Thai-Danish Trade News - December 1996

THAI-DANISH\TtPs ll

Royal Danish Embassy

Danish Chamber of Commerce December 1996 Vol.3 No.2

BUSINESS OPPORTUNITIES

E

96.12.01

Telecommunications. Danish company is looking for a partner to cooperate in marketing of microwave telecommunications equip-

rssN 0859-1229

HRH Crown

Prince Frederik of Denmark to visit Thailand in May

ment.

E

96.12.02 Logs. International trading company based in Denmark is looking for customers in Thailand within the furniture industry interested in buying logs of Scandinavian wood.

tr

96.12.03

Dairy products. Danish dairy manufacturer is interested in cooperating with distributors within the retail of foods to distribute its dairy products in Thailand, espe-

Plans are-being madefor His Royal Highness Crown Prince Frederik of Denmark

to visit Thailand from mid-May. HRH Crown Prince Frederik is especially interested in visiting the various projects supported by DANCED,the Danish environmental development agency.

Towardstheend of hisvisit, His Royal Highness is also scheduled to open a Th ai - Da n i s h B u s i

ness Co nferen ce wh

ic h

will focus on various Danish business sectors, according to which companies show an interest in the event.

cially cheese.

tr

96.12.04

Graphic industry. Manufacturer in Denmark is looking for a distributor to market its equipment towards customers within the graphic industry in Thailand.

tr

96.12.05

Seafood. Danish manufacturer is interested in cooperating with a distributor in Thailand regarding its range of seafood products.

tr

96.12.06

Auto pans. Danish manufacturer is looking for a partner interested in importing and distributing its range of electrical spare parts and

components to customers in the auto industry in Thailand.

E 96j2.07 Land cultivators. Danish manufacturer is looking for a distributor of its small farm land cultivators with engines of 3 -5 horse power.

For furthef information on any of the above, please copy the page,V-markthe item and fax it to the Commercial Section of the Royal Danish Embassy, fax 213 1752.

Thai-Danish Business Conference in May Conference in mid-May to be opened by HRH Grown Prince Frederik of Denmark will focus on main Danish business sectors.

The Ghamber will co-host a Gala Dinner during the visit.

A two-day business conference to promote Denmark in Thailand will take place

during the planned visit to Thailand of HRH Crown Prince Frederik of Denmark

in May. The conference to be opened by HRH The Crown Prince has been arranged by the Danish Confederation of Industries in cooperation with the Danish Chamber of Commerce, the Council of Danish Architects and Engineering Companies, the Ministry of Foreign Affairs, the Ministry of Environment and Energy and the Royal Danish Embassy in Bangkok.

On the evening of the first day, a Gala Dinner will be held, co-hosted by the Danish-Thai Chamber of Commerce with

The conference will follow a new format, developed for this kind of event by the Confederation of Danish Industries, which will be imolemented and tested for the first time in Thailand. lf successful, a

similar event will later be arranged in Japan.

The most significant feature of the new formatwill bethe use of the latest information technology to support the conference - e.g. CD ROM, interactive video, Internet and maybe even an on-line connection to Denmark.

A Thai PR-agency will be selected to market the event towards Thai companies.

HRH The Crown Prince the Guest of Honour. The limited seats for this event

Danish companies interested in promoting themselves at the conference at the subsidised price of around 60,000

are sold at 2,500 baht by the Chamber's office.

Embassy, Commercial Section.

baht should contact the Royal Danish

Y

Mr. Poul Weber

President Danish-Thai Chamber of Commerce

Dear Reader, nother year of the relatively young Danish-Thai Chamber of Commerce is coming to an end with the Annual General Meeting scheduled for February 26.

Established in 1992, the Danish-Thai Chamber of Commerce has over the years gone through the development phases to be expected of an organisation of its kind; from the initial keen support by almost all companies and individuals in the local Danish business community, through a weakening of this initial interest and energy devoted to the Chamber, and now back to its present position of strength as shown not only in its economy, but also in its level of activity.

