INFORMA April/May 2012

A BUSINESS MAGAZINE OF THAI – ITALIAN CHAMBER OF COMMERCE APRIL 2012

ASEAN-Thailand-Europe-Italy Economic oppor tunities ahead

Thai-Italian Chamber of Commerce

President's Message Lino Geretto President Thai-Italian Chamber of Commerce

PRESIDENT Mr. Lino Geretto – LGV Engineering Co., Ltd. Tel: +66 2 255 8717 Fax: +66 2 255 8716 Email: info@lgveng.com VICE PRESIDENTS Mr. Giacomo Mauri – River of East-West Harmony Co., Ltd. Tel: +66 81 814 5160 Email: gmauri11@gmail.com Mr. Sawang Pracharktam – Thai Optical Group Plc. Tel: +66 2 440 0506-8 Fax: +66 2 440 0509 Email: sawang@thaiopticalgroup.com 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 HONORARY SECRETARY Ms. Tiziana Sucharitkul – Tilleke & Gibbins International Ltd. Tel: +66 2 653 5555 Fax: +66 2 653 5678 Email: tiziana.s@tillekeandgibbins.com DIRECTORS Mr. Federico Cardini – F. Infinity Chalon Co., Ltd. Tel: +66 2 207 8614 Fax: +66 2 207 2626 Email: fc@teakwoodburma.com Mr. Giancarlo De Santis – G.DS Co., Ltd. Tel: +66 2 391 4456-7 Fax: +66 2 391 0524 Email: info@gdscompany.com Fr. Giovanni Contarin – Camillian Hospital Tel: +66 2 185 1444 Fax: +66 2 185 1403 Email: cg_camillian@csloxinfo.com Mr. Luca Vianelli – MDA Consulting SEA Co., Ltd. Tel: +66 2 652 2447 Fax: +66 2 652 2448 Email: lvianelli@mda.it Mr. Pierre Nicou – Eurofood – The Commercial Company of Siam Ltd. Tel: +66 2 261 0245 Fax: +66 2 261 0243 Email: 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. Renzo Ambrosini – Impero Co., Ltd. Tel: +66 2 664 4491 Fax: +66 2 258 1159 Email: info@giustorestaurant.com Mr. Romeo Romei – Quick Pack Pacific Co., Ltd. Tel: +66 2 367 1092 Fax: +66 2 531 6425 Email: romeo@quickpackpacific.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 2 255 8695 Fax: +66 2 253 9896 E-mail: info@thaitch.org EDITORIAL COMMITTEE: Thai-Italian Chamber of Commerce President: Mr. Lino Geretto Chairman: Mr. Giacomo Mauri Directors: Mr. Chakrit Benedetti Mr. Rene Okanovic Mr. Sawang Pracharktham Secretary General: Mr. Sandro Zanello Italian Embassy Representative: Mr. Ubaldo Ciavaglioli Italian Trade Commission Representative: Mr. Vincenzo Calì Dante Alighieri Association Representative: Mrs. Jane Puranananda Scand-Media Representative: Mr. Gregers Moller TICC Staff: Ms. Sukanya Kerngfak: Marketing Executive Mr. Edoardo Bruno: Fellowship Researcher Mr. Massimiliano Tondato: Fellowship Researcher Mr. Charlie Clarke: English Editor

Dear Members and Friends,

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n March 2011 our members elected the current board of directors of the Thai-Italian Chamber of Commerce (TICC) at the 2011 Annual General Meeting.

Approximately one year later in March 2012, the TICC celebrated the 2012 Annual General Meeting at the beautiful Sukhothai Hotel. In addition to several members, present were also representatives of the Italian Embassy, namely Mr. Andrea Speronello, First Secretary of the Commercial Section and Mr. Ubaldo Ciavaglioli, Head of the Visa section.

As I have stated earlier at the March Annual General Meeting, the Chamber is actively committed to serving its members across Thailand. This past year we have broadened our presence in Thailand by increasing the number of members to more than 150 and by opening a chapter in Phuket. For 2012, we plan to continue our expansion by extending the TICC to Pattaya and perhaps to Chiangmai. Participation by fellow members is especially more important today due to the economic climate in which we now find ourselves.

As you may know over the years, the Chamber has had to find ways to cope with cuts in contributions received from the Italian government. For the record, and to dispel any confusion or misinformation, these contributions amounted to Baht 2.5 million in 2007 (received in 2009), then reduced to Baht 1.1 million in 2008 (received in 2010) and then further reduced to less than Baht 0.5 million in 2009 (received in 2011). This reduction in funds has forced the Chamber to seek new sources of revenue and to contain expenses in all areas possible without jeopardizing member services (for the record, the membership fee remains the same as that of ten years ago). I am glad to report that our efforts have yielded significant success in 2011, although the full impact of our new policy to increase revenue and to contain expenses will be become clearer in 2012.

