Thai-Danish Trade News - September 1997

THAf-DANISHRSP" Magazine of Danish-Thai Chamber of Vol.4 No.2

Commerce

September 1997 rssN 0859-1229

Covrmc EvnNrs Joint Ghamber Lunch September 16, 12.0O Joint Foreign Chambers'Lunch at the Grand Hyatt Erawan Contact: Danish-Thai Chamber of Commerce

Tel.:651 2805. Fax:651 2652 Meet the Ambassador

September 25, l2.OO Lunch at the Sukhothai Hotelwith the new Danish Ambassador to Thailand, HE Mr. Niels Kaas Dydund. For further introduction, see interview on page 11 Contact: Danish-Thai Chamber of Commerce

Tel.:651 28O5. Fax:651 2652 Money matters..

October 14, 18.3O Dinner at the Grand Hyatt Erawan with special guest speaker from SE Banken in Singapore. Attendance is limited to no more than two participants per member company.

Contact: Danish-Thai Chamber of Commerce Tel.:651 2805. Fax:651 2652

After Off ice Get-together October 3O Host company and venue for this usually well attended informal meeting to be announced later.

Contact: Danish-Thai Chamber of Commerce

Tel.:651 2805. Fax:651 2652

After Off ice Get-together November 27 Host company and venue for this usually w'ell attended informal meeting to be announced later.

Contact: Danish-Thai Chamber of Commerce

Tel.:651 28O5. Fax:651 2652

Christmas Lunch December 4 Venue to be announced.

Contact: DaniSh-Thai Chamber of Commerce

Tel.:651 28O5, Fax:651 2652

The currency turmoil:

Little confidence in the economic policy Members of the Danish-Thai Chamber of Commerce in a minisurvey entitled "New confidence of DTCC'S members after the new money policy" had little positive to say about the present economic situation since the floating of the Thai Baht.

All respondents in a mini-survey among members of the Danish-Thai Chamber of Commerce repofted a negative impact on

ary pressure produced by the float and the VAT increase will probably in a rather short

what way?"

time waste this advantage."

"Limited affect. lmported alloys and raw material will increase, - difficult to pass on to customers." "lt will affect my business in that we will have more inflation, so my fees will increase more than expected."

"Very big impact since we are an importer."

Arranged from the least to the most seriously affected, the five randomly se-

duty and VAT costs have increased

their business because of the reduced value of the Thai Baht compared to the US dollar and thereby also to the Danish Kroner.

The first question in the mini-survey was: "Did [the floating of the Thai Baht] have any affect on your business, and in

lected members answered: "Our Thai customers are paralysed by the wave of pessimism sweeping the country, so we will have to reorganize our ac-

tivities to serve more clients abroad. Exporting, we have the advantage of the cheaper Baht - although both the inflation-

"Our imported costs including impoft

b y approximately 25 %. This will force us to increase our selling prices accordingly. Our

sales are also more affected and lower even with old prices, - new prices will see our sales/profit reduced."

(Continued on page 5)

Y

Thai-Danish Trade News is pubtished

four times a year and distributed to selected Thai and Scandinavian business executives and otficials with an interest in Thai-Danish relations.

{.4

Mr. PoulWeber President, Danish-Thai Chamber of Commerce

19/121 Sukhumvit Suite, l3th Floor Sukhumvii Soi 13, BKK 10100 Tel: 65"1 -2805 Fax: 651 -2652 Ms. Monica Holmgren, Executive Director

Dear Reader,

President: Mr- P. Weber, Managing Director TWF Ltd./ Fitness Clinic Ltd. Tel. 253 3184, Fax. 253 8904

Having just returned from more lhan a month in Wonderful Denmark with fantastic weather, a healthy economy and a good outlook, it was with some trepidation I went to the office on my first day back in Bangkok.

Normally, European newspapers do not carry too much foreign news, but this summer they were brimming with reports on the economic troubles in Asia, with a focus on ASEAN and again mainly on Thailand. Consequently, I was not quite unprepared, but after only one day here, I must admit my apprehension.

Vice-President: Mr. Anders Nielsen, Managing Director Maersk Bangkok Branch Tel. 312 0312, Fax: 3'12 0350-2

Treasurer: Mr. Axel Blom, General Manager Thailand & Indochina, SAS Tel. 26O-6252. Fax 26O-6269

Many people seem pessimistic and - admittedly - the situation does look bleak with the Thai Baht and the stock market both doing down and lots of companies facing liquidity problems.

On the other hand it is not all bad news, as you will see from the mini-survey among some of our members published in this issue. The exporters, that I have spoken to, are in fact all quite optimistic. Especially those involved in high tech and specialised areas, but also expofters in most other areas should actually be able to benefit from the new exchange rate.

Board Members:

Mr. Kamthorn Ounhirunskul, Managing Director, Kamthorn, Surachet & Somsak Co., Ltd. Tel. 44O 0288-97, Fax 44O-0298-99,

Mr. Jim Napier, Carlsberg Brewery (Thailand) Co., Ltd. Tel. 235-1 350-69, Fax 237-7732 Mr. Lars Boe, General Manager, Diethelm & Co.. Ltd. Tel. 221-1141. Fax 225-8964 Mr. Michael B- Ascot, Amrop International/ Advantage Executive Search, Tel. 260 2490, Mr. Brian Griffin, General Manager, Danfoss (Thailand) Co., Ltd, Tel. 561 1130 Mr. John H.R. Jessen, Managing Director, Jessen & Jebsen (Thailand) Ltd., Tel. 652 9090. Fax 714-3900 Mr. Peter Romhild, The East Asiatic (Thailand) Plc., Tel. 679 7444,

Most Danes will remember a similar crisis in the Danish economy some years ago. At that time, we Danes had to go through the famous Potato Cure ("kartoffel-

kuren"), which imposed restrictions and tough regulations all along the line, forcing everybody to tighten their belts, cut costs and live within their means.

