INFORMA February issue

A BUSINESS MAGAZINE OF THAI – ITALIAN CHAMBER OF COMMERCE FEBRUARY 2011

Building the Future of the TICC INTERVIEW WITH THE PRESIDENT OF THE THAI – ITALIAN CHAMBER OF COMMERCE

Thai Business for Foreigners THE HEART OF DOING BUSINESS SUCCESSFULLY IN THAILAND

Thai-Italian Chamber of Commerce PRESIDENT Mr. Ekkamon Hutasingh - Tesoro Co., Ltd. Tel: +66 2 719 5416-7 Fax: +66 2 719 5415 E-mail: tesoroth@truemail.co.th

President's Message

VICE PRESIDENTS Mr. Lino Geretto - LGV Engineering Co., Ltd. Tel: +66 2 255 8717-8 Fax: +66 2 255 8716 E-mail: info@lgveng.com

Mr. Ekkamon Hutasingh President Thai-Italian Chamber of Commerce

Mr. Luca Vianelli - MDA Consulting SEA Co., Ltd. Tel: +66 2 652 2447 Fax: +66 2 652 2448 E-mail: lvianelli@mda.it DIRECTOR & HONORARY TREASURER Mr. Chakrit Benedetti - Italasia Electro Co., Ltd. Tel: +66 2 261 7990-9 Fax: +66 2 261 8700 E-mail: italasia19@hotmail.com DIRECTOR & HONORARY SECRETARY Mr. Yongyudh Teeravithayapinyo - Jewelry Network Co., Ltd. Tel: +66 2 664 8358 Fax: +66 2 664 8373 E-mail: yyudh@koola.com DIRECTORS Mr. Chayaporn Phronprapha - Italsiam Motors Co., Ltd. Tel: +66 2 612 4400 Fax: +66 2 612 4411 E-mail: chayaporn@italsiammotors.com Mr. Gianmaria Zanotti - Zanotti (Thailand) Ltd. Tel: +66 2 636 0002 Fax: +66 2 636 0221 E-mail: zanotti@loxinfo.co.th Mr. Giuseppe Zigrino - K+Z Corporation Ltd. Tel: +66 34 381 313 Fax: +66 34 381 717 E-mail: sales@kzcorp.com Mr. Mario Bracci - Asia Cement Public Co., Ltd. Tel: +66 2 641 5600 Fax: +66 2 641 5680 E-mail: m.bracci@acc.co.th Mr. Nino Jotikasthira - Turismo Asia Co., Ltd. Tel: +66 2 245 1551 Fax: +66 2 246 3993 E-mail: nino.j@turismoasia.com Mr. Pichai Chirathiwat - Central Trading Co., Ltd. Tel: +66 2 229 7000 Fax: +66 2 367 5445-6 E-mail: pichai@cmg.co.th Mr. Pierre Nicou - EUROFOOD - The Commercial Company of Siam Ltd. Tel: +66 2 261 0245 Fax: +66 2 261 0243 E-mail: pierre@eurofoodthai.com Mr. Rene Okanovic - Berli Jucker Public Co., Ltd. Tel: +66 2 367 1092 Fax: +66 2 381 4541 E-mail: rene.okanovic@bjc.co.th, rene.okanovic@thaiscandic.com Mr. Romeo Romei - Quick Pack Pacific Co., Ltd. Tel: +66 2 998 9101-3 Fax: + 66 2 531 6425 E-mail: romeo@quickpackpacific.com Ms. Tiziana Sucharitkul - Tilleke & Gibbins International Ltd. Tel: +66 2 653 5555 Fax: +66 2 653 5678 E-mail: tiziana.s@tillekeandgibbins.com SECRETARY GENERAL Mr. Sandro Zanello Thai-Italian Chamber of Commerce.

1126/2 Vanit Building II, Room 1601B 16th Floor, New Petchburi Rd., Makkasan, Rajdhevee, Bangkok Tel: +66 2 253 9909, +66 2 255 8695 Fax: +66 2 253 9896 E-mail: secretarygeneral@thaitch.org

The Informa is the bi-monthly magazine of the Thai-Italian Chamber of Commerce, covering all business activities and social news of interest to the members of the Thai-Italian community and others active in the expanding Thai-Italian bilateral relations.

EDITOR: Thai-Italian Chamber of Commerce Tel: +66 2 253 9909 Fax: +66 2 253 9896 E-mail: info@thaitch.org EDITORIAL COMMITTEE: Thai-Italian Chamber of Commerce President: Mr. Ekkamon Hutasingh Directors: Mr. Nino Jotikasthira Mr. Romeo Romei Mr. Giuseppe Zigrino Secretary General: Mr. Sandro Zanello Italian Embassy Representative: Ms. Somsri Pobpipugtra Italian Trade Commission Representative: Mr. Vincenzo CalÏ Dante Alighieri Association Representative: Mr. Giacomo Mauri Scand-Media Representative: Mr. Gregers Moller TICC Staff: Ms. Ratijul Sanguansuk: Membership Executive Ms. Sukanya Kerngfak: Marketing Executive Mr. Richard Darren Bartlett: English Editor Mr. Stephen Johnson Farrell: English Editor PUBLISHER: Scand-Media Corp., Ltd. 4/41 Moo 3, Thanyakarn Village, Ramintra Soi 14, BKK 10230 Tel: +66 2 943 7166-8 Fax: +66 2 943 7169 Design: Disraporn Yatprom Email: disraporn@scandmedia.com ADVERTISING CONTACT: Mr. Finn Balslev, Marketing Director Scand-Media Corp., Ltd. Tel: +66 2 943 7166 Ext: 151 Fax: +66 2 943 7169 Mobile: +66 81 866 2577 Email: finn@scandmedia.com - www.scandmedia.com Ms. Sukanya Kerngfak, Marketing Executive Thai-Italian Chamber of Commerce Tel: +66 2 253 9909, +66 2 255 8695 Ext: 103 Fax: +66 2 253 9896 E-mail: pr@thaitch.org – www.thaitch.org

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Dear Friends,

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nother year has passed and what a memorable year it has been. For a long time to come, no one will be able to forget the political and economic circumstances in which we all found ourselves. Naturally our internal activities were also affected but fortunately, with the help of our members, the Thai Italian Chamber of Commerce was able to continue with our work, projects and various activities. We are indeed grateful for the encouragement and support of all our members.

In this issue of INFORMA, you will see that for the past two years the Chamber has indeed had a full schedule and a multitude of offerings for our members. In particular, you will note the interesting programs which were organized in collaboration with other Chambers of Commerce in Thailand. Together with the Board of Trade and Joint Foreign Chamber of Commerce, the TICC also participated in projects outside metropolitan Bangkok. Going forward, we aim to continue these joint endeavours for the benefit of our members.

Please note that this issue of INFORMA will be the last one under the direction of the present Board of Directors as the current Board of Directors will be dissolved and a new Board elected in the upcoming Annual General Meeting which will take place within the first quarter of 2011. On behalf of the Board of Directors, I wish to state that it has been a pleasure for us to serve as your Board members. Thank you all for your continued support and participation. Many thanks also go to the hard work of the TICC staff members and of course, I also wish to thank my fellow directors for their assistance and support.

I take this opportunity to wish the incoming members of the Board of Directors much success.

Ekkamon Hutasingh President

Contents 8

Building the Future of the TICC Interview with the President of the Thai – Italian Chamber of Commerce. Founded in 1979 by a group of pioneer and close friends among the then-small Italian community in Bangkok, the TICC has indeed come a long way.

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Aperitivo Italiano

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Real Designers Need Strong Statements

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The Italian vibe at the heart of Bangkok

Interview with Mr. Carlo Giorgetti and Mr. Massimo Scolari from Giorgetti

TICC Membership Card: Members for Members

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Thai Business for Foreigners

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So, You Are Getting Yourself a Condo?

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EU - Thailand FTA

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Dante Alighieri Association

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Trade Fairs and Upcoming Events

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Member Area

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The heart of doing business successfully in Thailand is doing business well.

What a foreigner needs to know before buying a condominium unit

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Updates: from the EU - ASEAN FTA

A dinner meeting with Signora Dacia Maraini, one of the most read contemporary Italian novelists.

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COVER STORY

Building the Future of the TICC Interview with the President of the Thai – Italian Chamber of Commerce

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ounded in 1979 by a group of pioneers – and close friends – among the then-small Italian community in Bangkok, the TICC has indeed come a long way. An active member of the Joint Foreign Chambers of Commerce in Thailand (JFCCT), the growing activity of the TICC mirrors the increased presence of Italian businesses here, thus forging new bonds with Thai companies with interests in the Italian market. The Chamber, just emerged from a consolidation process started in 2005, looks well positioned for the new decade.

