted, so the structure was precast in a elevated expressway in Dhaka, Bangladesh, for which dry dock like a boat. they brought on NorCiv. “We’ve been told just to go 10 kilometres from the city centre to the airport takes eight hours,” said Mr Sittisak. “People there told us, ‘You have no idea. This is worse than anything in Thailand.’”

“It was like a box with five stories, and they used a boat to drop in the concrete, without steel, much like a caisson. So one unit was one caisson and we had five levels to the structure,” said Mr Sittisak.

The firm’s biggest contract comes from Kuwait where it will consult on the Jahra Expressway running from the airport to the city.

The company also offers 3D modeling, which is quite handy for planning bridge structures over long spans.

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Continued from page 27

One such span is the Gandsfjord in Norway, which is regarded as one of the most beautiful in the country.

NorCiv is modeling how a long-distance bridge over the fjord would look for a Norwegian client.

Yet NorCiv still keeps the majority of its focus on Thailand, where the master plan for Bangkok mass transit has 10 lines planned to help cut down on congestion. The Blue Line that will extend from Hua Lamphong through Chinatown and cross underneath the Chao Phraya River has gotten a lot of press because a number of residents in Chinatown oppose its construction. NorCiv worked on the detailed design for this project several years ago.

The company’s work on the Red Line extension west from Bang Sue to Taling Chan started out as only bridge work, but then the MRT brought on NorCiv to help with supervision as the operator hopes to unveil it for testing by December 5, His Majesty the King’s birthday.

“I think what separates NorCiv from its competition is our knowledge of the strength of beams for pre-cast techniques,” he said. “Our analysis also includes topographic concerns, soil investigations, and electrical and mechanical concerns for our structural engineering.”

Monorails have an unfortunate history of failure in most urban environments, but there are some circumstances when they are necessary, said Mr Sittisak.

NorCiv worked on the Palm Jumeirah Monorail bridge in Dubai, and part of Bangkok’s Pink Line running from Pak Kret to Lak Si Circle to Min Buri is also scheduled to be a monorail.

“They work when you have a long span that needs to be travelled without ground connections, such as with

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“[In Bangladesh,] we’ve been told just to go 10 kilometres from the city centre to the airport takes eight hours. People there told us, ‘You have no idea. This is worse than anything in Thailand’.” the Palm Jumeirah when part of it is an island,” said Mr Sittisak.

Some of NorCiv’s other projects in Thailand include the new Nonthaburi 1 bridge over the Chao Phraya River, as well as the soon to be finished Purple Line running from Bang Yai to Bang Sue to Rat Burana.

“The Purple Line is unusual because it has very high columns and a narrow road along the Khlong Bang Phai from Bang Sue,” said Mr Sittisak. “We were asked to do an alternative design and produce it faster than usual. The client didn’t want construction to have much of an impact on traffic, so less digging was done and more precast materials were used. A high-tech metal was used as well because the project would have required 10,000 segments, and how were those going to be transported?”

The Red Line is actually scheduled to extend all the way out to the Samut Sakhon, but bidding hasn’t started yet as there are problems with this project’s environmental impact assessment. The new Orange Line, previously the Brown Line, which will extend from Siriraj Hospital across the Chao Phraya River, connecting to the Thailand Cultural Center stop on the MRT, before terminating at Min Buri, is another line for which the company hopes to make a consulting bid.

Despite the occasional political hiccup in Thailand, with all this construction planned NorCiv is quite bullish about the near future.

“I think what separates NorCiv from its competition is our knowledge of the strength of beams for pre-cast techniques,” he said. “Our analysis also includes topographic concerns, soil investigations, and electrical and mechanical concerns for our structural engineering.”

NorCiv Engineering’s Road Bridges Photo by Jørgen Udvang

Jotun paints Thailand even more colorful

by Eric Baker

W

ith stores such as Home Pro and Ikea doing a roaring trade in Bangkok, it seems that the home décor market, made up of city urbanites and those up-country too, has taken a turn in the direction of Europe. While DIY (Do It Yourself) might be a relatively new concept in Thailand, there is a growing trend for people to want to choose their own paint for their walls or buy their own flat pack furniture, even if they have no intention of doing the work themselves.

