Thai-Danish Trade News - September 1998

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Qualitv Assurdd

Thai-Danish Trade News is published four times a year and distributed to selected Thai and Scandinavian busrness executives and officials with an interest in Thai-Danish relations.

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Mr. Anders Nielsen

Managing Director Maersk Bangkok Branch

Danish-Thai Chamber of Commerce 19/121 Sukhumvit Suite, 13th Floor Sukhumvit Soi 13, BKK 1010O Tel: 651 -2805 Fax: 651 -2652 Ms. Monica Holmgren, Executive Director

President: Mr. Anders Nielsen, Maersk Bangkok Branch Tel. 3120312, Fax:312 0350-2 Vice-President: Mr. Kamthorn Ounhirunskul, Kamthorn, Surachet & Sornsak Tel.44A 0288-97, Fax 44O 0298-9

Treasurer: Mr. Axel Blom, Manager Thailand & Indochina. SAS Tel.260-6252. Fax 26O-6269 Board Members:

Mr. Anders Normann, The East Asialic (Thailand) Plc., Tel. 2856677, Mr. P.Weber,

TWF Ltd.. Tel. 261 2524. Mr. Michael B. Ascot, Amrop International, f el.26O 249O, Mr. Terawat Tishabhiramya, Asia Brown Boveri. Tel. 249 8470, Mr. Hans Ulrich Hansen, Jessen & Jebsen (Thailand) Ltd.,

Mr,TheinsiriTheingviboonwong, ISS/ESGO Tel. 552 5Ol 5, Mr. Lars

Tel. 7143939,

Boe, Diethelm & Co., Ltd., Tel. 332 6O60.

Honorary Board Members: HE Niels K. Dyrlund, Royal Danish Em-

bassy, Tef. 213-2021-5, HE Apiphong Jayanama, Royal Thai Embassy, Copenha-

gen, Tel. (45) 3962 5O10, Dr. Charoen Kanthawongse, MP, Tilleke & Gibbins, Tel. 254-2640, Khun Thamnoon Wanglee, Thai Airways lnternational Ltd. Tel. 513-0121, Khun Chote Sophonpanich, President, CS Capital Tel. 260-7 242-o

Royal Danish Embassy Commercial Section, 10 Soi Attakarn Prasit, Sathorn Tai, BKK Tel. 213-2021-5 Fax:213-1752 Mr. Henrik Petersen, Counsellor, Head of Section, Mr. Lars Friis Jensen, Commer-

cial Counsellor, Mr. Attakorn Saropala, SeniorComm. Officer, Ms. Srisuda Vilyalai, Comm. Officer

Published and Edited by: Danish-Thai Chamber of Commerce Scand-Media Corp. Ltd. Floyal Danish Embqssy

Graphic Production: Scand-Media Corp. Ltd., Thanyakarn Village,4/74Moo 3, Ramintra Soi 14, Bangkok 0230 Tel: 943-71 66-8 Fax: 943-71 69 Att: Mr. Gregers Moller, Managing Director 1

Dear Reader, Danish companies have become more international than ever before, according to a survey conducted by the Confederation of Danish Industries and the Commercial University of Copenhagen.

The details of the survey will be presented and discussed at a major industrial seminar in Copenhagen on Septembet 22, but some of the findings have been released already.

According to the survey, Danish companies currently establish daughter companies abroad at a faster rate than ever before both within sales and marketing as well as research & development. This goes not only for the major Danish business conglomerates, but also for small and minor Danish companies, with the main reason to secure their future existence. The common fear only a few years ago, that internationalization would lead to a drop in the employment level in Denmark has proven to be groundless. According to the survey, internationalization has in fact created more jobs in Denmark than it has exported, - without the globalization some of the companies surveyed would simply not exist today.

No less than three Government ministers will be among the speakers at the seminar; Minister of Commerce Mrs. Pia Gjellerup, Minister of Research Mr. Jan Trojborg and Minister of Education Mrs. Margrethe Vestager. The participation of the Minister of Education is particularly interesting, because a major task of the industry and the educational system will in the future be to secure that Danish companies will have the necessary qualified personnel available for the ongoing internationalization at home as well as abroad - at a reasonable salary. Already today, this is quite often a major problem for Danish companies.

In this respect, we should all support initiatives like the offer from Aalborg University presented in this issue of Thai-Danish TradeNews for Danish companies abroad to be a host and give guidance to young undergraduate student from Denmark interested in working internationally. A similar offer from Kolding Commercial College was presented in the previous issue of the magazine. Of course, these young people do not have the experience and guts requested for management positions in the tough Asian business climate of today as explained by Mr. MichaelAscot in the interview on the centre spread of the current issue. But they offer their time at no cost for the company - except for the effort by the management to supervise and coach them.

That ought to be a fair deal.

Among the members of the Board of the Chamber who have had excellent experiences with hosting trainees in this way are Maersk Bangkok Branch and Amrop lnternational, - and both companies are willing to take in another young trainee.

