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TRADE I{EWS December L997 rssN 0859-1229
TnrnB Fnms
Hotel, Restaurant & Catering '98 11-14 January 1998 Sth Trade Fair for the industry of
hotel, restaurant and kitchen equipment industry TEX-STIL 17-19 January 1998
Textiles, yarn, piecegoods, decoration materials, sewing machines, curtains
Holidays'98 22-25 January 1998 16th Scandinavian travel, tourism and camping exhibition
Agromek 27-31 January 1998 24th lnternational Trade Fair for agricultural machinery and livestock
Teknik & Data'98 4-6 February 1998
The Danish stand on Pollution Control '97 was highly visible.
Trade Fair
Copenhagen International Fashion Fair X 5-8 February 1998 1
998-1 999 AutumnAlVinter
Sportex'98 14-16 February 1998 Trade fair
Copenhagen International Boat Show 98 20-22 February 1998, 27 February - 1 March 1998
Fashion Days 7-9 March 1998 Trade fair
Automobiles'98 13-22 March 1998
Automobiles and Accessories
SCANDEFA'98 26-28 March 1998 Scandinavian Dental Fair and the Annual Scientific Meeting of the Danish Dental Association a
lnterested persons should contact: Danish-Thai Chamber of Commerce, Tel.: 651 -2805 Fax: 651 -2652 or the Royal Danish Embassy, Tel.: 21 3-2021
-5
Fax: 213-1 752
Successful launch of new Danish concept A new concept of pre-selecting relevant business discussion partners saved thirteen Danish companies in the environmental sector participating in "Pollution Control '97" np to one and a half years of work compared to the traditional approach. Thirteen Danish companies participated successfully in "Pollution Control '97" in November - not least because of the execution of a new concept of pre-selecting three or four potentially relevant business partners for them to meet during the event. The new concept aimed at reduc-
making it compulsory and by involving the Royal Danish Embassy in the selection, the cost of this operation could be reduced substantially and at the same time the chances of a positive result could be considerably im-
ing the risk connected with the partici-
tion had been made at a time where the Thai Baht was still stable in comparison to the US-dollar and the economic problems of Thailand and the
pation in any kind of exhibition of maybe meeting a lot of people at the stand, but still not meet exactly the right people to enter into a business cooperation with. Previously, individual companies may on their own initiative have hired consultants to help them
select possible partners for their planned activities in Thailand, but by
proved. The plans for the Danish participa-
rest of Asia had not yet surfaced. Still, none of the participants backed out as the time of the exhibition came closer. As part of the preparations before the event, a detailed profile of each of (Continued on page 5)
Thai-Danish Trade News is published
four times a yebr and distributed to selected Thai and Scandinavian Ousinese executives and otficials with an interest in Thai-Danish relations-
(tJ
H.E. Niels K. Dyrlund Ambassador Royal Danish Embassy
Danish-Thai Chamber of Commerce 19/121 Sukhumvit Suite, 13th Floor sukhumvit soi 13, BKK 10100 Tel: 651-2805 Fax: 651-2652 Ms. Monica Holmgren, Executive Director
President: Mr. P. Weber, Tel. 253 3184, Fax. 253 8904
Vice-President:
Mr. Anders Nielsen, Maersk Bangkok Branch Tel. 312A312, Fax: 312 0350-2
Treasurer: Mr. Axel Blom, Manager Thailand & Indochina, SAS Tel. 260-6252, Fax 26O-6269
Board Members:
Mr. Kamthorn Ounhirunskul, Kamthorn, Surachet & Somsak fel.44O 0288-97, Mr. Jim Napier, Carlsberg Brewery (Thailand) Co., Ltd. Tel, 235-1350-69, Mr. Lars Boe, General Manager, Diethelm & Co., Ltd. Tel. 221-1141, Mr. Michael B. Ascot, Amrop International, Tel.260 2490, Mr. Brian Griftin, Danfoss (Thailand) Tel. 561 1130 Mr. John H.R. Jessen, Jessen & Jebsen (Thailand) Ltd., Tel. 652 9090, Mr. Peter Romhild, The East Asiatic (Thailand) Plc., Tel. 679 7444, Mr. Terawai Tishabhiramya, Asia Brown Boveri, Te|.2498470, Mr. Choopong Angpiroi, ArtlinkCo., Ltd. Tel "541 4348,Mr. Thiensiri Theingviboonwong, ISS/ESGO Tel. 552 5O15
Honorary Board Members: HE Niels K. Dyrlund, Royal Danish Embassy, Tel. 213-2021-5, HE Rangsan Pha-
holyothin, Royal Thai Embassy, Copenhagen, Tel. (45) 3162 5010, Dr. Charoen Kanthawongse, MP, Tilleke & Gibbins, Tel" 254-264O, Khun Thamnoon wanglee, Thai Airways International Ltd. Tel. 513-0121, Khun Chote Sophonpanich, President, CS CaDital Tef . 260-7242-6
Roval Danish Embassy Commercial Section, 10 Soi Attakarn Prasit, Sathorn Tai, BKK Tel. 213-2021-S Fax:.213-1752
Mr, Henrik Petersen, Counsellor, Mr. Lars Friis Jensen, Commercial Counsellor, Mr. Attakorn Saropala, Senior Comm. Attache, Ms. Srisuda Vilyalai, Comm. Officer
Published and Edited bv: Danish-Thai Chamber of Commerce Scand-Media Corp. Ltd. Royal Danish Embassy
Qrapnrefrsduclion: Scand-Media Corp. Ltd., Thanyakarn Village,
4/74Moo 3, Ramintra Soi 14 (Km.4) Bangkok 10230 Tel: 943-7166-8 Fax: 943-7169
Dear Reader, .r1
I
he economic developments and political events in Thailand over the oast few months have been hectic and the private sector is suffering from uncertainty and hesitancy among foreign investors. lt is to be expected that Thailand in the next few years will experience reduced growth rates and the internal demand will fall, mainly as a consequence of the IMF agreement. A turn to the better will to a large extent depend on the ability of the Thai government to solve the problems in the financial sector and to make the structural changes necessary to compete in a globalized economy. Against this background it is a hopeful sign that the new Government under the leadership of Mr. Chuan Leekpai has made the timely introduction of economic and financial reforms, as required by the lMF, its main priority. lt is in this regard noteworthy that the
Chuan government's policy platform contains several initiatives, which are of particular interest to Thai Danish trade relations. These include measures for agricultural restructuring; human and social developments, including education; and environment and natural resource development. In the agricultural sector the Government plans to boost technological applications and to expand investment opportunities to assist agricultural producers and agro-processing industries in expanding their exports. This is a field in which Denmark possess considerable know-how, and thus an area of substantial commercial growth potential.
Within Human and Social Development the Government plans to promote training services for labour skills with the cooperation of the private sector. The extensive experience we have in Denmark on vocational training and education could lead to new opportunities for a private sector cooperation. The Government's policy on Environment and Natural Resource Management stresses enforcement of environment related laws and declaration of oollution control zones. This will eventually lead to increased demand for pollution control equipment and environmental management systems and it will strengthen the already extensive activities of the Danish environmental industry on this market. For its part the Danish Government has programmes in place that can support the
policies of the new government in several ways. Foremost, through our environmental cooperation programme which is carried out by DANCED, Danish Cooperation on Environmental Development on a national basis, but also through the regional environmental programme under the Danida umbrella. Soft loans from Denmark, financed under the Danida Mixed Credit Programme, have been available in the past few years. One project in the health sector is under implementation and several other projects are at various stages of preparation. This facility is in the process of being phased out, but the many projects already in the pipeline may still for some time be considered for financing through mixed credits. To be an optimist when times are good is easy, but in times like these much more effort is required. There is no doubt that the working conditions for Danish companies in Thailand will become more difficult in the immediate future. I do believe, however, that new opportunities will emerge, not least as a result of the new government's policies. Danish companies have been in Thailand for a long time. I am sure that they have the necessary know how and experience to compete, also under more adverse conditions.
Sincerely,
N. K. Dyrlund Ambassador
WE GIVE YOU MORE ! MORE LEGROOM From September ISth all aircraft in our long-haul lleet have been modilied to give you even more legroom in EuroClass. We have taken out two seat-rows giving you an expansive 47" pitch !
NO SMOKING We have received many complaints lrom customers concerning smoke in the cabin environment. And now we are doing something about it : From September 1 all SAS aircralt are no-smoking. No more hassles to avoid sitting in or close to the smoking section. As a courtesy and consideration to smokerso complimentary nicotine chewing-gumo Nicoretteo will be available on all SAS European and intercontinental flights.
YOUR FAVOURITE SEAT At SAS we want you to choose your f'avourite seat already when you book your ticket. Not only in EuroClass but also in Tourist Class. No more hassle queuing at the airport hoping to get your fbvourite seat. We are the only major airline offering this service to ALL PASSENGERS irrespective of the class you're booked in.
DOUBLE EUROBONUS POINTS Customers like you elected EuroBonus as the Best Airline Programme in 1996. Now we give you more : Travel in EuroClass to Scandinavid from now on until the end of the year and you get double EuroBonus points enabling you to re'deem your lree trip even faster !
MORE EUROBONUS POINTS in the Star Alliance now lets you earn Basic Points on all flights of Star Alliance partner airlines (Air Canada, Lulthansa, Thai Airways International and United Airlines) SAS partnership
SPOUSE FARE Take your wife or husband along on your next business trip in EuroClass to Europe. When paying the I'ull published EuroClass l'are lrom Bangkok to Europe you can take your spouse along for'only 100/o of the fare. The only condition is that tickets must be purchased at the same time and you must travel together on at least on one of the longhaul sectors.
LISE DEAN Living abroad, it's always nice to lind someone who understands you. Which is why we'd like you to meet Lise Dean. A native of Norway, Lise is our Scandinavian Community A11'airs Manager. And your personal link to SAS. In short, she's here to make your flights to Europe more enjoyable. More comfortable. More convenient. Lise will normally be working on Mondays, Tuesdays and Thursdays, but if she's out visiting clients feel lree to call her mobile (01) 813-666I or leave a message with Khun Pat on 260-6250.
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Danish participation at the Asia-Europe Business Forum President of the Danish'Thai Ghamber of Commefce, Mr. Poul Weber took part in the working group on small and middle sized companies while Mr. Henrik Petersen, Royal Danish Embassy, participated in the working group on infrastructure. The Danish-Thai Chamber of Commerce and the Royal
Danish Embassy were both actively involved in the second Asia-Europe Business Forum, which took place in Bangkok in November. Mr. Poul Weber, Presi-
agreed, that this years' meeting should focus on in-
frastructure, trade, investments, small and middle sized companies and tourrsm.
Among the results of this
year's meeting was a recommendation for each country to establish a single point-of-contact to ensure
a timely, comprehensive and reliable exchange of information. The private
at the Embassy, was an observer in the working
The overall purpose of the AEBF meetings are to
group on infraslructure. Other Danes, who travelled to Bangkok to partici-
establish a platform for busi-
pate in the meeting, were
nessmen from the two regions to meet and develop a growth oriented partnership based on the wish to their growing business relationship.
group on small and middle
from the major Danish companies, A.P. Moller, Unibank and RadissonSAS. In all, the meeting was attended by around 200 leading businessmen and officials from
sized companies and
Mr.
EU and the Asean coun-
a follow up on the first
Henrik Petersen, Economic and Commercial Counsellor
tries, plus Japan, China and South Korea.
AEBF-meeting held in Paris
dent of the Danish-Thai Chamber of Commerce par-
ticipated in the working
strengthen and facilitate The Bangkok Asia-Europe Business Forum was last year at which it was
sector participants stressed, however, that this should be
done with a minimum of bureaucracy. It was further decided to
conduct the next AEBF in London prior to the second
ASEM meeting to take place there in April 1998. This meeting will focus on the following sectors: environment, water, energy, telecom, transport, financial services and the retail sector for consumer goods.