Add onto this the increase in land and property development, particularly smaller properties, and you’ve got a real demand for amongst other things, paint. Already one of the market leaders, Norwegian company Jotun is poised to paint a picture of increased manufacturing and profits here too.

Jotun’s distributing network is widening as the identity of retail outlets evolves. Jotun products are now making a strong presence through modern trade dealers such as Home Pro, retailers who also cater to the domestic market as well. The Norwegian born company is involved with five major dealers and with purchasing power on the up, the middle classes of Bangkok, Chiang Mai, Chiang Rai, Phuket and Pattaya in particular are all increasing their spending on the home too. Alongside this, the company plans to expand its marketing in the country too, so that the brand is more easily identifiable. It might be a couple of years before Jotun has a television campaign in Thailand but with the help of big building chain outlets such as Home Pro Jotun seems to be mapping out a rosy colored future.

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That’s not to say the company hasn’t faced difficulties, such as the impact of the floods last year. With travel around the country adversely affected, the logistics of moving products around almost ground to a halt. On top of this, people stopped doing up their homes, afraid to do repairs in case the waters rose again. However, the company output and demand has bounced back with what seems like renewed vigor.

Jotun first opened a factory in Thailand in 1968, the first one to open in Asia. In 1999, a brand new paint and powder coating facility was built which has been the company’s single largest investment to date. While Thailand has a worldwide reputation for being a low-cost manufacturing dream location this was never the motivation behind Jotun’s presence here, as Gunnar Thoresen, Jotun’s General Manager in Thailand explains. “We set up where we want to sell, not because of the cost. We compete at the local level and there was a demand in Thailand for powder coatings for the marine industry back when we first opened in the 60s.”

While powder coatings are mainly used for white goods in Thailand today the decorative coatings side of the business has taken over and developed at a faster rate.

The factory in Chonburi has the capability of producing 30 million liters of paint a year, which is certainly enough paint to create a strong business impression.

It’s a story that’s being illustrated throughout Southeast Asia. The biggest market for Jotun is Malaysia, with the fastest growing being Indonesia. The market in Thailand is double that of Vietnam with Thailand also exporting to Cambodia too.

The set-up for paint retail in Thailand is dominated by the dealers who ensure that several brands are sold in shops rather than allowing for the easy presence of Jotun only shops which are being developed much more extensively in other countries. The first

Jotun-only shop in Myanmar opened this year, for example. However, development in Thailand is planned. “Our regional expansion strategy is ambitious. From retailing in 500 outlets we hope to grow to being in 700 shops in the next couple of years. Worldwide we’re number two in marine coatings, and number one in Thailand. When it comes to decorative coatings in Thailand we aim to be the number one market leader.”

Gunnar Thoresen

With 320 employees, Gunnar and a Scottish technician are the only Westerners working at Jotun in Thailand, further adding to the grassroots approach of local manufacturing. The challenges faced seem to be the ever present transient nature of the unskilled labor market but then this ensures that foreign investors make every effort to look after employees so that they are less likely to stray to a factory across the way. Decorative paint definitely has a uniquely Thai branding too. Regional R&D labs look at the climate and develop different compounds to match hot and humid conditions. Market needs, such as color preferences, are also developed at a regional level.

Gunnar admits that sometimes finding the right skillset for management positions in Thailand can be challenging and that open communication is not necessarily a great strength amongst teams. However, these are common tricky areas for most businesses and alongside these come the many benefits of manufacturing in Thailand which more often than not far outweigh any negatives. Certainly there’s a history of manufacturing here with many companies adopting long term investment plans for the future.

Jotun was at the forefront of developing the on-site tinting machine concept where paints are mixed in the shop. This has made Jotun attractive to dealers and given them a real competitive edge. Another aspect of manufacturing which is becoming more important in Thailand is the idea of eco-friendly products and more projects are getting Environmen-

Perhaps Jotun’s skill in Thailand is operating as a local company and really understanding the local market and how Thailand is evolving and ultimately transforming into a modern day retail center in Asia. Jotun might have its roots in Norway but the Thai factory is focused on how best to provide a quality premium product right here, right now.

tal Impact Assessments and tackling green issues, such as recycling and how to handle waste.