As for practical questions like work permits, the labour law has a special provision for trainees, which may obtain a permission to work for a period of up to one year, even though the registered capital of the company or the number of employees are not sufficient for a regular employment of a foreigner. Your Chamber's office may help you with the details of this permission. lf we, who are out here playinc; an active role in the internationalization of Danish commerce and industry does not support initiatives like this, who should?

Next issue of Thai-Danish TradeNews will be published in November. Any suggestions from our readers as to articles or news to be covered are welcome.

Yours sincerely

Anders Nielsen President

Danish-Thai Chamber of Commerce

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"How do you spell that?" was Ms Montell's most frequent question to her fans when signing autographs.

During one of Ms. Montell's seven TV appearances, she perlormed her'Di Da Df-hit together with the girl singing the Thai version ol the song, Dharini Divari.

r and so the story goes When the singer Maria Montell visited Thailand in June, Dan-

ish reporters could hardly get close to her because of her zealous manager.

"You are only interested in her because of her acquaintance with Crown Prince Frederik," he snarled.

True enough. But for the Thai press, her intimate friendship with the Danish Crown Prince was certainly not a sub-

During her ten days in Thailand, Maria Montell appeared in seven TV shows, performed a similar number of times in clubs, restaurants and department stores, signed hundreds of autographs - and saw the sales figure of her CD and tape hit 25,000 units, which entitled her to a "gold record".

This dreamy girl is in fact the softly-spoken Ms. Montell herself. She started out playing the piano atthe age of eight

and later joined the local

ject without interest either. During her busy schedule she was again and again asked to confirm that, "yes, he is the man in my life.."

Still, this was of course not

church choir. The daughter of a jazz musician, Ms. Montell was brought up on music. "l didn't find it very trendy to love jazz music," she said.

the main reason why Maria's name for a couple of weeks was on everybody's lips. You

ol jazzjust came out."

just had to saythree little words

years. At 17, she released her first demo tape featuring an album's worth of songs in Dan-

- "Di Da Di" - then everybody would know who you were talking about.

Maria cannot help laughing when asked how this line was born: "l was taking drum lessons. lwas just humming the rhythm

of the drums and trying to make it sound like the innocence of the little girl in the song, the dreamy girl," Maria Montell explains.

became a big hit in Scandina-

via. 'And So The Story Goes' followed in 1996," she recalls. "l started this album in Danish. But someone look it to Japan and it suddenly became a big hit in Asia. Then they asked me to do it in English, and I did

three songs in Spanish because I love the language.

Montell flew out to meet him

here in Bangkok, and the couple disappeared from the public view for about a week.

Ms. Montelf would probably have liked Crown Prince Frederik to repeat the success of that trip at the end of her very packed visit this year. Her busy schedule could easily compare to that of the Crown Prince, but as the Danish Queen Margrethe was travelling abroad at

the same time the Crown Prince had to remain in the country as the acting Monarch.

Ms. Montell has already

Then all of a sudden the songs became successful in Europe."

become veryfond of Thailand.

"Before my first trip, I read one book about Thailand which

She began writing her own

Unlike other musicians,

said you shouldn't tell jokes,

songs during her teenage

Ms. Montell doesn't mind others reproducing her current hit without permission. "l like to hear the Thai version of my song. There's a Chinese girl singing a version as well. And I feel proud of it. I think the Thai language is very soft and feminine."

And it's not just Ms. Montell's songs that like to travel.

"But when I grew older, my love

ish. But as it didn't go down very well, she decided to go to Spain and play in clubs.

Getting a record deal was no easy deal. She worked a lot

in studios. Then sent some demo tapes out. "lt took some years before my first album came out in 1994, entitled'Jeg Er Her For

Dig

(l

Belong To You)'. That

The singer herself used to backpack a lot. Following Crown Prince Frederik's official

visit to Thailand last year, Ms.

and always be polite othenrise

the Thai people would be offended,' she remembers.

"But when I arrived, every-

body I met were telling me jokes and had a great sense of humour." "l also love Thai food. I've eaten a lot of Thai food over the years back in Europe but it

doesn't compare. lt's really good to come here and eat the real deal."

Gregers Moller

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Danish knowhow for better Khon Kaen environment Investments of more than 30 million DKK made by Danish environmental agency Danced Tenders for special equipment coming up this autumn

Bringing Danish environmental knowledge to Khon Kaen - Mr. Jorn Jorgensen, Cowi Consult, and Mr. Niels Juhl Thomsen of Carl Bro Company.

duce some uniform standards and therefore it is very important to get their acceptance and cooperation," he says.

Technology transfer is also

lmproving the environment is an important issue on the politicalagenda - in both Thailand and Denmark. But when intro-

ducing Danish methods and systems for waste management and environmental planning in a Thai municipality, they can't just be copied but must be implemented according to the local conditions and be adjusted in a way that local people will understand the aim and reason of it all.