As for events and social gatherings, the Chamber organized a record number in 2011…22 events. All were highly appreciated by participants. One example was the “Ospitalità Italiana” project which we organized for the first time in 2011. The event is aimed at recognizing and certifying authentic Italian restaurants in Thailand. It was a hugely successful evening, with awards presented to 14 Italian restaurants located in Bangkok, Hua Hin and Phuket. It is well worth mentioning that although the “Ospitalia Italiana” project draws the interest of over 40 Italian Chambers of Commerce worldwide, our Chamber in Thailand was recognized as the most successful and technically well prepared by the Italian tourism organization ISNART. The Chamber also supports selected fund-raising activities to help the needy as these activities, besides satisfying obligations to the community in which we live and work, will help improve local attitudes towards the businesses of members of the Chamber.. Last year the Chamber organized the “Bridge of Hope” fund-raising Dinner for the St. Camillus Foundation that helps local children with severe handicaps and/or AIDS/HIV. In addition, the Chamber actively provided help to companies and individuals affected by Thailand’s severe flooding last October and November.

PUBLISHER: Scand-Media Corp., Ltd. 211 Soi Prasert-Manukitch, Prasert-Manukitch Road, Chorakaebua, Ladprao, Bangkok 10230 Tel: +66 2 943 7166-8 Fax: +66 2 943 7169 Design: Disraporn Yatprom / Email: disraporn@scandmedia.com

I am convinced that the power of the Chamber is derived from the commitment of its members who dedicate time and resources to keep the business community united and to improve the business climate in Thailand.

ADVERTISING CONTACT: Mr. Finn Balslev, Marketing Director Scand-Media Corp., Ltd. Tel: +66 2 943 7166 Ext: 116 Fax: +66 2 943 7169 Mobile: +66 81 866 2577 Email: finn@scandmedia.com - www.scandmedia.com

I would like thank members for their support and for their participation in our various projects and activities. I am certain that the Chamber will be able to put together many more interesting initiatives in 2012 and of course, I look forward to welcoming you all, to those events.

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

Arrivederci, Lino Geretto

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Contents 8 8

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TICC Annual General Meeting 2012

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The State of the Art Lighting

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ASEAN-Thailand-Europe-Italy

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Italian Trade Commission

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Purchasing property in Thailand

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Italian Mozzarella and Tomato

Exclusive interview with two biggest Thailand lighter importers

Economic opportunities ahead

Seminar on the Italian Plastics and Rubber Machinery Technology

Key ingredients in the Mediterranean diet

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The Low Cost business is taking off in Southeast Asia market

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TICC Events

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Fairs and Upcoming Events

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Welcome New Members

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AGM 2012

Annual General Meeting 2012 The evening of March 22, 2012 was marked by one of the most important events of the year for TICC-the Annual General Meeting (AGM) 2012. It took place at Sukhothai Hotel, located in one of the most well known and charming area in Bangkok.

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he event was opened by the welcoming remarks of TICC President, Mr. Lino Geretto, followed by the speech from Mr. Andrea Speronello, the First Secretary of the Commercial Section at the Embassy of Italy to Thailand. The program then proceeded with the financial report by Mr. Chakrit Benedetti, the Honorary Treasurer and the review of 2011 activities by Mr. Sandro Zanello, Secretary General of TICC. During the event, TICC new members; Banyan Tree, Blue Elephant, Euro Creations, Italmec Siam and Stebel have been welcomed

by TICC President and Vice Presidents.

Then the exclusive three- course dinner prepared by Sukhothai Hotel’s chefs, accompanied by the La Planeta Sicilian wine were served after the meeting.

We would like to thank all members, guests and partners for their active participation and for making this AGM memorable.

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See you in 2013 for the next AGM!

Picture 1 Lino Geretto, TICC President gave the welcoming remarks.

Picture2 Opening speech by Andrea Speronello, the First Secretary of the Commercial Section, the Embassy of Italy Picture 3 Chakrit Benedetti, the Honorary Treasurer reported the financial statement Pictue 4 At the registration desk Picture 5-6 TICC members Picture 7 Event atmosphere Picture-8 the group photo with all participants Picture 9-12 During the event, TICC new members; Banyan Tree, Blue Elephant, Euro Creations, Italmec Siam and Stebel have been welcomed by TICC President and Vice Presidents.

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AGM 2012

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Excerpts of President Speech at the 2012 AGM: "This is one circumstance – that is the AGM – where financial results and Chamber’s objectives speak for themselves: however I would like tonight, in front of the Chamber shareholders, to talk about two specific subjects.

1.What the Chamber has done in 2011 to meet its objective that is to facilitate business activities in Thailand and Italy.

2.How and what the Chamber has done to increase revenues and controls expenses, to maintain financial viability for the long term.

This past year we have broadened our presence in Thailand by increasing its members to an unprecedented number of 154 also by opening a chapter in Phuket.

For 2012, we plan to continue our expansion and plan to open another one in Pattaya and perhaps in Chiangmai.