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Telenor secures a long-term futu

by Glenn Mandelid Communication Director, Telenor Asia

W

hen the Indian Government on 15 November 2012 announced the winners of the recently concluded spectrum auction, it became clear that Telenor Group had managed to secure necessary spectrum in 6 Indian telecom circles. This announcement marked the end of an eventful year filled with uncertainty and challenges for Telenor’s operations in India. For the next 20 years Telenor has secured the right to provide mobile services in an area covering a population of 600 million people, or more people than Bangladesh, Pakistan, Thailand and Malaysia combined.

Telenor’s Indian adventure has been a bumpy ride from the start. When the company announced its ambition to enter India the share price fell 25 percent. Making such a significant investment in the middle of a global financial crisis was not the news investors wanted, and they were not convinced that Telenor would be able to be successful and profitable in such a complex and competitive market.

Late in 2010, a year into Uninor’s operations, the Indian telecom sector became the center of attention for one of India’s biggest corruption scandals. It started when the Comptroller Auditor General (CAG) published a report stating that the Indian Government had lost significant revenues by awarding licenses in 2008 on a first come, first serve principle, instead of maximizing state income by auctioning it to the highest bidders. This created an intense political controversy, which was followed by Central Bureau of Investigation charging the telecom minister and all parties that received spectrum in 2008

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for conspiracy or corruption. In parallel the Indian Supreme Court decided to hear a separate Public Interest Litigation related to the awarding of licenses.

The award process was soon labeled the “2G Scam”, and the political controversy continued throughout 2011. The negative attention on the telecom sector left the industry paralyzed and unable to move forward. Uninor had for a long time been working on securing long term project financing through raising debt from Indian Banks, but suddenly no loans where available. To secure its long term financing needs, the Uninor Board decided to raise equity through a rights issue. This was opposed by Telenor Group’s partner, and the disagreement ended up in several Courts across India.

Even with all the regulatory uncertainty, political controversy, legal challenges and intense competitive environment, Uninor managed to establish itself as an operational success. The company was the fastest growing mobile operator in India, and the only serious new entrant in the market. This came from a simple ‘three pillar strategy’ – being the best in basic services, being the best in low cost operations and building a mass market distribution. The company made significant innovations that increased efficiency and secured low cost. It customer offering of being best on basic local voice services attracted millions of new customers.

On 2 February 2012 the situation went from bad to worse. Almost 1 year after concluding its hearings the Supreme Court issued an Order stating that the process of awarding licenses in 2008 was flawed, and as a consequence all licenses were quashed. The Court also instructed the Government to award fresh licenses within 4 months through an auction. This meant that all of Uninor’s licenses were cancelled, and that Telenor Group risked losing its entire investment of USD 3 billion in India.

ure in India After shaking off the initial shock, Telenor Group decided that its ambition was to continue operations in India. A plan was put in place to secure license conditions that made it possible for Telenor to participate in the upcoming auction. Meetings where arranged with representatives from the Indian Government on all levels, and Telenor participated in all hearings conducted as part of the auction guideline process. In addition a high intensity media outreach was conducted to raise its key arguments and concerns. The Norwegian authorities also advocated Telenor’s position through meetings with its Indian counterparts on several occasions.

The conflict with the existing partner also continued when Telenor Group made it clear that it was its intention to end the partnership. Telenor Group stated that if it decided to enter the new auction it would be with a new company, and with a new Indian partner. The existing assets would be transferred into this new company when fresh licenses were acquired.

to be able to fund an additional investment. Fourth, the starting price of the auction needed to be lowered.

The final decision on auction guidelines would be taken by a committee called EGOM. EGOM is short for Empowered Group of Ministers, and its members are the most influential ministers in the Indian Government.

Throughout the summer of 2012, Telenor argued its position on the 4 issues it needed to change, and at the end EGOM had taken steps in positive direction on all these issues. When the final guidelines were presented, it was clear that Telenor Group’s concerns had been addressed.