This is the lesson learned by the two Danish consultants,

Cowi Consult engineer Jorn

Jorgensen and economist Niels Juhl Thomsen of Carl Bro

lnternational. In the town Khon

Kaen of North Eastern Thailand, they are now working in the second phase of the Danced sponsored project, "lnnovations in Urban Environmental Management", IUEMP. Danced, The Danish Cooperation for Environment and Development was established in 1 993 as the response of the

Danish Government to the resolutions of the UN environmental conference in Rio de Janeiro 1992. Under the auspices of the Danish Ministry of Environment and Energy, the agency has chosen to concen-

a part of the IUEMP. Among other things there is a plan to improve the existing landfill to 1999. The funds allocated from

Danced to the second phase amounts to DKK 28 millions with approximately five million 'Kroner spent in Phase I, the planning phase.

The Khon Kaen project is lead by Cowi Consult with Mr.

especially lor waste and waste

hallof Khon Kaen, the project

water management. Hence,

the main objective, Mr. Jor-

is monitored by the Thai gov-

the establishing of an efficient information system is a vital

gensen states clearly: "The Danced projects are

tool to control pollution," ex-

not meant to be export of turn-

plains Mr. Jorgensen.

The IUEMP works closely

key systems. The aims are strictly environmental which

with the municipal staff of Khon Kaen, and in the neighbouring tambons Mr. Thomsen is active

means for us - as the project

panies, the Thai consultants company, TEAM, also takes part in the project as do the Research and Development lnstitute of the Khon Kaen Uni-

ernment through the Department of Local Administration.

The overall goal of the IUEMP is to increase the capacity of the municipal staff in

dealing with environmental management and planning.

in building up a cooperation

sub-projects covering a wide

with the tambon leaders.

"When you drive around in the vicinity of Khon Kaen it is very interesting to see how dif-

coming environmental prob-

two years duration is scheduled to run until end of June

tension of the public utilities was always lagging behind .

The project is divided into 12

995 and the second phase of

1

waste will be installed. For

versity. Situated in the town

Jorgensen as the team leader.

Besides the two Danish com-

commenced in September

countries, Thailand, Malaysia and South Africa.

The project in Khon Kaen

some 30 years ago this was just a small town and today the urban area of Khon Kaen - the city itself plus the surrounding tambons - is inhabited by approximately 200.000 people. A wide range of small scale industries has popped up and the growth process has taken place much faster than the city planners could follow. The ex-

prevent eventually toxic agents from the solid waste to leak into the ground water. Also, a new composting plant for organic toxic and infectious waste from hospitals and clinics a special incinerator will be constructed.

The tender for delivery of the lurnace will be called in Denmark later in the autumn.

Thus, the IUEMP may also give some Danish manufacturers in the,environmental industry a chance to enter a new market. However, it is not

range of environmental topics.

An important goal is to develop and install a comprehensive information system that will enable the municipality of Khon Kaen to gather relevant information and react swiftly to up-

trate its activities to the three

ment of Khon Kaen has created some problems. Just

lems.

"The rapid urban develop-

ferently the various tambons have organized themselves.

They are used to find their own

solutions and very independent in their ways ol thinking.

But to achieve the goals of the IUEMP it is necessary to intro-

managers - that we shall try to

obtain the maximum environmental improvements at the lowest possible costs. Whatever can be produced cheaper

here in Thailand we will buy here. But because Denmark in many ways has been a pioneer

country in the environmental fields, many Danish companies actually do have technically sophisticated equipment to offer at competitive prices."

Henrik Houtved

Gompetitive edge in logistics On line exchange of

information with clients is part of Mercantile's concept to offer just-in-time solution. Although an affiliate branch of the A. P. Moller Group, the worldwide operating logistics company works as an independent provider of services.

Mercantile helps companies gearing their supply and distribution chains

"There is a clear trend in the marketplace towards outsourcing of logistics functions,"

"Our new Europe bound LCL service has been well received by our customers," says Managing director of Mercantile Thailand. Henrik Anker Olesen.

"The clients should focus on their core business, e.g. designing and marketing ot their products, and let Mercantile handle the logistics which is our area of expertise. lt makes a lot of sense and adds a lot of money to our clients bottom Iines," says Mn Olesen.

says Henrik Anker Olesen, Business Development Manager of Mercantile Consolidators in Thailand.

"Mercantile is providing our clients with a competitive edge in logistics. Our clients are today looking for two things: Reduction of transportation and inventory costs and reduction

our area of expertise. lt makes a lot of sense and adds a lot ol value and money toour clients bottom lines," Mr. Olesen con-

than 11 00 staff . Mercantile has a global in-house communica-

chase Order (PO's), Stock

tions network supporting the

ticle number levels. This soft-

business environment and all

tinued.

office are able to communicate via E-mail to clients.

ware is installed at a large number of clients logistics

Keeping Units (SKU's) and ar-

of lead times. The "Just in

"Supply Chain Management is the core business of Mercantile. We do, however,

strengthening of our organiza-

headquarters enabling them to have a complete overview of what is happening with the in-

Time" principles are now more

not only provide cargo consoli-

tions activities within Freight

ventory, where it is, in what

important than ever," says Henrik Anker Olesen, Busi-

dation services. Any service re-

Forwarding, Airf reight, Project Cargo Management and Warehousing & Distribution. As an

quantity, when it will arrive etc.

ness Development Manager of Mercantile Consolidators in Thailand.

lated to sea, air & land transportation can be handled by Mercantile. Top quality "Full Package Transport" solutions

"We are also seeing that

are becoming increasingly

the need for advanced infor-

popular. At Mercantile the entire pipeline can be managed, including custom clearance,

mation technology is becoming

increasingly important for lead-

ing companies," Mr. Olesen says.