On the second point, in 2011, the Chamber had to find a way to cope with the constant cuts in the contributions received from the Italian government. For the record, and to dispel any confusion or misinformation, these contributions amounted to 2.5 M Baht in 2007 (payment received in 2009), and reduced to 1 million Baht

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in 2008 (funds received in 2010) and down to less than half million Baht in 2009, again money received in 2011. This has forced the Chamber to seek new revenue sources and to contain expenses, in the areas where this is possible without jeopardizing member services (….for the record, the membership fee is the same of 15 years ago). I am glad to report that our efforts have sorted significant success in 2011, although the full impact of our new policy for revenues increase and expenses containment will be felt more-fully in 2012.

As far as events and social gatherings, the Chamber organized a record number in 2011.

All were highly appreciated by participants.

As an example, for the first time, we held the “Ospitalità Italiana” project, aimed at recognizing and certifying authentic Italian restaurants in Thailand. It was a successful event, with awards presented to 14 Italian restaurants located in Bangkok, Hua Hin and Phuket. For this particular event, that interested more than 40 Italian Chambers worldwide, our Chamber was recognized - by the Italian Organization ISNART (Italian tourism organization) – as the most successful one!

The Chamber also supports selected fundraising activities to help the needy as these activities, besides being morally “part of our

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duties to the society”, will help improving the local attitude toward the Chamber members businesses.

Last year the Chamber organized the “Bridge of Hope” fund-raising Dinner for the St. Camillus Foundation that helps local children with severe handicaps and/or AIDS/HIV. In addition, the Chamber actively provided help to companies and individuals affected by last October and November severe flooding.

The power of the Chamber is the commitment made by its members that dedicate time and resources to keep the business community united and improve business conditions. I would like to mention two members particularly active in our association. The first one is Dr. Francesco Pensato who has been deeply committed to expand the Chamber activities in Phuket area. The second is Mr. Andrea Gallucci, our Chamber representative in the ICT (Information, Communication and Technology) Committee of the Joint Foreign Chambers of Commerce in Thailand.

I would like to thank members for the support and participation in our various projects and activities. I am certain that the Chamber will be able to put together many more interesting initiatives in 2012 and of course, I look forward to welcoming you all, to those events".

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INTERVIEW

The State of the art lighting In Thailand the real estate market has been developing very rapidly as the economy continues to grow. Strongly related to the real estate market is the furniture market, within which the luxury furniture segment has grown to account for 20% of the total.

Italy is the lighting business leader in Europe with a 30% market share. Italian lighting companies have a total turnover of 2 billion€, coming mainly from foreign markets such as France, Germany, great Britain, Russia, America, Switzerland, the Middle East and Japan. Within the high class lighting business, we can highlight two segments where Italian companies excel: the chandelier business, characterized by a traditional style, the designer lamp business, characterized by an innovative and modern style.

By Edoardo Bruno

Chandeliers

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o, in a city with over 10 million people like Bangkok, there are a lot of business opportunities related to the demand for luxury furniture to be placed in apartments, hotels and resorts.

The demand for high quality furniture, including high class lighting equipment, is driven by the demand for residential buildings with unique features that make them more expensive than average. The consumer is typically from upper middle class and is looking for exclusive high quality products. Italian companies have found good opportunities in this business segment capitalizing on the “made in Italy” brand image and the consumer desire to obtain beautiful, premium-quality products.

Often the consumer asks for an Italian product to demonstrate his own status as well as to enjoy the possession of a fashionable product.

When consumers think of Italian furniture items, they expect aesthetically appealing products of excellent quality. Lighting equipment made in Italy fits very well with these expectations.

The chandelier is an elaborate product where aesthetic considerations need to merge with technical requirements. Inspired designs related to Italian art tradition are unique features of the Italian brands. This is absolutely true as we speak of chandeliers made by Italian designer Fabio Bergomi. In 2011, Fabio opened his business in Bangkok, after opening his first showroom in London, called "Raindbow" 14 years ago. The main products offered by Fabio are elegant chandeliers made of Murano glass, but a wide range of other decorative items are also found in his charming store (find the location on www.fabiobkk.com).

Each chandelier offered by Fabio is truly unique because he brings all his blueprints to Murano and there he works shoulder to shoulder with local glass-makers to polish and refine the details in order to create exclusive pieces.

So, Mr. Fabio, Can you tell us a little about how, when and why you started your business in Thailand?

My interest in the Kingdom goes back to over 10 years ago when I first visited Thailand for a holiday. Over the years, I gained more knowledge about the luxury goods and property market and realized that my designs would fit perfectly in this country.

I started my business here two years ago and immediately began working closely with the Crystal Design Center (CDC) Who is the Thai luxury consumer? Is it demanding customer?

Thai luxury consumers are mostly wealthy and internationally educated. They have a passion for imported luxury goods. Of course they are as demanding as any other international luxury customer. Decision on a purchase is quite a slow process as the consumer looks at a chandelier or a lamp as something that will become an a centerpiece in his tailor-made beautiful home.