Successful environmental promotion Continued from page
1
the Danish companies had been worked out by Dl International. These included each participating companies' visions of their future activity in Thailand and a description of the ideal part-
ner, they were hoping to team uo with to realize this vision. Based on these profiles, the Royal Danish Embassy in cooperation with a Thai consultancy company spe-
cialised in the environmental sector had pre-selected three to four potential Thai
partners for the Danish companies to meet during their stay in Bangkok. Apart
from these meetings, the embassy had in some cases also arranged individual meetings with government officials and agencies of special relevance to the requesting Danish company.
At the closing of the 5 day event from 12 -16 November, the participating companies expressed their satisfaction with the result of the new concept. ln some
cases it had saved them from one and a half years work compared to a traditionalparticipation in an exhibition without prior preparations. The companies' participation was arranged by the
They were there... Ansaldo Volund Carl Bro International Chemcontrol Cool Sorption
cowl Danfoss
Danish Oil-ref ining Company Danish Power Consult dk-Teknik Energy & Environment EnviDan / Intertec Geokon Innova AirTech Instruments
Kruger Ramboll
"Pollution Control'97" was arranged by the Pollution Control Department to
mark the 5 Year Anniversary of Thailand's Ministry of Science, Technology and Environment. Close to 100
exhibitors from both from Thailand and abroad participated in the event, which was visited by 5,000 businessmen and government
Confederation of Danish ln-
officials. Apart from the Danish stand, other na-
dustries, Dl lnternational
tional stands presented en-
Consultants, and suppofted financially by DANCED - the Danish Cooperation for Environmental Development who took the opportunity to launch its new Partnershio Facility Program.
vironmental technology from the USA, Canada, Norway and Austria.
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Maersk's successfu I operation Maersk can in 1999 celebrate 50 years ann,versary in Thailand. What started with shipments of railway material from Jaoan to Thailand in 1 949 has over the years grown to become one of the
largest privately owned transport / logistic providers in Thailand. The Maersk Grouo Thailand today comprises of five
companies, each involved in separate segments of the
transportation / logistic market.
Maersk Bangkok Branch is responsible for all Maersk
Line's container related business in Thailand, handling more than 130,000 twenty foot equivalent con-
tainers (TEU) a year, and connecting Thai exporters and importers to any point in the world.
Siam Shoreside Services operates inland terminals at Lat Krabang and
tors provides services ranging from simple forwarding and consolidation to sophis-
quirements.
Sanprawut as well as stevedoring and trucking services via 60 Maersk owned trucks
ticated logistic solutions such as Vendor Management and Supply Chain Management. For these
value and profit to the cus-
purposes Mercantile Consolidators have invested heavily in information tech-
user.
and 350 chassis. Bangkok Marine Corpo-
ration is acting as ship agents and runs fully containerized services between Thailand, Cambodia, Vietnam and West Australia.
Mercantile Consolida-
nology developing own management systems that can easily be suited to the individual customer's unique re-
The aim of Mercantile Consolidators is to add tomer's business by controlling the entire logistic proc-
ess from supplier to end Finally LCB Container Terminal 1, a joint venture
company, is running the largest privately owned port
terminal in Thailand at the deep-sea port of Laem Chabang, to where Maersk Line
has now moved most of its business. Maersk's investments in Thailand also include international as well as national
Increasing volumes of export goods
training programmes for Thai graduates a feature unique in Thai shipping industry. Thai graduates are being enrolled in the Maersk
International Shipping Aca-
Since the float of the Thai Baht in July, which boosted the competitive advantage of Thailand, the total volume of outbound goods has increased considerably. "We are of course pleased, that the export has gone up," says Mr. Anders Nielsen,
Managing Director of Maersk Bangkok Branch.
"Unfortunatelf, however, the amount of in-bound goods has at the same time declined drastically. Consequently, today we actually have to sail in empty containers in large numbers simply to have enough containers for the exports."
demy in Copenhagen, as well as being expatriated abroad.
Celebrating Maersk Group Thailand's 50 years
anniversary in 1999 will The problem is shared by all shipping companies in Thailand, but because of Maersk's large market share, it is perhaps felt as a heavier burden than in the case of minor shipping companies. "Hopefully, in about a year's time, im-
mark half a century of continuous growth in Thailand, a period in which the Kingdom has become an integraland very important part
ports will start picking up again, thereby pro-
service network.
viding a better balance between in-bound and outbound containers," Mr. Nielsen adds.
of Maersk Line's global
Mr. Jens Viggo Bergsoe
presenting some of the Danish designed goods for interior decoration in his Central Plaza showroom, "Despite the crisis life goes on. I believe there will always be customers for Danish quality
products."
New company to introduce Danish Design in Thailand ScanProducts initially represents the famous Stelton, Danish Steel House and Hamlet Design Starting to introduce Danish designed luxury products in Thailand at a time, where all indications point towards re-
duced private spending sounds more than risky. This is, however; exactly what the Danish businessman, Mr. Jens Viggo Bergsoe intends to do. Maybe it runs in his veins. His grand-
father, Holger Rosenberg one of the founding mem-
bers of the 'Adventurers Club' - arrived in Thailand on board the Danish ship ' Valkyrien' one hundred years ago and spent mosi part of the following year in Thailand.
Mr. Bergsoe set up his
company ScandProducts Co., Ltd. before the floating of the Thai Baht this summer, but the events since then has by no nteans shaken his belief in his products or his business concept. "lt is by far everybody in
the upper middle class which have suffered sub-
stantially by the collapse of the financial market. Actually, in a sense the downturn has only increased the quality awareness among these
discerning consumers," says an optimistic Jens Viggo Bergsoe, who on the other hand realizes that it will probably take more than ayear, before his company will generate profit. Mr. Bergsoe has rented a showroom on the 4th floor of Central Plazaon Rama 3, where he presents a range of products from three of the most famous manufacturers of exclusive Danish Design, Stelton A/S, Danish Steel House A/S and Hamlet Design A/S (the former Design
tems in Germany, whose Bangkok office he came to Thailand four years ago to set up. When Mark Systems last year was taken over by the Danish company GN Comtext he continued as its General Manger until he this summer quit the job to realize his dream as an importer of Danish designed quality products for interior design.
"l personally like these products and it is some-
Initially, will contact the ma-
jor four and five star hotels in Thailand, who are actu-
ally enjoying an upturn
in
business, following the devaluation of the Thai Baht. "The hotel and tourism
industry is not in a crisis. The cheaper Thai currency has in fact on the contrary increased the competitiveness of Bangkok as a destination for both tourism and
thing, I have long wanted to do," says Mr. Bergsoe. It is not Mr. Bergsoe intention just to sit and wait for customers to drop by at
exhibitions. Consequently these hotels have in fact more money to spend on building up their image of exclusivity," Mr. Bergsoe
his showroom on the fourth
explains.
floor of the Central Plaza,
"The competitive edge is, that Danish Design not only stands for its good looks, but also for a very high degree of functionality and high quality throughout
Rama 3. He has worked out
Asmussen Artware). Later
a marketing plan by which
on, he intends to expand his
he will contact selected cus-
product range with other
tomers directly, among oth-
well known Danish designed products. The 36 year old Copen-
ers by using the Internet
hagener has been an expatriate for the past nine years. First working with Mark Sys-
Central Department stores.
and Direct Mail and at the present negotiates with the Central Group to set up at least three shop-in-shop outlets in the most suited
the manufacturing process,"
he adds.
Henrik Houtved
EAC r Your business partner Founded in Thailand over a century ago as a trading house, EAC Thailand has evolved into a
major manufacturing and marketing
services
with strong distribution and logistic networks providing access to wholesalers and
conglomerate
consumers nationwide.
EAC Thailand is organized into major business streams and joint ventures:
EAC Chemicals as Thailand's leading markets and distributes a diverse portfolio
importer
of industrial
chemicals.
EAC Graphics markets, distributes and services graphics equipment and consumables from world leading manufacturers offering state-of-the-art technology encompassing the entire process from prepress to printing and finishing.
EAC Technical Marketing markets, distributes and sevices a wide range of automotive parts and accessories, tools, diesel engines, air-compressors, cleaning and packaging equipment.
EAC Health Care markets and distributes a of high quality pharmaceutical
comprehensive range
and health care products.
EAC Marketing Services (Thailand) Ltd. markets and distributes fast moving consumer products representing intemational brands such as Mars, Pedigree, Lego, and Dumex.
EAC Logistics warehousing and dishibution services, sea and airfreight forwarding, customs clearance. Offdock freight station, etc,
EAC Joint Ventures: o ZENECA Agro Asiatic Limited. Leading supplier of pesticide.
.
ZENECA Pharma Asiatic Limited. Markets a range of high quality pharmaceutical products under ZENECA brand.
o
ICI Asiatic Chemicals Company Limited. Manufacturer of chlorinated paraffins.
.
ICI Paints (Thailand) Limited.
Producer of high
quality paints.
o Santa Fe (Thailand) Company Limited. Intemational household removal.
o M. Consolidated Company Limiied. Water & waste water treatment.
o Pacific Seeds (Thai) Limited. Leading plant breeding and seed marketing company.
We are known for our
commitment, integrity, dynamism and mutuality principles in developing shategic partnerships with suppliers, customers and joint venture partners by employing top quality human resources.
t
The East Asiatic (Thailand) Public Co., Ltd. 36th Floor Lumpini Tower, 1168192-109, Rama IV Road, Bangkok 10120 Tel: 679 - 7444 ,679 - 1555 Fax : 285 - 5031 Telex : 84768 ASIATIC TH
Successful Danish semtnar on swine breeding in Thailand The present economic situation has by no means dampened the interest among swine raisers in Thailand in Danish know how and technology within this sector. Encouraged by the "Swine Raisers Association of Thai-
land", a full day seminar took place in Bangkok on September 1B on" Danish
Thai interest in Danish breedi ng tech nology and
farming equipment has been considerable over a
number of years.
know how and technology in
swine rasing.
and marketing activities.
Almost 200 persons representing both the process-
The "Swine Raisers Association of Thailand" had
ing industry and major swine raisers and govern-
also permitted a selection of suppliers of Danish equipment for the sector to dis-
ment officials participated in
the seminar, which was opened by HE Niels K.
play their products at the event.
Dyrlund, Denmark's Ambassador to Thailand. Speakers from Denmark were among others Mr. Bent
Maribo, Chairman of SEA/
DanBred and Mr. Sten
A growth sector Swine raising in Thailand is presently enjoying a positive situation. Asteady market demand has been grow-
diseases.
The press coverage of these problems are ex-
past few years and the pro-
pected to lead to a reduction in the consumption of beef by as much as 25 percent
duction has continuously
during 1997.
been expanded. The total number of pigs
The success of the seminar was not least due to the
slaugthered are expected to exceed 11 million pigs
fact, that it had been ar-
Petersen, Danish Slaughterhouses and Mr. Jesper Vibe-Hansen, agricultural sector expert based at the Royal Danish Embassy in
ing considerably over the
Kuala Lumpur, Malaysia. The seminar focused on the structure and production of swine raising in Denmark
and the Danish breeding
pansion is a trend among the Thai consumers to substitute beef with pork or poultry meat. This substitution has to a ceftain extend been driven by an uncertainty as to the veterinary standard of the beef, which also in Thailand has been troubled with a number of
this year, compared to 10,6 million pigs in 1996. The reason for this ex-
raisers had experienced falling productivity due to out break of various diseases and considerations towards the environment has increasingly become an
issue of concern. Also the structure of the Danish swine raisers association and their prominent role within the Danish agricultural sector was another area of keen interest.