"Our main strength is a strong global networkwith a lot of experienced and dedicated resources ready to exceed our client's expectations with regards to service and profes-

sionalism. We are helping companies to gear their supply chains. There is a clear trend in the market towards

trucking and ocean transport in both ends of the pipeline. This

kind of One-Stop-Shopping adds significant value to our clients business," said Mr. Olesen.

ents system normally upon receipt of booking and upon con-

As client references

Mr.

Olesen mentioned the partnerships with amongst other: The Disney Stores, Reebok, Ecco,

disco.

tions. The clients can focus on

ships cargo on whichever car-

their core business, e.g. de-

rier is most competitive and by whichever carrier the clients

10

mation is triggered to the cli-

new LCLWestbound service to Europe which has been a great success and received fine support from local shippers," said Mr. Olesen. Mercantile in Thailand is also handling cargo to and from Laos and Myanmar.

Maersk Line, a sister company is, however, completely indepen-

of Mercantile. Mercantile

prefers being used. In terms of organization, Mercantile has in

excess of 100 own

off ices

worldwide and employs more

Mercantile currently exchanges EDI messages with a number of large clients. Infor-

Mercantile has just opened a

Woolworths, Liz Claiborne,

dent from Maersk Line and

Logistics is our core business,

example of this expansion

Mercantile is a part of the A.P.Moller Group from Denmark. A.P.Moller also owns

out-sourcing of logistics func-

signing and mark6ting of their products whereas Mercantile takes over the logistics functions of the clients companies.

"Locally we are currently

Philips-Van-Heusen, Mattel, lkea, lBM, Carrefour and MelBeing amongst the leaders in Information technology is of extreme importance to Mercantile. For this purpose

Mercantile has developed M.Power, a powerful windows PC based computer software which can track and trace inventory in the pipeline to Pur-

tainer stuffing. This gives clients an early message about what is expected from the ship-

pers and what has actually been received in the warehouses in Asia.

Mercantile has invested heavily in the development of Bar-coding. Cartons from ship-

per are scanned in the warehouse upon cargo receipt and upon stuffing of cargo. This information is then transferred to the client in EUR or USA providing a complete and 100 % accurate pipeline overview. No manual mistakes can be made

when all informalion is scanned into the Information systems.

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Tough guys ln demand Boom or bust - changing times also shape another profile of what an executive should be like. Amrop headhunter, Michael Ascot , now watch out for managers with a methodical approach and a sharp eye for details

W

n'"n qualities constnute

performance under both con-

the perfect breed of a company executive? The attentive boss who creates a feel good atmosphere in the workplace? - the

ditions. lt's like in a bicycle

hawk-eyed supervisor, never overlooking any signs of slackness? - the visionary entrepreneur, always on the alert for new market opportunities?

The list of requirements, often contradlcting one another, may be prolonged indefinitely. The process of selecting the right person for the job is like putting together a jigsaw puzzle piece by piece.

Michael Ascot, Bangkok

partner of global executive

race. Some athletes show their strength in daring maneuvers at the high speed downhill, oth-

ers take the lead in the long tough stretches on rainy days," says Mr. Ascot, who willingly admits that he himself would

probably not be the perfect choice to manage a company in times of a recession - it is simply not his style.

Growth easy to manage "Luckily for me, I never had to

try that,' he says. "All the years I was with Seagram we

search company, Amrop Inter-

only experienced success.

national, has been doing that

Sales revenues went up every year by 20to25 percentage. lt wasn't that difficult to manage.

Now the market situation has changed and if I should briefly describe the profile of the manager now needed to cut back

job now for five years. Ten

years previous experience in Thailand and Hong Kong as a senior manager of American Iiquor company Seagram has earned the Dane a profound knowledge of the Asian region.

When he commenced as a

headhunter, economy was booming throughout the region. In demand were the

on activities, it is a strong nerved person with a good

sense of the details and with a very methodical approach to

running a company. In a fast

gung-ho kind of people, vision-

growing market, these person-

ary and daring. But since last

alities can often be seen as sluggish conservatives who misses out the golden oppor-

year, the recession in Thailand and other Asian countries has changed the profile ef the most wanted manager quite a bit.

"The booms we have to handle in another way than the

busts. That's a fact, and very

few leaders shcw optimum 12

tunity for expansion. But when the going gets tough, the tough gets going."