Lotus chandelier, each flower is mouth blown Murano glass with 24k gold leaf, designed

by Fabio

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How is the “made in Italy” label perceived by your customers? What are they looking for in your products?

There is a clear understanding that Made in Italy products are not mass produced. This is

Black & Gold Murano chandelier, traditional Murano style mouth blown Murano glass with 24k gold leaf with crackle design especially true with my designs where each product is handmade and can be customized in size and color, so that each chandelier, lamp or accessory is clearly understood by the customer to be a limited edition piece.

Despite the European debt crisis, are leading Italian chandeliers makers still producing high-quality products?

From my experience working with artisans and family-run firms, pride is what drives them to still produce high quality products. Their hard work is repaid by the satisfaction of creating truly wonderful goods that will be appreciated for a long time.

What makes the difference between a chandelier produced in Italy and a chandelier made in another country?

Can you give us some example?

When talking about glass, Murano is still the best and most sought after design and production site. It is the tradition and knowledge that has been passed from fathers to sons over the centuries that is very hard to beat. The experience of the Maestros can only be gained, not easily copied.

What lighting categories do you see driving luxury brand sales in Thailand over the next year or two?

Definitely chandeliers and lamps of high quality. These complement the fine luxury interiors of high class Thai homes, especially new European-inspired homes and condominiums units.

In this way, Italian designers and craftsman have developed exclusive skills and it is not an exaggeration to write that Italian lighting products are universally acknowledged as unique in design, creativity, and quality.

INTERVIEW

Designer Lamps

In the second half of sixties and seventies Italy lived an ever changing in arts and social cultural context. During this year art and design have been mixed and the furniture industry produced new forms and colors. Architects, designers and artists were involved to explore and to find new solutions in term of style and materials, enhanced the use of newest resources, e.g. plastic materials and polyurethane.

The furniture design became a place where to experiment a complex and exciting design thought object functional and emotional such as sofa, chairs, table and lamps. Lamps were one of the most interesting product were to express the new tendency, with a very famous masterpieces such as Arco, by the brothers Castiglioni. Another extremely sophisticated and new product was in 1972 the lamp Tizio, designed by Sapper for Artemide. Tizio was the first one to use halogen light source, which through the years became a symbol of design in the world and of Artemide quality.

Founded in 1960s, today Artemide is one the most know illumination brands, a global leaders and synonym of design, innovation and made Italy. Artemide is well represented in Thailand by APC, which is the most important importer. The Architectural Products Co., Ltd. (APC) sells since 1985 lighting furniture including a wide range of Artemide products.

Today we have the opportunity to interview Mr. Yongyudh Teeravithayapinyo, CEO & Managing Director of APC, and importer of Artemide.

Tizio lamp, by Richard Sapper, is no doubt one of the most famous designs by Artemide.

What about the lighting business?

What are the current demands and trends? And the opportunities and weaknesses of the business?

The lighting business as a whole has been growing here in Thailand at a similar rate to the national economy, however growth is not uniform across the different market segments.

At APC, our sole focus is on the high-end market for top quality imported products, however this segment is growing at a slower rate than the medium and economical market segments.

While Thailand’s economy and the overall lighting sector here has been growing at around 10%, the high-end market has only been able to achieve growth of about 5%, and one of the reason for this is problem of counterfeit products in the market in recent years.

What measures can you take against counterfeiting?

It is difficult to do anything because I am not the owner of the brand. The problem is that sometimes consumers have never seen the original product before, so when they see a counterfeit product for the first time, they believe it is the original. They don’t recognize that is an imitation product.

Aside from imitation products from China, who are your main competitors? And what is your marketing strategy?

While imitation products from China do, of course, affect our business, I do not consider them to be direct competitors because our products are high quality, imported products.

We are competing here, and on a global scale really, with other Italian manufacturers. So, for our Artemide range, our competitors would be companies like “Fontana Arte” and “Luce Plan”.

At APC, we have both exclusive and standard distributorship agreements with our suppliers and, when we act as exclusive agents of a brand, we will not take on another similar product that would compete either directly or indirectly with that brand. Our first priority is to try to convince consumers to buy the products for which we have exclusive agreements, but of course if theses do not meet their requirements, then we try to give the customer what the way through other options.

After-sales service is one of our strong points; we aim to stock everything locally down to the smallest screws - in order to provide a full after sales service. If we cannot service immediately, we will order in parts from Italy so we can meet our customer’s needs. And, as an Artemide importer, we are also happy to provide services to clients, even if they didn’t buy the products in our shop. Serving both our customers and our principals with attention is another of our strengths.

How do Thai customers perceive Artemide? Do they just recognize the designs, or do they also recognize the quality of the products?

It depends. Normal people recognize the design but not the brand, and that’s why

people sometimes buy imitations instead of the originals. They see a counterfeit Tolomeo lamp and they recognize it as a Tolomeo.

They rarely know that is an Artemide, and they probably buy it without considering this.

Another problem is that sometimes wealthier clients come into the showroom and ask for a product, but if we do not have it in stock, they don’t want to accept our offer to order it because they don’t want to wait. So we have to find another solution.