Future activities Based on the positive response of the activity, the Royal Danish Embassy are
ranged by the farmers' own organisation.
considering other useful ways of promoting Danish know how and technology within the sector. ldeas on
Many questions
how the success might best
After the various speakers
be followed up are most welcome. Interested per-
many questions were asked showing that the subject had not just been of interest but
also understood and well Danish breeding stock are to be found at several farms all over Thailand.
pnces are Increasrng, some
received by the participants. Questions centred on ar-
eas of problems for the in-
sons may contact the Royal Danish Embassy in Bangkok or the Agricultural Sec-
tor Expert's office at the embassy in Kuala Lumpur. Jesper Vibe Hansen
dustry, mainly rising costs in
the oroduction. Feed stuff 11
s
nvironment "Although we had expected the CEO's to be concerned about growth, we had not anticipated the extend of their pre-
gistical, and legal - to international business have fallen, the arena for growth and competition has expanded
knowledge of the core business. In an
occupation, nor their anxiety about whether their companies can meet ambitious growth targets in a fiercely competitive global economy," writes the authors behind a research study recently published by Amrop Interna-
to encomoass the whole world. Pro-
age when markets that seemed forbidding and perilous just years ago now represent significant opportunity
tional in their introduction to the reoort. The study was conducted as faceto-face interviews with forty CEO's of leading corporations from around the world by two researchers at Harvard Business School and Columbia Uni-
ing" a "home" market is lost and likely gone forever. Today's leaders respond in different ways to the demand for balancing the tensions inherent in globalization. It may be easier than ever for ex-
versity and partners from Amrop International offices. While the demand for growth is nothing new, the context of competitiveness at the dawn of a new millennium is radically different from any-
ecutives to travel and communicate around the world, but when it comes to the real business of trade, the old
thing seen before. What has changed is the global scale of competition and increased stresses and strains placed on comoanies and their leaders. In response, CEO's are redefining their own job and redefining the capabilities they need to perform successf
ully.
Globalization As the barriers - technoloqical. lo-
t
12
tected markets are vanishing. Fierce
competitors from many nations are engaged in struggles with rivals in every part of the world. There are few safe havens. The luxury of "possess-
to find people who possess both the right mix of international skills and
the barriers are not merely geographical, political, or even cultural. At root, they are human.
International companies are no longer simply companies of expatriates who expand the core business from the home country across borders in a linear fashion. Rather they employ people of different nationalities all over the world. Consequently, CEOs and managers alike must understand the norms, expectations, and operat-
neighbourhood still beckons. Business
ing modes of customers, suppliers,
leaders tasked with global growth therefore must oursue multifaceted
and employees in different regions. Often, going global involves sending home-grown talent abroad. "lf you want to maintain your cor-
goals, - managing complicated organi-
zations capable of discerning diverse customer needs and then delivering goods tailored to local and regional markets from Sheboygan to Shanghai.
The expatriate CEO
The CEOs concur that human resources are a major preoccupation and critical constraint. As companies enter new markets it is diff icult for them
porate culture and your corporate standards, you've got to send your own people," states a South African CEO. "lt is almost like an evangelical mission. We are sending missionaries out, except instead of the Bible, they've got our financial statements and our coroorate code of conduct."
Amrop International recently published a research study of the leadership of top businessmen at the helm of 40 multinational companies worldwide. The interviews provide a unique and personal view of business leadership during a period of unprecedented change. The lnternational CEO's personal anxiety whether they could in fact live up to the ambitious growth targets of their companies was among the interesting findings.
ncreasingly, however, this familiar paradigm no longer seems workable. ln fact, some believe that hardy speI
cies, the expatriate manager, will gradually become extinct. Why? Because companies need people familiar with the customs, languages, bureaucracy, and culture of new markets. In many contexts, says one interviewee, "know who" on the local scene is just as important as " know how" from headquarters. The
key to long-term global success, CEOs agree, is finding people with the capacity to lead foreign nationals and develop them to take over operations abroad. Needless to say, the competition for such talent is fierce. At the same time, international exoerience is seen as crucial for advancement within companies. While CEOs are tapping young people ea-
ger for the adventure of working
The new CEO
An impossible job?
The old saw that a CEO must provide vision and strategy still holds true. But the CEO's role is changing in significant ways, piling new responsibilities on top of older ones and making little
Can anyone really do this job, asks the report, - and points to the can-do atti-
allowance for the extra burden. Today's CEOs, for example, must steer their companies through a range of cultural and political hazards and acdiff erences among customers, employees, and investors around the world. lt is not enough simply to be comfortable working in different environments and with people
commodate
from different nations. "The reality is that if you are not multilingual, you must at least be acutely aware of cultural and behavioural differences," says an Australasian chief executive. CEOs must actively embrace cultures and perspectives that may be radically
different from their own.
abroad, they are also posting mid-ca-
Some interviewees acknowledge
reer executives who may use the opportunity to broaden their capabilities or revitalize their careers. Execu-
that the need to manage human capital on a global scale has become their single greatest priority. To a degree, the CEO must act as the chief human resources officer. "The most important skillfor a CEO," says a European chief executive, "is to be able to attract the right people to the right positions."
tives are eager to cross-pollinate managers of different nationalities into different environments to develop a core of executives with international expeflence.
tude of the business leaders themselves as a reason for optimism. Although the CEOs recognise, that the challenge to achieve global growth without sacrificing gains already made is formidable, they on the other hand
quite interestingly don't see it as an insurmountable task.
Today's executives have at their fingertips an array of resources and tools to help maintain their sense of
balance. New technology allows CEOs to share information and communicate with their colleagues across the world with breathtaking speed and ease. Capital can be mobilized anywhere on the planet, at any time of day or night. New and intriguing models of organization and management are constantly being devised and tested.
Experiments are under way everywhere. There are unprecedented opportunities for organizational learning, especially if CEOs can break their isolation and seek each other out to exchange ideas and discuss common gm concerns.
13
Coming Danish Export lnitiatives Companies who could benefit from pafticipating in Danish market activities shoutd take note of several Danish export activities targeting Thailand and the South East Asian region. The recently published list contains events planned up titt year 2(N0.
Export Promotion Denmark recently published a comprehensive list of
exhibition Foodex Japan.
planned Danish export activities up till the year 2000. Several of the activities are focusing on the Asian region. . Thailand: Exclusive Danish export promotion focusing on food and agriculture, seafood and related industry headed by the Danish Minister for Agriculture and Fisheries. Takes place
Marketing Board.
3rd quarter 1998. Contact: The Agricultural Council, Confederation of Danish Industries, Royal Danish Embassy, Bangkok.
. Philippines: Danish stand at the food, drinks and bakery exhibition Food and Hotel Philippines in Manila. 15 -18 Feb. 1998. Contact: Danish Agricultural Marketing Board. . Japan: Promotion of Denmark at the Leisure & Recreation Fair as part of the EC campaign 'Gateway to Japan'.25-27 Feb. 1998. Contact: Royal Danish Embassy, Tokyo. . Japan: Participation at the Sea Japan in Yokohama. March 1998. Contact: Royal Danish Embassy, ToKyo.
. Japan: Prgmotion of Danish horticulture, participation in the Japan Garden & Flower Show. March 1998. Contact: Royal Danish Embassy, Tokyo.
. Japan:
L
14
Participation at the food
1
O-1
3 March
1998. Contact Danish Agricultural
'Japan: Promotion of Danish gar-
ments, exhibition and fashion show. During 1st quarter 1998. Contact: Royal Danish Embassy, Tokyo. . Singapore: Participation at the food, drinks, hotel and catering exhibition Food and HotelAsia, Singapore. 14 -17 Apr. 1998. Contact Danish Agricultural Marketing Board . South Korea: Parlicipation at the food exhibition Seoul Food. May 1998. Contact Danish Agricultural Marketing Board . Philippines: Danish stand at the telecommunications exhibition Tele-
comex Asia in Manila. 20 -23 May 1998. Contact: Royal Danish Embassy, Manila
. Malaysia: Brochure/ video stand
at Woodtech in Kuala Lumpur, focusing on machinery for the wood processing sector. June/July 1998. Contact: Royal Danish Embassy, Kuala Lumpur . India: Major promotion under the headline of "Danish Days in India" during 2nd half of 1998. Contact Danish Agricultural Marketing Board, Confederation of Danish Industries, Danish Chamber of Commerce and the Royal Danish Embassy, Delhi.
. China: Seminars on Danish participation in the telecommunications sector. To take place in Shanghai and Beijing during 1998. Contact: Confed-
eration of Danish Industry, Danish Chamber of Commerce, Royal Danish Embassy, Beijing, and the Consulate General, Shanghai. . South Korea: Product and catalogue exhibition for furniture and machinery for manufacturing of furniture
in 1998. Contact: Royal Danish Embassy, Soul.
. South Korea: Product and cata-
logue exhibition for agro industry during 1998. Contact: Royal Danish Embassy, Soul. . South Korea: Product and catalogue exhibition for furniture and machinery for manufacturing of furniture
in 1998. Contact: Royal Danish Embassy, Soul.
. South Korea: Promotion of Danish environmental equipment in 1998. Contact: Royal Danish Embassy, Soul. . Vietnam: Danish export activity targeting the Vietnamese agricultural, fisheries and food industrial sectors backed by the related Danish business
associations. During 1 999. Contact: The Agricultural Council, Att: Mr. Frederik Luttichau.
CARRIED
WIH SPECIA1 CARE
,-dl
t t;
ti
h
ih
i.\
t, '1, Ii$ ii-
I
,
'lt
Handbook on Danish Exporters
Growth in Export of Goods,
Total of Danish
lst half 1997 Eastern Europe 15.2
Product and supplier search
Exports
has been made easy with a
new edition of the official handbook Danish Exoofiers
growng
1
The book is published by the Royal Danish Ministry ol Foreign Affairs in coopera.
steadily
tion with Tele Danmark Forlag A/S. The classifica tion is detailed and comoa
Except for Asia, most Danish export markets are growing steadily. Growth is likely to be around 6 percent in 1997 and for 1998, a 7,5 percent growth in Danish exports are expected.
nies are listed in categorio:i and sub-categories. For in-
ternational convenienco. the Danish special characters are also alphabetizecl
Danish exports of goods will likely have grown more than
tionally most important
European countries, GNP is
6 percent during 1997,
countries in Western Europe increased 7,7 percent.
expected to end on a 3,3 percent growth in 1997 and
So, how about Asia?
to grow a further 5,2 percent
Well, exports to Asia ac-
in 1998. Growth in Poland may even be compared to former East Asia growth
when the final figures are reported and have been processed to the Danish
tually recorded a drop - it
authorities.
went down 4,1 percent. This
Figures from 1st half of
1997 already show a 6,6 percent growth, and the trend is going up. For 1998,
the prognosis is now for a 7,5 percent growth. Danish exports are thus faring well comoared to the trend in the overall international trade. The grow[h has been recorded in all sectors. However, there is a geographical difference to be noted.
The largest growth of 15,2 percent was recorded in respect to the former communist countries in East- and Central Europe. Especially Poland is well under way to become one of Denmark's ten largest export markets. Growth in the exports to North America was 8,8 per-
cent with exports to the United States alone going
up 11,9 percent. The exoorts to Denmark's tradi16
998.
figure was even recorded before the float of the Thai Baht and the folloWing turmoil in all of the Asian markets. The decrease in Danish exports to Asia during the first two quarters of the year was rather due to a sharp decline in the exports of pork meat to the Japanese market. Latin America provides a
somewhat mixed oicture. Strictly speaking, the exports dropped 4,3 percent during first half of 1997. But
that is because an extraor-
dinary big export of transport vehicles to Panama in the previous year of 1996. lf this is excluded, the growth was the largest of all
the regions - 19,5 percent. The prospects are well for the EU countries, where 213 ol all Danish exoorted goods go. In the Eastern
as aa, oe and ae. A new index is added to this years book, providino contacts to Know How and Turnkey suppliers - servicos which are in increasing demand. The book is sold by tho
Royal Danish Embassy, Commercial Section. tel. 213 2021.
rates with expectations of 6
- 7 percent growth in GNP this year and in 1998. In Latin America, a continued stable economic development is expected with growth rates of 4 -5 percent in 1997 and 1998. The Danish Statistical Office men-
tions, that especially the develooments in Brazil is key to the development of the market in the whole region. The prognosis of the development in Asia - forecast
done in August this year should, however, probably better not be reoeated here. It might, however, be noted
as a consolation,
that
Mexico - which had its crisis in 1994 - is now enjoying a stable economic progress.