At this time, I feel it is essential for the Chamber to further broaden its mission to attract more Thai companies and individuals to become new members. I therefore take this opportunity to appeal to our existing members to keep this in mind and help promote the Chamber whenever meeting with your suppliers and customers.

In line with this thinking, we need of course also to develop our activities and services to become more attractive to these potential new members. lt is my belief, that the people most suited to help guide the Chamber in this direction are our existing Thai members. I hereby appeal to any of our Thai members to please come torward and express an interest in taking your turn as one of the Governors of the Board of the chamber before the upcoming AGM so everything can be organised properly.

To hear more about the procedures and the nature of the work involved, I urge these interested Thai members to please contact either our Executive Director, Mrs. Monica Holmgren or.myself.

The dominating event to take place during the coming year is, of course, the visit to Thailand in May of HRH Crown Prince Frederik of Denmark and the "Thai-Danish Business Conference" to take place during this visit as mentioned elsewhere in this edition of Thai Danish TradeNews. on May 21st, towards the end of the visit, HRH Crown Prince Frederik of Denmark will open this interesting conference, which will follow an entirely new format for this kind of event, and in the evening of the same day, the Danish-Thai Chamber of Commerce takes pleasure in inviting our members to a Gala Dinner with HRH The

Crown Prince as our Guest of Honour. lnvitations will be sent out later. Seats will however be limited so interested companies would do well in contacting the Chamber's office already at this early stage to book the number of seats, or tables of 10 seats, they need. The price will be 2,500 baht per participant.

I take this opportunity to wish you all a merry Christmas and a happy and prosperous New Year.

Sincerely Poul Weber

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Thailand's beaches are as beautiful as they come, but i ncreasi ng activities in the Gulf of Thailand have put them in danger of an oil spill disaster.

To help Thailand cope with such a situation, Denmark recently donated a special vessel to tight oil pollution.

Thailand's beaches protected by special Danish oil vessel Only last year there wasn't really much anyone could do

to clean up an oil slick if a ship had silently dumped itis waste oil into Thai waters.

Not to mention the worst sce-

nario in which

a leaking

oil

tanker would leave miles and miles of Thailand's beautiful beaches covered in sticky, brown oil.

To help prevent this disaster. Denmark has donated a specially designed ship for fighting oil pollution to the Thai government.

The 26 meter long and 60 tonnes dead weight vessel is part of a DKR 30.8 million aid package for the Harbour Department in Thailand under a project called the Oil Spill Contingency.

A crucial part of the donation is the training provided with the ship and the setting up of an alert station as well as additional oil spill fighting equipment.

In early October the vessel carrying the Thai name Densuddhi reached the Marine Training Center at Samut Phrakan where it is going to be stationed. There it will be on alert for oil spill fighting in shallow waters at the coastal

zones of the upper Gulf of Thailand and on the Chao Phraya River near Bangkok.

The ship is build especially for the purpose at the P/F Torshavnar Skipasmidja on the Faroe lslands. Classi-

fied according to the international OILREC regulations, the ship is one of a kind since there are so far only few vessels world wide built according to these specifications. lt carries a lot of extra equipment and is able to collect, contain and recover oil from the sea surface as well as being able to fight oil fires on

the sea.

In 1986 a study was carried out to assess the risks and consequences of poten-

tial oil spills in marine and

inland waters in Thailand. But

only lately the Royal Thai Government have begun to seriously build up a national capability to handle oil spill accidents by enforcing the Prevention and Combating of Oil Pollution Regulations.

The actual reason for the increased awareness was a serious oil spill accident that

happened in the Malacca Strait i 1992. When the spill was .finally reported to the authorities the wrongdoers

were long gone and even if it

had been reported in time the

Thai National Oil

Spill Contingency organization couldn't have done much since the resources were very limited at that time.

The ship is one of the last donations from Denmark to Thailand, since Thailand may no longer be considered a

developing country. Only projects already appraised at the time, when Thailand surpassed the GNP-level specified by the World Bank, are now completed.