With clarity on auction guidelines, Telenor Group continued its preparations towards participation in the auction. A settlement was reached with the existing partner, and a new partnership was established with Lakshdeep Investments & Finance Pvt. Ltd. Telenor Group will pending necessary approvals own 74% of the new company, the maximum allowed to be owned by a foreign company in a telecom operator in India.

When the Telecom Regulatory Authority if India (TRAI) presented its recommendations for auction guidelines, it became clear that there were 4 areas that needed to be changed for Telenor Group to consider participating in the auction. First, the extensive new network roll-out obligations made it impossible to develop a profitable business plan. Second, the limited amount of spectrum made it difficult to secure sufficient frequencies to launch commercial services.

Thirdly, deferred payment Head of Telenor Asia Sigve Brekke and of auction fee was needed Minister of Trade and Industry Trond Giske

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So, with clarity on auction framework, and with a new partner onboard, Telenor Group was ready to participate in the auction that started on 12 November. The auction was over in 3 days and it became clear that Telenor had secured fresh licenses in its 6 most successful telecom circles. These regions cover a population of 600 million people, and represent the strongest growth regions in the country. Telenor already has a strong presence in these regions with operations with more than 34 million customers and a strong and healthy financial development. In Uttar Pradesh East, one of the 6 circles where fresh spectrum has been obtained, Uninor has already reached breakeven. This happened in less than 3 years, and it is the fastest any operator in any circle in India.

With new licenses that are valid for the next 20 years, Telenor is preparing for its next phase in India. With clarity on the regulatory framework, the company is able to fully focus in what it came to India to do – provide high quality mobile services to the Indian people at affordable and competitive prices.

All the uncertainty around the future of Telenor in India has been challenging for the employees. Many Uninor employees represent the single income that the entire family depended upon, so the potential outcome of the auction had a huge personal impact on their daily lives.

For the Uninor management it was important that the organization kept its focus on winning market shares every day. The company would not have a future in India if it secured licenses, but lost its customers during the process. Opportunistic and sometimes unethical competitive practices during this period of uncertainty posed an additional challenge – both towards keeping and growing the customer base and retaining talent with the company. Therefore, it became a key priority to make sure that internal information was sufficient, timely, transparent, honest and personal. Sigve Brekke, the Managing Director of Uninor, has continuously visited all regional offices to make sure that all employees got updated on the latest development from him, and that all employees had the opportunity to raise all their concerns to him. The openness that was adapted though the entire period proved successful. Employee satisfaction went up, sales increased and no key resources left Uninor.

These six circles account for over 50% of India’s population. With a mobile penetration as low as 40%, these circles represent the markets where the real future growth is happening. There are 95 mid-size cities in these six circles that have grown an average 37% over the past decade. Five of these have grown in triple digits.

Thai-Norwegian Chamber of Commerce

Telenor has secured 5 MHz of spectrum in: 1. Andhra Pradesh 2. Uttar Pradesh East 3. Uttar Pradesh West 4. Bihar 5. Gujarat 6. Maharashtra

Thai-Norwegian Business Review

37

Letter from Chiang Mai: Making Chiang Mai a better place

by Colin Jarvis

C

hiang Mai is one of the best places to live in the whole world. This is not just my opinion it is often cited in many surveys that are undertaken throughout the world. Mind you, if I am truthful, the surveys are usually about the best place in the world to retire.

Nevertheless, Chiang Mai is a wonderful place and it is not surprising that over one million visitors come every year. For a city that has only about one and half million residents the influx of visitors is noticeable, very noticeable. This is why the main industry is that of tourism.

Since the financial problems in 2008 we are told that the number of visitors to Chiang Mai has stayed much the same. What is really obvious is the fact that these tourists are now mainly young people with little money rather than the whole families that used to come. Whilst the numbers of visitors may be the same the income from them has declined dramatically.

The city has introduced a number of initiatives such as the Creative City project, the building of a new purpose-built exhibition and conference Centre and the number of initiatives to encourage manufacturers to relocate to the area. These are meeting with some success but there is no doubt that the main source of income is still tourism.