In the present situation in Thailand, the apparent slide in confidence is probably the most regrettable outcome. This confidence must be re-establish to avoid panic.

Similarly, the new Constitution should be passed by Parliament as soon as possible.

What is required is a concerted efforl by the Government and the private sector to limit the effects of the crisis and rectify the situation. lt is up to us, the private

Mr. Terawat Tishabhiramya, Asia Brown Boveri, Tel. 249 8470, Fax249-8473, Mr. Ghoopong Angpiroj, Managing Director, Anlink Co., Ltd. Tel.541 4348,

sector, to do our utmost to make this Government listen to the IMF and take the necessary steps, without considering vested interests.

Mr. Thiensiri Theingviboon-wong, Managing Director, ISS/ESGO Tel. 552 5015

Honorary Board Members: HE Niels K. Dyrlund, Royal Danish Embassy, Tel. 213-2021-5, HE Rangsan Phaholyothin, Royal Thai Embassy, Copenhagen, Tel. (45) 31 62 501 O, Dr. Charoen Kanthawongse, MP, Tilleke & Gibbins, Tel. 254-2640, Khun Thamnoon Wanglee, Presiderit, Thai Ainrays International Ltd. Tel. 51 3-O1 21 , Khun Chote Sophonpanich,

The fundamentals are still in place and as a long time resident, having seem many ups and downs, I firmly believe it is possible to stabilize the situation and reestablish confidence in the future.

Sincerely

PoulWeber

President. CS Caoital Tel. 260-7242-8

President

Published and Edited bv: Scand-Media Corp. Ltd. together with Danish-Thai Chamber of Commerce

Graphic Production: Scand-Media Corp. Ltd. "Thanyakarn Village", 4/74 Moa 3 Soi Maiyalap, Flamintra Soi 14 (Km. 4) Bangkok 1O230

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Members:

'D-day'only one of the problems "Political stability is also a key which is not here. Promotion of business activities and measures to promote investments, including lower interest rate, are essential." "l do not have any confidence in our oolitical or finan-

(Continued from page 1) Next question was'. "Do you

have a good confidence in the future of your business in this country, what is the reason?"

Again, the answers are arranged from the most positive to the downright negative commenl: "Yes. Based on our technology, we have a distinct advan-

cial system." "lf Thailand keeps changing government and let politicians

bark at each other as it is,

The final question was: "Are there other factors more impor-

tant for your business in Thai-

the future business as we are

run, - who knows what time it will take for the average small

Thai business manager to regain confidence in the political and economic management of the country?"

Swedish comments

ports more than if the government would create a simple, non-corrupt path through the customs deoadment for small

A similar mini-survey among

and medium sized companies."

"The government needs to be pro-active and have a good

"

- and we are connected to the automotive industry."

"We still have confidence in

ment which so far has created crisis of confidence." "lmmediate future: We will adapt and survive. In the longer

ooliticians."

tion would revitalize Thai ex-

- who knows what time it witl take for the average small Thai business manager to regain confidence in the political and economic management of the country?'"

the Far East,

management of the govern-

the stupidity and greed of the

members of the Thai-Swedish

Chamber of Commerce was conducted a week before the above answers, but showed

similar sentiments on the present economic climate for both the country in general and

tage over similar industries in

here in Thailand and things will change for the better, although this will depend on the good

-

sorry to say: Good bye."

management of return of import duty, when goods are expofied after processing. No single ac-

land [than the floating of the

package to salvage the present

Bahtl, both in a short and long term. and if so. which?"

The answers varied as fol-

crisis. Political stability is also a key which is not here. Promotion of business activities and measures to promote in-

IOWS:

"Yes. Bank interest is too high, utility rate e.g. electricity is too high, custom formality should be improved and social charity (forced) should be less."

"A stable, reliable government and the increase of VAT."

"Corrupt and inefficient

vestment including lower interest rate are essential. The Thai government should be capable to tackle the oresent downturn."

"Long term, I will stay here and do my business. I expect that the hard-working people of this country will compensate for

Thai Baht and Danish Kroner Compared to the exchange rate two years ago, the Danish kroner had by end of August actually strengthened only around 10 percent. lmporters, who avoided reducing their prices, when the exchange rate weni down, would only need to increase their prices 10 percent to be back on par - if all their domestic costs had not jumped after the float and the VAT-increase.

Price in THB of goods worth 100 DKR

THB vs. DKR lndex: Aug. 'gg =

100

the respondents themselves.

In this survey, members were asked to name the three most important issues, which in their mind should be tackled to strengthen the economy and Thailand's competitiveness.

The suggestions were: "Restore foreign investors' conf idence in Thailand's

economy. Boost export. The government has to stabilize the Baht a.s.a.o."

"To help improve the Thai economy, the government must work more closely with private

investors or entrepreneurs on how to solve the problem at the long run ratherthan doing it day to day. To call upon the experts

or soecialists to mobilize ideas and capability to help. I do not think the government members are capable of doing that alone.

The government must reduce the import tariff on major merchandises and the loan interest to compensate the loss and to attract traders to be back to normal business. The government's policy must also be more strategic and clear-cut."

"Political cleanse. Regain

foreign investors confidence.

Foreign investments will result

in much needed a) capital inflow b) transfer of technology and c) employment. Strict adherence to expected IMF stipu-

lations - without compromise and attention to vested inter-

I{'(oNNN pp9)po)

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ests. European countries have had to go through 'steelbaths', Thailand will have to acceot the same."

"Most important is to increase credibility. More efficient administration."

A successful visit to rh"il of Crown Prince F rederikir I

Business seminar His Royal Higness Crown Prince Frederik on May 21 opened the largest Danish export promotion arrangement in Thailand ever.