Swedish companies in Thailand Thai-Swedish Chamber of Commerce Handbook and Directory 1998 was recently
published by the Chamber in coooeration with ScandMedia Corp. Ltd. The directory lists practically all Swedish compa-
nies active in Thailand as well as Thai companies engaged in the Thai-Swedish trade. Member companies are listed with detailed information on names of contact
persons, commercial activi-
ties and background information.
The book is sold by tho Thai-Swedish Chamber of Commerce, tel. 651 2727.
Er'ER COOLIIUG
PAC Chillers r the natural choice PAC Chillers - the new standard series of packaged ammoniachillers for industries where indirect cooling by means of a secondary refrigerant is required.
The series includes more than 25 types with capacities ranging from 90 to 2,700 kW when chilling w,ater from I2 to 6"C. Tailormade solutions are supplied with capacities up to 8,000 kW. PAC chillers have many outstanding features:
t High COP values due to flooded design I Designed for the environmentally safe refrigerant O Compact design O Automatic oil return system O Plate heat exchangers I Very low TEWI value
ammonia
The user-friendly UNISAB ll is integrated in all PAC chillers. lt is the leading control system for monitoring and optimization. lt is possible to centrally control and monitor compressors through a central PC or PLC by
simply connecting a Sabroe communication module.
High performance and natural refrigerants make Sabroe's chillers the natural choice
Sabroe (Thailand) Co. 12147 Moo 4 . Ekachai Road Tel +66 34 823 725-9 .
.
Tambon Kokkrabur Fax +66 34 422 634
.
Amphur Muang
.
for liquid chilling purposes.
Samutsakorn 74000
PAC
New DANCED fund to support Thai companies' environmental efforts A new program from Danced offers financial support to Thai companies interested in developing projects in cooperation with Danish companies which will improVe the environment.
Mr. Weber
appointed Honorary Consul of lceland
Introduction of cleaner production methods could for instance be supported. Companies in Thailand in-
ported company but also among other companies
cleaner methods of oroduction, thereby improving their
and customers of the company.
expenses may be covered with a maximum of 500,000 USD. Included in this is travel and accommodation
profitability, or engaging themselves in sustainable use and production of en-
The coooeration should also aim at a long-term in-
costs for the necessary Danish experts. Subse-
volvement and be based on common commercial interests between the involved
quent market communication activities may be covered fully with a maximum of 16,000 USD. The Partnership Facility program has been under preparation since Septem-
terested in implementing
ergy or waste-handling may
now apply for financial support from Danced - the Danish Coooeration for Environ-
mental Development - under a new Partnershio Facility program administered by the Commercial Section of the Royal Danish Embassy in Bangkok. To ensure that the need is of genuine benefit to the Thai company and not just another indirect subsidy facility for Danish companies interested in boosting their exports, the application must be submitted by a Thai
company. However, the partner they wish to cooperate with, must be Danish. The facility was for the
first time presented to
a
wider Thai audience during
the Pollution Control '97 exhibition in November. Projects eligible for support must result in visible imorovements in the environ-
ment not just in the sup18
partners. This could be through transfer of technol-
ogy, management assistance, a license agreement or a joint venture setup. Simple purchase agreements are excluded from
ber 1 996 by a team of Dan-
ish consultants from T&B
being supported.
Consult and Dl International Consultants.
projects may obtain finan-
Danced will take over the
Under the facility,
cial support both in the preparation phase and during the implementation. In the preparation phase, all travel expenses may be covered with up to 16,000 USD. A preparatory project study may be covered with up to 25,000 USD, not ex-
ceeding BO percent of the actual costs. A more detailed feasibility study may be supported with up to 42,OOO USD. likewise not exceeding 80 percent of the
actual costs..
ln the implementation phase, 60 percent of actual
As from January 1998, administration of the project and the Commercial Sec-
tion of the Royal Danish Embassy in Bangkok will be responsible for identif ication
of Thai companies who qualify for assistance under the facility. The Commercial Section willalso assist in the
subsequent matchmaking
Appointment follows the move back to Denmark last year of lceland's former consul Mr. J. Hage. Mr. Poul Weber, President
of the Danish-Thai Chamber of Commerce, has been appointed Honorary Consul of lceland in Thailand. Mr. Weber was handed his official exequatur on November 28, following the approval of the Thai Ministry of Foreign Affairs of his appointment. As Honorary Consul, Mr. Weber reports to the Embassy of lceland in Beijing, China. Mr. Weber does not expect his new appointment to consume too much of his time, as Thailand's relations
with lceland are modest. Only some 500 tourists from
lceland visit Thailand every year. Still, some of them will
For further information, please contact Mr. Lars
occasionally need assistance regarding a lost passports or transfer of money
Friis-Jensen or Mr. Attakorn
for unexpected travel ex-
Saropala on tel. 287 2896 or lax213 1752.
penses. Surprisingly, there are at
activities.
present around 300 Thais living in lceland.
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EAC to move its world wide headq uarters to Si ngapore If the opening a few years ago of the new EAC building in Singapore is anything to go by - with pertormi ng lions, dragons and lots of 'feng shui' moving the EAC Corporate Centre from Copenhagen to Singapore will most Iikely be a colorful event.
The relocation from Denmark to Singapore will take place during the second quarter of next year. The strategy of The East Asiatic Company is to concentrate the majority of its
"Our move should be
activities in Asia, and by the end of this year more than 75 percent of EAC's activities will already be concen-
seen in this light - notwith-
standing the volatile economic developments in the
trated here.
Far East, which significantly are impacting our current financial oerformance." Although EAC's Corporate Centre in the future will
To reflect this reality and
to enhance the interaction with the various businesses within the EAC group and
make the corporate deci-
be located in Singapore, The East Asiatic Company will remain a Danish company and willcontinue to be listed on the Copenhagen Stock Exchange. According to the statement, EAC expects the move to Singapore to take
sion process more efficient, EAC recently announced its decision to relocate its Corporate Centre from Copenhagen to Singapore. "We are convinced of the scope and potential of the markets in Asia," EAC writes in a public statement about the decision.
place in the second quarter
of 1998.
Danish Healthcare consortium moving on to Indonesia The happy moment when the Danish health care deal with Thailand could finally be signed. Now the consortium has started working towards a similar happy event to take place in Jakarta.
Successfully implementing their contract with Thailand, the consortium is now look towards neighboring countries. Following the success of entering Thailand as a con-
sortium under the name Danish Medical Supply, companies in the Danish health care sector are now trying to bid for a project in Indonesia in the same size as the contract signed with 20
the Ministryof Public Health in Thailand - 1,2 billion Baht. "Within the coming two to three years, we aim to
sign contracts worth
from
500 mill. Danish kroner up
companies, S&W Medico
to 1 billion Danish kroner,"
Teknik.
says David P. Meyer, DMS,
The main companies be-
who is also Managing Direc-
hind DMS is S&W Medico
tor in one of the founding
Teknik, Dameca and Ambu.
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Danes at Defence Asia '97 Danish Camp Supply and Weibel Scientific pushing ahead in Asia.
'qw"
Danish Camp Suppty (DCS) is already a supplier to the US army.
Danish Camp Supply and Weibel Scientific A/S from Denmark were among the
Per Udsen to
150 companies from all over
the world - although highly American dominated - who participated at the Defence Asia '97 exhibition which took olace in the Queen Sirikit National Convention
Centre on October 16-18. 1
997.
Danish Camp Supply exhibited their specialized container load system (CLT), a combined handling and transport unit usable for all ISO containers and shel-
ters in any military environ-
renovation F16 fighters ment in coooeration with their American partner, ESCO, with whom they have a contract to supply the specialized equipment to the US army. A number of CLT's have previously been supplied to the UN Peacekeeping Forces. Weibel Scientific A/S manufactures a broad se-
lection of radar based ballistic measurement equipment ranging from small Muzzle Velocity Meters for tactical application to high performance on-line working 3-D Doppler Radar Systems. All mechanical, elec-
tronics and software are developed and produced inhouse.
International Private Banking for Skandinaver Union Bank of Norwav International
The Danish company Per Udsen, which for the past 20 years has produced parts for the Danish fleet of F-16 jet fighters, hopes to sign a contract to renovate the F16 planes of the Royal
ThaiAirforce. Per Udsen has provided
similar package solution to other countries like Norway, Belgium and Holland. Adeal with the Royal ThaiAirforce
would open up the Asian market for Per Udsen, but the company is careful not to create an unrealistic picture of the prospects.
S-A..
Luxembourg Lagger De vegt p6:
EAC contract
with Kodak graphic films EAC Graphics (Thailand) Ltd. recently signed a distribution agreement with Kodak (Thailand) Ltd. to be
Authorized Dealer for all Kodak's graphic arts con-
er vi miske Deres kommende bankforbindelse!
sumable goods.
The signing ceremony was presided over by Mr. Thomas Hjorth, EAC Graphics (Thailand) Ltd.'s Man-
For yderligere informationer bedes De venligst kontakte
NOR
union bqnh af Forua!
Allan Christensen a +352 454945 I eller fax +352 454945 200 E3P.O.Box 861,22 rue J. P. Brasseur, L-2018 Luxembourg
aging Director and Mr. Nikolaj Svensen, EAC Graphics (Thailand) Ltd.'s business unit manager, Mr.
Garry Simonette, Kodak (Thailand) Ltd.'s Managing Director and Mr. Suraphong
Chookijkool, Kodak's manager for graphic systems. 22
Diving company seeks certification Mermaid Maritime awaits certification for ship electronics
Mr. Joergen Lundbaek at the pier in Laem Chabang.
with a cash contribution of Baht 50 millions. "Thoresen was one of
Mermaid Maritime Ltd., the Danish-Norwegian maritime
our biggest clients. To have
service company in Laem Chabang, expects in the near future to be granted special certification from leading maritime classification agencies around the
them as a partner in the company gives us some obvious advantages. We now have the adequate funds to go ahead with our plans for expansion of our
world to repair and maintain
sophisticated electronics
activities," explains CEO
aboard ships, such as radar, decca and radio equipment.
Joergen Lundbaek. With a yearly turnover of around Baht 50 millions
Already certified by among others Lloyds, ABS and Det Norske Veritas for all kind of repair and maintenance jobs above and below water surface, including
underwater hull cleaning service and welding, Mermaid Maritime Ltd. has received inspectors from the various agencies to evalu-
ate the company's professional standards for handling the new services. All comments fell out positive and the company expects the approvals before New Year or immediately after. Established by 53 year
Joergen Lundbaek, Mermaid Maritime has since 1982 offered full-scale maintenance and repair
old Danish former navigator and Vietnam war veteran,
ping company Thoresen Group joined as a partner
services to all kinds of ves-
sels calling at
Laem Chabang harbour. In 1996 the Thai-Norwegian ship-
Mermaid Maritime Ltd. em-
ploys a staff of almost 60 people. The majority are native Thais, but five Danish technicians and three English divers are also listed on the payroll. Henrik Houtved
Thailand the "Best Tourist Destination" Danish travel agents mentions Thailand before the US as their preferred destination. A survey by the Danish tour-
ism magazine 'Stand By' has once again selected Thailand as the best destination. Similar surveys in Norway and Sweden has come to the same verdict.
Encouraging more Thai tourists to experience "Big Little Denmark" Scandinavian tourism workshop opened by Danish Ambassador, HE Niels K. Dyrlund.
Manop Song-lm, Promotion Reoresentative of Scandinavian Tourism Promotion
travel industry was held on 4 November at The Dusit Thani Hotel in Bangkok.
K.
Dyrlund. The workshop was held
at a time, when the economic crisis in Thailand has
seen the number of Thai tourists going abroad drop significantly in numbers. lt is hoped, however, that an
best destination, followed by USA with 12 percent. In the first 10 month of this year, 35,000 Danes visited Thailand.