How you can educate people to buy only the original?

Actually we do a lot of advertising in magazine one month one model because in this way people start to recognize and remember the brand Artemide. It is important to understand that when you deal with Italian product is not a way (?) of brand name. You got the brand name, designer name and model name in this way people start to know and to be loyal.

Fabio Bergomi from Fabio Bangkok, the sole distributor in Thailand, Malaysia and Singapore of Rainbow Exuberant Chandeliers and SAVIATI Murano glass and crystal with the "Stella di Cristallo”, which can be used as a wall or ceiling light. Handmade in Italy

Yongyudh Teeravithayapinyo, CEO & Managing Director of APC, the importer of Artemide in Thailand

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ASEAN-Thailand-Europe-Italy Economic opportunities ahead The ASEAN Economic Community (AEC) and the possibility of a bilateral Free Trade Agreement between Thailand and Europe. Four highprofile interviews that will cover four different points of view (ASEAN, Thailand, Europe and Italy).

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t was 1967, with the signing of the ASEAN Declaration, that Indonesia, Malaysia, Philippines, Singapore and Thailand, dreamed of more integration in the Southeast Asian region.

A vision joined later on by Brunei Darussalam, Viet Nam, Lao PDR, Myanmar and Cambodia. “One Vision, One Identity, One Community�.

A continuous work in progress for the future, to promote collaboration, regional peace and stability, economic growth, social progress and cultural development. Three pillars: the ASEAN Political-Security Community, the ASEAN SocioCultural Community and ASEAN Economic Community.

by Narciso Podda narcisopodda @ hotmail.it

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domestic players to accept market opening and to make necessary adjustments to coming of AEC. Countries with labor intensive industries are moving up the ladder, relocation of noncompetitive industries is taking place, technology intensive sectors are being established.

There have been adaptation and accommodation to the pressure of liberalization among the countries in the region. And this will always be a work in progress into the future. But we are happy with the pace of integration.

Dr. Surin Pitsuwan, Secretary General of the Association of Southeast Asian Nations (ASEAN) What is the current situation of the ASEAN Economic Community (AEC)? Do you think that by 2015 ASEAN countries will have the AEC they dreamed of?

BY 2015 we can expect that all the major ingredients for an economic community are in placed. The ASEAN Economic Community (AEC) aims at being one integrated market, competitive, equitable and connected effectively with the global economic landscape.

Goods, services and investment will flow with ease based on various legal instruments enacted among the ASEAN Member States.

Everything is moving as planned? What are the main obstacles?

All elements of the ASEAN Economic Community Blueprint are being put in place one by one. Of course there are challenges such as resistance from entrenched domestic interests that continue to expect protection and avoid liberalization and competition. But step by step, all Member States are pushing their own

Is Thailand ready for the 2015 goal? What are the more urgent tasks?

Thailand's private sector has been very upbeat about the potential and opportunities of the coming Economic Community. Industries have been making preparations with determination.

There have been calls for restraint toward opening, but they are also aware that they could not stop the trend of liberalization and integration.

They have made up their mind to compete and improve on the production technology, management and corporate governance. The harsh financial crisis of the late 1990's has been a wakeup call to them all. We have been calling for more cross border investments of Thai SMEs and for local businesses to open up for joint ventures from other SMEs from the region. They are on alert. And that is good.

Now the government will have to help them.

New financial facilities will have to be set up.

The Bank of Thailand will have to help. The commercial banks will have to join hands and share the risks. The Board of Investment (BOI) will have to lead them out, rather than inviting potential investors from outside as before. Incubators for SMEs to move out to the ASEAN markets are needed.

COVER STORY our plan is to conclude the free trade agreements with these two countries within this year.

These are the evidences of the determination of the Thai government. Not only this current government but also the past governments, that we want to keep our economy open.

With opportunities come also challenges. How private enterprises can adjust their businesses to benefit the most from the AEC? They are all making necessary adjustments.

They are instituting new management system, they are importing new production technologies, they are building their sales teams, they are sharpening up their marketing skills, they are doing the networking with other complementary industries around the region. Some are doing better than other. But on the whole, they are not panic and getting themselves prepared.

A comparison with the European Union (EU).

Any lessons that ASEAN has to learn from the economic cooperation between EU countries?

What to avoid?

The EU is an inspiration for ASEAN, but not a model. We started off differently and we remain fundamentally different in our integration process. We have to account for the tremendous diversity among us. We take the lessons seriously. We cannot expect all Member States to move at the same speed. We cannot impose conditions. We have learned that monetary union without financial and fiscal union would be difficult.

Do you see the possibility/willingness in the future also for ASEAN to establish a single currency to facilitate and enhance economic cooperation?

Single currency is not on the table and won't be in a foreseeable future. The EU's experiences on this issue have not been very encouraging to us.

Are we ever going to see open borders and free movement of people and workforce among ASEAN countries?

We only do "free movement of skilled labor."