HRH inspects the exhibition together with Mr. Bjorn Westh, Minister for Transportation HRH took the time

to talk to every single exhibitor

Company

visits The companies in Thailand, which the Crown Prince man-

aged to visit during his stay included Carlsberg (upper left); dz (lower left), Key Interna-

tional Food {upper right) and Colorlux (lower right)

nd

of Denmark On his - officially - Iast day in Thailand, Crown Prince Frederik was

s!?rtq

ay

-ayctjenge.with Bhumibol Adulyadej.

Highlights of the Royaf visit HRH Crawn Prince Frederlk arrlved at the Gala Dinner ot the Danish-Thai Chamber of

Commerce together with HRH Princess Sirindhorn and the previous Danish Ambassador, HE Jorgen Reimers.

*Thls has been

rny best trlp ever," says

HRH chatting with guesfs atthe Royal

HRH Crown Prince Frederik.

Danish Embassy.

Up-country visit For HRH Crown Prince Frederik, his visit up-country to one of Danced's project provided the close encounter with the Thai people and nature, he had been looking fonrard to with the greatest expectation.

During his visit to Khon Kaen, a local resident showed her affections by embracing the Crown Prince.. ..

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President of the Danish-Thai Chamber of Commerce, Mr. Poul Weber on July 2 presented a donation of SOO,OOO Baht to the Director ot the Royal Projects, HSH Prince Bhisadej Rajani.

I'i

,

D-TCC donates 0.5 mill. Baht to His MEesty in the North The proceeds from the Gala Dinner in May in honour of HRH Crown Prince Frederik has been given to a specific strawberry seedling project under His Majesty's Royal Projects in Chiang Mai. President of the Danish-Thai

Chamber of Commerce, Mr. Poul Weber, in Chiang Mai on

July

2 handed a cheque

of

250,000 Baht to the Director of the Royal Projects in the North

of Thailand. HSH

Prince

Bhisadej Rajani. The amount was the second half of the oroceeds of 0,5 mill. Baht from the Gala Dinner held in May in hon-

our of HRH Crown Prince Frederik.

The first half of the proceeds Mr. Weber handed to HRH Princess Maha Chakri Sirindhorn at the evening of the Gala Dinner itself for the same purpose.

Among the many Royal Projects undertaken in the

North of Thailand has been hit by a disease. The availability of a resistant strain is therefore of vital important to the fruit farmers.

First, seedlings - the cuttings of mother plant off-springs - of the new resistant strain has to be produced. These baby plants will then be given to a

Producing new seedlings

of

strawberry plants resistant to the disease is of vital important to the livelihood

of the fruit farmers.

number of hill tribe farmers, whose responsibility it will be to further produce new seedlings.

They will earn their living on selling these new seedlings to the fruit farmers who will actually grow the strawberry for the fruit.

The Royal Projects were initially set up by His Majesty King Bhumibol to provide the hill tribes with an attractive al-

sures them of a much higher in-

providing them with a healthy, sustainable income.

Due to the Royal Projects, the growing of opium in Thailand has practically stopped.

cessfully engaged themselves

come than the opium used to although it also demands more hard labour to cultivate.

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being taken advantage of and

Burma.

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ternative cash crop to substitute

specifically for an important

Today, apart f rom strawber-

strawberry seedling program.

The project is quite urgent,

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the growing of opium.

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New Danish Ambassador to Thailand

"ft is a dream position for me, being already acquainted with South East Asia lrom my previous assignment to Singapore," says HE Niels Kaas Dyrlund.

HE Niels Kaas Dyrlund on 1st of September took over as new Ambassador of Denmark to Thailand - an assignment he is

truly looking forward to.

HE Niels K. Dyrlund on 1st of Seotember took over as new Ambassador of Denmark to Thailand - an assignment he is truly looking forward to.

"This is a dream position for me, being already acquainted with South East Asia from my previous assignment to Singapore," Mr. Dyrlund says.

"The relations between Denmark and Thailand go back a longer span of years than our relations with any other country in the region, based on numerous.visits between our two Royal families and an extensive Danish involvement in the mod-

ernisation of the Thai society especially since the beginning of this century." "ln recent years, the dynamic development of the economies in South East Asia has fufiher broadened this co-op-

The ambassador mentions his advantage of being already

experienced with the regional political institutions like ASEAN and ASEM, which held its first summit in Bangkok and is now going to hold its second summit in London.

"Several things are happening in this area. The co-operation between Eurooe and this region will surely develop further both in he political area as well as in the global economic field," he says with an almost visible, keen anticipation.

The present slow down of

the economy does in no way dampen his enthusiasm, as it has in fact come as no surprise

to him.

"This is actually what several economist have predicted

for some years, that there

mental issue has brought us

would eventually be a drop in the economic growth as we have seen it in Korea and Ja-

even closer together, with Den-

oan."

mark offering Thailand our

"Tough as it always is to adapt to new conditions, it should however also be con-

eration. Lately, the environ-

many years of know how within this area through the DANCED agency," Mr. Dyrlund explains.

"Our manyyears of involvement in the development of the agricultural sector in Thailand is already well known, not least

within the dairy sector. Also here, we have more to offer Thailand, which - despite its rapid industrialisation - is still

ceived as a good opportunity to correct things, which may have been oushed somewhat aside during the very hectic years of rapid growth. Areas which have not been able to follow up with the fast changing requirements of the modern Thai society, like

adjustments in the manage-

first and foremost an agricultur-

ment of the environment,

ally based economy."

infrastructural short comings,

upgrading of the educational system - not least in the area of vocational training, which is of vital importance to the competitiveness of Thailand in the

we will soon have an equally

future."

Dyrlund says.

In this respect, he anticipates the many Thai members of the Danish-Thai Chamber of Commerce to be an interesting and challenging difference from the DABS in Singapore, which con-

"From

a Danish point

of

view, all of these adjustments constitute an opportunity to provide our expertise and is a chance to diversify and expand our co-oDeration with Thailand.