Denmark to give Thailand new loan worth 600 mill baht for vocational education Plans are under way for the Danish development coop-

eration agency, Danida, to finance the purchase of new training equipment to be installed at a number of agricultural colleges under DOVE

-

Depadment of Vocational

Education.

In November, an evalua-

tion team from Danida recommended f urther studies for an interest free loan of about 600 Mill. Baht to finance the

The list of equipment requested includes: seventeen dairy production units, five milk production units, one seed and grain production

unit and two floriculture and ornamental plant facilities.

In August 1996, a delegation headed by then Deputy

Minister of Education, Mr.

Chingchai Mongkoltham, vis-

ited Denmark, invited by a number of Danish companies, institutions and organi-

project and the purchase of

sations to discuss the project.

the training equipment.

Other prominent guests of

the delegation were

Mr.

Charoon Shoolap, Director General of DOVE, Mr. Amnaj Sawatdiwong, Deputy Direc-

tor General of DOVE,

Mr.

Veerasak Wongsombut, Director of Agricultural College Division, Mr. Somroy Pra-

putthum, Budget Analyst, Budget Bureau, Mr. Mongkolchai Som-U-Dorn, educa-

tionalist and Mr. Chalit

Phaungraung, Ass. Director

of the Singburi Agricultural College.

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Growth of the Danish economy picking up momentum for 1997 The Danish economy is picking up speed, growing faster than the surrounding countries.

With a growth in 1996 of 2 per cent increase in GDP, the target is now a 3,1 per cent growth in 1997.

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There is a general sense of

should not be more than 2.8 oer cent in 1997.

IFf

v11i1.

a renewed economic growth in Denmark, which affects

A pause in

every part of the economy.

The recovery has

of 1996 led to a marked fall i business capacity utiliza-

been

tion and damoened business

investments in machinery

increased considerably and

and transoortation. A resumotion of investment demand is expected with the

employment has grown, particularly within the construc-

recovery gaining strength. ln construction, business

pecially construction have

tion and services sector.

Only in the industrial sector there has been a further fall

GDP (biil. DKR)

in employment.

Net Foreign Debt (biil. DKR)

Stock prices - a leading economic indicator - nave cent since January.

With a revitalization of the European economies, growth is now expected to spread to all sectors of the Danish economy during the year to come - including industrial exoorts. Some loss in market shares is however exoected due to a deterio-

in 1997. In the public sec-

especially in 1995.

tor, employment is projected to rise by 17,000 persons in

ration of comoetitiveness

T

il

In general, GDP growth is forecast to 2 oer cent in 1996 increasing to 3,.1 per cent in .1 997

The projected

growth is lightly above ex-

pectations in

g

rowth

in

neighbouring countries. This is mainly due to the contribution from increased oil and gas production in the North Sea. M

ffi @

a m n M m

Private sector employ-

ment is expected to increase by 10,000 persons in 1996 and by 24,OOO persons

tinue.

Total fixed business in-

280

crease by 5.9 per cent in 1996 and 4.8 oer cent in

260

1997.

240

are expected to increase by

Exoort of manufactures

4.2 oer cent in 1997 as a result of the improved mar-

220 200

1995

1996 and 7.000 oersons 1997.

Unemployment

is

in

ex-

to average 24B,OOO persons in 996 falling to pected

GDP

investments have grown strongly since 1994. This growth is expected to convestments is projected to in-

gained more than 15 per

I

economic

growth in 1995 and first half

most pronounced in the domestic part of the economy.

Private consumotion. business investments, and es-

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.1

235,000 persons in 1997.

The external current account showed a surplus of 13 1/2 billion DKR. in the first half of 1996. This is 1 1/4 billion more than the sur-

plus in the same period 1995. Accordingly the current account surolus is expected to increase slightly from 0.9 oer cent of GDP in

1996

1

997

1995 to around 1 oer cent in 1996 and 1997.

Wages have increased in

accordance with exoectations. Thus, wage projections are unchanged aI a 4 per cent increase in both 1 996 and 1 997.