The Department of Tourism has recently selected a number of sites in Chiang Mai and earmarked them for improvements. These include the Chiang Mai Night Bazaar, the temple at Doi Suthep and the hot springs at Sankamphaeng. Without a doubt there is the opportunity to improve these facilities, particularly the Chiang Mai Night Bazaar.

38

Thai-Norwegian Chamber of Commerce

Over the last two years, over 200 stallholders have left the Night Bazaar. Many stallholders and shopkeepers state that they have lost more than 50% of their revenue over the past four years.

A few years ago the Bazaar was full of people, hustling and bustling around, from about 11 o’clock in the morning. Now they do not start opening till about 6 PM. Why? Because no one comes.

The sad thing is that the Bazaar has very little to offer.

If you imagine the stalls in Sukhumvit that line the streets every evening from Soi 7 to Soi 20 you have a very good idea as to what is on offer at the Bazaar.

Exactly the same products are being sold on the pavement outside the Bazaar so it is not surprising that the Bazaar is losing ground as a retail destination.

There used to be regular entertainment in the form of music and dance in the night market but this happens very seldom these days. The whole place has air of decay. It has passed its sell by date without a doubt.

It offers little real value to visitors, especially young people with limited budgets.

The Saturday and Sunday walking markets are far better in that they offer products that are mainly made by local people and the Sunday market in particular is absolutely huge. You can buy anything from a silk dress to a six-week old puppy and the prices are amazingly low.

As you walk along the road in the Sunday walking market about every 30 feet there is another musician or group and they are all excellent. Handicrafts, kitchen and bathroom sundries, CDs, paintings and musical instruments are all there waiting to be given a good home. It is no wonder that the Bazaar is losing ground So what can be done? The landlord, according to the tenants, does very little to upgrade or promote the

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Bazaar. So how is the Department of Tourism going to improve it?

There are a number of things that can be done such as the reinstitution of the live performances but the quality and price of the products on sale needs to be improved. That is not an easy thing to achieve but it would not cost very much money. Since Chiang Mai is supposed to be a Creative City then the provision of truly creative products in the Bazaar should be simple to achieve. Continuing to sell the same old tourist tat will achieve nothing.

However, the problem is not really that of the facilities but rather the number and quality of visitors. The Tourism authority of Thailand is not noted for its creative marketing ability but it does need to pull its socks up and not rely just on glossy magazine and television advertising. It needs to identify very carefully the tourists they want to attract and then create some powerful sales promotional activity that will encourage such people to visit the kingdom, not just Chiang Mai.

In the meantime we northern residents will simply wait to see what happens and enjoy any improvements that happen to come along at no cost to ourselves.

I am also pleased to report that our quality of life up here should be considerably improved by the actions of the local government to dramatically reduce the amount of crop burning and forest fires that normally take place at this time of year. This should enable us to enjoy blue skies and easy breathing.

Another change that will enhance the lives of at least some of us is that Bangkok Airways has now introduced a check through service for passengers connecting with international flights in Bangkok. Up till now, unless one was flying with Thai Airways, it was necessary to collect one’s baggage and pass through immigration in Bangkok which often made life difficult, particularly on the return journey when one was quite often at risk of losing one’s connection.

There is no doubt that Chiang Mai is a great place to live and it looks as though it’s going to get better.

Thai-Norwegian Business Review

39

Noncompetition provisions in em

by Pimvimol (June) Vipamaneerut Partner, Tilleke & Gibbins

E

mployers often have concerns about their employees competing with them, after they leave. Many employers put substantial resources into training their employees and giving them valuable work experience. Thus, departing employees are worrisome, in terms of potential loss of customers and business.

To address this risk, many employers ask us whether they should include noncompetition provisions in their employment agreements, and whether such provisions are enforceable.

Noncompetes are governed primarily by Section 14/1 of the Labor Protection Act and the Unfair Contract Terms Act. Principally, noncompetes are enforceable in Thailand, subject to some restrictions.