We have been through these

adjustments ourselves and have valuable experience to offer."

Mr. Dyrlund hopes for

a

smooth integration into the social life of the Danish business community in Thailand. He and his wife, Birgit, has been here several times and know quite a few people in Thailand already.

"We are a team, that has always been important for us," he says.

"Birgit has as often as possible travelled along with me in the region, and from Singapore we know some of the companies, who are also present here in Bangkok already," he says.

"We hope to create a close

network with these and the many other local companies and Danes working here, which is so impoftant for the work of

the economic section of the embassy. Looking back, we enjoyed a good relation with the Danish Business Association in Singapore. I am confident, that

good relation with the DanishThai Chamber of Commerce and the Scandinavian Society

Siam here in Bangkok," Mr.

sist only of Danish member companres.

Mr. and Mrs. Dyrlund have two sons, but none of them will take up residence in Thailand with them. Having left home

several years ago already, Christian, 29, is a graduate in Business Administration and presently works as Vice General Manager at the office of the

Danish Tourism Authority in Paris, while Michael, 27, is employed by one of the major Danish banks, Den Danske Bank. as a financial advisor.

Meet the

Ambassador The Danish-Thai Chamber of Commerce invites members to a lunch with the new Ambassador to Thailand, HE Mr. Niels K. Dyrlund on Sep-

tember 25, 12.00 at the Sukhothai Hotel.

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

2805, Fax:651 2652

11

--lt

SAS takes serious action to minimize its environmental impact The aviation industry at large burns miltions of tons of fuets of various kinds, tons of fuel is consumed by vehicles o.n the ground, oftices generate tons ol paper, passengers consume tons of food..

oing something about lt.

Scandinavian Airlines System (SAS) has released its annual Environmental Report for 1996 which examines the extensive work being done within the entire airline group to minimise the environmental impact of its activities.

The report, the second of its

kind, provides a comprehensive account of the various forms of oil and gas emission, raw-material consumption and waste management of SAS in the air and on the ground.

Releasing the report to the Thai media on June 17 in Bangkok, SAS General Managerfor

ria. That database helped iden-

within the context of national

tify problem areas and set in motion a search for solutions.

and regional legislation and,

and West European routes.

most important, make commercial sense. "ln Europe, we face all kinds

T.he complete ban will inejude

This reoort is the result of that solutions.

Most important, it is a publicly-available document, which

competitive against other air-

cognisant of its public accountability and responsibility on the issue of environmental preservation.

"Our efforts to orovide en-

vironmental information are prompted partly by our view

lines," Mr. Blom explained. "lt affects our business and hence jobs. So, it is always imporlant to seek a good balance and to work with local environmental groups in ensuring that things are done in ways good

that not only SAS but the en-

for both the society and the

tire airline industry today have

company."

The majority of SAS's envi-

Thailand and Indochina, Mr. Axel Blom said:

current environmental data,"

"This detailed tracking and accounting of the environmen-

said SAS President and Chief

tal imoact of our business

Stenberg.

"Our business is, of course, a major energy user and envi-

about it."

Mr. Blom noted that the aviation industry at large consumes millions of tons of fuels of various kinds, all of which have an environmental imoact.

In addition, tons of fuel is con-

sumed by vehicles on the

Executive

Off

icer

ronmental impacter

Jan

- as all

transpodation business is - and it will remain so for the foreseeable future. But a great deal has happened in aviation over the past decade to make our mode of transportation a competitive

alternative from an environ-

ground. Offices generate tons

mental viewpoint as well." ln all areas of its business,

of paper. Passengers consume tons of food.

SAS has made an effort to study and find ways of reduc-

Three years ago, SAS started a process of tracking all

this consumption based on some very strict scientific crite12

charges, which make us un-

shows that the airline is fully

an environmental image worse than that actually reflected in

shows clearly how concerned we are about it, and more important, what we are doing

of environmental taxes and

exists on all SAS Nordic, North

longhaul flights as well.

In Cabin Ooerations - the area most noticeable to passengers - 50 environmental conservation sub-projects were started in 1996 to reduce consumption of paper, glass, aluminium etc.

In Ground Operations, which involves activities at airports, cargo and maintenance centres, the main sources of emissions are carbon dioxide, nitrogen oxides and hydrocar-

bons from the transportation

ronmental impact is in Flight Operation. In fact, 95 percent of all its emissions are emitted

vehicles. Major reduction have been reported, especially emis-

into the air during flights. By the turn of the century SAS will be

decreased by 22 per cenl.

flying only ICAO Chapter lll aircrafts, thus reducing both fuel consumption and noise

ther reduce consumotion of

pollution. This goal is two years ahead of theAoril2002 EU ban on Chapter ll aircrafts.

SAS's new MD-90-30

aircrafts not only reduces noise

levels well below certification limits, but fuel consumption is also 30 per cent lower than the DC-9s which they will be replacing. That translates into 30

per cent less carbon dioxide

ing environmental impact. How-

emitted.

ever, the airline strongly believes that all environmental conservation actions must be

will impose a smoking ban on all flights. Currently, the ban

As of September 1997 SAS

sions of heavy metals which Studies are under way to furchemicals used for de-icing the aircrafts.

THE LEADINE TARB MANUFAETURER IN ASEAN

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His Royal Highness Crown Prince Frederik with the chairman of the board of Carlsberg Thailand, M.R. Adulkit Kitiyakara (to the right) in May officially opened Carlsberg's largest brewery in Thailand.

Carlsberg to expand its market Within this year, Carlsberg Brewery (Thailand) Ltd. expects to reach at least a 10 percent share of the upscale beer market in Thailand, where it has successfully repositioned Carlsberg Beer as a premium brand.