Taking a look at his stint as president since he was chosen to succeed Eugenio Collavini in 2008, Khun Ekkamon sees himself as the connector between the TICC's Thai and Italian dimensions. The scholarship that brought him to study in Rome from 1957 to 1962, at the time of “La Dolce Vita”, was followed by 14 years of service for the Ministry of Industrial Promotion, and then other decades of work for different branches of the Thai government. The networks built in those years have played a crucial part in paving the TICC's way towards a more a comprehensive access to Thai authorities.

“Meeting on a regular basis with other Chambers and with Thai institutions is really important, and it was one of my priorities

to make the best out of it”, explains Khun Ekkamon.

“Through the JFCCT, which meets every three months with the Board of Investment (BOI) and every two months with the Thai Trade Representative (TTR), frequent problems for investors – financial property laws, regulatory and immigration issues for foreigners – can be solved much more effectively”.

The importance of networking resonated throughout the business events, luncheons, seminars, workshops and get-togethers – particularly successful and well-attended, thanks to the winning combination of networking opportunities and mouth-watering Italian delicacies – which the TICC often organized or took part in, thanks to a fruitful collaboration with the Italian Embassy in Thailand and the Bangkok branch of the Italian Trade Commission (ICE).

“We are always happy to comply with requests and initiatives from the Embassy”, says Khun Ekkamon, “and we wish the cooperation will grow even stronger in the future”.

In the last five years, the Chamber has expanded not only its membership, but also its role as a bridge between investors from both countries and the respective markets. In 2005 it launched its website and moved to its new offices at Vanit Building, at the inter-

section between New Petchaburi Road and Wireless Road. Last year, the bright premises on the 16th floor were enlarged and restructured. The gains in space – the new meeting room is able to host 30 participants – now allow the Chamber to propose itself as a “virtual office” for any entrepreneurs interested in investing in Thailand, while relying on the TICC's structure to find their feet.

The bridge-building activity by the TICC is more and more visible also in its management of European Union projects aimed at certifying the quality of Thai products and services which will then be marketed in Europe, with the increased protection and value provided by the use of the EU logo.

After the Chamber presented the final applications for the project “PRO-GI: Intellectual Property Right extension and Geographical Indications protection for the benefit of EU-Thai trade”, it was recently assigned a second project called SCRIPT, with similar aims but reserved to other product categories. As the final application was submitted last May, while central Bangkok was shut down because of the Red Shirts unrest, the TICC takes special pride in being assigned the 30-month-long project: unable to reach the office, the staff worked frantically from home to beat the deadline.

TICC Directors (from left to right): Mr. Pierre Nicou, Mr. Pichai Chirathivat, Mr. Chakrit Benedetti, Mr. Nino Jotikasthira, Mr. Giuseppe Zigrino, Mr. Mario Bracci, Mr. Luca Vianelli, Mr. Ekkamon Hutasingh, Mr. Lino Geretto, Ms. Tiziana Sucharitkul, Mr. Rene Okanovic, Mr. Romeo Romei, Mr. Chayaporn Phornprapha, Mr. Yongyudh Teeravithayapinyo, Mr. Gianmaria Zanotti

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My stint as president is nearly over, after two very productive years. But the Chamber that my successor will inherit is stronger, better organized and connected to the business community and the local institutions. We believe Thailand offers huge opportunities to Italian investors.

Mr. Ekkamon Hutasingh, TICC President

COVER STORY be interested in the same EU recognition, in the future.

The increased activity at TICC has brought an internal reorganization and an expansion of its staff. After a double change at the helm in the space of one year, since 2008 the current secretary-general Sandro Zanello has re-modelled the internal structure.

The Chamber has created four new committees (Administration and Human Resources, Membership, New Projects and JFCCT) and can count on 127 members. Their nature has gradually evolved, too: from a core of hotels and food&beverage enterprises, a wide range of sectors are now represented: among them are manufacturers, jewelry companies, import-export businesses, both Italian and Thai. The Chamber now offers the opportunity of sponsoring the events it organizes, ensuring a great visibility to companies interested: a successful partnership with La Perla, the internationally acclaimed leader in women lingerie, was started last year.

The challenge is now to market Thailand and its opportunities to Italian investors, who too often seem to lack awareness in the potential of South-East Asia and the coming Asean Free Trade Area. Nonetheless, Khun Ekkamon Hutasingh see a bright future ahead, and a wider committment of the TICC in Thai provinces where the Italian presence is growing fast: “Things have already changed since a few years ago.

Italian companies are setting up shops in the Rayong and Hua Hin areas, so much so that Italy now has a honorary consul in Pattaya.

Once there were mainly restaurants, but now there are industries as well. And anyway, when you see many Italian restaurants pop up, it means there is a big Italian community, don't you think?”, Khun Ekkamon smiles.

The instability of the last years in Thailand has definitely worried plenty of investors.

Since the 2006, the increased radicalization

The PRO-GI project, carried out together with European partner Bioagricoop, was created by the European Commission “to strengthen and diversify the relationship between the European Community and Thailand, in order to support Thailand in furthering sustainable economic and social development and its integration into the world economy”. Four Thai GI products were selected for the PRO-GI project: Doi Chaang Coffee, Surin Homali rice and two different varieties of pineapple, the Phulae and Phuket.

The SCRIPT project, in cooperation with Bioagricoop and the Franco-Thai Chamber of Commerce (FTCC), is the natural continuation and extension of PRO-GI, focusing this time on Thai silk and personal wellness services, such as spas and natural beauty products.

While the project involves groups such as the Queen Sirikit Department of Sericulture (QSDS), the Federation of Thai spa (TFTS) and the Thai Spa Association (TSPA), SCRIPT aims to raise awareness and implement voluntary requirements of the EU Single Market in silk and cosmetic sectors by targeting five small and medium enterprises (SMEs) operating in silk production and marketing, plus five SMEs producing cosmetics. The Chamber's hope goes beyond the project in itself: the goal is to create a “virtuous cycle” that can work with other Thai companies who could

Mr. Antonio Berenguer, Head of the Trade and Economic Affairs, Delegation of the European Union to Thailand, Mr. Ekkamon Hutasingh, TICC President and Mr. Marco Midolo, Counsellor of the Embassy of Italy at the Pro-GIs Final Seminar

TICC organized Joint Chambers Lunch Talk

SCRIPT Project Kick off Meeting at Renaissance Bangkok Ratchaprasong Hotel

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TICC Vice President, Mr. Lino Geretto with Mr. Edi Sommariva the Director of the Italian Federation of Public Businesses (FIPE) for the Ospitalita’ Italiana Project

COVER STORY

TICC new meeting room is able to host 30 participants of political conflict has brought about the occupation of the Government House and both Bangkok airports, and the images from last year's “battle for Bangkok” are still vivid.

However, the Thai economy hasn't suffered as expected, and a constant flow of foreign investment has actually brought the baht to heights not seen since the 1997 crisis.

Khun Ekkamon is among those who believe the uncertainty about the country's political future - elections should be called this year. But even if similar unrest happen again, after all they affect only central Bangkok. If you have a factory outside the capital, or one of the industrial estates around Bangkok, you won't have any problems”, he says. “Even during the most critical weeks last years, anyway, the Ministry of Foreign Affairs briefed us succesfully on how the political situation was affected, and we met at least three times directly with Prime Minister Abhisit Vejjajiva himself”.

More work needs to be done in making these opportunities known to investors who could potentially be interested. “Many small Italian companies still don't know about SIMEST”, explains Khun Ekkamon, referring to the Italian development finance institution

The 19th World Convention of Italian Chambers of Commerce Abroad ( CCIE) at Parma, Italy from 23rd – 27th October 2010 promoting the activities of Italian businesses in Italy and abroad; a seminar, he adds, will be organized in the future by the Chamber to fill this knowledge gap.

The TICC, together with other Italian chambers of commerce in Asia, has also realized that the best approach to fill the geographical distance from the home country is to propose themselves as an “Asian block”, to gain more visibility in the eyes of investors and institutions. The Area Meeting of Italian Chambers in Australia, Asia and South Africa took place last June in Singapore.

Moreover, in spite of all its opportunities – like recently-extended tax exemptions and more relaxed norm on companies' ownership - business in Thailand can still be hindered by financial obstacles and the lack

of skilled labour, especially in the provinces.