Private consumotion is expected to increase by 2.3 per cent in 1996. ln line with the general improvement of the economy, private consumption growth should rise further in 1997. However, an expected increase in local government taxation will curb this rise. Thus the orivate consumption increase

ket growth. Exports of serv-

ices should grow 4.3 per cent. Total exports are forecast to increase by 3.1 per

cent in 1996 and 3.9 per cent in 1997.

With the above mentioned national developments, total demand will step up from its increase in 1996 of probably 1,7 per cent to an increase ol 3.2 oer cent in 1997. lmports have already risen slightly during 1996 with total increase expected to be a mere 1 per cent. In 1997, however, imports are expected to rise again, by 3.5 oer cent.

Source:

Ministry of Foreign Affairs, Denmark

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News

& Notes

Mr. Attakorn Saropala on Novem-

joined the Royal Danish Embassy as Senior Commercial Officer in the Commercial Section. ber

1

Mr. Saropala, a Thai national, has for the past seven years been working as Commercial Officer at the British Embassy, with responsibilities to assist companies within aviation, construction, the environmental sector. information technol-

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Prior to his work at the British Embassy he worked in the manufacturing, trading and banking sectors. His knowledge and experience from these previous responsibilities should therefore prove to be very useful to Danish exporters.

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Having spent ten years overseas, studying for his Bachelor of Science in Electrical Engineering in the UK and his Master in Business Administration in the USA, Mr. Saropala is fluent in both written and spoken English.

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18

Ms. Srisuda Vilyalai on December

Lle

bassy, Commercial Section, as its new Commercial Officer. ln this capacity, Ms. Vilyalai, a Thai national, replaces the previous Commercial Attache, Mr. Ugris Prinyagul.

Ms. Vilyalai is a graduate from Bangkok University with a Bachelor Degree in Communication Arts and a Master of Business Administration, majoring in marketing. Before joining tlie Embassy, she worked for a short period of time for the Siam Commercial Bank Research Institute. Ms. Vilyalai also has working experience as ground hostessforThai Airways International and as a trainer, working with the Consortium of Save the Children Federation, the Experiment in International Living and the World Education.

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Mr. Manoon Laokwansatit will on 31st of March retire from the Royal Danish Embassy alter 40 years of active service.

When Mr. Manoon Laokwansatit

first joined the Royal Danish Embassy on January '1 st, 1957 it was as the Assistant Commercial Attache of the Embassy.

Since then he has overthe years become increasingly respected and loved among both the Thais and the local Danes in Thailand as the very backbone of the Royal Danish Embassy, securing consistency in its various practises through changing reigns of ambassadors.

Thai Danish TradeNews joins its readers in wishing Mr. Manoon Laokwansatit, who will turn 70 years in February , a happy and well deserved otium.

Thailand and South East Asia

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*-l Mr. Brian Griffin, General Manager, Danfoss in Thailand (far right) with some of the Danfoss product experts gathered in Bangkok to brief on the latest developments.

Danfoss shows latest technology Industry seminar keeps customers and engineers in Thailand up to date. and heads of leading con-

several Danes f rom the headquarters of Danfoss in Soen-

the future prospects are looking good for Danfoss in Thai-

struction enterprises in Thailand recentlyattended a Dan-

derborg Denmark introduced new products and the latest

land. ,,Danfoss was established in Thailand in 1988. We now have thirly employees and our

More than 200Thai engineers

foss seminar on products and training hosted by Mr. Brian

Griffin, General Manager for Danfoss in Thailand at the Siam Intercontinental Hotel.

'This was our best attended seminar so far," says Mr. Griffin. ,,We arrange seminars for both technicians and businessmen every year. This

was the engineers day and we are very satisfied that so many came."

During the full day event

technologies. Danfoss Provides 13 different product lines to the market in Thailand.

was delighted by the interest of the Thai engineers in ,,1

our products. They were touching and investigating the equipment we had on disPlaY and were very curious to hear

about the benefits they Provide", says Stig Toender,

Head of Sales in Danfoss Motor Control Division.