The Labor Protection Act provides that, “for an employment contract between an employer and employee, work rules, regulations, or orders of an employer that provide for the employer to have an improper advantage over employees, the court shall have the power to order that such employment contract, work rules, regulations, or orders be applicable only to the extent that they are fair and appropriate in the circumstances.”

Similarly, the Unfair Contract Terms Act stipulates that “contract terms that are not void but cause the person whose right or freedom has been restricted to shoulder more of a burden than a reasonable person could have anticipated under normal circumstances, shall only be enforceable insofar as they are fair and reasonable in the circumstances.”

40

Thai-Norwegian Chamber of Commerce

Courts are to consider the geographic scope of the area specified and the period of restriction of right or freedom. They must also consider the ability and opportunity of the employee to carry on his or her occupation or otherwise engage in business, as well as all legitimate advantages and disadvantages of the contracting parties.

As a general matter, enforcement of noncompetes is problematic with respect to professionals. For a doctor or lawyer, one can see that a noncompete, depending on its scope, could easily have the effect of eliminating all opportunities to practise one’s occupation.

In determining the extent to which terms are enforceable as fair and reasonable, courts will take all circumstances into account, including good faith, bargaining power, economic status, knowledge and understanding, adeptness, anticipation, guidelines previously observed, other alternatives, and all advantages and disadvantages of the contracting parties according to actual conditions; ordinary usage applicable to such kind of contract; time and place of performance or making the contract; and whether one party is made to bear a much heavier burden than the other.

The statute does not require employers to give additional consideration or other benefits to an employee or former employee during a noncompete period. However, it is possible that terms providing

mployment relationships for such an arrangement may be included in an employee’s employment agreement, and that a departing employee may negotiate such an arrangement with his or her employer. In either case, the employer’s obligation to pay would be enforceable.

A noncompetition provision is acceptable and enforceable under Thai law as long as it is not contrary to public order and good morals, and is fair and reasonable. Considerations are to be based on: 1. The period of restriction and the geographic area of restriction.

2. The opportunity and ability for the employee to profess his or her occupation.

cases, the period of restriction may have already expired.

Several Supreme Court judgments have ruled that a restriction period of 24 months (without stated geographic restrictions) prohibiting an employee from directly or indirectly carrying out or engaging in businesses in competition with those of his or her employer, is justifiable and enforceable. In one case, the Supreme Court held that a noncompetition provision applicable to a foreign employee, with a restriction period of five years and geographic area of Thailand, Vietnam, Cambodia, Laos, and Myanmar, prohibiting the employee from directly or indirectly carrying out or engaging in businesses in competition with those of his employer, was justifiable and enforceable.

3. All other lawful interests of the parties.

Thus, the Thai court will typically enforce a noncompetition provision, as long as it is lawful, is used to reasonably protect the employer’s business, and does not impose undue hardship on the employee.

As a general matter, enforcement of noncompetes is problematic with respect to professionals. For a doctor or lawyer, one can see that a noncompete, depending on its scope, could easily have the effect of eliminating all opportunities to practise one’s occupation. Thus, a court would consider this within the context of the factors described above, with the likely result of modification of the term or not enforcing it at all.

When an employer seeks to enforce a noncompete, proving damages can also be difficult. While a noncompete may be enforceable, employers may face problems proving that the employee’s breach of the noncompete actually caused the employer to suffer economic damages. Moreover, given the time taken for the case to get to court, it is likely that, in many

Thus, when crafting noncompete provisions, it is important to consider what a court would likely enforce. Generally, we would advise you to work with your counsel to carefully construct noncompete provisions, such that they specify a restriction period of not more than 24 months, within a specific geographic area. Importantly, the noncompete provision must not operate to eliminate any possibility of employment for the employee. While a court always has discretion, such an approach offers the employer a reasonable level of protection.

An earlier version of this article was first published in the Bangkok Post on November 2, 2012. Please send comments or questions to Andrew Stoutley at andrew.s@tilleke.com.