“Manufacturers resort to putting big 'We're hiring!” signs outside their factories, yet they struggle to find suitable workers”, Khun Ekkamon says. “There are frequent problems in obtaining sufficient funds from Thai banks, to finance big projects. An Italian shipbuilder was interested in enlarging his activity here, yet he couldn't for this reason”, he adds.

Expanding the Italian shipbuilding business in Thailand is one of the two projects that Khun Ekkamon wishes he had more time for. “The long coastline offers plenty of seaside to accommodate them, especially the manufacturers of yachts: the nouveaux riches from India to China want their special toys, Thailand is in a perfect geographical position to cater for these markets”, he says, recalling conversations with an entrepreneur from Viareggio, in Tuscany, who had expressed a strong interest in coming to Thailand.

The other unfinished project is the development of high-end jewelry design by using the precious black stones mined in Kanchanaburi. “Now they sell it per kilo, it's such a waste”, Khun Ekkamon explains.

“I think they could be highly valuable for Italian jewelry makers. Talks with famous designers were started, but they couldn't be completed under my presidency. As I took them to heart, I will definitely follow them anyway”, he concluded. Both projects were approved by Thailand's Office of Small and Medium Enterprises Promotion (OSMEP) and the Department for Industrial Promotion, so they might still come true one day.

By Alessandro Ursic

Get-Together, the business networking event organized by TICC

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ICE

APERITIVO ITALIANO The Italian vibe at the heart of Bangkok The Italian Trade Commission, together with the Thai-Italian Chamber of Commerce, with the support of the Embassy of Italy, organized a finale reception ‘Aperitivo Italiano’, taking place at the privileged Mandarin Oriental Hotel Bangkok on November 30th 2010 as a closure and thank you party for the Italian Festival 2010 Source by: Italian Trade Commission

Message from Mr. Vincenzo Cali’, Italian Trade Commissioner to Thailand since 2008 It was my pleasure to organize “Aperitivo Italiano”, a finale event for the Italian Festival 2010, an annual showcase and celebration of the Italian way of life in Thailand organized by the Embassy of Italy together with us, the Italian Trade Commission, and in collaboration with the TICC and our local partners.

Our goal was to show the “Italy Lovers” the Italian spirit and soul by showcasing Italian lifestyle products ranging from food, wine, automobile and furniture.

Given the kind support from the sponsors and partners, the event was successfully appreciated. This is the good sign of the future collaboration between us and our partners and I’d like to thank each of them and also everyone who attended this reception.

It’s my job to keep up with our goal to convey the Italian excellence to its audience. This is why I hope, in the near future, such event could be again one of the tools for a respective and appreciated collaboration and so I wish to see you all there.

Best regards, Vincenzo Cali’

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I

t all starts with a popular Italian tradition, the Aperitivo, grabbing a drink and crunching snacks while chatting with friends before or instead of dinner, while listening to music and enjoying the view of a fascinating Italian landscape.

A touch of charm, a glimpse of Thailand and the guaranteed Italian spirit all together in the “Aperitivo Italiano”, an occasion to gather with friends and business partners to celebrate, once more, the Italian soul of this colorful town.

About 300 guests with representatives from the business, diplomats and social elite attended this event. The event was made even more special with a wonderful performance

by Koh Mr. Saxman This trendy social gathering in Italian fabulous ambience with fine Italian food, wine, music and design was a prominent join-forces event of renowned Italian brands to showcase the impressive Italian products to the fans of ‘Made in Italy’ in Thailand.

The event was joined by all the most admired Italian brands in the fields of fashion, lifestyle, automotive, and furniture. Surrounded by their masterpieces, the event created the feeling even more Italian and completely dipped into the Italian way of life.

Special thanks to Italian cars; Ferrari by Cavallino Motors Co. Ltd., Maserati by Empire Motor Sport Co., Ltd., Lamborghini by Niche Cars Co.,Ltd., Fiat by Thai Prestige Auto Sales Co., Ltd., and Vespa by Vespiario (Thailand) Co., Ltd.. Furniture; B&B Italia by Leafy Co., Ltd., Poltrona Frau by Less Is More Co.,Ltd., Minotti by ChanintrLiving Limited and Artemide

by APC to showcase the excellence of Italian lifestyle. Plus the premium Italian food, wine and coffee supported by Lavazza by Great Earth International Co., Ltd., Italasia, Batasiolo, Gourmet One, Siam Food Services, and GDS. And the support of logistics service by Savino del Bene.

There were also 4 Italian chefs from 4 famous Italian restaurants in Bangkok and Huahin who cooked excellent Italian menus for the guests: Chef Frederik Farina from Spasso - Grand Hyatt Erawan Hotel, Chef Luca Appino from La Bottega di Luca, Chef Antonio Facchinetti from Brio - Bangkok Marriott Resort and Spa, Chef Andreas Bonifacio from La Grappa (Huahin)

Organizers:

Sponsors:

ICE

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1. Aperitivo Italiano at the privileged Mandarin Oriental Hotel Bangkok on November 30th 2010 as a closure and thank you party for the Italian Festival 2010 2. Sponsors and partners 3. Fiat by Thai Prestige Auto Sales 4. Maserati by Empire Motor Sport 5. Ferrari by Cavallino Motors 6. Lamborghini by Niche Cars

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7. Vespa by Vespario, pallet by Savino del Bene 8. Mr. Ekkamon Hutasingh, TICC President and His wife, Mrs. Ramida Hutasingh with Mr. Vincenzo Cali, Italian Trade Commissioner

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9. Ambassador of Italy, H.E. Michelangelo Pipan and Mr. Vincenzo Cali, Italian Trade Commissioner 10. Italian dessert 11. Minotti by Chanintr Living Limited 12. B & B Italia by Leafy 13. Koh Mr. Saxman entertains the guests

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14. Lavazza, Italian coffee by Great Earth International

Media partners:

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INTERVIEW

Real Designers Need Strong Statements “Real designers need strong statements, precise ideas”, says architect Massimo Scolari, while a few meters away intrigued Bangkokians marvel at the new “Arabella” he designed with Carlo Giorgetti, testing the different positions offered by the sinuous swivel armchair. Italian design, judging by the reception of this innovative product by the internationally acclaimed company based north of Milan, still retains its allure in fastgrowing Asia. But – according to Mr Scolari and Mr Giorgetti - it will need bolder choices to survive in an increasingly competitive market, while Italy's declining cultural environment makes this task all the more challenging.

By Alessandro Ursic

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sia still wants the 'made in Italy', it's a point of reference for excellence, explains Mr Giorgetti, who runs the family company founded in 1898 and whose creations are synonymous with elegance and originality. Exports made up for 70 per cent of Giorgetti's 30 million euros sales in 2010, with China (with a 10% share of them), the rest of Eastern Asia (7.5%) and India (6.2%) underscoring how Asia has become a market too big to ignore. “But if Italians want to live up to our reputation, we need to be serious”, adds Mr Giorgetti. “In our sector, now I see big players preaching one thing and doing the opposite: they have Italian components assembled in China, yet still use the 'made in Italy' brand. That damages us all”.

Mr Scolari, whose collaboration with Giorgetti started in 1989, nods in approval.

In the vision of the architect whose works are permanently on show at New York's MoMa and Paris' Centre Pompidou, the pastelcoloured Arabella now exposed at Aviva Decor Showroom, All Seasons Place - “born out of some ideas from remote parts of the memory, which came together and materialized into the prototype of a very soft and accommodating armchair – suddenly fitted in the zeitgeist (spirit of time). A confluence of styles which, by keeping a firm identity, in Mr Scolari's words can be beneficial, leading to innovative products. “However, I see confusion around. Everybody does everything. Those who used to manufacture cars now make perfumes, too. If they yield

Arabella – The innovative armchair by Giorgetti

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Mr. Carlo Giorgetti, who runs the family company: Giorgetti SPA

to this trend, designers lose their identity”, he warns.

The danger Mr Giorgetti and Mr Scolari see is that such a promiscuity, in a globalized world, will water down the strong points of a

INTERVIEW country renowned for its flair for style. “We Italians should be investing in innovation, yet maintaining our traditions”, Mr Scolari notes.

“Only by doing so – he continues – can designers be perceived as a unique, strong brand: Chinese buy a Ferrari car because it's a Ferrari. Alas, I noticed many are becoming more commercial, adapting their creations to the different markets, following others. But if you have no ideas, you are out of design and into commerce”.