A few years ago, Mr. Ascot

was advocating multinational companies, which comprises

about 80 percent of his client base, to look for native executives as soon as oossible after entering the market. But in the present situation he believes it might be better to wait a bit: "One big advantage in finding a native manager for your

subsidiary is that he's got the connection network to a lot of influential people, besides of course, that he knows the local market and speaks the lan-

guage. But connection webs work reciprocally, which means that if the task is to cut back on operations, the native man-

ager will most probably experience a lot more pressure from

influential people than the foreigner - inside the company and outside; not to withdraw from this troublesome project, not to terminate that specific supplier's contract, not to dismiss these certain employees and so on."

been established without thor-

ough consideration of their purpose. When trying to get a foothold in an Asian market for them exotic and strange many western companies con-

sider a joint venture the easiest way in. But the concept of a joint venture should be understood literally. lt is a jointly owned entity and, hence, the panner company may not not necessarily have the same interests as the mother company. Many problems and conflicts derive from this being misunderstood. lf your ambitlons are to expand your company with all its features into a new market you should carefully consider if you can accept the constraints of a joint venture or you need absolute control," Mr. Ascot explains.

Henrik Houtved

Watch out with joint ventures For that reason he also admonishes his clients to keep an eye on the changing joint ven-

ture legislation. The new government of Chuan Leekpai has introduced some reforms making it easier for foreign compa-

nies to establish themselves

on the Thai market throuoh fully owned subsidiaries.

"The problem with many joint ventures is that they have

"Many joint ventures have been establ ished without thorough consideration of their puryose," says Michael Ascot, A m ro p I nternati o na l.

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Danish economy to continue healthy growth The Danish economy will continue its stable growth next year as well, according to the association for Danish employ-

ers within trade and service business, "Dansk Handel & Service".

Prognosis sees a stable demand in domestic consumption and a healthy 5,3 per cent growth in export despite the weakened competitiveness of Danish manufacturers due to the Asian crisis.

some Danish manulacturers, this means a worldwide weak-

capital market. The out-of-Asia stampede by foreign investors has mainly gone to Europe and

In a forecast for 1998/99, the association predicts that the GDP growth for 1998 will

ments in Asia might indeed be severely affected if the crisis

The decrease varies, depending on how much import is

gers worse.

be 2.8 per cent. That is somewhat less than last years 3.4 per cent growth, but in 1999 the GDP should bounce back again to a 3.1 per cent growth rate. Dansk Handel & Service

Also, there could be some backlashes in third markets for

needed to produce the goods in question. A Thai produced

has based its prognosis on available information from the Danish National Bank, the Danish Statistic bureau and reports from member compa-

Danish exporters, the association warns in a thorough analysis of the impact of the devaluation of the Thai Baht.

The direct imoact of the

ening of their competitiveness," the analysis warns.

However, the biggest economic impact from the Asian crisis is not in trade but on the

the US. Danish shares and

swimsuit will of course become

bonds have profited from this,

relatively much cheaper than a computer given its high input of imported components.

quotations skyrocketing this year creating rich supplies in

"Consumers are likely - not only in Denmark and Thailand

Thai devaluation has been that

- to substitute Danish goods

goods produced in Thailand have become cheaper than goods produced elsewhere.

with Thaigoods. The same will happen in third countries like

the USA and Germany. For

the capital market and historically low interest rates.

So far, the Asian crisis actually seems to have had more positive than negative impacts on Danish economy.

Henrik Houtved

nies.

Whereas the economy is this year pulled by the private consumption, the prognosis anticipates that this will slow down in 1999. Instead, the export sector will gain in dynamics and is expected to grow by 5.3 per cent next year.

International Private Banking for Skandinaver

The positive expectations towards the export sector is based on signs of reviving

Union Bank of Norway International SA. Luxembourg

economies in some of the major export markets for the Danish industry. Further, the strong US-dollar has relatively weak-

Legger De vegt pA:

ened the Danish Crown, together with other EU currencies, making Danish products cheaper in dollar nominated contracts. Hence, the balance of payment surplus is expected

to rise from estimated four billion DKK this year to approximately nine billion in 1999.

The crisis in the Asian region gives some reasons to worry, but because Denmark' s overall trade exchange with the region is not that significant, neither is the impact from Asia expected to change much

in the Danish economy - at least not in the short run.

But one thingis the national

is the fate ol individual companies. The prognosis warns that some

economy, another

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8

Luxembourg

Danish companies with a high

exposure to market develop15

TWo Positions Vacant (Local Staff)

Help to move the Mekong Secretariat to Phnom Penh Denmark has supported the relocation of the Mekong River Commission lrom Bangkok to the Cambodian capital, Phnom Penh, with 700,000 US dollars.

The relocation, which started this April and is expected to be completed by October, is further being sponsored by Sweden, Germany and Japan.

The Mekong River Commission was re-organized to its present status in 1995 by Thailand, Cambodia, Laos and Vietnam to develop the Mekong River and areas in the basin.

The Mekong River Council, the governing body of the commission, was at its latest meeting last year joined by Burma and China as observers The member countries decided in 1996 to let the secretariat rotate between Phnom Penh and Vientiane every five years. The Cambodian capital will begin as host.