We cannot afford to adopt the EU's ambition of "free movement of all people". Different levels of economic development prevents us from such an open border for all people. Otherwise some of the Member States in ASEAN would be engulfed by waves of people looking for better economic opportunities. And that would be counter productive to all.

Are ASEAN countries going to lose sovereign power in some topics/areas to a big wider regional institution?

We realize that "absolute sovereignty" does not apply in a world of globalization and in an integrated region. Accommodation will have to be made, sharing of responsibility and coordination of strategies and policies are ingredients of integration. While there won't be any "transfer of sovereignty" to a supra-state entity like the EU, Members of ASEAN are aware of the fact that, in practice, the larger interest of the Community needs to be given a higher and higher degree of importance. We are travelling on a common road to the future that will require closer consultation and policy alignment.

Mrs. Srirat Rastapana, Director General, Department of Trade Negotiations (DTN), Thailand ASEAN and the process toward the ASEAN Economic Community (AEC).

The biggest economic achievement is in the area of trade in goods. We have brought the tariffs down to zero for almost all items, and among 10 countries we no longer have significant tariff barriers. On trade in goods, our task is now about monitoring and minimizing the non-tariff barriers, rather than further liberalization. We have worked also in terms of standards and mutual recognition arrangements, food security, connectivity, tourism, and economic cooperation in several other areas.

All in all, at this stage, ASEAN has to focus more on services trade and investment facilitation and liberalization because these two pillars are lagging behind.

Work in the area of economic cooperation has become more and more intense. We have enhanced our ASEAN connectivity, both the hardware and the software. These mean foundation for deepened economic integration has been strengthened through construction of essential infrastructures, road, shipping and air links, as well as people, IT and institutional connectivity all in one big picture. ASEAN connectivity is a major part of the ASEAN's work plan, and is really the foundation for the ASEAN Economic Community. This is the current stage of development of ASEAN integration.

Economic cooperation within ASEAN, but also with many other external countries, thanks to talks and agreements reached at bilateral and multilateral level. Thailand will stop looking for other Free Trade Agreements?

No. The Thai government’s policy is to remain open. Our economy has been very open and we want to maintain it that way. Of course, we place the first priority on ASEAN integration, but at the same time we also continue to work with the non-ASEAN countries, more and more extensively, at the regional and bilateral levels. Some of the closer partners Thailand has bilateral free trade agreements with are, for example Japan, Australia and New Zealand.

Also with India, we are close to conclude a Free Trade Agreement (FTA) with them, perhaps within a couple of months. We are also in the process of negotiations with Peru and Chile and

Openness but some sector may push on the defensive, against further liberalizations.

In every country, there are some segments of the economy that feel they are not ready for intense competition. What the government is doing is to strengthen Thailand's competitiveness through openness. If we try to be defensive, I think that would make us weaker. More competition means increase competitiveness.

I am very confident that our private sector is very capable in term of adjustments to rapid changes in the global economy, as well as in the region. Competition is nothing new to them.

Our economy relies very much on international trade and inbound foreign direct investment.

We have made adjustments all the times, continuously, in term of global standards that we have to meet. In the big picture, competition is at heart of all businesses. I think that the attitude of the Thai private sector at large has been positive and pro-active, they are quite well prepared for increased competition.

What about an FTA with Europe?

We have been working for the possible launching of negotiations between Thailand and the EU. At the same time, we have been extremely busy working with ASEAN countries and other partners in Asia and other regions.

We have to work in parallel and do our best.

We place a lot of importance to the EU, because it is a major partner. The intention is to expand scope of economic cooperation to all aspects of interest to both parties. All topics will be covered. But we have to agree on the scope, the coverage, and ambitions for our negotiations. The comprehensiveness of the negotiation is there, but it depends on the interests of both partners. The intention is to enhance and strenghten economic partnership between the two sides, so everything related to that will be on the radar, on the negotiation table. I think that more European investments will make our Thai investors more interested to invest in Europe.

There a lot of new opportunities, this is why both sides will continue to engage, and try to move things forward as fast as possible. Now I think is about time to take decisive steps.

About Italy Between Thailand and Italy, we have smooth and friendly relationship and we find a lot of trade and economic potentials due to economic complementarity. As a matter of fact, in Italy there are two Thailand Trade Offices, one in Rome and another in Milan. I hope that negotiations with the EU would include cooperation in the creative industries, because we realize vast opportunities between Thailand and the EU, particularly Italy. I admire Italian products and services and I hope we can work more closely with Italy and share experiences.

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COVER STORY

H.E. David Lipman, Ambassador and Head of Delegation of the European Union to Thailand, Cambodia, Laos and Myanmar What's the status of the negotiations of the Free Trade Agreement between Thailand and Europe?