The rise of Asian markets offers new opportunities, but risks abound. While the uniqueness of the materials used in Giorgetti's product can be hard to reproduce, plagiarism and outright counterfeiting are increasing problems. “Even to the expert eye, the original product and its copy can be indistinguishable”, says Mr Scolari. “Counterfeiters, not just in Eastern Asia as many think, have reached such a level of quality, that it's getting more difficult to convince a customer to pay three times as much for the original. You need culture to appreciate the difference. Alas, there seems to be less and less of it around”.

Italian design is world-famous and recognizable, Mr Scolari believes, because Italian designers think their creations inside an architectural project; others, like Northern Europeans, trace their origins to carpentry.

“Even for simple objects, you need a visual project. A German designer doesn't feel the

Mr. Massimo Scolari the architect need to read Goethe before creating a razor; an Italian does it for a chair”.

The looming danger is the loss of this shared patrimony as threatened by Italy's two-decades-long stagnation. Public investments in education are suffering brutal cuts, while culture and morality are widely considered to be declining, despite an intense

soul-searching debate among intellectuals.

“I wouldn't even send my dog to attend a school of design in Italy”, laments Mr Scolari.

“The state of our schools is shameful. Meritocracy is non-existent. Intelligents and idiots get the same high grades in universities, therefore the best and brightest lose heart, and leave”.

This is affecting the manufacturing process, too, adds Mr Giorgetti. In region where the company is based (Brianza, famous for its industrious and entrepreneurial people), he's struggling to find new prototypists. “We're losing our artisan skills, everybody wants to study and go to university”. The pace of work, especially if compared with Asia's lack of social welfare, makes for a lower productivity. Infrastructures are showing their age, while foreign investors take fright and head to other countries.

“I'm afraid our model of development is about to end”, concludes Mr Giorgetti.

“Italian designers were typically small, but serious in their principles and in their passion for working”. Now, facing the competition of foreign behemoths and the undiscerning eye of nouveaux riches, threats are multiplying.

“Giorgetti has always used industrial methods without feeling that modernity should sacrifice the happy enterprise of artisans or deify serialized repetition”, adds Mr Scolari.

“Quality still matters. We Italians should be all the more Italian”.

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deas for new products can be born in the most unexpected manners. The intuition for “Arabella” - the innovative armchair

by Giorgetti now available in Bangkok, too – came when the Italian designer came across the image of a woman's corset, while flicking through a magazine.

“Suddenly I realized that this instrument of seduction tends to follow curves. In my head the product was already born”, says Carlo Giorgetti, president of the family-run company based in Meda, Italy.

On January 6th, Arabella was introduced by its creators, Mr Giorgetti and architect Massimo Scolari, at an exclusive evening event organized at Aviva Decor Showroom, All Seasons Place, Giorgetti's distributor for Thailand. The corset-sinuous swivel armchair, named as a woman because “femininity is the guiding principle of this product”, provides a new way of sitting comfortably, thanks to an ergonomic support offered by its enveloping lines. “I had always dreamt of an armchair that follows the body, not the contrary”, explained Mr Giorgetti. Two loyal customers of Aviva, who at the event won the lucky draw prize of the Arabella armchair, will be the first in Bangkok to experience its comfort.

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TICC PROJECT

Members for Members TICC Membership Card

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ne of the aims of the Thai - Italian Chamber of Commerce is to expand and to get a stronger network, and TICC is proud to recognize that his new initiative is moving indeed in this direction: from March 2011, in fact, the MEMBERS for MEMBERS Card will be introduced.

TICC’s members could benefits to a wide range of benefits reserved just for them using this new card.

The MEMBERS for MEMBERS Card will have a size of a credit card; will be given for free to all our members. Presenting the card, members of the Chamber could enjoy a different kind of benefits from other members’ activities, such as Hotels, Restaurants, Airlines, Services and Products.

The initiative has made a success, with the joining of more than 25 companies, which will offer discounts and corporate rates to the members of the Chamber. All members joining the program will enjoy a higher visibility towards other members and within the TICC Network helping to strengthen the presence in the Italian, Thai and Foreign community.

TICC work few months in order to be able to offer you a wide range of benefits; from cheaper hotel’s room to discount for your dinner, from furniture for your house to shopping, from credit card to insurance and much more.

The Card will be distributed during the Annual General Meeting on the 16th of March.

For all the members who will not be able to attend TICC will send the card to their office during the third week of March.

Mermbership card front side

Members for Members Card Distribution • AGM Pullman Hotel 16th March 2011 • By Mail Third Week of March

16

Mermbership card back side

TICC PROJECT

The Thai Italian Chamber of Commerce would like to thank all the companies who have joined the project, and who will offers benefits for TICC’s Members. Below you can find the list of the companies. For all the details of the promotion, the contact numbers and the limitations of the card please visit the “Members for Members Card” section on the www.thaitch.org. All the Members will also receive an email with a brochure with all the details of card.

List of companies participating in the Members for Members Card Restaurant • Baan Khanitha | Complimentary glass of house Wine or Beer • Bangkok Marriott Resort & SPA| 15% discount on food at Brio and Trader Vic’s • Gianni Restaurant | 10% off on food only • INVERSUS Italian Restaurant| 20% off on food only • L'Opera Restaurant | 10% discount on food Only • La Grappa Restaurant and Pizzeria | 10% off • Mamma Mia! | 10% off • Rossini’s Restaurant @ Sheraton | 20% discount for Dinner (Food only) • Wine Pub @ Pullman Hotel | 1 Free Bottle of house wine Food and Wine • Euro Food | 10% off (Khun Rootbeer, 02 369 3115) • Food d’Italia | 10% off on the website www.e-buono.com • GDS | 10% off (Ms. Siriluck, 02 391 4456-7) • Italasia | 15% off on all 6 stores nationwide Hotel • Dusit Thani, Bangkok| Up to 56% off the room rate (starting from 3,900++) • Hansar | Up to 35% off the room rate (starting from 4,875++) • Sheraton Grande Sukhumvit | 10% off the Best Available Rate for Accommodations • Swissotel Nai Lert Park, Bangkok | Up to 59% off the room rate (starting from 3,300++) Services and products • American Express | Exclusive Offer please contact: 02 273 5252 • Aviva Décor | Same Benefits as Aviva Silver Privilege Card holder • Central | Up to 20% off on selected brands (Additional registration required) • Easy Smile | 20% off for the tours and 10% off for the hotel reservations (Mr. Andrea Zanini) • Generali Insurance | 30% discount on the first year premium (Mr. Borrom Ekavipat #814) • Kitchen Art | 5% off on all the products (Mr Nanthawat, 02 102 2018) • Leafy | 40% + top up 10% off (Mr. Badipol Chutrakul, 02 255 9088) • Santa Maria Novella | 10% off for all the products • Turkish Airlines | Corporate rate *All the offers are not applicable with any other promotion. TICC and its partners reserve the right to change the promotions without any notice. Additional restrictions can be applied.

Gold Sponsors:

Silver Sponsors:

17

BUSINESS FOCUS

Thai Business For Foreigners Thailand is one of the world’s most economically competitive countries, with especially high marks in the areas of business sophistication, investment protection and export power.

This statement does not simply reflect a subjective or abstract opinion, but rather the findings of an authoritative source: the Global Competitiveness Report 2010-2011 released by the World Economic Forum (WEF).

The Author

Giandomenico Ferrise giandobaron@yahoo.it Giandomenico Ferrise was born in Lamezia Terme, Italy in 1983.

Living in Rome for study, he got a Bachelor Degree in Political Science at Roma Tre University and a Master Degree in International Relations at Luiss University.

His main field of interest is Geopolitics and the opportunity of spending several periods abroad for different experiences gave him a greater passion for Foreign Affairs.

18

I

n the report, the WEF ranks Thailand as the world’s 38th most competitive nation, out of 139 countries and territories evaluated. Moreover, the “Land of Smiles” stands prominently among the top one-third of all economies around the planet, outshining nations like Spain, India, Russia and Italy, and putting it ahead of rival business hubs in Southeast Asia.

Starting an enterprise in a foreign country can be quite lucrative when compared to one’s home country, where the business climate and other market factors may be inhospitable. What are the relevant factors for a farang interested in doing business in Thailand? Let’s find out by taking a look at the limitations and conditions that an individual might face when setting up a business—be it a company, resort or restaurant—in the Kingdom of Thailand.

Legislation known as the Foreign Business Act (FBA) regulates the business activities of foreigners in Thailand. It covers 43 specified categories of business activity grouped into three schedules, and places various degrees of restriction on foreign ownership and operation of businesses. The ownership restrictions are varied and depend on the schedule in which the business is listed.