Denmark resumes voluntary

contributions to UNIDO Denmark has resumed its voluntary contributions to the United

Nations Industrial Development Organization, UNIDO, with an initial contribution of 15 mill. DKr for 1998 to the Industrial Development Fund managed by the organization.

The Danish contribution has been given on the condition that the money will be spent on projects in Africa, South of Sahara, especially on small and medium size industry.

Denmark cancelled its contributions to UNIDO in 1993.

The Ministry for Foreign Affairs points to an independent evaluation of the recent reforms of the organization and UNIDO's

re-defined role within the UN system as its justification Jor resuming the support.

Shell to trade in power Shell in Denmark has entered into trading in electrical power.

For the rest of this year, the company has signed an order to deliver 20 million kW to the power company Scan Energi.

Entering the market for electrical power is part of a long term strategy for Shell to become a supplier of both oil, gas, electricity and sustainable energy to consumers as well as the commercial sector. Denmark is the first countrv for this strategy to be tested.

Researchers - go home!

Danish companies and universities have successfully attracted a number ol foreign researchers by olfering incentives like a maximum of 25 per cent personal income tax, - which, however, turn into a penalty if they stay too long...

"According to the law, they may enjoy the tax-incentive for only three years," Mr. Peter Huntley, head of the technology section of the Confederation of Danish lndustries (Dl).

The next four years, they will pay tax like every body else.

"The problem is, however, that if the researcher should wish to continue [is stay in Denmark beyond these seven years, the tax authorities will demand the wavered part of the full .tax for the first three years of his stay paid up first," he

explains, adding that he disagrees with the rationale behind this penalty.

16

Royal Danish Embassy 1. V|SA SE.CTTON

Job description

.

Receiving visa applications, attending to visa customers, contact (oral/written) with Danish authorities, companies, etc. on visa issues.

Assisting in receiving consular cuslomers at the reception.

Stand-in for the Embassy's receptionist in her absence.

. .

Requirements The position is independent with contacts both to visa applicants and relerences in Denmark. The job requires communication skills in English as well as in Danish. Proficiency in Thai an advantage.

The position is vacant immediately.

2. CONSULAR SECTION Job description

o . o

The majority of the work will be in the Consular Section, where the person will assist in receiving consular customers at the Embassy, for instance issue passports and residence permits. Assistance to Danes, i.e. eco-

nomic assistance, hospitalization, deaths, and imprisonments. lssuecertificates. translations, legalisations.

Cases concerning marriage, divorces, adoptions, etc.

Requirements The position is very independent and we are therefore looking for a person who is able to communicate in Danish as well as in English (orally and in writing). Furthermore, it is an advantage to have some knowledge of Thai.

The position is vacant around 1 st November 1 998.

Royal Danish Embassy 10 Soi Attakarn Prasit Sathorn Tai, Bangkok

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Welfare to improve output "With better welfare, I believe employees will be more enthusiastic , work harder and smarten" says Mn Manu Sitachitt.

Mala Chemical's Mr. Manu Sitachitt's Danish management philosophy is simple: "With better weltare. employees will be more enthusiastic, work harder and smarter."

contract to supply flight utensils for Scandinavian Airline Systems. The company expects to earn around 40 million Baht per year from this contract alone.

Mr. Manu said the company fought off competition from around the world to win

While many businesses are reducing operational costs be-

cause of the economic crisis, Mala Chemical Industries Co., a producer of melamine, has surprise many colleagues by otfering better welfare for its 927 employees and theirfamilies.

According to Mala managing director Manu Sitachitt, the company's concept is simple: with better welfare, employees will be more enthusiastic and work harder and smarter.

The main element in improving employee welfare is

the development of a seven-rai recreational park on land near its factories at Samut Prakarn.

producing melamine tableware, kitchen-ware, plastic

The park, costing 10 million

and industrial components, are located on 50 rai on Buddha-

Baht, will be named after Mr. Manu's mother, Watana. lt will comprise a pond, trees, sculptures and a day care centre. lt is due to be opened next year.

"The recreation park development came into my mind after I realized that the firm had invested in only machines to enhance productivity for many consecutive years in," Mr. Manu said.

Mala and its six factories

moulds, industrial containers

raksa Road in Muang district, Samut Prakan.

the contract by convincing the airline that it could mass produce the utensils and make urgent deliveries at any time.

The contract has helped the company to increase its exports.

Mala exports to Britain, Ja-

pan, Europe and the Middle

The Sitachitt family holds a stake in Mala, APM 2%

East. lts major customers are Mepal BV Bodum (Schweiz) AG, SC Johnson & Son, Inc, Tupperware US Inc, and the Gillette Company, AT&T, NEC Technologies (Thailand), Caltex Oil (Thailand), John Lewis Partnership, and Lever Brothers (Thailand).

and Rosti 49"/".fhe company

Smam Sudto

Mala was established in 1961 by Mala Sitachitt, Mr. Manu's father. lt entered a joint

venture in 1981 with Danish firm Rosti, a leader in plastic and melamine production.