With the airline competition heating up, Finnair has now appointed a new sales manager, Ms. Nina Lindgren to
to Thailand, for the Thai
to Thailand, HE Niels
percent named Thailand the
New Finnair manager for Scandinavians in Thailand
The annual Scandinavian Workshop, organized by
The workshop, which included participants from all the Scandinavian countries and Thailand, was opened by the Danish Ambassador
The survey was conducted among 500 travel agencies and related companies. Among these, 13
give VIP treatment to the Scandinavian expats living in Thailand. The Danish Ambassador, HE Niels K. Dyrlund (center), held the opening speech at the Scandinavian Workshop at Dusit Thani hotel.
According to marketing development manager Mr.
Bo Biilman, the Danish Tourism Council, more activities has been added to the "Promotion Package 1998" targeting South Korea, Thailand, Taiwan, Hong
four times during the year. Also, a map of Scandinavia with traveltips on Denmark will be produced to be distributed among Thai travel agents and to the general
oublic. A number of Thai travel agents will further-
Ms. Lindgren's mission is right now to launch special promotions towards the Scandinavians "that will turn the competition green with envy," writes Finnair in its newsletter for Thailand.
Danish shrimp
importers visit Thailand
increasing Danish attention to the Thai and other Asian
Kong and Singapore than originally planned. Participants supporting
markets will cushion the
the package will be covered
more be invited to Denmark to see the attractions themselves. And finally, a similar workshop as the one re-
impact as far as the tourists going to Denmark is concerneo.
in the editorial text of
a
cently held at the Dusit
newsletter to be oublished
Thaniwill be arranged again
a market survey study, visiting especially the Marine
in each of the five countries
next year.
Shrimp Industry in Rayong.
24
A group of Danish importers
and distributors of shrimps recently visited Thailand on
One-Stop Visa & Work Permit Center a helpful improvement "lt was a surprisingly
"lt went smoothly,"
simple procedure," says Frank Hansenn AMI Group Asia, who tried the new facility.
says. "They issued on the spot a one-year visa for both me and my wife."
On 30 June 1997 the new
ness community in Thailand
one-stop-centre for work permits and visas began
has used the new centre in increasing numbers as the word has spread of its effi-
he
The international busi-
serving the public. The selling point: if you meet our requirements you will walk out with a work permit and visa
ciency.
"On average we have served 100 clients per day and that number is growing. When we last made a count
after no more than three hours. Among the Danish businessmen in Thailand, who has tried out the service, is Mr. Frank Hansen, AMlAsia
it was 170 clients per day,"
says Khun Supat Limpaporn, Assistant Secretary General of the Board of Investment, who overseas the centre.
Group, a recently established representative office for seven manufacturers of
"Up to 31 October the centre had issued 15 709 vi-
equipment for the agricultural sector in Asia-Pacific.
sas and re-entry permits,
including visas for family members. Most visas were issued to people working in
business people in particular, and we are also very
companies under BOI-privileges and for various experts that qualify under the centre's regulations. During the same period we issued
service goal of three hours per case. This means that
3 617 work permits, with a similar breakdown in categories," Khun Supat Limpaporn says. "Most of the applications have come from BOI-sponsored companies, industry parks etc. There are also quite a few from the petroleum industry and experts. And a small number of individual investors, less than ten." "Our centre deals with specific categories, aiming to facilitate for investors and
decisive on keeping our
we are limited to what
number of clients we can sgrvg."
"Anyhow we have been told thatthe lmmigration Bu-
reau tries to give better service as well. Those who
do not fit into our criteria may have to apply there for
the time being." The centre is located at:
Krisda Plaza,3 -5th Fl. 207 Rachadapisek Rd. Dindaeng
Bangkok 10310 Tel.: 693 9333-9 Fax: 693 9340
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Facility Program Mr. Jeppe Edens
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Tel;21322021-5 Fax:213 1752
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This year's Christmas lunch at the Amari Boulevard Hotelwas a well attended event with a shower of lottery prizes.
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of donations from several members made sure, that only a few participants went home empty handed. The lunch, which had
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come a member, was attended by around fifty members and their guests.
One highlight of the event was the singing of a Christmas carol by the wife of D-TCC Board Member
been moved to the Amari
and Managing Director of
Hotel because the previous location had refused to be-
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Despite the crisis, Danish exports to Thailand did not drop as much as feared last year.
Danish exports to Thailand unchanged Danish exports to Thailand suffered less last year than feared by most businessmen, while Thai exports went up 400 mill. Danish Kroner, - but results for this year might not be that positive. Virtually unchanged Danish export figures in the trade between Denmark and Thailand came as a positive sur-
prise to most Danish businessmen,
goods increased a combined 23 mill. Dkr. in export value. (Continued on page 5)
who had expected a major slump due to the devaluation of the Thai Baht. In total, the export in 1997 reached 1,210 mill. Dkr. compared to 1 ,279 mill. Dkr. in 1996.
Manuf.
Goods
manuf.
Although export of Danish food stuff toThailand decreased 57 mil. Dkr (21 percent down) and chemicals and
chemicaf goods suffered a 24 mill. DKR decrease (20 percent down) in 1997, Danish export of processed goods increased 40 mill. Dkr (67 percent up) and export of raw materials and semi-manufactured processed
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Danish exports expected to drop to a lower level in 1998 Analyzing the prospects of the present situation, the Royal Danish Embassy, however, notes that the Thai government's priority sectors are in fact largely identical to the Danish areas of special expertise, goodwill and know-how.
(..cont. from page
1)
Although the level of Danish exports to Thailand remained stable from 1996 to 1997 around 1,2 bill. Dkr,, the Royal Danish Embassy
Volumes of goods from Denmark arriving Thai ports are expected to drop further this year, before the situation
will hopefully improve by the end of the year.
expects a lower level of export for 1998 as a result of the economic turmoil which Thailand is going through. It is, however, important
to notice, that the priority sectors of the Thai government, on which the future developments are being built, are to a large extent within a number of sectors
sector and food processing, but also for nonjood industrial production. Other major export groups are food
where Denmark has not
and live animals, fodder,
only experience and know-
chemicals and pharmaceu-
. restructuring of the agricultural sector, including utilization of appropriate technology to increase production output, processing of agricultural products to
how, but also a well reputed name in Thailand. Almost 60 pct. of Danish export are within machinery
ticals.
boost export and supporting
establish buyer conf idence.
As per the policy statement of the Chuan-government, some of the priority sectors of the government
research and development
Other areas of high priority for the government are:
and equipment, to a large extent for the agricultural
of seeds for cultivation, live-
stock breeding and fisheries as well as orevention of crop and animal epidemics
are:
Food / live animals Beverages and tobacco Raw materials, non eat. Animal and veg. fats/oil
Chemicals, chem. goods Processed, semi-manuf . Machinery, vehicles Processed goods Various goods etc.
Total import
Product groups exported Food / live animals Beverages and tobacco Raw materials, non eat. Mineral Fuels and lubr. Animal and veg. fats/oil
Chemicals, chem. ggods Processed, semi-manuf . Machinery, vehicles Processed goods Various goods etc. Total export
Trade balance
1994 162,140 900 5,920 'I ,300 6,060 177 ,960 242,780 397,750 5,130 999,940
1995
1996
146,520
159,216 1 ,196
1,100
2,580 570 7,510 159,260
307,320 426,030 7,9307 1,058,820
12,483 394 11 ,087 147,279 4t2 A'tq
428,904 1,192,307
1994 306,030 1,060 18,610 20 2,330 134J70 44,480 570,800 74,300 3,660 1,155,460
62p20
118,848 53,241
717,760 71,820 3,820 1,348,430
746,997 62,413 3,297 1,279,372
155,520
289,610
1995 262,040 1,470 22,960 110
4,000 201,550
1
996
263,590 1,035
26,905 162 2,880
1997 150,176 1,015 11,515 289 25,549 163,250 627,776 593,287 5,303 1,578,163 1997 205,659 ,261 39,793 251 1,348 94,764 62,778 702,483 98,281 4,312 1 ,210,934 1
87.065 -367.229
ciency of technology utilization and heightening the in-
dustrial standardization to
. up-grading of education, specifically vocational education and skill development,
.
Trade between Denmark and Thailand Product groups imported
. restructuring of the industrial sector, among others by increasing the effi-
a/o
-5.7 -15.1
-7.8 -26.7 130,4 1 0.8
48.6 38.3 -43.2 32.4 o/o
-22 21.8
47.9 54.9 -53.2
20.3 17.9 -6
57.5 30.8 -5.3
-521.8
developing public
health care service, and . environment and energy oriented items, such as measures to conserve natural resources.
Going through this programme it is the opinion
of the Royal Danish Embassy, that even though Thailand is undergoing a very difficult transformation
from double digit growth rates from '85 to '95 to an expected negative growth rate in 1998 of 3.5 pct. these priority sectors are to a large extent sectors where Denmark has a well reputed
name.
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Maersk going truly global while preserving the roots Does it still make sense to uphold an association like the DTCC? Founded on a purely national platform, will the chamber be able to keep pace with the increasingly diverse interests of Danish companies?
Mr.
Anders Nielsen,
General Manager, Maersk group ot
companies in Thailand and President ot Danish Thai Chamber
of Commeree,
i-r
UNE
Worldwide operating Dan-
ish companies adjusts to the mega trend in international business and become more and more global in their corporate approach. But still, the common Danish roots create a platform for valuable exchange of information, says incoming president of Danish-Thai Chamber of Commerce, Mr. Anders Nielsen,
"The globalization process forces all of us to new and different ways ot thinking, I
believe, however, that we still have some valuable things in common in the Danish business traditions which we can share through the Chamber," says Mr. Nielsen
head of Maersk Bangkok
through DTCC, Danish and Danish related comoanies can obtain and exchange
Branch.
first hand information on
The raison d'etre of an institution like a commercial chamber is the mutual benefit of the members. A
trade, education, and culture, and strengthen the
world economy unleashing
links between Denmark and Thailand. "The globalization process forces all of us to new and different ways of thinking. I believe, however, that we still have some valuable
its full dynamics, creating
things in common in the
new patterns in world trade,
Danish business traditions, and these values can be shared through the Chamber. As example, I can men-
simple truth to state, but today, approaching the 21.
century with the ongoing globalization process of
does it still make sense to uphold an association like the DTCC? Founded on a purely national platform, will the chamber be able to keep pace with the increas-
ingly diverse interests of Danish compan[es?
Mr. Anders Nielsen, since three years managing director of the Maersk
companies in Thailand, strongly believes that
tion the recent visit
Schmidt's and the other ISS executives' thoughts on the Asian region. lt is important that we continue this kind of functions," says Mr. Nielsen.
Being a shipping company, Maersk since its very foundation in 1904 has had
Also in Thailand the first
group of young Thai apprentices will this summer finish their two year shipping education this summer
and will then be posted abroad.
activities. Still, although staff of many nationalities were employed, core staff and
"These young people will all have equal career opportunities. But we also expect them to be diligent and hard working, ready to take posts
managers has over the
abroad and put in efforts to
years remained almost exclusively Danish educated personnel, who were sent
skills," says Mr. Nielsen.
a worldwide orientation in its
learn new cultures and
abroad to mange the foreign
But still, the core of the original Danish identity will
branches.
remain.
to
Since the beginning of
"The very company grew
Bangkok of the ISS top executives. Even though we operate in different fields, I
the 1990's this order is now
out of old Danish virtues
slowly changing, simply due to the fact that for a worldwide expanding company,
and work ethics. This heritage will be passed over to the new staff, and in that the future be a Danish com-
efited from sharing and dis-
Denmark is too small a country. Young talents of many nationalities are now recruited as shipping ap-
cussing Mr. Waldemar
prentices.
believe the evening was a rewarding experience, and that both the participating companies and ISS ben-
sense Maersk will also in pany."