There are a number of other specific acts and regulations that regulate foreign ownership in specific industries such as banking, shipping, insurance and telecommunications. One example is the Treaty of Amity and Economic Relations (1968) granting certain preferential rights to American investors with regard to the ownership of businesses in Thailand.

The original FBA defined a foreign company as one where half or more of the shares are held by non-Thai persons or companies, but recent amendments to the Act have partly changed things for a foreign business owner in Thailand. The definition of a foreign company has been expanded to include companies where more than half of the voting rights are held by non-Thai persons or companies.

Therefore, the criteria for company control are now based on voting rights rather than shareholding. This measure effectively closes the loophole of owning less than half of the shares of a company while still controlling the company with majority voting rights, which has been used by many foreigners.

Overall, laws related to business in Thailand are fairly nationalistic. Broadly speaking, foreigners may have 100 percent ownership of most manufacturing businesses, but in the bulk of cases, the company must be "majority owned" by Thai shareholders.

This means that the company can be no more that 49% foreign owned. In practical terms,

this ensures that it is technically possible for a foreign owner to be outvoted by the Thai majority of shareholders.

Many foreigners choose to form a Thai majority company so that they are able to operate a business in a category that is restricted to foreigners. This is due to the fact that the establishment of a Thai majority company usually requires less registered capital and paperwork than that of a foreign company. A foreigner can form or buy a Thai company, and even be the sole director of it. However, Thai citizens must jointly own at least 51% of its shares – meaning a majority is still under Thai control. This is by far the most serious hurdle for foreigners doing business in Thailand..

The startup of any business activity requires a series of documents to be completed and submitted. For example, one must obtain the permission of the Department of Provincial Administration of the Ministry of Interior, as well as secure registration as a company at the Department of Business Development.

The promoter is then required to submit the proposed company name together with two alternate names, a process which is normally completed within two or three days. After the business name has been approved, the company must submit a Memorandum of Association (MOA) outlining all pertinent information about the proposed venture.

The memorandum registration fee is 50 baht per 100,000 baht of registered capital. The

BUSINESS FOCUS

minimum fee is 500 baht and the maximum fee is 25,000 baht.

Once the share structure has been defined, a statutory meeting is called. During this session the articles of incorporation and bylaws are approved, the board of directors is elected, and an auditor is appointed. A minimum of 25% of the par value of each subscribed share must be paid for. Within three months of the date of the statutory meeting, the directors must submit an application to establish the company, after which it can start to operate. Companies liable for income tax must obtain a tax ID card and number from the Revenue Department within 60 days of incorporation or the start of operations.

Along with the restaurant industry, the most common place in Thailand to find businesses started by foreigners is in the resort sector. To start such a business, it is necessary to apply for further documentation. To be specific, several licenses are needed, such those authorizing construction, the operation of a hotel/resort, and if there is one in the hotel/resort, a separate license for the restaurant. Next, an investigation into environmental impact is required if the resort contains more than 80 units or is located in an area subject to environmental control. To be valid, the license for the resort must then be renewed every five years, and once the operation has begun, the Royal Thai Police requires the submission of a report by customers. Finally, perhaps the most important issue concerning the development of a new resort is that the proposed project be located in an area in which construction of this type is not prohibited. It is recommended that all business applications be handled by a lawyer experienced in these matters.

For a foreigner to stay in Thailand and run (or work in) a legitimate business, there is only one legal path to take, and this process is quite extensive. The main necessity is the issue of a work permit allowing him or her to work in the country legally. Generally speaking, a work permit may be applied for with regard to any occupation, except for 39 prohibited professions specified in a regulation decreed as part of the Foreign Employment Act. The heart of doing business successfully in Thailand is doing business well. By saying this, I mean to emphasize that the legal and bureaucratic hurdles a foreign entrepreneur will encounter should be relatively easy and painless. The more important consideration is whether one’s business is financially viable, whether there is a market in Thailand for the products and/or services one plans to provide. And it should go without saying that one needs a serious and efficient business plan as well as a budget suitable for the type of business proposed.

It is not unreasonable to argue that if one has a real, legitimate desire to start a business in Thailand, then setting up a company and doing business is fairly straightforward and not difficult, especially compared to many other countries. Thailand has a fairly free-wheeling, flexible market economy. Of course, there are two sides to every story, and as in any country, not all foreigners who do business in Thailand are successful. But there are plenty more who are successful, and my advice would be “go for it!� to anyone

who has a good idea and the dedication to making it work.

It should be noted that there is more to it than simply coming here and opening your resort, however. I recommend that anyone interested in doing business in Thailand inform oneself about the region in which he or she has chosen to operate, and to talk to local people in order to gain valuable insight. Last but not least, it is advisable to make use of the respectable Italian institutions you can always rely on such as the Italian Embassy (www.ambbangkok. esteri.it), the Thai-Italian Chamber of Commerce (www.thaitch.org) and the Italian Trade Commission (www.italtrade.com/countries/ asia/thailand). These organizations can provide invaluable guidance and support to anyone with the dream of opening their business in the Land of Smiles.

19

LEGAL CORNER

Real Estate So you're getting yourself a condo? What a foreigner needs to know before buying a condominium unit

E

ven though foreigners are not allowed to own land in Thailand due to the restrictions under the Land Code B.E. 2497, they are not entirely deprived of the right to own certain other landed properties. One of the most favored options for foreigners who are looking for functional assets and profitable investment is to buy a condominium unit, or units for that matter. Obviously, there are various kinds of condominium units to choose based on the price of the units and individual preferences, but one aspect that all would-be buyers must be aware of before making a decision is the legal aspect. Accordingly, if you are thinking about buying a condominium unit, here are some of the key points that deserve your attention.

Foreign-Thai Ownership Ratio This is definitely the most important point that should be considered before going any further. Somewhat similar to the restrictions on foreign participation in corporate entities under Thai law, the ratio of foreign ownership in a condominium building must not exceed 49% of the aggregate space of all units within the building. Therefore, it is crucial that would-be buyers make some enquiries in this matter to see whether the unit that is about to be acquired is still within the limit of 49% or not; otherwise, the acquisition of such condominium unit will not be registered with the Department of Land.

Sale and Purchase Contract and Due Diligence Even if condominium sale and purchase contracts are regulated by the Consumer Protection Act B.E. 2552 and the Ministry of Interior has come up with a model condominium sale and purchase contract in an attempt to protect buyers and to ensure fair practice, it is always important to review certain key provisions of the contract, such as representations and duties of the seller, payment process, details and specifications of the unit, unit completion date, transfer of ownership, and warranty period.

In addition to the contract’s contents, due diligence is no less important. A buyer should at least look into the background or the previous projects of the developer as well as its credibility to ensure that the developer is capable of completing the project. Before making any deposit or signing any document, it is strongly recommended that advice and assistance be sought from a professional lawyer, who will play an important role in

20

reviewing the contract and conducting a legal due diligence.

Transfer of Funds and Payment Apart from the restrictions on foreign-Thai ownership ratio, there are other restrictions under the Condominium Act in relation to methods of payment as well. In other words, foreigners who would like to buy a unit must opt for the method of payment that is permitted by the Condominium Act, which stipulates that a foreigner should transfer funds in a foreign currency directly into the seller’s account. This can be arranged with a bank and the seller generally provides assistance and coordination to some extent. A foreign buyer can also open a non-resident account in Thai Baht with a bank in Thailand and withdraw the money from such account or open a foreign currency account and pay in a selected foreign currency. Nevertheless, a buyer should ask for documentary evidence that is related to the inward remittance of the whole amount of the purchase price as such evidence will have to be presented to the relevant officer at the land office in order to complete the ownership registration.

In practice, a buyer has to pay a certain amount of deposit when making reservation, which is deemed as a part of contractual payment. On the date of signing the sale and purchase contract, the buyer will have to make another payment, which normally accounts for up to 30% of the total unit price after deducting the deposit payment, and the outstanding balance, i.e. the final payment, is to be paid on the ownership transfer date.

Besides the contractual payments, there are some other additional expenses such as the Department of Land’s transfer fee, common area expenses, and sinking fund, which are paid upon registration of the transfer of ownership of the unit.

and are therefore protected. Nevertheless, further consultation with a lawyer whether or not to take any legal action against the seller is strongly recommended. Most of the time, this type of dispute can be solved amicably by having the seller rectify the unit or give a certain amount of discount on the total purchase price of the unit. Moreover, it is to be noted that a legal dispute is, unless the contract requires otherwise, resolved by court of competent jurisdiction in accordance with the Consumer Case Procedure Act B.E. 2551 and the Civil Procedure Code.