According to Mr. Griffin,

organisation is develoPing steadily to meet market de-

mands, Mr. Griffin estimates.

Due to a rise in middle class income inThailand more people are able to consume

luxury goods such as e.g.

Carlsberg beer in the many supermarkets being build in Thailand in recent years.

brewery control systems, air conditioning control and process control systems. Accord-

ing to Regional President Mads Prebensen in Singapore, some of these fields are expected to grow up to 30 Per

cenI. Strong growth is also exoected in the other ASEAN countries causing Danfoss to open new branches in Vietnam, Indonesia and the Philippines from January next year as part of the strategY for

the region.

Thailand, Danfoss is especially active in areas such In

as refrigeration

systems,

In an entertaining and thought provoking way, DrHenry Holmes pointed to the differences between Thai culture and western European culture.

Chamber Activity:

Cross-Cultural lunch with Dr. Henry Holmes Dr. Henry Holmes, Managing Director of Cross-Cultural Management, was the guest speaker at the Danish-Thai Chamber of Commerce's business lunch in November Acarcomesdownaoneway ing in a small Soi: A truck

year old boys and steps out into the Soi to off-load some the road and signals to the goods, blocking all traffic in driver, that he is driving in the that lane. Cars are queuing up on both sides to pass. wrong direction.

How are the other drivls this a likely scenario? ers likelY to react?

Why not?

What would their reacWould it be realistic in be in ltalY? tion Germany?

With these and other exWhy? street in Bangkok. A 10

has parked in one side of

Orhowaboutanothertraf- amples, Dr. Holmes at the

fic situation

one early morn-

business luncheon Novem-

ber 27 in the Danish-Thai Chamber of Commerce guided the participants into the world of cultural differ-

way, the time was not suffi-

ences.

eral books on the subject and also conducts in-house semi-

The official title of his presentation was "Managing within the Thai Environment. Headaches and Rem-

edies."

While some of the head-

aches were indeed illustrated in a most entefiaining

cient to go deeper into any of

the remedies. Dr. Holmes is, however, the author of sevnars on the subject.

The luncheon was well attended both by members of the Danish-Thai Chamber of Commerce and members of other foreign Chambers of Commerce in Thailand.

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COMING EVENTS Christmas Lunch at The Stable

December 13

Join your friends and other Members at 12.00 for this usually well attended and fun-filled event at The Stable, Sukhumvit Soi 8. Contact: Danish-Thai Chamber of Commerce, Tel.: (662) 651 2805, 651 2652 (+fax)

Private Investments in Thailand

January

This evening, two Swedish stock analysts, Mr. Skoglund and Mr. Vinlof of the Asian Solutions, will brief on what Thai shares to invest in. Contact: Danish-Thai'Chamber of Commerce, Tel.: (662) 651 2805, 651 2652 (+fax)

February 26 Annual General Meeting To be held 1B.OO at the Royal Danish Embassy, followed by a dinner approx.. 19.30. Contact: Danish-Thai Chamber of Commerce, Tel.: (662) 651 2805, 651 2652 (+fax)

After-Office-Get-Together

March

Hosted by Unibank. Contact: Danish-Thai Chamber of Commerce, Tel.: (662) 651 2805, 651 2652 (+fax)

Thai-Danish Business Conference

Scand-Media r your

Scandinavian graphic house in Thailand

mid-May

Major Danish business seminar and promotion event with expected participation of up to 7O Danish companies.

Dates and place of the Conference to be announced later Contact: Royal Danish Embassy, Mr. Lars Friis Jensen.

Tel.: (662) 213 2021, Fax: (662) 213 1752 Gafa Dinner with HRH The Crown Prince mid-May Exact time and place to be announced later.

Limited seats at 2i500 baht each is sold by the Chamber.

Contact: Danish-Thai Chamber of Commerce, Tel.: (662) 651

I

a,

2805, 651 2652 (+fax)

4Na

Tel.: Fax:

907 01 86-8 907 0215

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