During His Royal Highness Crown Prince Frederik's stay in Thailand in May this year, a visit

was paid to Carlsberg's recently expanded brewerY at Bang ban in Ayutthaya. The Crown Prince was given an extensive tour of the plant.

Then it is up to them to choose the selling strategy they prefer."

From most distributors point of view, Carlsberg Beerwas up

1994 also officially inaugurated

Carlsberg's first brewery in Thailand in Wang Noi which today has a capacity of 100

There was a potentially larger market for them to capture if they pitched the beer against

million litres per year.

the dominating Singha Beer.

"Most of our agents did not sell Carlsberg Beer as a premium beer with an internation-

The new brewery at Bang Ban has a capacity of 500 million litres of beer per year - indeed a strong indication of the expectations, which Carlsberg Brewery (Thailand) Ltd. and Carlsberg lnternational A/S of Denmark has of the future of the Thai beer market.

The introduction of Carls-

berg Beer almost four years ago in Thailand was, however, not without problems.

Instead of being positioned

as a premium beer like else' where in the world, Carlsberg Beer was sold by the local distributors as just another beer. "lt gave us 4 serious image

problem, which we had to solve," says Mr. Sawat Sopa,

the President of Carlsberg Brewery (Thailand) Ltd. "Our sales and distribution system is quite free. We don't 14

Carlsberg after the tour of the brewery.

promote all of our products.

against a strong competitive brandname like Kloster Beer.

Crown Prince Frederik in

HRH Crown Prince Frederik enjoyed a cool

set up an estimated quantity of beer which our agents have to sell. We simply want them to

the emerging markets in Indo-

ally recognised name, but mainly tried to push it into the market as an attractive alterna-

tive to the ordinary Singha Beer," Mr. Sawat Sopa ex-

- Vietnam, Laos and Cambodia as well as Myanmar - with Beer Chang.

Although several competitors in the beer markets have followed Carlsberg Beer's footsteps and expanded their presence in the Thai market, Carlsberg is not overly worried.

"We believe that the potential beer market in Thailand is much wider than today," says Mr. Sawat Sopa.

China

year increase both its image and its market share in the premium beer market where it belongs.

plains.

Today, Carlsberg Beer has successfully been repositioned among the Thai beer drinkers as a premium beer. Of strong support in this move was the brewery's introduction of Beer Chang to take over the market

"Within the coming three years, we expect both brands to significantly increase their

"ln Europe, the consumption is more than one hundred

shares in each their respective markets," Mr. Cook predicts.

Both Carlsberg Beer and Beer Chang are produced at the bnveries at Wang Noi and

the average person drinks ten litres a year, so the volume of the Thai market could potentially increase much more."

shares gained by Carlsberg

Bang Ban in Ayutthaya Prov-

Beer in the ordinary beer market. As a result, Beer Chang has since been able to achieve

ince with a combined produc-

market by giving more licenses

tion capacity of 600 million li-

to other beer manufacturers

a 14 percent share of this market.

According to Carlsberg's Vice President, Mr. Derek l.

Cook, Carlsberg Beer will this

litres per year per person. Here,

"The Thai government's opening up of the local beer

tres of beer per year.

provides a bright opportunity for

With this production capacity, the company plans to supply not only the growing Thai

the Thai beer industry, - even

market with both Carlsberg Beer and Beer Chang, but also

though it has also attracted our international competition from other world premium brands," Mr. Sawar Sopa adds.

MAERSK ftloersk Bangkok Brernch Bangna-Towers B, 2/3 Moo 14 Bangna -Trad Km. 6.5 Samutprakarn 10541 Tel : 312-0312 Fax: 3.12-0378

Economic problems threatens maior Danish-Thai train deal The Danish company, Adtranz, has for some time been working closely with the Ministry of Transport to be first in line if a project to deliver new local trains for the Bangkok area should be approved by the cabinet. Now Adtranz fears, budget cuts may postpone the proiect.

The present economic problems of the Thai government

Transportation, Mr. Bjorn Westh in May accompanied

might result in a postponement

HRH Crown Prince Frederik to

of a major expected order for uo to 39 new train sets delivered complete with a training

Thailand, he was promised a final decision on the subject before the summer - but that was also before the economic

and maintenance package

which has now forced the Thai

bubble burst.

The uo to 39 train sets offered are of the standard Flex liner type but adjusted especially for regional traffic around Bangkok.

For the Thai government, the time is running out for the attractive financial package offered by Danida, the Danish development agency.

The softloan package fol-

government to make drastic

lows the guidelines of the

cuts in its budget.

When Danish Minister for

OECD, and Thailand's GNP has exceeded the limit set bv

from Denmark.

The Danish

company, Adtranz, and its local rePresentative, ABB Transpotl, has

for some time been working closely with the Ministry of Transportation and the State Railway of Thailand on the project, but that was before the

crisis in the Thai financial sector staned the snowball effect,

The Danish

Flexliner train has been

adjusted to serve

regional tratfic around Bangkok.

OECD for the application of these loans, where the Danish government will pay all the interests. The offer will probably

have to be revised if there is no

decision before the end of the vear.

Danish enviro-tech promotion Danish environmental know how and technology could successtully be implemented in Thailand, experts believe

Seventeen Danish environmental sector companies will test new marketing concept together with Dansk lndustri and the Royal Danish Embassy in Thailand in November.

Seventeen Danish enviro-tech companies will be unusuallY well prepared when coming to Thailand on the 12-14 November to participate in the exhibition 'Pollution Control '97 'on the occasion of the 5 year jubilee of the Pollution Control DeDartment.