Apart from those key factors mentioned above, there are other miscellaneous issues under the Condominium Act that cautious buyers might find useful to consider. One of those is that each unit owner is responsible for maintenance costs and expenses of the common property, which is jointly owned by all unit owners. The amount that one has to pay is based on the ratio of ownership and failure to pay may result in the suspension of facilities or common property usage as detailed under the articles of association of the condominium juristic person, which contain the rights and obligations of unit owners and are to be strictly complied.

Nevertheless, please note that the information contained in this article is only a simple guideline and it is always prudent to look into details and acquire legal and professional assistance as much as possible before making a final decision to buy a condominium unit.

Dispute Resolution Disputes sometimes arise out of a condominium sale and purchase contract. For example, the unit is not in conformity with the agreed unit layout and specifications, the unit is damaged and needs major repairs, or there is a delay in handing over because the project has not been completed within the time specified in the contract. If you find yourself having a problem that is similar to the above with your seller, then you can make a complaint to the Office of Consumer Protection Board as you are deemed as a consumer under the Consumer Protection Act

International Legal Counsellors Thailand (ILCT) For further information, please contact Ms. Mallika E.S. Margherita mallikam@mail.ilct.co.th or Mr. Karinevidch Olivero karinevidcho@mail.ilct.co.th at Telephone 02-679-6005 or Fax 02-679-6041-2

21

ECONOMIC FOCUS

Thailand & The “Subprime” Effects How the financial crisis of 2008 hit Thailand’s real economy?

The subprime crisis was basically transmitted from the USA to industrial and emerging market economies through both financial and trade channels.

By Stefania Pittia

I

n ten years, Thailand has lived two financial crises: the Asian turmoil of 1997-98 and the present crisis of 2007-2009, which represented quite different experiences.

The first one was home-grown as part of the economic boom since the second half of the 1980s, which led to easy loans from abroad with the belief of limited risks.

The crisis had dramatic consequences as it took around five years for Thailand to recover, with the support of a healthy global economy.

The present crisis was imported from Thailand. Although this time Thailand has been less exposed to credit-debt default risks, the country has been hit hard for its exports and it is still unlikely to recover soon as the global economic environment is reversed as compared to the last Asian financial crisis.

At the beginning of the crisis, Thai economy was relatively in stable conditions.

However, when world economy has been deteriorated since the second half of 2008, Thailand has unavoidably been involved in the economic downturn. In that year GDP growth slowed to 2,6 % from 4,8 % of the previous year (see Figure 1).

The Author

Stefania Pittia stef184@yahoo.it Stefania Pittia was born in 1985 in Monfalcone (Italy). She graduated in Business Economics at Udine University for the Bachelor’s Degree and continued the studies attending the courses for the Master’s Degree at Udine. In February 2011 she will graduate, presenting a thesis on the impacts of the subprime crisis on the Thai real economy. During the last academic year, she had the opportunity to study for the summer period at the Bangkok University International, where she also attended a Chinese language course.

She is particularly interested in the Asian markets; her main areas of study are: international management, organizational changes and creativity management.

22

The country has been seriously affected indirectly through the trade channel. It is wellknown that Thailand is an economy highly dependent on export of goods and services.

The country’s public and corporate finances were healthy, but its export industry (generating 70% of GDP) was suffering. The main export-oriented areas of manufacturing have been hit drastically (automotive parts and consumer electronics). Thailand’s manufacturing sector entered its biggest contraction in 50 years. On another side, productions serving domestic market accelerated. In the service sector, the number of foreign tourists decreased at 14.3 millions, as their sentiment were eroded by the prolonged political instability which led to a temporary closure of the two main airports, Survanabhumi and Don Muang. Employment growth in the agricultural sector continued to expand, whereas employment in the manufacturing

sector contracted as the global economic slowdown became more evident.

Thailand’s economic conditions in 2009 remained under the shadow of the global economic slump, especially in the first three quarters when the economy experienced considerable fluctuations.

The Thai government tried to focus on financing domestic infrastructure projects and stimulus programs to revive the economy, as external trade remained weak and the persistent internal political crisis dampened foreign direct investment prospects (see Figure 2).

The Thai Finance Minister, Korn Chatikavanij, believe that the global crisis gave an opportunity to the country to reshape its economy. He unleashed plans for greater use of the capital markets, diversified exports and a boost in domestic consumption. The aim was to reduce exports as a share of gross domestic product (GDP) by boosting domestic consumption and to increase funding possibilities for business by allowing more foreign ownership of banks.

In the context of the Thai economy, however, Thailand had its own difficulties to come up with a proper policy response, as the country was –an actually is- still in serious troubles with its domestic political crisis.

For more information on Thailand economic conditions, please see: http://www.bot. or.th/English/EconomicConditions/Pages/ index.aspx

ECONOMIC FOCUS

EU - Thailand FTA Updates: from the EU - ASEAN FTA

Latest Economic Data Sources: Ministry of Commerce, Bank of Thailand, Office of the National Economic and Social Development Board

BAHT AVERAGE FOREIGN EXCHANGE OCT

$ €

T

he European Union (EU) is a major export destination for the Association of Southeast Asian Nations (ASEAN), with US$172 billion (11.2% of total exports) in 2009, and is a very important source of investment (18.4% of total FDI). On the other hand, ASEAN represents the fifth largest trading partner for the EU, with merchandise trade that totaled €118 billion in 2009.

Because of the tight economic linkages and the WTO’s difficulties in setting up multilateral talks, in 2002 the EU considered proposing a Free Trade Agreement (FTA) to ASEAN countries. Brussels was looking to sign FTAs with trading partners that would not only decrease their tariff barriers, but would also regulate other areas such as trade in services, investment flows, and intellectual property rights, among others.

To determine the feasibility of the project, in 2005 the Vision Group on ASEAN-EU Economic Partnership conducted a study confirming that the main issue at hand was not traditional tariffs but non-tariff barriers.

The major impediments for ASEAN countries were identified as the rigid safety, health, and environmental requirements imposed by the EU regulators, as well as in the quotas imposed on some agricultural exports. On the other hand, European countries found major problems in the Thai service sectors, which were seen as too restricted and therefore unable to promote the development of trade in services.

In 2007 the parties established a Joint Committee (JC) to work on the modalities and timeframe for FTA negotiation. However, in March 2009, during their seventh meeting, the committee agreed to temporarily interrupt dialogues “to allow for reflection on the appropriate format for the FTA negotiations.”

Even if the reasons for quitting were different between the two sides, they both recognized their strategic value to each other, and talks never ended.

In the same year, the EU welcomed member countries to push for bilateral deals and started tightening trade negotiations with Vietnam and Singapore. Thailand came back on the European track only in March, when the cabinet approved plans for the ministry to set up a special committee, responsible for conducting a feasibility study to determine whether or not the Kingdom should start bilateral talks with the EU. The 8th Asia Europe Meeting, held in Brussels last October, provided the first platform for high-level bilateral talks between Thai Prime Minister Abhisit Vejjajiva and European Commission President Jose Manuel Barroso. The two leaders reviewed the cur-

NOV

DEC

29.96

29.83

30.11

41.64

41.01

39.80

41 38

USD $

35

EUR €

32 29

rent trade issues, and Mr. Barroso declared that the EU was standing by to engage on the FTA issue whenever Thailand was ready.

The Thai government has already agreed in principle to a trade negotiation framework covering 80-90% of industry, services and investment on items such as pharmaceuticals, vehicles and auto parts, dairy products, textiles, jewelry, steel, plastics, electrical appliances and electronics. Among the most criticized is the decision to include a tariff reduction for alcoholic beverages. If the 60% tariff is abolished, alcohol will be available at a cheaper price, prompting fear among critics that alcoholism in Thailand will increase. Last year imports from Europe reached 5.14 billion baht (half of total alcohol imports in Thailand).

The government recently announced that it is pushing also to expand talks on labour, with the goal of getting Thai workers in the EU better working conditions, a streamlined work permit process and social welfare. The total Thai workforce in Europe is estimated to be around 10,000. Most of these are employed in healthcare or as housemaids or nannies, but there are also some 4,000 to 5,000 a year hired seasonally to pick fruit.

The European bloc represents a major export market for the “Land of Smiles,” with shipments worth US $16.06 billion (524 billion baht) in 2009, 10.4% of total Thai exports; a trade agreement is likely to further increase the demand for Thai goods. "Although the FTA negotiations will benefit the country, we should consider how to achieve the maximum benefit," said Unchana Withayathamthat, deputy director-general of the Trade Negotiations Department of Thailand.