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Thailand's first travel guide to Denmark "Travel Guide to Denmark" - the first ever book in Thai language for Thai people interested in travelling to Denmark - is about to be published by Atitta Publishing Com-

So what is so special about us Danes?

"Well, you are for sure one of the most childish nations around. Every summer, for instance, you arrange a world conference

pany, the publisher of the Thai travel magazine'Tio Rob Lok'.

The author of the book is Sansanee

for Santa Claus'es at the entertainment park "Bakken", isn't that right?" asks the

Sansanee Msller has written her

travel book to Denma* with a great deal of love for her second home country.

auther who is most w'rlely known in Thailand for her travel related features on

Channel 9 and CNN and her articles in the magazine'Tio Rob Lok'.

"My book also gives the recipe how to make a Dane away from home break down in tears: First you give him a surprise serving of thin, warm'pandekager'for dessert,

then you remind him of the rich smell of

Msller, married 17 years to a Dane. The first six years of her marriage were spent in Denmark, - a fact which her guide book generously reflects. "l wanted the book to be more than just listing a of facts about Denmark, I wanted to tell the reader what I personally find most fascinating about Denmark and the Danes," she explains.

The book is the 15th in the series ol guide books published by the Atitta and all of them follow the same concept - not one is merely a translation of a foreign guide book.

freshly baked bread in his home town bakery on a summers Sunday morning." "lf that has still not done the trick, then play back a tape with the sound of the bells at noon on the Town Hall square in Copenhagen," she suggests.

Another feature ol interest is a short guide to a few Danish sentences - with a Thai transcript - that will make the Thai tourists' stay in Denmark more pleasant.

Next, Sansanee Msller is planning a

special trip to Denmark for other Thai travel writers - back packing!

Gregers Msller PS. Yes, she is my wife. Who told you editors are always totally impartial in their news selection?

Velkommen til Avis Biludlejning i Danmark Vi har mere end 27 forskellige bilmarker at velge imellem. Til udenlandsdanskere har vi helt specielle feriepriser. Send kuponen, fax eller ring - sA sender vi straks yderligere

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Danish trainees offer to work free Aalborg University - the third-largest uni-

that the students gain remarkable results

versity in Denmark - offers Danish companies abroad the mutual benefit of taking in a trainee with one of the following

from this period, and that the receiving

specializations: International Technology Management, International Technology Planning, International Business Economics, European Studies, Development Studies and Language and Intercultural Studies.

During the period in the company, the

student will have a supervisor from Aalborg University and the student will write a project report which will be evaluated atAalborg Ufiiversity. The student can have one or more tasks from the company he/she is staying in, for instance a trade or a market analysis.

It is the experience of the university,

companies are satisfied with the student's work and wish also to receive students in future.

The student does not receive any payment lrom the company but receive a grant

from Aalborg University and continue lo receive a grant from the Department of Education and Science.

Interested persons should contact Ms. Kirsten Jakobsen, Aalborg University, tel.: +45 9635 9653, fax +45 98154522, e-mail: Kij@aua.auc.dk - or lmmediate Past Presi-

dent of Danish-Thai Chamber of Commerce, Mr. Poul Weber, lcecon/TWF Ltd., Tel.: +66 2 261 2524, fax: 261 0738, email: weberp

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Gloomy mood among the participants in the World Diamond Congress in Bangkok.

In Denmark, however, diamond and jewellery sales are running high

The World Diamond Congress was this year held for the first time ever in Banakok - at the riverside Hotel Shangri-la.

Diamond distress The mood wasn't quite on top among the approximately 300 participants in the World Diamond Congress held July 2629 in Bangkok. World market

prices of gems and jewelry continue to be under pressure

due to the Asian recession

This company was praised by

While struggling with a de-

several of the professional diamond people for its restraints in throwing new supplies on the market. But there are other

pressed home market, the

key players such as Russia and Australia, and especially the Russians seem difficult to

leading diamond cutting companies of Thailand also have reasons for ootimism. The devaluation of the Baht have made them very competitive, making it easier to export and attract new investments.

combined with a glut of high quality rough diamonds.

control. A lot of their stones dis-

appear in the manufacturing

Hence, Mr. Eli lzhakoff,

One should exoect the

process and end up being distributed abroad.

The World Diamond Con-

problems of the professional

president of the World Federa-

tion of Diamond Bourses, made an appeal to producers and traders of precious stones to show restraints in their business. "We must stick together in The Diamond Family in or-

der to overcome the market setback," he requested.

Mr. Y. Hausman, president

gress is held every second year. This year was the first time for the event to take place in Thailand, - sign of recognition of the growing importance of the Thai diamond industry.

Thailand's Ministry of Com-

merce this year expects the

of the lnternational Diamond

export of diamonds, gems and

Manufacturers Association, likewise saw the current situa-

jewelry to reach the benchmark of two billion dollars,

tion in a gloomy light, saying the "meltdown of the promis-

making the industry one of the country's major export earners.

ing Asian markets has dealt a

The industry which generates more than one million jobs, is promoted by the government

serious blow to the industry."