Thai-Norwegian Business Review

41

IMG of Norway expands its Vietnam manufacturing facility

by Nils Gunnar Hjellegjerde, CEO and President of IMG

F

urniture manufacturer IMG of Norway (recliner and motion furniture specialist) has taken a major step forward by signing contracts to expand its factory in Vietnam from 150,000 sq ft. to approximately 263,000 sq ft. The total investment will amount to more than USD 5,000,000.

IMG makes its Norwegian engineered products at its own vertically integrated facilities in Thailand and Vietnam.

With this latest expansion IMG of Norway will be able to produce more than 5,000 recliner chairs per week, which is almost double the current capacity of 3,000 chairs per week.

Three key concerns for retailers are quality, delivery and price. “Now we will be able to grow with our customers and keep on delivering great products in a quick and timely manner at competitive prices” says IMG’s CEO and President Nils Gunnar Hjellegjerde.

“Furniture creation and production has been part of my family for generations” says IMGs CEO and President Nils Gunnar Hjellegjerde. “I am proud to carry on the family tradition started by my grandfather in Norway back in 1941. My grandfather loved to expand and build new factories” added Mr. Hjellegjerde.

IMG expanding its factory in Vietnam

42

Thai-Norwegian Chamber of Commerce

Mr. Hjellegjerde emphasized further that vertically integrated manufacturing facilities are a critical part of IMG’s strategy to control quality, safeguard technologies and know-how as well as stay cost competitive. For that reason IMG manufactures its own laminated parts including wood processing and painting. It also manufactures its steel parts, mechanisms, springs as well as both slab stock foam and moulded foam parts.

“This expansion will help us continue our successful path forward. We will keep on developing our competitive power through choosing the most cost effective location as well as utilizing the most modern and efficient technologies in streamlining our production processes” Mr. Hjellegjerde concluded.

With this expansion IMG will increase the number of employees in Vietnam from 440 today to around 750.

This expansion will therefore also create new valuable jobs for the Vietnamese community.

For more information please contact: Nils Gunnar Hjellegjerde +47 94 43 78 01 +66 89 777 0022 nils.gunnar@imgcomfort.no

Thailand’sEconomy economy Thailand’s at a Glance at a glance

4

40

2

-

0

-2

0

2

4

Thai Consumer Price Index

Thai GDP Growth (%) 6

20.0

5

15.0

4 3

10.0

2

5.0

1

-2

2007 2008 2009 2010 2011p 2012p

Q4/12

Q3/12

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Q1/12

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2011

-1

Aug12 Sep12 Oct12 Nov12 Dec12 Jan13

0

0.0

Stock Exchange Index (SET)

Exchange Rates

1,600

7.00

1,400

6.50

1,200

THB/NOK

6.00

1,000

5.50

800

5.00

1200 1000 800 600 400 200 0

200 180 160 140

Oct12

Nov12

Sep12

Jul12

Aug12

2011

2011

2010

2008

2009

120 2007

1301

1207

1201

1107

1101

1007

1001

Bilateral trade 2012

2000=100

100 Basic Figures: BOI. Comparisons: Wikipedia.

GDP/Capita and Thai Population: Wikipedia/IMF. Thai GDP and CPI: Bank of Thailand. Quarterly GDP: NESDB. SET: Stock Exchange of Thailand. Exchange Rate THB/NOK: OANDA. Manufacturing Production Index: Thailand’s Ministry of Commerce. Bilateral Trade: Statistics Norway. Petrol and BigMac prices as of 24 February 2013

0907

0501 0507 0601 0607 0701 0707 0801 0807 0901 0907 1001 1007 1101 1107 1201 1207 1301

Manufacturing Index

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4.50

400

69.9 mill 5.0 mill 10,300,000 875,000 71/76 79/83 7.29 15.18 13.41 40.00

Female

-4

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Male

0801

2

MY CN TH ID PH IN VN LA KH MM

20

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

Import 1,778 (1,394) MNOK Export 3,378 (2,352) MNOK

Chemicals Engineering Fish Pulp Other Metal Prod Food Electronics Machinery Cars Computers Others

2

Sources:

6

60

-5.0

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

8

80

2012p

Some comparisons

100

2010

Top 10 Exp. Jan-Nov12 %/value USD bill Motor Cars and automotive 9.7%/20.5 EDP equipment 8.4%/17.7 Precious stones/jewellery 6.0%/12.7 Refined fuels 5.7%/12.0 Rubber 3.8%/8.0 Polymers etc.