Henrik Houtved
lnstallation of Danish medical equipment progressing on time Half the Danish medical equipment purchased by the Ministry of Health last year has so already been installed. By the end of this year, the installation of the Danish medical equipment package purchased last year by the Ministry of Health will be
completed, says Muhammad Samanya, project manager at Intertec Thai Co., Ltd., who manages and monitors the installation.
By then, a total of 100 public hospitals even in the
most remote part of the country will have the most modern equipment at their disposal or have had their older equipment replaced by new Danish equipment.
Dr. Kfissada Tomyabatra scanning Mrs. Duangsamorn Darli on the new
Danish medical equipment to see if she needs to deliver by caesarian this time again.
The fact that the package is purchased - although on the favourable conditions of a Danish soft loan package - is one of lhe strong points of the project, says
By the end of this year, the installation will be completed on time, says Proiect Manager Muhammad Samanya and General Manager Samran Chumchat, lnrcrtec Thai Co., Ltd.
Mr. Samran Chumchat,
General Manager of Intertec Thai Co., Ltd.
.
"This ensures, that the Ministry has only ordered equipment which is actually needed. ln the old days, when equipment like this would be offered as development aid for free, you could never really be sure of that," Mr. Chumchatsays. "lt is also worth noticing, that at no stage has the project been the victim of politics or corruption." Like more and moreThai businessmen, Mr. Chumchat is increasingly annoyed with the intransparency of shady deals involving politics. "There has already been
four different ministers in charge of the Ministry of Health during the project, and at no stage has any of them tried to see, if a personal favour could be squeezed out of the suppliers, Mr. Chumchat says.
Apart from giving the poorer part of the Thai
equipment will make the temptalion to move to better wages at one of the luxurious private hospitals in
Bangkok. Nopparat public hospital
north of Bangkok towards Minburi is one of the hospitals, where the equipment has already been delivered,
population access to be di-
The ultra sound unit has
agnosed or treated with state-of-the-art equipment at a very low cost for the patient, the delivery also serves the purpose of attracting or at least keeping young, well educated doc-
been installed at the obstetric department of the hospital. where it is used to scan pregnant women with birth complications. "We have an average of
1,200 births per month," explains Dr. Krissada
tors at the public hospitals. The professional satisfac-
Tomyabatra, while scanning
tion of working with modern
one of the women, Mrs.
Duangsamorn Darli, on the ultra sound equipment put up in one corner of the hall.
Since the installation earlierthis year, only around ten of the 6,000 women giving birth at the hospital have been scanned on the equip-
ment, but Duangsamorn Darli had to deliver her latest child by caesarian, so Dr. Krissada just wants to check if everything is fine this time. "We only use the equipment, when necessary," he says.
"The patients are not sick, they just come here to give birth." Gregers Moller
TT
It's trme to
EEIEE
take your
sE-5rEs
computer
in hand
t
Jebsen & Jessen Marketing (T) Ltd. 231112, 27th Floor, Sorachai Building, Soi Sukhumvit 63 (Ekamai), Bangkok 10110 Tel: (662) 714-3939,714-3999, Aut. Oir.714-3990 Ext.260 Fax: (662)
71
4-3900,
71
4-3901
Creating awareness of new opportunities in Thailand We try to make Danish industries aware of the business opportunities in Thailand - while at the same time not "over selling" the market, says Mr. Henrik Petersen, head of the Commercial Section of the Royal Danish Embassy. { The Commercial Section of the Royal Danish Embassy undertakes a wide range of activities to ensure that the business potentials in Thailand are being brought to the attention of Danish industries. On a continuous basis, the Commercial Section: . stays in constant con-
"Danish companies hesitate to participate in trade delegations, I fear this is shortsighted," says
{
Ir;
Mr. Henrik Petersen,
Commercial and Economic Counsellor of the Royal Danish Embassy.
tact with Thai authorities, public as well as semi-governmental, i.e. ministries, public sector enterprises as well as Federation of Thai industries, Thai Chamber of
Commerce and Board of Investment to identify busi-
or most active - enterprises in Thailand working within
tional equipment to a number of agriculture colleges -
the priority sectors where
the minister has been re-
Denmark is strongest, with
placed twice during the last year. Although the Danish mixed credit facility is cur-
the intention to visit them
commercial activities men-
and inquire their interests in Danish supplies. Furthermore, the Commercial Section of the Royal
tioned in the newspapers
Danish Embassy is pres-
and local magazines.
ently mapping all infrastructure projects being either fi-
ness opportunities.
.
follows carefully any
. visits exhibitions taking
place in Thailand and at such occasions meet with Thai companies to hear about their potential interest
in Danish supplies.
.
writes articles for the export magazine published by the Ministry of Foreign Affairs. Some up-coming articles are about agriculture, nonJood industries, pharmaceuticals, inf rastructure, catering - with focus on
nanced through public means or through the multilateral finance institutions, to identify the ones with the highest interest for Danish business.
"We spend a lot of time chasing the projects offered
to be financed by
mixed
credits and work hard on having the Thai authorities make some commitments,
rently being phased out, we
still have in the pipeline projects in the total value of
app. 2 bill. DKK, primarily within education, environment, health care and waste handling," Mr. Petersen ex-
plains. As for Danish trade del-
crisis - and secure that the market is not "over sold". On the other hand it is our obli-
gation, to safeguard that Danish industries are aware
of the potential that may not too far future - hoping that an "investment" in the
Mr. Petersen notes.
time prior to that," says Mr.
"l lear this is shortsighted. Other countries carry out trade delegation visits - and as a positive side
effect obtain great media coverage," he adds.
reports covering healthcare,
and government prolongs our work considerably," says Mr. Henrik Petersen, head of the Commercial Section of the Royal Dan-
Meanwhile, the embassy does, however, have
some plans lor official del-
food processing and non-
ish Embassy.
egation visits later this year, and since it will probably be
food industries. As for more specific ac-
project with the Department
tivities, the embassy has
of Vocational Education
without participation from Danish industries, the em-
recently listed the biggest -
(DOVE) to supply educa-
"As an example, a
more strategic oriented cooperation between Thailand and Denmark. "Naturally, we must from our side be cautious as to how we market the opportunities in Thailand - seen in the light of the economic
egations to visit Thailand, there is in general an extremely hesitant attitude among Danish companies,
but the change of ministers
tourism, energy conservation and health-care. . worKs out sector reports. Planned for 1998 are
marily on an overall and
bassy is considering having
such visits focusing pri-
again arise in the hopefully
market will take place in due
Petersen.
"Danish companies have been commercially active in this country for over one hundred years and for us it is a healthy sign
for future expectations to realize that practically all Danish subsidiaries so far have remained in Thailand during the economic crisis. We trust that these compa-
nies will benefit from this, but there are opportunities also for new-comers." 11
"The prcsent crisis in the Asian economies does not change the mega trend in the Woild Economy, where Asia will remain the region with the biggest potential for economic growth," says CEO Waldemar Schmidt of the ISS Group-
ISS committed to
Asian expansion When meeting members of the Danish-Thai Chamber of Commerce, CEO Waldemar Schmidt announced new buy-outs in Thailand and neighbouring countries. But growth must be financed from local sources - a painful lesson learned from the ISS Group's US'activity in 1996.
The present Asian economic crisis doesn't scare off the ISS Group from
Schmidt stated that in the strategic consideration of the ISS Group the
setting up ambitious goals for expand-
acute problems of South EastAsia are
ing its operations in the region the coming years. Talking to the Danish-
viewed only as a corrective bend on an otherwise steady growth curve. Which means that ISS is in the mood for purchasing new companies in the
Thai Chamber of Commerce at a dinner on February gth., CEO Waldemar
region now while the share prices are low.
Mr. Waldemar Schmidt last year relieved Mr. Poul Andreassen at the helm of the biggest Danish company in terms of manpower. lt was his first
Bangkok was the first stop on a survey trip around Asia for the two Danish ISS leaders. In his speech to the chamber, Mr. Schmidt encouraged
the members to optimism regarding the long term prosperity of the region
visit as chief executive to Asia, the lat-
and the business possibilities here. He
est region for ISS to enter with the acquisition in 1995 of the ESGO Company from Electrolux. Mr. Schmidt was accompanied by ISS Chairman of the Board Mr. Arne Madsen and head of lSSAsia Division Mr. Stuart Graham. The three gentle-
revealed that ISS is planning for further take overs in Thailand as well as in other Asian countries in the near f uture. The 1997 strategic concept of the f SS Group -"4im2002" - sets a target of 15 percentage annual growth in rev-
men were hosted in Bangkok by Mr. Theinsiri Theinviboonwong, head of ISS ESGO Thailand Ltd.
enues. Approximately 6-8 percent is expected to be reached by organic growth in the existing subsidiaries.
Hence the fulfillment of the target calls
for new acquisitions. Albeit ambitious, ISS does not intend to bring in new funds from Denmark to finance the expansion targets in Asia. Financing must be found in each single country's own currency. Towards the Thai-Danish Trade News, Mr. Schmidt acknowledged that
this cautious approach is based not only on fear of further Asian currency turmoil, - it is also a bitter corporate lesson drawn from the big bust which ISS suffered in its US-branch in 1996.
The American scam caused the company's share prices to plump; a setback from which ISS is still suffering.
"Since then we have, however, strengthened our internal control systems. And furthermore, we have recognized the big mistake we made in In Thailand, rSS ESGO has obtained the prestigious contract of cleaning the new Terminal 2 building of Bangkok lnternational Airport, a contract which in itself represents 6 percent of the company's annual turnoven
exposing the holding company to such an extent to the losses of an affiliate branch," says Waldemar Schmidt. Henrik Houtved 13
EAC changes management as Carsten Dencker Nielsen, for several years Managing Director of EAG Thailand, plans to retire at the end of 1
When Foreign Minister Surin Pitsuwan a few years ago visited Denmark, a lunch with Mr. Carsten Dencker Nielsen was a 'must' on the agenda.
998.
The East Asiatic Company
years). Both will be ap-
recently announced several changes in its management
pointed to the Management of EAC's Singapore subsid-
and organisation related to
iary, The East Asiatic Com' pany (Singapore) Pte. Ltd., which in the future will take care of a number of coroorate management tasks including the co-ordination of the activities of the subsidiaries under a service contract with the Parent Com-
the establishing of EAC's Operational Head Quarters in Singapore
As for the EAC Coroorate Management, Managing Director, Mr. Carsten Dencker Nielsen, will remain in Copenhagen. For 25 years, M r. Dencker Nielsen served in manaoe-
ment assignments for EAC in Asia - half of these years
in Thailand - as well as in Africa and last year, he celebrated his 40 years' anniversary with EAC.
Mr. Dencker Nielsen plans to retire from EAC's
Executive Board and Corporate Management at the end o{ '1998. In his place, EAC's Corporate Management will be supplemented by Bjarne Uhde Nielsen (44 years) and Mark A. Wilson (45
pany.
Mark Wilson, who has
EAC Thailand fighting to improve results The East Asiatic (Thailand)
EAC Marketing Services
during the second half of the
Public Company Limited on 3 March, 1998 reported that
(Thailand) Ltd. and EAC Lo-
year, but posted under the circumstances acceptable
the company's revenues last year were 3.0 billion Baht compared with 3.9 bill.
Baht in 1996. The net loss
after tax was 99 million Baht, compared with a profit
after tax ot 245 million Baht
in 1996. The performance of The East Asiatic (Thailand) Public Company Limited and its
subsidiary and associated companies did not escape the impact of the negative developments of the Thai economy, especially during the second half of the year,
which
aff
ected
all
the
gistics (Thailand) Ltd. as well
as foreign exchange losses of 78 mill. Baht. EAC Marketing Services
was closed and the result for 1997 includes a onetime loss of Baht 94 mill. in connection with the closure of this company. With the closure of EAC Marketing Services, a significant part of the originally anticipated income base for
but the re-structuring activi-
ties implemented or com-
tors has decided to propose to the AnnualGeneral Meeting Tuesday 28 April not to pay dividend for 1997.
menced in 1997, combined with EAC Thailand's strong economic foundation, will ensure that the company is able to dealwith the current challenges, the Company states in a press release.