The FTA agreement is still in progress. Mr Kiat Sittheeamorn, president of the Thailand Trade Representative, said the government expected to seek approval from Parliament early in 2011 and to complete the FTA talks within 2012.

OCT

NOV

DEC

TRADE BY DESTINATION OCT

NOV

DEC

17,132.66 17,699.85 17,372.71 14,810.85 17,291.95 16,077.58 135.26 151.28 158.50 93.46 136.55 134.45

WORLD EXP WORLD IMP ITALY EXP ITALY IMP

DATA IN MILLIONS USD $

TRADE WITH ITALY BY COMMODITY EXPORT TO IT

OCT

24.76 14.20 96.29 0.01

AGRICULTURAL AGRO-INDUSTRIAL MANUFACTURING MINING AND FUEL OTHERS

IMPORT FROM IT CAPITAL GOODS CONSUMER GOODS RAW MATERIALS VEHICLES OTHERS

OCT

NOV

DEC

23.26 18.92 109.06 0.03 0.01

34.30 15.84 107.05 1.31 -

NOV

DEC

37.39 26.15 28.29 1.21 0.42

65,19 28,59 39,52 2,51 0,74

60,10 30,30 39,34 2,50 2,21

DATA IN MILLIONS USD $

NET FLOW OF FDI BY COUNTRY SEP

OCT

687.86 0.55

TOTAL ITALY

447.25 5.86

DATA IN MILLIONS USD $

NET FLOW OF FDI BY SECTOR SEP

OCT

687.86 372.13 19.41 -15.14 0.17 102.02 -2.68

TOTAL INDUSTRY FINANCIAL TRADE AGRICULTURE SERVICES REAL ESTATE

447.25 162.77 -14.24 88.20 2.68 16.08 53.74

DATA IN MILLIONS USD $

WORKING FORCE Q2

Q3

UNEMPLOYMENT

37,514,980 1.3%

38,691,580 0.9%

AVERAGE WAGE

À 9,049

À 9,607

WORK FORCE

OTHER INDICATORS

By Narciso Podda

Q1 GDP GROWTH Q-o-Q

Q2

DATA IN MILLIONS THB

OCT

For a constant update on this and other FTAs you can visit www.bilaterals.org

CONSUMER PI PRODUCER PI

Q3

2,560,083 2,471,448 2,492,636 6.69% -3.46% 0.86%

0.03% 0.80%

À

NOV

0.21% 0.70%

DEC

0.16% -1.10%

23

Heritage THE MISSION OF CREATING BEAUTY The artisan heritage, the know-how of the female body, the blend of tradition and innovation. These components of La PerlaÊs genetic code transformed a little corsetry laboratory founded in 1954 in Bologna, into one of the top international manufacturers of cuttingedge lingerie.

Ever since, La Perla has followed the evolution of the female body through different fashions, trends and moods, passionately exploring, with the eye of talented photographers, the changing times of the feminine universe and the mystery of seduction.

LAPERLA HANDS CRAFTSMANSHIP LA PERLA MAISON Stitching process The La Perla Maison is one of the cult collections from the La Perla brand which combines the magic of silk satin with the preciousness of age old fret-work working called „frastaglio‰.

A precious f lat-stitch embroidery characteristic of eighteenth century spun yarn is trimmed to cord yarn on a veil of tulle and then attached onto silk satin by means of a meticulous stitching process that is still today carried out completely by hand.

LA PERLA MAISON Trimming process The f inal part of the frastaglio workmanship is called trimming‰ and is carried out by hand using a pair of scissors. The effect obtained is that of a ref ined motif of inlays that seem to be climbing up the fabric.

LA PERLA LEAVERS LACE Pinning process Leavers loom are able to work with a very high elevated number of threads, so that the lace they create is distinguished by a high def inition in the design and a particular gauge.

SOUTACHE Sewing process The „soutache‰ technique consists of a loop similar to a ribbon, made of silk or other material, which is meticulously attached by hand onto a fabric base in such a ways as to form a design.

24

DANTE ALIGHIERI

An Evening with Dacia Maraini The Mae Nam Chao Phraya (“the river of kings”) running through Bangkok is a spectacular waterway by day but it is even more beautiful after dark, as a group of Dante Alighieri Association members have recently discovered on the private launch of Praya Palazzo; setting forth from the Taksin Bridge on the way to a dinner meeting with Signora Dacia Maraini, one of the most read contemporary Italian novelists.

By George Layton

A

voyage up the river in full flood at the end of the rainy season after nightfall is all the more exciting as the finest monuments, including Wat Arun and the Grand Palace, and the multi-starred hotels are superbly flood-lit while some eyesores, such as the rear ends of markets, remain in total darkness .

It was intriguing that evening to witness the number of cross river ferries fighting against the strong tide and weaving between strings of sand barges, long-tail boats and other craft. Until recently Bangkok life was confined to the river, and its many interconnecting waterways known as “khlong”.

The occasion was an opportunity, brought to the attention of La Dante by the Italian Embassy, to have a “dinner appointment” with Dacia Maraini, celebrated yet controversial author, fearless political and social campaigner, who was in Bangkok to participate in a seminar organized by Chulalongkorn University in cooperation with the Embassy.

Signora Dacia is the daughter of a Sicilian princess and Fosco Maraini, the Florentine anthropologist, writer on Tibet and Japan, who moved his family to Japan in 1938, when Dacia was still a baby, to study the ethnology of the Ainu indigenous people of Hokkaido, the northernmost of Japan’s main islands. By the end of the decade, war was engulfing most of the world. Germany, Japan and Italy were part of the Axis, a military alliance signed in 1940. When Italy gave up the war struggle in September 1943, Italian residents of Japan were forced to sign an act of allegiance to the fascist regime that had been set up by the Germans in Northern Italy. Dacia’s father, a gentleman of principles, refused to do so, with the result that the whole family was interned for the rest of the war.

Praya Palazzo Hotel

At Praya Palazzo the famous novelist was flanked at the high table by H.E. the Italian Ambassador, Michelangelo Pipan, and the President of the Dante Alighieri Association of Bangkok, Giacomo Mauri.

Signora Dacia described to the thirty guests present some of the interned Italian families’ deprivations during those two terrible years: how they were made to live on a daily diet of a tiny portion of rice with whatever they could forage, including ants and anything they could catch. She described the brutality and sadism of their guards: how when somebody was discovered searching for leftovers thrown out by the staff kitchen, the guards poured sewage on top. Notwithstanding this regime Signora Dacia looks today to be a happy and healthy woman. Signora Dacia also kindly addressed several probing questions asked by dinner participants on her writing career and relationship with her famous father.

Baan Bang Yee Khan, as Praya Palazzo was formerly known, is one of many examples of Italian-design Bangkok palaces of the early twentieth century. A Customs Department Chief, Praya Jalaphoom-Panit choose the site on the bend of the river, where he could enjoy fresh breezes and supervise the comings and goings of craft as they passed his palace. Details of the original constructor and architect have not been traced. After the Custom Chief’s death the villa passed through many hands and was put to many uses but, as often occurs particularly in the Tropics, without constant attention, it quickly fell into disrepair.

A few years ago the late architect Wichai Pitakworrarat, assistant professor at Rangsit University, saw the dilapidated building from across the river and after many enquiries

Signora Dacia Maraini

found the owner, leased the land, acquired the building, and painstakingly restored it in partnership with a few other friends. This was a lengthy business and costly undertaking exacerbated by an unusual situation, even for Bangkok. Amazingly, although not on an island, Praya Palazzo is accessible only from the river so workers and all building materials had to come in by boat.

A visit to the Palazzo shows the loving care lavished on the building. Each window, shutter, door has been, not replaced, but carefully restored.

The beautifully restored seventeen-room Praya Palazzo with its Italian-inspired architecture and exquisite service proved to be an ideal venue for the dinner appointment of the Dante Alighieri Association with Signora Dacia Maraini.

25

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Offices

We design and build offices and other interior design solutions to your exact specifications.

Welcome to the CABINET Interior Design the CABINET has successfully worked with Thai and foreign clients since 1996 and is one of the most experienced and competent turnkey interior design solution providers in Thailand.