There are no ongoing bilateral EU-Thailand negotiations on a Free Trade Agreement. The negotiations, while they have been contemplated by both sides now for some time, never actually started. This is not to say that EU and Thailand never discussed free trade. On the contrary, the EU negotiated, between 2007 and 2009, a bi-regional FTA with ASEAN (of which Thailand is a member). After two years of negotiations, the work was paused on account of lack of substantive progress. In particular, the EU felt that very diverging levels of economic development amongst ASEAN countries, in conjunction with ASEAN's unanimity-based decision making process, inevitably lead to minimum-common denominator proposals on the side of ASEAN, which did not match the minimum level of ambition that the EU had envisioned for that agreement.

Since 2009, the EU has engaged bilateral with some ASEAN countries, particularly with Singapore and Malaysia, with whom prenegotiations led to ambitious "scoping" papers setting the basis parameters for subsequent, full-fledged FTA negotiations. Negotiations with Singapore are at their final stage. Work with Malaysia is making good progress but it is premature to advance any final date for its conclusion. In the meanwhile, Vietnam has been exploring with the EU also the drafting of a "scoping" paper setting the basis for a full negotiation.

As regards Thailand, the EU is ready to engage on FTA negotiations that lead to a substantial integration of both economies and leads to the creation of genuinely new commercial opportunities on both sides. Thailand continues to work on its internal consultation and preparatory process, which has been affected by political events (e.g., elections) and the floods. In recent press statement, Thai officials have declared that they envision the beginning of negotiations within this year.

When do you expect an agreement to be signed and come into force?

As negotiations have not even started, it is clearly premature to advance any final date

14

for any future agreement to be signed or come into force. Typically, FTA negotiations need a minimum of two years (if not longer) time frame.

However, it ultimately depends on the ambition and constrain of both side. One cannot rule out that Thailand desires to move rapidly as the EU concludes agreements with other competitors of Thailand in the region, such as Singapore, Malaysia or Vietnam. Ultimate conclusions of those agreements will inevitably lead to an erosion of competitiveness of Thailand -- the idea sometimes termed as Thailand being "left behind". Ultimately, however, it remains a decision of Thailand and its authorities. We certainly see an FTA with the EU as part of the toolbox of measures that would contribute to restore the reputation of Thailand as a premier location for FDI, all-the-more so in the post-flood environment.

Which products will benefit the most from the negotiations? Which products will be excluded from a possible agreement?

Free Trade Agreements are permitted under WTO rules for as long as they imply liberalization of a substantial share of trade between the contracting parties. In this vein, the EU envisions an agreement that covers the whole range of issues, including difficult ones. The EU does not consider the possibility, at the outset, of excluding any products. Certain Thai NGOs, as it has been widely publicised, have voice strong concerns on the possibility that an FTA covers certain alcoholic beverages as well as intellectual property rights (namely patents) on pharmaceutical products. The EU has its own set of defensive interests in a variety of industries, including agriculture, automotive and so on and so forth. The precise depth and breath of the agreement will only be revealed once (and if) negotiations start, as the situation on the aforementioned sectors and others is subject to a very changing environment.

Dr. Vincenzo CalĂŹ, Trade Commissioner, Italian Trade Commission (ICE) in Bangkok ASEAN Economic Community. Opportunities for Italian investors. Why choose Thailand?

There are many reasons to choose Thailand as a production base among 10 member countries. First of all its strategic location in the heart of ASEAN, easy access into the Greater Mekong sub-region and close economic cooperation with other ASEAN member nations.

But also sufficient infrastructure in terms of transportation facilities, communications and IT networks, strong development of traditional and emerging industries, skilled manpower and low labor cost, friendliness of Thai people: a framework which meet perfectly the needs of foreign investors. And last but not least, lifestyle: Thailand is exotic and fascinating and modern and comfortable to live in at the same time.

There is a widespread industrial culture and a well-established tradition that makes the country very attractive in a variety of sectors. All BOI promoted sectors can offer good opportunities of investment to our Italian companies. Clearly they may invest more in areas where they have more experience, and take the highest advantage of their expertise and knowledge. Among these I can mention in particular alternative energy, fashion, agro-industry and healthcare.

I think that other interesting sectors can be that of mechanics, including the production of industrial machinery, which is perhaps the less developed and an industry that could offer good opportunities.

A bilateral Free Trade Agreement (FTA) between Thailand and the European Union. The more interesting opportunities.

A FTA between Thailand and EU will stimulate and increase dramatically bilateral trade. Total trade between Italy and Thailand is still growing at very high rates, amounting in 2011 to 4 billion USD. In 2011 exports of Italy reach the highest level ever of 2.1 billion USD, 43% up on 2010. A cut of duties on imported goods from Italy, and in particular on high value consumer goods, will definitely benefit Thai consumers as they will find more affordable Italian quality products on the market. A Free Trade Agreement alone will be not enough to stimulate dramatically investments. In order to improve business conditions and promote foreign investments the only way is to liberalize businesses under the Foreign Business Act.