As for 1998, The East Asiatic (Thailand) Public
Logistics was restructured
Especially contributing to the drop in profits were sub-
lenges.
14
environment in 1998 the company's Board of Direc-
Company Limited an-
to meet the future chal-
company's subsidiaries,
and also considering the continued difficult business
EAC Logistics disappeared. However this company has during 1997 secured interesting and major third party logistics contracts and EAC
company's bus[nesses.
stantial losses in two of the
results for 1997. In view of circumstances
The main activity of the company, EAC Chemicals, faced a reduced demand
Chemicals business and this new structure will provide a strengthened platform forthe future growth of the company. The company expects 1998 to be a difficult year,
nounced its re-structuring
As the unsatisfactory results for 1997 to a great ex-
plans at th6 end of last year, and these plans were ap-
tent can be attributed to
proved at an Extraordinary
one-time losses and costs
Shareholders Meeting on 27 January, 1998. Consequently EAC Thailand will in the future focus resources on the further development of the
related to discontinued busi-
nesses, the company looks forward to improved results
for 1998.
it moves HQ to Singapore held management positions in Asia for the last 11 years, joined EAC in 1995 from the
British group Smithkline Beecham, and has since then been responsible for the successf ul develooment of EAC's Nutrition activities.
Bjarne Uhde Nielsen and
Niels Henrik Jensen (43
Mark Wilson will be charged
years), Corporate Vice
with a number of strategic, commercial and managerial
President, will be responsible for Group Structure
business development
and Taxation, reporting the
tasks which in the future will be handled from Singapore.
Corporate Management. Christian Lund (52 years), Corporate Vice President,
Finally, Mikael Thing-
Bjarne Uhde Nielsen
huus (35 years), who joined
has been with EAC tor 27
EAC from IBM in 1995, is appointed Chief Financial Officer of the Group effective 1 . January 1998 being responsible for the Group's
years of which the recent 20
years have been in Asia. Since the Spring of 1996 Bjarne Uhde Nielsen has been overall responsible for EAC's Graphic business.
Jointly with Michael Fiorini, Presiding Managing Director of the Parent company, who in the future will
have office in Singapore and who will join the Board of the Singapore subsidiary as Chief Executive Officer,
accounting and finance functions, as well as
lT.
EAC's Centre
in Singapore will be organised with Knud Fejerskov (53
years) as Corporate Vice President, responsible for the Corporate Management
Secretariat, reporting to Corporate Management.
will be responsible for Corporate Legal affairs, report-
ing to Corporate Management Henrik Langebak (3'l years) has been appointed Coroorate Director Accounts & Controls, responsible for the Group's budget- and accounting functions, reporting to Mikael
Thinghuus. And finally Mads Ingholt (43 years) has
been appointed Human Resources Director, reporting to Corporate Manage-
The EAC Centre willfurther employ 4 Danes and 3 Asians from the current Corporate Centre and about 10 more employees will be recruited in Asia. ln Copenhagen, the activities of the Parent Company from the future domicile at Nikolaj Plads will be the responsibility of Sven
M-nsted (54 years), Asst. General Manager Corporate Accounts, and Vibeke
Holb-ll (38 years), Senior Department Manager, Legal
Affairs, and they will both reoort to Carsten Dencker Nielsen, Managing Director. EAC's new Copenhagen
domicile will also be the home for EAC Trading Ltd. A/S with a staff of 25.
menl
15
Heidelberger Druckmaschinen ready to take over EACGraphics Heidelberg printing machines has been one EACGraphics' strongest brandnames in Thailand as well as world wide. Now, Heidelberg will take over the distribution.
The East Asiatic Company Ltd. A/S and Heidelberger Druckmaschinen Aktiengesellschaft have entered an agreement for Heidelberg to purchase the EAC graphics
operations in Asia, Africa and the Nordic countries. In Thailand, EAC earlier this year paved the way for this acquisition by relinquishing its majority interests in EACGraphics Thailand to EAC A/S in DenmarK.
In connection with the sale, EAC Thailand Public Company Limited has restructured the company to improve it's ability to focus mainly on the regional dis-
Heidelberg will acquire the EACGraphics business effective from 1st May 1998 as a going concern with cur-
rent management and staff continuing. In 1997, EAC graphics had a turnover of
tribution of chemicals, which
DKK 3,7bn and employed
is today EAC Thailand's
1,700 staff.
most significant business. In
The details of the trans-
addition hereto, the company continues to be en-
action are set out in a Framework Agreement,
gaged in distribution of technical equipment, logistics as well as a number of minor
which will be implemented
activities, while
the
through specific agreements for each business unit concerned.
company's activities within
This comprehensive
Marketing Services has
transaction involving many countries will be completed
been terminated.
during 1998 and will include the transfer of shares in the companies dedicated to the graphics business as well as the assets and liabilities
of the business units organised as divisions of companies that are engaged in several of EAC's businesses.
The transaction is sub-
ject to approval by the Board of Directors of both parties and this approval is expected in June.
price. The terms of the
transaction,
however,
recognise the strong market
position and value, which EACGraphics have established during many years in
the graphics business. The sale will strengthen EAC's balance sheet significantly and provide considerable flexibility for EAC in determining the future strategy of
the Group. The strategic redirection
The parties have agreed
of the Group will be presented in connection with
not to disclose at this time any details of the transac-
the EAC A,/S shareholders meeting on the lBth May,
tion, including the purchase
1998 in Copenhagen.
EAC and GN Great Nordic set up joint venture in China Products from GN Nettest and GN Netcom will in the future be assembled, marketed and sold in China by EAC/GN Communications
Equipment Ltd., a newly established company owned 50/50 by EAC and GN Great Nordic.
EAC/GN Communications Equipment Ltd. willbe established in early 1998 and represent a natural extension of a longstanding 16
relationship between EAC,
GN Nettest and
GN
Netcom. In 1997, the turnover on GN products in China was about 30 mill. DKK in 1997 and the market is expected to grow significantly in the coming years. EAC and GN
Great Nordic's combined investment is estimated at
for sales and marketing of GN Great Nordic products in China, will be transferred to the new company, which will be based in Beijing. The market for telecom and datacommunication in China is growing rapidly and
the annual investments in China within this area are expected to amount to
made within telecommunication.
For EAC, the joint venture with GN Great Nordic in China, is the fourth satis-
factory example of a distribution arrangement developing into a 50/50 joint venture, the other three being EAC-Domino (inkjet printers
The EAC employees,
about 100 bill. DKK up until year 2000. The majority of
used for product coding) EAC-Varn (chemicals for the graphics industry) and
who are today responsible
these investments will be
EAC-Sunquick.
about'15 mill. DKK.
I
Supporting Thai Trade Since 1949 Maersk Line has been represented in Thailand for almost half a century, and through continuous investments, Maersk Line has progressed to become a leading factor in Thai shipping. Recent investments in Lat Krabang and Laem Chabang Ter-
minals as well as ongoing investments in our unique Maersk education of future Thai Shipping Executives, will ensure that Maersk Line retains this position, and continue to be second to none when servins the Thai trade.
Please contact
your Maersk representative for further details
Maersk Bangkok Branch, Tel.: 3 12-03 12 Fax: 3 l2-0374 or visit us on the internet at: wwv).maerskline.com
MAERSK
Fast lane office established to resolve i mport-export disputes New cooperation between Department of Export Promotion and Ministry of Justice set up to resolve disputes between Thai exporters and their customers abroad.
The Arbitration Office of the
Ministry of Justice of Thailand and the Deoartment of Exporting Promotion of the
Ministry of the Ministry of Commerce of Thailand have agreed to join hands to facilitate a more expeditious way to resolve busi-
less costly while maintaining the mutually beneficial
business relationshio between the parties concerned.
In the past, when disputes between foreign buy-
ers or importers and Thai exporters erupted, the buyers or importers could file complaints with any Commerce Office of the Royal Thai Embassy in his or her
country. The Commerce Office would thereafter either forward the comolaints to the DEP, or proceed the
matters through the Ministry of Foreign Affairs With the new service in
ness disputes between Thai
place, the aggrieved buyers
exporters and foreign importers. lt is believed, that the new cooperation will be
or importers may now notify his or her concerns directly to the Arbitration Of-
fice of the Ministry of Justice or, alternatively, to the DEP which will in turn remit the
complaints to the office. Upon the receipt of the complaints, the Arbitration Office will then act as an intermediary between the aggrieved
buyers or importers and
with no local office in Thai-
land, the office, however, recommends that a local, Thai agent is appointed to negotiate and settle the dispute on their behalf.
Fo
r f u rth e r i nformati on,
their Thai exporters. The office will try to make an ar-
contact:
rangement for the parties involved to discuss and eventually settle the disputes. The office will moreover provide mediation services, if the parties concerned so request. It is the ooint of view of the Arbitration Office, that direct and frank discussion regarding the concerns is mutually beneficial and desirable. For buyers abroad
The Arbitration Office The Ministry of Justice Ratchadapisek Rd. Bangkok 10900 Tel : (66-2)5 41 -2298-9,
541-2271 Fax: (66-2)5 41 -2298-9, 541-2271 E-mail: voravuth @ mozart. inet.co.th
Young Danish business trainees offer to work for free in Thailand The growth perspectives of
the Asian region - despite the currency turmoil of the past year and the present economic crisis - still attracts interest in Denmark. Not least among the young people of which some now offer to work as trainees in Thailand as oart of their studies in international business and economics. Palle Morthorst, 24 , just finished a four months internship by Amrop International Bangkok as part of his studies at The hrternational Business Academy at Kol-
ding
Kobmandsskole.
Working withAmrop, he had
the chance to develop
a
project of his own; the implementation of a computerized system for CV managemenl. The young business student was very pleased with the experience he got from working in Bangkok. Says Palle Morthorst:
"l have had a fantastic time here both personally and academically. I have had the opportunity to get to know the Thai culture from the inside while at the same time working in a very international atmosohere. I
Palle Morthorst will return next spring to work in a
similar job with Maersk Bangkok Branch.
A business internee is supported by the Danish educational system (SU) and thus is able to offer his or her time cost free to the
companies. The young people are highly motivated because the qualities of their
trainee project will be their entrance ticket to a business career.
Accommodation will be the only cost for the com-
have gained experience
pany, but of course, in order
that I could never have obtained in a classroom back in Denmark."
to give the internee some relevant experiences, the management will have to
spend some time to guide the internee and formulate their assignment. Companies interested in taking in an internee may contact:
Kolding Kobmandsskole International Business Academy Tvedvej 7, DK-6000 Kolding Tel: (45)-75 527500 Fax: (45)-75 52 96 08 Att.: Niels Egelund or Dannie Kjeldgaard
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Danish-Thai agreement on double taxation A new double
taxation
Foreign Minister Surin Pitsuwan hopes the new agreement will lead to more Danish invest-
agreement recently signed between Denmark and Thailand will enter in force by early 1999 as soon as all
ments in Thailand.
the relevant ratification procedures are completed.
Pitsuwan and Ambassador
Niels K. Dyrlund, Royal
represents a modernization
Danish Embassy.
and an updating of the
of Thailand, the agreement
covers income tax and the petroleum income tax. The
new agreement replaces the old double taxation agreement from 19065 and
agreement, taking into account developments in such areas as the finance and the service sectors.
A
S-page document
worked out by the Danish Ministry of Taxation highlighting the major areas of general interest is available at the embassy.
According to Bangkok Post, Mr. Surin at the sign-
ing of the agreement expressed his hopes that it would lead to more investments from Denmark, particularly in agriculture and food processing. "lt is the hooe of the Thai government that Denmark will still play a role in trans-
ferring environment technology to the Kingdom during the economic crisis," Mr. Surin said.
cates issued to provide be-
should, however, leave some space for volatility
lievers and supporters of an
Certificates have been is-
expedient recovery of the Thai economy a low risk opportunity to assist Thai-
sued to "attract hard foreign currencies from those wishing to render their help with
while still making the certificates a sound investment.
land and yield a high return on their investment.
by
the
Royal Thai Government, the newly issued National Savings Certificate offers an annual premium of 11 ,5 percent. With a minimum value of 10,000 baht the NSC has
over the past three years, in particular as a result of a
biker war between Hell's Angels and Bandidos gangs in which more than 10 gang members have been killed
using a broad arsenal of weaponry.