Head Office: 900/88 Country Villa Sri Nakarin Rd., Pravet Bangkok 10260 Tel 0 2322 2202 Fax 0 2720 2928

www.thecabinet.co.th info@thecabinet.co.th

Mon-Sat 09.00-18.00

Showroom Hua Hin: 12/16 Petchkasem Rd. (Next to the Shell station) Hua Hin, Prachuap Khiri Khan 77110 Tel 0 3250 2290 Fax 0 3251 3806

Your Scandinavian Hotel & Restaurant in Bangkok

Stable Lodge

39 Sukhumvit Road, Soi 8, Bangkok 10110 Thailand Tel: +66 (0) 2653 0017 Fax: +66 (0) 2253 5125 E-mail: hotel@stablelodge.com

www.stablelodge.com

On the lookout for CNY? The only Nordic Private Bank in Asia Pacific.

Now also offering offshore Chinese Yuan investments.

Tel: +65 63570895 E-mail: singapore@sebprivatebanking.com.sg www.sebgroup.com/privatebanking

TICC FAIR & UPCOMING EVENT

International Trade Fairs in Italy ( February – April 2011 ) Exhibitions In Italy

Detail

Date

Venue/Website

PARMA’S FURNITURE FAIR

Exhibition of furniture, furnishings, 30 Jan/7 Feb 2011 home accessories and lighting accessories

Parma www.salonedelmobilediparma.it

MARMOSUD

Exhibition of marble, granite, stones

25-27 March 2011

Foggia www.fierafoggia.it

VINITALY

International Exhibition of Wines

7-11 April 2011

Verona www.vinitaly.com

International Trade Fairs in Thailand ( February – April 2011 ) Exhibitions In Thailand

Detail

Date

Venue/Website

THAILAND INDUSTRIAL FAIR

Brand Industrial Event for Industrial Sector

10-13 Feb 2011

Bangkok International Trade & Exhibition Center, Bangkok www.thailandindustrialfair.com

BANGKOK GEMS & JEWELRY FAIR

47th Fair for Gems & Jewelry, Gold & Silver Productions

25 Feb -1 Mar 2011

IMPACT Challenger, Muang Thong Thani www.bangkokgemsfair.com

THAILAND INTERNATIONAL

Exhibition of international furniture in Thailand

16-20 Mar 2011

Bangkok International Trade & Exhibition Center www.Thailandfurniturefair.com

FURNITURE FAIR BOOKEXPO THAILAND

International book fair in Thailand

25 Mar-6 Apr 2011

Queen Spirit National Convention Centre www.thailandbookfair.com

Upcoming Events February – April 2011 Date

Event

Location

February 1 - 15

BUSINESS MISSION IN ITALY

23 Wed.

ITALIAN WINE APPRECIATION COURSE

28 Mon.

TICC NEW WEBSITE

6 Local Chambers of Commerce Giusto Restaurant, TICC www.thaitch.org

March From 1st march

MEMBERS FOR MEMBERS CARD

2 Wed

GET TOGETHER IN COLLABORATION WITH LA PERLA

La Perla store, Gaysorn

16 Wed.

ANNUAL GENERAL MEETING AND ELECTION 2011

Pullman Hotel

30 Wed.

OSPITALITA’ ITALIANA AWARD CEREMONY

Hansar Hotel

4 Mon

LAUNCH SEMINAR OF THE SCRIPT PROJECT

To be confirmed

13 - 15

HOLIDAYS - SONGKRAN FESTIVAL

(TICC Office Close)

18 – 20

MARBLE TRADE MISSION

Foggia, Italy

28 Thu

BUSINESS LUNCHEON

To be confirmed

April

Distribution Request of INFORMA: To request free copies of the INFORMA for distribution in your hotels, restaurants, or companies, please send an e-mail request to Ms. Sukanya Kerngfak (TICC Marketing/PR Executive) at pr@thaitch.org.

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MEMBER AREA

Welcome New Members Air France KLM Mr. Luc Delaplace (General Manager Mekong Region) 849 Vorawat Building, 21st Floor, Silom Road, Silom, Bangrak, Bangkok 10500 Tel: (+66) 02-6809600 Fax: (+66) 02-6809680 E-mail: mail.afklhelpdesk.th@airfrance.fr Website: www.airfrance.co.th / www.klm.co.th Sector: Airline business

Jus laws & Consult Co., ltd.

Mr. Yuthana Promsin (Director), Ms. Kunnika Limkul (Partner) Bangkok: 1104/157 Pattanakarn Rd., Suan Luang, Suan Luang District, Bangkok 10250 Tel: (+66) 02 187 2640-1 Fax: (+66) 02 187 2642 E-mail: Bangkok@juslaws.com Website: www.juslaws.com Phuket: 96/14, The Royal Place (next to Tesco Lotus) Moo 1, Chalermprakiet Ror. 9 Rd., Kathu, Phuket 83120 Tel: (+66) 076 304 353-5 Phuket: (+66) 076 304 356 E-mail: Phuket@juslaws.com Sector: Consulting

Gianni Enterprise Co., Ltd. Mr. Gianni Favro 999, Gaysorn Plaza, Ploenchit Rd., Bangkok 10330 Tel: (+66) 02 656 1436 Fax: (+66) 02 656 1438 Email: gianni@loxinfo.co.th Website: www.gianni-enterprise.com Sector: Restaurant

IMPERO Co., Ltd. Mr. Renzo Ambrosini (Director) 16 Soi Sukhumvit 23, Sukhumvit Road, Klongtoey- Nua, Wattana, Bangkok 10110 Tel: 02 664 4420-1, 02-664 4491 Fax: 02 258 1159 E-mail: info@giustorestaurant.com Website: www.giustobangkok.com

Link B.GRIMM Limited (LBG Limited) Khun Nunthinee Tanner 25th Floor Vanissa Building, 29 Chidlom Road, Lumpini, Pathumwan Bangkok 10330 Tel: (+66) 02 650 3055 – 57 Fax: (+66) 02 254 8355 E-mail: lbg@lbg.co.th Website: www.bgrimmgroup.com Sector: Trade (Import-Export)

Plaza Athenee Bangkok, A Royal Meridien Hotel Ms. Chooleng Goh (General manager) 61 Wireless Road, Lumpini, Bangkok 10330 Tel: (+66) 02 650 8800 Fax: (+66) 02 650 8500-1 E-mail: bc.bangkok@lemeridien.com Website: www.lemeridien.com/ bangkokplazaathenee Sector: Hotel service and hospitality

Toscana Photographic Workshop Mr. Carlo Roberti (Director) Vicolo stradellaccio 1, Bologna 40123, Italy Tel: (+39) 051 644 0048 Fax: (+39) 051 644 0048 E-mail: info@twp.it Website: www.tpw.it Sector: Education Photographic Workshop

Important information for TICC members:

The Embassy of Italy in Bangkok has moved the office since the 8th of February 2011.

The new contact details are: Visa Section: 27th Floor Chancellery and the Consular Section: 40th Floor CRC Tower, All Seasons Place, 87 Wireless Road, Lumpini Phatumwan, Bangkok 10330.

Tel: (+66) 2 250 4970 Fax: (+66) 2 250 4988 E-mail: ambasciata.bangkok@esteri.it Website: www.ambbangkok.esteri.it

AGM and Election 2011 The Board of Directors of the Thai-Italian Chamber of Commerce (TICC), announced the Annual General Meeting (AGM) to be held at the Pullman Hotel & Resort on 16th March, 2011 at 17.30 hrs.

The AGM will be followed by a set dinner served at 20.00 hrs.

The term of office for the current Board of Directors of the TICC will expire, and the voting process for the election of the new Board of Directors for the 2011 – 2013 term will take place at the AGM. For any additional Information Please contact Khun Ratigul E-mail: membership@thaitch.org Tel: 02 255 8695 #106

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Phangan Bayshore Resort and Spa Haad Rin Beach Phangan Bayshore Resort and Spa is directly on Haad Rin Nok, at the heart of the action most suitable for the Full Moon Party

and to enjoy the exotic nightlife available at Haad Rin.

"% ! *

' & ( # +) % $ '

Sunda Resort

Krabi

RELAX & ENJOY THE NATURE AT ITS BEST!!!!!

Warmly welcome to Sunda Resort where offers you the peaceful and nature atmosphere. The resort provides 48 modern rooms with different colors style and air conditioning ensuring your relaxing holiday. Only 10 minutes walking to Nopparat Thara Beach with crystal clear water and Ao-nang coast where you can find entertainment night life and shopping area.

Sunda Resort is your home away from home where you discover the true hospitality of Thailand – The Land of Smiles.

Address:

19 Moo. 3, Ao-Nang, Muang Krabi 81000 Thailand Tel: +66(0)75-661-262-4, +66(0)2-509-5848 Ext.12, 13 Fax: +66(0)75-661266 E-mail: info@sundaresort.com, sales@sundaresort.com Website: www.sundaresort.com