"We are testing a new concept, which will ensurethecom-

panies a less incidental outcome of their participation," economic and commercial counsellor at the Royal Danish Embassy, Mr. Henrik Petersen explains. r "Together with Dansk Industri - the Confederation of Danish Industries - we have com-

missioned a local research company specialized in the lo

environmental sector to select three to four dialogue padners

for each participant, which match the expressed expectations and needs of each partic!-

pant. The Danish companies might still incidentally meet interesting prospects at the exhibition, but chances are high that the right company is to be found among our pre-selected few," Mr. Petersen says.

Adds Mr. Lars Friis-Jensen, Sector Expert for environment and energy at the Embassy: "To put it simple, you could say that with this concept we

are aiming at quality as

oP-

posed to quantity."

The exhibition is sponsored

by Danced - Denmark's international environmental coop-

eration agency - and Danish expefts will also be am ong the speakers at the seminars during the two day event.

Danced recently completed a cornerstone two year training project for staff of the department and other environmental authorities in Thailand. On leav-

ing last month, civil engineer and senior environmental advi-

sor Svend Aage Bang Nielsen and chief engineer Nils Bull, Carl Bro International, summed up the impact of the project.

"Thailand talks a lot about protecting the environment and have passed all the necessary legislation," Mr. Bang Nielsen says.

'The difficult part is enforcing the regulations."

"Through Danced, we have provided the authorities with a short-cut through the studying of thick volumes of documents and a costly trial and error process," they say, adding that fol-

lowing this path they believe

Thailand may successfully adapt the Danish environmental management model.

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Colorlux CEO Mr. Kim Nauntofte

Danish

explaining the technical concept of the production line to Crown Prince Frederik during his visit to Colorlux's factory here while

insulation coming to Thailand

Mr. OIe lsaksen,

With the recent pressure on profit margins for most busi-

Colorlux Managing Director, keeps a close attention.

nesses, the timing seems perfect for Mrs. Charlotte Donvang Parks to start up her company,

CD International, in Thailand, marketing Danish insulation solutions towards Thai manufacturers of temoerature sensitive goods.

Colorlux the latest Danish manufacturer in Thailand

CD lnternational is so far

Colorlux - a Danish manufacturer of illuminated signs and other visual identity products -

factories, outdoor signs will be the main job for the gasoline stations, following the principles

Colorlux is today one of Europe's leading manufacturers of

the latest Danish company to

laid down in Caltex' global

facturing and distribution in

establish own manufacturing facilities in Thailand.

visual identity program.

Mr. Ole lsaksen, previously employed by EAC, has been appointed Managing Director of the new company in Thailand.

Sweden, France, Spain, Ger-

is

Established in February this year, the company was officially

inaugurated by HRH Crown Prince Frederik during his visit here in May. The move was triggered by a contract with Caltex to produce allthe illuminated outdoor signs of the company's more

than 600 gasoline stations all over Thailand. High customs barriers protecting the local sign industry makes it virtually impossible to be competitive without a local manufacturing unit.

Similady, Colorlux recently established its own factory also in the Philippines to take care of the needs of Caltex. For both

Acknowledging that the present economic conditions might not be optimal for establishing a new company, Mr. lsaksen is however not too worried, since the contract is covered by proper exchange

illuminated signs, with manu-

many and the United Kingdom.

Spreading its wings abroad, the company has created a

unique networking concept within the sign industry. In countries where it does not have a company of its own,

Danish comoanies manufactur-

ing equipment for primary animal farming have entered a co-

operation to establish a joint representative office in Thailand to promotre their products in Thailand, the Philippines, Taiwan and South Korea.

The manager of the office, Mr. Frank Hansen, will represent Daltec, L. Frandsen, Agro

18

great potential in Thailand is super-insulating pallet covers and linings for transportation of

temperature sensitive goods.

The oroducts have with suc-

ing local manufacturers. This concept enables a client to

cess been used for transportation of meat from Denmark to Japan and fresh dairy produce

rate futures. Substantial export from the Thai operation is also

work with only one visual identity company in the world. Next on the list of countries to have

might even save the costs of transport by refrigerated trail-

underway, proving the long

their own Colorlux factory

term sustainability of the com-

Brazil.

pany despite the present recession in Thailand.

Colorlux cooperates with lead-

is

Still, Asia is where the

don't know because the economic situation is unpredict-

growth is. Within a few years, Colorlux A/S in Denmark exoects its Asian turnover to amount to a quarter of its total

able," says Mr. lsaksen.

turnover.

"But in the long term we

Five agro-industrial companies establ ish presentative office Five small and medium sized

the sole representative in Asia for the Danish manufacturer, Combi-Therm A/S. One of the main oroducts is roller mats for night covering of fridge and freezer display units in supermarkets, a product already successful in the European markets with proven energy savings of up to 40%.

Another Droduct with a

Product, Fog Agentur and Cleana, whose products all

than pig farms in Denmark.

complement each other and span from pig farming equipment to equipment for breed-

have previously pafticipated in exhibitions in Asia and have as such established a small scale export as a foundation for the

ing of chicken.

Mr. Hansen especially thinks, the Danish equipment will be of interest to the major Thai pig breeders, some of them with 10 - 20,000 breeding sows - considerably larger

The five manufacturers

new reoresentative office to exoand.

to the US. In some cases it ers.

CD International also offers a range of other standard insulation solutions and will in close

JJ & Degussa joint venture Jebsen & Jessen Group of companies has signed an agreement to set up a joint ven-

ture with Degussa, a German chemical conglomerate, to look after chemical distribution activities in theAsean region, particularly in Thailand and Myanmar.

The new company entitled "JJ-Degussa" will support the chemical oroducts for seven industries: building and mining, paint and ink, electronics and metal, cleaning and healthcare, feed and food additive, oil and gas, and plastics and rubber.