DHL chooses
Denmark DHL intends to invest more
increasing
cepted in the following currencies: US dollar, Cana-
chosen Denmark as its
Thailand's foreign currency
dian dollar, Australian dollar,
availability and international reserves, which will in turn ease the tight liquidity situ-
dollar,
a view to
ation in the Thai money market and help stabilize
earned on NSC is excepted
towards the US-dollar that
from personal income tax. According to a press re-
can be kept three years ahead. The high premium
20
Denmark has been plagued by biker violence
than 110 mill. Dkr. (650 mill.
stated date. The interest
and will be redeemed on the
Hojberg.
Deposits will be ac-
the Thai economy." Seen from the investors point of view, the question is wether the Thai baht has now reached a stable level
a maturity of three years
est technology to monitor the entire biker sector and analyze biker crime," says Police Chief Jens Henrik
areas of international crime like child pornography and environmental crime.
lease from the Government Savings Bank, The Savings
Guaranteed
centrate on monitoring biker gangs, which are thought to be involved in criminal ac-
The NCIS terms of reference will eventually be expanded to include other
High returns on new Thai Savings Certificates National Savings Certifi-
The Danish police has set up a new anti-crime unit to help deal with organized, international crime. The new National Crime Intelligence Unit will initially con-
"We will be using the lat-
Foreign Minister Surin
carbon Tax Act. In the case
anti-crime unit set up
tivities including trafficking in illegal drugs.
The agreement was signed on February 23 by
As regards Denmark, the agreement covers income tax to the state, the municipalities and taxes imposed under the Hydro-
New Danish
Hong Kong
Singapore dollar, Pound sterling, D-mark, French franc, Swiss franc, Dutch guilder and Japanese yen.
For further information, please contact the GSB, tel: 299-8316-7. lnformation is also available on the Internet: (http:// www.gsb.or.th).
Baht) in Denmark. DHL has
North European 'hub' and by the end of last year, the
courier company moved into its new headquarters in Copenhagen. At the opening and the
launch of the investment program, Managing Director, Mr. Christian Thing confirmed that Denmark had been chosen because of its
position in the distribution sector and its educational standards.
F
Er'ER COOTIIUG
PAC Chillerc r the natural choice PAC Chillers - the new standard series of packaged ammonia chillers for industries where indirect cooling by means of a secondary refrigerant is required.
The series includes more than 25 types with capacities ranging from 90 to 2,7O0 kW when chilling w,ater from 12 to 6'C. Tailormade solutions are supplied with capacities up to 8,000 kW. PAC chillers have many
outstanding features:
O High COP values due to flooded design O Designed for the environmentally safe refrigerant O Compact design O Automatic oil return system O Plate heat exchangers I Very low TEWI value
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The user-friendly UNISAB ll is integrated in all PAC chillers. lt is the leading control system for monitoring and optimization. lt is possible to centrally control and monitor compressors through a central PC or PLC by simply connecting a Sabroe communication module.
High performance and natural refrigerants make Sabroe's chillers the natural choice
Sabroe (Thailand) Co. 72/47 Moo 4 . Ekachai Road . Tambon Kokkrabur Tel +66 34 823 725-9 . Fax +66 34 422 634
.
Amphur Muang
.
for liquid chilling purposes.
Samutsakorn 74000
PAC
New Goals to guard Goodbye to Ucom Rajpracha and Thai Premier League - Danish professional soccer player Henrik Joergensen moves on to Singapore where he signs contract with Wellington F.C. Cheered three times "Man
of the Game" by the Thai sports press, Danish goal keeper Henrik Joergensen now bids farewell to Thai
soccer after a season he describes as "one of the best and most thrilling experiences in my profes-
If the Thai premier league will be relormed to play continuous seasons I might consider coming back to play here," says the Danish tootbail player, Henrik Joergensen.
sional carrier".
Mr. Joergensen has signed up with Wellington
jury he incurred in the Dan-
1995-1996 he played for
F.C., Top-3 club in Singapore and will move to The Lion City as soon as he
The 31 year old goalkeeper has been playing in
ish Super League earlier
The Johnny Walker League
that season.
has found proper accommodation.
for the club Ucom Raj-
Already before he joined
pracha since October 1997.
Ucom Rajpracha Henrik
Samsung FC, one of the top teams of South Korea. Although South Korean soccer is recognizedfor its high
He came to Thailand after recovering from a groin in-
Joergensen has had expe-
professional level and he
riences with Asian soccer. ln
had a lucrative contract, the young Frederician never felt at ease there.
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Quite the opposite in Thailand. "lt has been a very pleasant time for me here in Bangkok. I have ex-
perienced good comradeship in the club and met a lot of nice people here," says Henrik Joergensen, adding that he has been positively surprised by the technical skills of the Thai players.
"Actually, I should have been glad to continue playing here. But as a professional I must grab a chance when it occurs. The big advantage playing in Singapore is that they play
a full nine month season without any interruptions."
"One more thing, Singapore is an English
speaking state which make
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communication somehow easier, but if the Thai premier league will be reformed to play continuous seasons
I might consider coming back to play here."
Henrik Houtved
22
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Peter rocki ng the Buffalo' Peter Corp Dyrendal from lshoej is now one of the hottest names in
Thai rock music
"Some times I get this feeling its all
iust a dream and I hear this litile voice inside of me saytng:
"Peteil Go back
Peter Corp Dyrendahl, who
used to be "just one of the
to Denmark and complete your
a
education."
guys f rom lshoej" Copenhagen suburb
sometimes still finds it hard to believe that he is now a suoerstar in Thailand But when the tropical night descends over Bangkok and young people line up outside discos and
concert halls, his doubts disappears. Where Peteurr" performs young girls almost fight to get in and where the girls are
many, the girls," says Peter and shows his arms covered with scratches as had he been fighting with a wild
Peter is a handsome result of a long lasting Thai-Danish - or rather Thai-Scandinavian - cooperation. His
crowding the boys joins in. When Peter appears on
cat. But he doesn't complain
Thai f ashion and
stage in his black leather outfit and starts to sing his smashing hit, "Where is the
scratches are unavoidable. The 22 years old Peter Corp Dyrendal sells his records in hundred of thou-
father was working as an SAS-ourser and his mother as a supervisor of ThaiAirways. They met and fell in love when the two companies commenced their cooperation in the 1970'es. Peter grew up in lshoej and was actually studying to
when he got the chance to
and even in the most re-
become a chemical engi-
mote small provincial towns he draws huge audiences of
neer, when three years ago
perform as a rock musician, he put all his efforts in building up this new carrier. Despite his present star status and hiqh incomes he
Water Buffalo" - a hard rock,
Thai style, broken heart song - his Danish bodyguard and old Schoolmate, Lasse, has to be on the alert to keep the young ladies off stage. "They can be quite dangerous when they are too 24
- being so adored, a few
sands. Together with his backing group "Why Not 7" he tours all over Thailand
fans.
Still a Danish citizen,
an aunt in Bangkok persuaded him to come to Thailand to try his luck as a
photo model. She was convinced that he, with his "look
krueng" look, would perfectly match the trend in she
proved right. Working as a highly de-
manded model, Peter was then discovered by big record company Grammy. Since he was 15 years old he has played the guitar and
pralse still lives quite modest itt ir rented house. One luxrrry dream of his teenage years
he has, however, allowed himself to come true: To buy a sports coupe Chevrolet. "l really enjoy life here, but it has all happened so
quickly. Sometimes I get this feeling that I am living in a dream and I hear a voice inside saying: "Peter!
Go back to Denmark and complete your education!" Henrik Houtved
Peter Corp Dyrendal
performing at The Phuture Night CIub of the Chaophaya Park Hotel in Bangkok with the band "Why Not 7" a name the band took because they only are six members .
25
Nordic Excursion to Eastern Seaboard As a follow up on the first Chamber programme, an eventng
joint Nordic
with Police General Chavalit
Yodmani on April 30, the four Nordic Chambers are planning an excursion to visit the Eastern Seaboard with the General to see for themselves the special op-
poftunities arising in this fast advancing area. Mr. Steinar R. Paulsen, Past President of the Thai-
New Members Gorporate
Commerce, who has taken
Scandinavian companies already established in the area, such as Tetra Pak or Jotun's new factory. More information will be sent directly to members of
Amari Boulevard Hotel 2 Sukhumvit Soi 5, Sukhumvit Rd. Bangkok 10110 Tel: 255-2930-40 Fax'.655-1177 - Mr. Sam Eric Ruttmann
the initiative to establish
the four Nordic Chambers of
these common Nordic arrangements, hopes to include a visit to one of the
Commerce, DTCC, TFCC, TNCC and TSCC.
Ami Asia Group 159/6 Baan View Mai Soi 20, Viphavadi Rangsit Rd.
Norwegian Chamber of
Ladyao, Chatuchak Bangkok,10900 Tel: 276-9940 Fax: 276-9956 - Mr. Frank Hansen
Evening with Danske Bank
Diethelm (lndo-China Division) G.P.O Box 14, Bangkok 10501 fel: 7 42-4388 F ax: 7 42-4387
- Mr. Lars E. Larsen
A Members Night was arranged on April 23rd at the Oriental Hotel, sponsored by Den Danske Bank International in Luxembourg. Mr. Torben Maj, Assistant Manager of the bank spoke on the topic "Advantages of being a customer with Den Danske Bank International and the financial
services, we offer private investors", while Mr. Lars Berg Jensen, Account Man-
ager of the bank, gave a presentation on the topic " Our concept for investment
advisory services and the bank's expectations of the future economic development in Scandinavia and Eurooe. Companies interested in hosting similar events are very welcome to contact the Chamber's office.
Individual Diethelm & Co., Ltd G.P.O Box 14, Bangkok 10501 Tel : 332-6060 - Mr. Henrik V. Petersen
Doc Houlind's Jazz Band, sponsored by Nordtab ancl Stig VagtAndersen, entertained the members after the AGM dinner.
Jazzy Annual General Meeting A successful last minute change of plans brought in the Danish 'Doc Houlind's Jazz Band' to entertain the
many members who at-
President, succeeding Mr.
Poul Weber who was elected ordinary member of the Board. The meeting was con-
tended the Annual General Meeting at the Royal Danish Embassy.
ducted by HE Niels
The AGM elected Mr. Anders Nielsen, Maersk Bangkok Branch, its new
analysis of the present economic situation in Thailand.
K. Dyrlund, who during the din-
ner presented an excellent
Diethelm Co., Ltd. (Food & Special Product) 2535 Sukhumvit, Bangchak, Prakanong, Bangkok 1 0250 Tel: 332-6060 Fax: 332-6101 - Mr. Niels J. Holm EAC Graphics (Thailand) 1 1 68/92-1 09, 31 st Floor, Lumpini Tower, Rama lV Rd. Bangkok 10120 Tel : 679-7555 Fax: 287-4625 - Mr. Klaus Aarestruo Fasca Yamabishi 2917-8 Moo 3, BangkruaySainoi Rd., Bangrang, Muang Nonthaburi 11000 Tel: 903-5460-4 Fax: 903-5465 - Mr. Leo Eo Alexandersen
BECOME A MEMBER OF THE DANISH-THAI CHAMBER OF COMMERCE Fill in this coupon to receive further information and a full application form for membership.
Mail or fax the coupon to: Danish-Thai Chamber of Commerce Sukhumvit Suite L9 / 121, L 3thfl . SukhumvitSoi 1"3 Bangkok101L0 Phone: 65 1 -2 805 - Fax: 65 1,-2652
26
Contactl.Jame:
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