The supply of rough diamonds is dominated by the big South

African company de Beers.

with BOI privileges and exemption from duties.

diamond industry to mean a bargain opportunity for ordinary consumers. In Denmark, however, there is no sign of a flaw for diamonds and jewelry.

Prices have been stable for a

long time and sales are thriving, not at least because many

rich Norwegian consumers now travel to Denmark to buy precious stones.

"Whenever I hear the singing accent of a Norwegian customer in my shop, I expect to

get a good turnover. They've got so much money to spend and if a Norwegian says that he will buy my whole exhibition counter, lwouldn't be surprised at all," says John Skov Larsen,

owner of one of the leading Danish jewelry houses, Aarhus

Guld & Solv, in the main town of Jutland.

Being in the business since

20 years, he deals with diamonds and precious stones from all overthe world. He confirms that the reputation of the Thai cut stones have imoroved over the last decade.

"Actually, today it is more or less the same cutting technologies applied all over the world. Hence, it has become very difficult to establish where a diamond has in fact been cut.

There are still some few collectors watching out for what is known to being the "Russian

cut", and opposite, some Indian cuttings are said to be of inferior quality. The rest, be it Thai, lsraeli, Chinese or Belgian cuttings, don't differ very much. We don't classify diamonds anymore from where they have been cut," Mr. Larsen says.

Henrik Houtved

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20

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21

Jebsen & Jessen Marketing's General Manager, Mr. Yudhana Chunhapak, presented J+J's

Once a photo has been taken, it may immediately be loaded into a computer for further processing. Several members were later presented with snapshots of themselves during the demonstration.

The orice has come down on this type of equipment, and the price range forthe products

first pocket camera version of raph tech n o I ogy to members of the Thai-Danish Chamber of Commerce d i g ital p h otog

shown is now only between

Digital photos

Royal Danish Embassy Commercial Section 10 SoiAttakarn Prasit Sathorn Tai, Bangkok

Members of the Danish-Thai Chamber of Commerce were on Thursday the 11th of June

Tel.213-2021-5

Fax:213-1752 HE Niels K. Dyrlund Ambassador Mr. Henrik Petersen Counsellor. Head of Section Mr. Lars Friis Jensen Commercial Counsellor

treated to an interesting insight into the digital future of home and office technology and digi-

tal image processing by Jebsen & Jessen's General Man-

12,000 and 35,000 Baht.

ager for Marketing, Mr. Yud-

After the demo, Mr. Hans Ulrich Hansen. Jebsen & Jebsen's Manager for Thailand

hana Chunhaoak.

and Board Member of the

Most members took the opportunity to try hands-on the

to join in a succulent buffet din-

cameras demonstrated. The brands represented by Jebsen & Jessen Marketing are Sanyo and Casio.

Chamber invited the members ner on the terrace of the company. Over 30 members joined the arrangement.

Gregers Moller

Mr. Attakorn Saropala

Senior Comm. Officer Ms. Srisuda Vilyala Comm. Officer Royal Thai Embassy Norgesmindevej 18 DK-2100 Copenhagen O

Ellemann to speak at Chamber dinner

Chamber Events

The Danish-Thai Chamber of Commerce will host a Dinner

during his visit to Thailand. After the Dinner, Mr. Elleman Jensen has accepted to ad-

14 October 1998 Dinner with speaker

dress the members of the

Grand Hyatt Erawan

Denmark

Tel.:39 62 50 10 Fax: 39 62 50 59

Apiphong Jayanama Ambassador

Prasittidej Vichitsorasatra

for former Danish Minister for Foreign Affairs, HE Uffe Ellemann Jensen, on October 14

15 September 1998

Member Dinner Hosted by Eurocenter

Mr. Ellemann Jensen

Chamber.

15 October 1998 Joint Nordic Chamber

Counsellor

Scandinavian Society G.P.O. Box

Dinner with speaker: Dr. Kriengsak

"Why! This is beer from Funen, my home lsland in Denmark," Mr. Ellemann

Bangkok 10501

Anders Lundqquist Chairman Tel.: 653 0492

Charoenwongsak Regent Hotel

Jensen - known for his pleasant personality -

Fax:654 1147

exclaimed during a tour ot Singapore on one of his previous visits to South East Asia. In the middle is Iikewise legendary Danish ambassador HE H.P. Larsen.

BECOME AMEMBER OF THE DANISH.THAI CI{AMBER 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 Bangkok 10110 Phone:651-2805

22

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Any new product launched by Danfoss in recent years represents the technologically highest possible level of respect for nature and resources!

Ask for proof!

Contact Danfoss in Thailand for more information on how to benefit from our techonology within Refrigeration, Regulation and Instrumentation.

recognized throughout the world for our environmental protective products of advanced tâ‚Źchnology

Danfoss (Thailand) Go., Visit Danfoss on the Intenet: 47111 Soi Mongkol

Ltd.

Www.danfoss.com

Nlv.., Ngam Wong Warn Road. Ladyao.Jatuiak. Bangkok 10900.Thailand Tel. (662) 561-1130Automatic

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lE-

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Lines. Fax. (662) 561-1446

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