FLS miljo to clean the air

Danish proposal to upgrade technic colleges A proposed equipment and training package will lift up the qualifications of the Thai workforce to a higher internal level needed to attract more foreign investments to the country.

for TPI FLS miljo a/s has signed a contract with TPI to install filters on

The electronic

industry is still

two new power generating

hampoered by lack of highly

with TPI's cement factory in

plants to be built in connection

skilled technical personnel

Several Danish comoanies

fered to finance the project is

ternal level needed to attract

keep their eyes fixed on the fate of a Danish proposal to provide

accepted, several Danish companies have already expressed their keen interest in submitting an offer to win the public ten-

more foreign investments.

For the time being, jobs in e.g. the textile industry of Thailand is being lost to other countries in the region, while the growth in the electronics industry is hampered by the lack of suff iciently qualif ied personnel.

advisory services and equipment wonh 300 mill. DKR to up-

grade the training facilities of Thailand's 100 technical colreges. lf the proposal is approved

by the government, and the Danish softloan package of-

der to deliver the equipment and training services.

The purpose of the equipment and training package is to

lift up the qualifications of the Thai workforce to a hioher in-

Saraburi north of Bangkok. The value of the orders are around 75 mill. DKR. The two new power plants will each have a capacity of 165 MW. The filters from FLS will ensure, that the emission of ashes and gasses will be much lower than required by the authorities. According to FLS miljo a/s Managing Director, Mr. Erik Hoffmann-Petersen, this reflects the growing environmental consciousness in Thailand.

"The filters will not only remove dust and ashes, but also sulphuric acid from the smoke through the implementation of

an internationally recognized technology and the ashes will be removed by the latest pneu-

matic technique", he explains.

The two filter installations will be operational by the end of 1 999.

ECCO shoes walk through

more profitable times than ever The Danish shoe manufacturer, ECCO, last year had its best result ever. The profit of 92 mill.

DKR was an increase of 72 percent over 1995 and 35 percent better than the previously best year in the history of the family owned company.

In Thailand, which has been a trouble spot in the group, the management of the company's joint venture has been replaced

and at present the joint venture earns three to four times more than budgeted.

The good result is due to a

dramatic increase in sales. ln America, the sales went up 40 percent, and in Japan, the company's licensee, Achilles, has strengthened its position as the

chased another 45 percent of

the shares in the production company P.T. ECCO. In disclosing its annual report earlier this year, the top

Copenhagen Goodwill Ambassadors

management in Bredebro in Denmark also said, it expected 1997 to be an even better vear for the group.

leading supplier of leather shoes in the country. In Indonesia, ECCO last year pur-

Mr. Poul Weber. President

of the Danish-Thai Chamber of Commerce, and Mr. Michael B. Ascot. Board Member of the Chamber and Mr. Niels Lumholdt, like-

wise long time member of the Chamber, were on Au-

More electronic components to be sourced in Thailand Five Danish manufacturers of electronic goods in May visited Thailand to search for oossible partners to supply components

for their products. The party was headed by Mr. Joergen Staal of Out:Con, who believes Thailand has the right combination of low wages and a relatively high educational level.

Mr. Staal has over the vears 20

conducted more than 30 studies of production costs in Thailand comoared to Denmark. lt is his estimate that the Danish sector for electronic goods as a whole could save around 14 bill. Baht if purchasing components from Thailand instead of manufacturing them in DenmarK.

"A Danish manufacturer of

electronics would typically be able to increase his earning 20 - 40 percent by out-sourcing to

Thailand," Mr. Staal told the Danish daily Borsen.

Base in Birkeroed north of Copenhagen, Mr. Staal has al-

ready assisted

a handful

of

Danish companies in purchasing components from Thailand.

gust 21 all appointed Goodwill Ambassadors for Copenhagen.

The honour has been bestowed on only 30 outstanding Danes world wide.

On Augst 21-22, lhe Ambassadors were given a 2-day special introduction to Copenhagen and the prospects of a new regional centre to spring out of the city's cooperation with the city of Malmo in Sweden, soon to be linked together by a new bridge.

t I

l

Sabroe gets new MD for Thailand

Nordic Center Singapore for new exporters coming to Asia

Mr. Jorgen H. Therkildsen has

A "Nordic Center Singapore" will be ready to receive its first

been appointed new Managing Director of Sabroe (Thailand) Co., Ltd. with the responsibility to take over the ooeration in Vietnam, and within a short time to establish a company in that counIry.

Mr. Therkildsen, a former employee of Sabroe Refrigeration A/S in Denmark, has for the

past 3 years been General Manager for the Danish com-

pany Linco's reglonal office

in

Kuala Lumpur.

Mr. Steen Poulsen, Managing Director for Sabroe (Thailand) Co., Ltd. since its start in 1988, has been transferred to

Manila, The Philippines. Mr. Poulsen is now President of Sabroe Philippines Inc. as well as overall responslble for all the Sabroe Companles operating in the South East Aslan reglon.

tenants by the end of 1 998, now that a solution to the financing of the 250 mill. Kroner project - which used to be 1 bill. Baht - has been found.

New companies f rom Scandinavia may rent office space in the building and benefit from being close to similar companies, sharing frustrations and advice on how to enter the business scene in the various countries in the region.

Initially a

Norwegian

project, the idea caught the attention of Prime Minister of Singapore, Goh Chok Tong, who during his visit to Norway and Sweden last year promoted an expansion of the centre.

A similar German 'hatching house' for the next generation

of exporters from Germany served as an inspiration.

According to former Danish ambassador to Singapore, HE Niels K. Dyrlund, who on the 1st

over at the helm of the Danish Embassy in Bangkok, the Nordic Center will be a oresentation and development centerfor

Nordic technology and advanced production techniques and at the same time motivate and support small and medium sized Nordic Companies trying out their opportunities in a market, which may seem frighteningly difficult to penetrate when coming from the Nordic countries.

of September this year took

Cabinet approves road maintenance proiect The Danish Road Directorate hopes to sign an agreement with the Thai Government worth 20 mill. DKR for equipment and know how to main-

for Transportation, Mr. Bjorn Westh, met with his Thai colleague, Mr. Suwat Rippata-

tain Thailand's 60,000 kilometres of highways.

panlop. Shortly after, the pro1ect was approved by the Cabinet.