3.7%/7.9 Chemical products 3.7%/7.8 Rubber products 3.7%/7.8 Iron and steel 3.0%/6.2 Electronic integrated circuits 2.9%/6.0

10

NO US SG KE TW

10-23% 10-15% 7% 0-35%

Thai Population 2011

120

2009

Corporate income Tax Withholding Tax Value Added Tax Personal income Tax

GDP/Capita 2011 (TUSD)

2008

Export Growth 2011 16.4% Export Growth 2012 projected 5.5% Trade Balance USD 23.5 bill Current Account Balance USD 11.9 bill International Reserves USD 175.1 bill Minimum wage (Bangkok) Baht 300/day

0901

Basic Figures Thailand (2011)

Thai-Norwegian Chamber of Commerce Thai-Norwegian Business Review

43

HÅG chairs bring Scandinavian comfort to your work place HÅG chairs encourage you to move even while sitting down, improving both your blood circulation and your concentration.

Comfort is all about movement. Sit, but never be still. Work hard, but in complete comfort.

Discover HÅG’s unique active task chairs now also available in Asia.

HÅG Distributor in Thailand:

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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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Bridging Societies is our business Nera Networks provides wireless transmission solutions to communication network owners in most market segments including: • Mobile • Broadcast • Enterprises and Internet Service Providers • Government and Educational institutes • Defence • Offshore and Utilities • Retail Payment Solutions Nera (Thailand) Ltd. 26th Floor, 253 Asoke Tower 253 Sukhumvit 21 (Asoke) Road Klongtoeynua, Wattana Bangkok 10110 Tel: +66 (0) 2664 1464, Fax: +66 (0) 2664 4002 www.nera.no

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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

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

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An Anemployer employerof ofthousands. thousands.

Built Builtaround aroundequality, equality, opportunity opportunityand andpeople peoplelike like us. us.

At Telenor Group, we believe that being at the forefront of At Telenor Group, we believe that being at the forefront telecommunications isn’t just about technology.

It’s aboutofpeople. telecommunications isn’t just about technology.

It’s about people.ask And whether those people are customers or employees, we always And whether those people are customers or employees, we always ask ourselves this simple question; ‘does this fulfill the needs of people?’ ourselves this simple question; ‘does this fulfill the needs of people?’

That’s why we have invested resources and time in developing new That’s why we have invested resources and time in developing new ways of working, creating new structures that dismantle the barriers ways of working, creating new structures that dismantle the barriers and hierarchies of the past and replace them with freedom, openness and hierarchies of the past and replace them with freedom, openness and opportunity. We know that as we have grown internationally, our and opportunity. We know that as we have grown internationally, our employees remain our most precious asset and we aim to help them realize employees remain our most precious asset and we aim to help them realize and fulfill their ambitions and potential as individuals and as groups. and fulfill their ambitions and potential as individuals and as groups.

Wherever they are based. To find out more about how the Telenor Group Wherever they are based. To find out more about how the Telenor Group works hard at being ‘built around people,’ please visit www.telenor.com works hard at being ‘built around people,’ please visit www.telenor.com

ThisThis advertisement features Telenor Group employees advertisement features Telenor Group employees

Telenor Group is aisglobal provider of of high quality telecom services Telenor Group a global provider high quality telecom serviceswith withoperations operationsinin1313markets marketsaround aroundthe theworld. world.

To find out more about how we put people at the heart of our business, visit www.telenor.com To find out more about how we put people at the heart of our business, visit www.telenor.com Telenor Group hashas telecom operations in these countries: Norway, Denmark, Sweden, Telenor Group telecom operations in these countries: Norway, Denmark, Sweden, Hungary, Montenegro, Serbia, Ukraine, Russia, Pakistan, Bangladesh, Thailand, Malaysia, India.

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