During his visit to Thailand

lf an agreement is signed,

in May with HRH Crown Prince

Frederik, the Danish Minister

the Danish company, Dynatest, is expected to deliver the hard-

ware of the project, which would be its largest export order ever.

The project will be financed with a soft loan provided by Danida.

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Work Permit while you wait New facility provided

for 3-hour extensions of Visa and Work Permits to serve the needs of most foreign investors in Thailand.

The new facility is the successful result of years of negotia-

tions between all the foreign Chambers of Commerce in Thailand and the relevant Thai authorities.

President of the DanishThai Chamber of Commerce on

June 30 attended the opening of the center, called "One-Stop

Service Center for Visas and Work Permits". lt is located in

Rachadapisek Road, Din-

service of extension of visa and work permit, the documents re-

daeng, Bangkok 10310. Tel,

ouired are similar to those

693-9333-9, Fax 693-9340.

needed when a foreign investor for the first time applies for a work permit in this country.

Krizda Plaza, 3-5th Floors, 307

The service center will oroc-

ess applications for investors with investments from 2 mill.

Documents reouired for

all

subsequent year's renewal in-

aspects of visa extensions and

clude more company state-

issuance of work permits, in-

ments than required under the ordinary conditions - but then the whole process should take no longer than 3 hours.

According to Mr. Poul Weber, members who experience difficulties in using the services of the centre should immediately repod it to the Chamber's office, who will then bring up the matter with the authorities.

Baht and up. lt will handle

cluding extensions of work permits, issuance of re-entry permits and changes in type of visa to non-immigrant.

Additional assistance will be available for investors of 10 mill. Baht or foreigners working for companies with paid up capital of 30 mill. Baht and up.

When for the first time ao-

while its warehouse was situated in Sukhumvit Soi 26.

By the end of May, both

quality of its operation and services in Thailand.

were relocated to their oresent premises at Km. 12 Bang NaTrad Road in Samutprakarn.

According to Mr. Michael Ellis, Santa Fe's General Manager, the move to one single

Previously, Santa Fe's office was located in the Lumpini

operation more

Tower on Rama lV Road together with the other activities of The East Asiatic Company,

thereby enabling Santa Fe to serve its clients among the embassies, international or-

Commerce in Thailand, has moved down the road.

Together with its sister com-

Mr. Gert Jorgensen 487142 Soi Wattanasilp

Pratunam, Rajaprarop Rd. Bangkok 10400 ECCO International Mr. George G. Kahwati '113/1 Moo 4, Bangprakru Nakornluang Ayatthaya 13260

location has made the daily eff

icient,

Rembrandt Hotel Bangkok

ganizations and companies

and individual clients both faster and more efficiently.

"Besides, from one location here we can serve our clients both in Bangkok and along the Eastern Seaboard, which are fast becoming an important client group," says Mr. Ellis adding, that the truck ban during rush hours in Bangkok is now also no longer a problem.

pany, Media Partner, ScandMedia now occupies all three floors of a town-house close to

its previous location at the ground floor of Managing Director, Mr. Gregers Moller's private

residence.

Mr. Henrich Stocker Sukhumvit Soi 18 Sukhumvit Rd., Klongtoey Bangkok 10110

Smedvig Asia Ltd. Mr. Preben Jensen 36 Soi Ngam Duplee, Rama 4 Rd. Bangkok 10120

Moving..?

100 to 350 som attractive space for office available in the City centre, off Ploenchit Road.

Scand-Media expanding down the road Scand-Media Corp. Ltd., the publisher of this newsletters and other oublications for the Scandinavian Chambers of

Craftsman Press Ltd.

Ms. Darat Setchaibodee 14612-3 Visutkasat Rd. Siyak Bangkhunprom Pranakorn Bangkok 10200

Santa Fe moves to one single location

together at one location in Samutorakarn to further strengthen the quantity and

CD lnternational Mrs. Charlotte Parks Bangkapi Mansion 164.

89 Sukhumvit Soi 12 Bangkok 10110

lntimex Co., Ltd.

plying for the centre's basic

Members on the move:

Santa Fe (Thailand) Co., Ltd. the international moving company of the EAC Group - has moved its office and warehouse

New Members

The new address is: Thanyakarn Village 4l74Moo 3, SoiMaiyala Raminthra Soi 14 Bangkok 10230.

Tel: 943 7166 -8 Fax: 943 7169

Baht 200,-/sqm/month.

Fax: 943 7169 att: #1

BECOME AMEMBER OF THE DANISH.TI{AT 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 19/121. 13th fl.

Sukhumvit Soi 13

Contact Name: Company name: Address:

Bangkok10110 Phone: 651-3888 - Fax: 651-2652

22

Telephone:

Fax:

Thailand's shield against waste of precious resources

(Danfoss: A Danish supplier of energy-savlng, envlronmcntal.preseruing products to the world's industries)

Thailand's unique choice to Save Energy and Money by preserving Nature Danfoss (Thailand) Co., Ltd. Ngam Wong Warn Road Bangkhen, Bangkok 10900

47111

Thailand Tel. 561-1130. 579-1306 Fax 561-1446

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Refrigeration Control (Industrial & Commercial) Electrical Drives and Controls Industrial Instrumentation (flowmeters, level, pressure) Motor Control Gear (Contactors, Relay etc.)

Industrial Controls and Valves

Hydraulic Components Compressors for Refrigerators, Freezers and Air Conditioning

13rh ASIAN GATNES BANGKOK I99A @.|995 BAGOC (Sports

Auihority of Thoilond)