Seminar on “The Italian Plastics & Rubber Machinery Technology” I

talian Trade Commission (ICE) in collaboration with Assocomaplast - the Italian Plastic and Rubber Processing Machinery and Moulds Manufacturers’ Association, and with kind support from the Plastic Industry Club of the Federation of Thai Industry (FTI) and Thai Plastic Industries Association (TPIA), has a great achievement in organizing seminar on “The Italian Plastics & Rubber Machinery Technology” on 27th February 2012 at Sofitel So Hotel, Bangkok. The seminar was highly interested by Thai producers of plastic and rubber products.

There were approximately 70 people participating the event and most of them were key decision makers and techinal engineers from more than 40 companies.

The seminar was featured by participation of 6 renowned Italian manufactures of plastics and rubber processing machinery coming directly from Italy, leading by Assocomaplast’s Director General Mr. Mario Maggiani, in order to share technical knowledge, expertise in plastics and rubber processing, update trend of plastic and rubber industry, innovative and advance techology offered by Italian manufacturers. Besides, the seminar became a venue for discussion on technical problems as well as establishing business relation between Thai and Italian companies, especially during B2B Meeting that was arranged in the last session of the event.

The seminar was opened by Italian Trade Commissioner Dr. Vincenzo Calì, organizer of the event, with welcome speech and keynote remark on overview of bilateral trade between

3. DO. TE. CO SPA, gravimetric / profile control (www.doteco.com) 4. FRIGEL FIRENZE SPA, plant and machinery for industrial and plastic process cooling (www.frigel.com) 5. FRIGOSYSTEM – COREMA SRL, Chillers and cooling systems for temperature control units (www.frigosystem.it) 6. TECNOMATIC SRL, extrusion line for production of plastic pipes (www.tecnomaticsrl.net) Thailand – Italy and plastics and rubber processing machinery industry and then following with presentation on International Exhibition on Plastics and Rubber Industry “PLAST 2012”

by Mr. Mario Maggiani. PLAST 2012, the largest sector exhibition in Europe with 1,500 exhibitors, is going to take place in Fiera Milano Fairgrounds, Milan, from 8th – 12th May 2012. (More info: www.plastonline.org) List of Italian companies sharing knowledge and expertise during the seminar: 1. LUIGI BANDERA COSTRUZIONI MECCANICHE SPA, specialized on line for brown film, sheet, foil and pipe (www. luigibandera.net) 2. CMS COSTRUZIONI MACCHINE SPECIALI SPA, research, design and construction of machines and plants in particular for woodworking, plastics, marble, glass and equipments support for automation (www. cms.it)

Thailand’s importation of machinery from Italy Unit: Millions of US Dollars Thailand’s import from Italy

2009

Total import All machinery - HS.84 Machinery for plastic - HS.8477

2010

2011

% Growth

% Growth

2010/2009 2.64

2011/2010 42.74

1,436.50

1,474.43

2,104.62

420.93

444.50

602.62

5.60

35.57

13.70

15.33

17.01

11.86

11.00

Source: Italian Trade Commission, conducted by using information from Thai Customs Department

TOP 10 Sources of plastics and rubber processing machinery (HS.8477) for Thailand Unit: Millions of US Dollars Rank

Country

2009

2010

2011

% Growth 2010/2009

% Growth 2011/2010

% Share 2010

% Share 2011

1

Japan

192.38

220.43

328.08

14.58

48.83

38.61

40.88

2

China

69.77

103.35

162.92

48.12

57.63

18.10

20.30

3

Taiwan

76.42

89.51

93.23

17.13

4.15

15.68

11.62

4

Germany

41.04

58.33

84.78

42.14

45.35

10.22

10.56

5

Korea, South

18.57

13.24

25.15

-28.71

89.92

2.32

3.13

6

United States

4.13

12.84

19.80

211.03

54.22

2.25

2.47

7

Italy

13.70

15.33

17.01

11.86

11.00

2.68

2.12

8

Switzerland

2.29

7.60

10.73

232.18

41.20

1.33

1.34

9

Malaysia

7.83

7.44

7.86

-5.03

5.64

1.30

0.98

Austria

8.00

4.37

7.79

-45.41

78.44

0.77

0.97

10

Other countries

28.68

38.44

45.28

34.02

17.80

6.73

5.64

Total import

462.81

570.88

802.64

23.35

40.60

100.00

100.00

After presentation by Italian companies, the seminar continued sequentially with B2B Meeting session. There were a lot of Thai companies requested to have meeting with Italian companies and registered for B2B Meeting.

Number of overall meeting was approximately 30 meetings, approximately 3-5 meetings per Italian company.

Italian plastics and rubber processing machinery for Thailand The Italian plastics and rubber processing technologies are leading worldwide for its innovation, highest quality, and especially capacity of providing personalized solutions to better meet customer’s special requirement.

Italian technology is also important for Thai plastics and rubber processing industry.

In 2011, value of import of machinery from Italy was US$ 602.62 million, increased by 35.57 percent from US$ 444.50 million in 2010. The value of import of machinery was accounted approximately 28.63 percent of total import from Italy. The growth of import of machinery for plastics processing was considered as a part of key contributors to leverage total import of Italy for big jumping from 2.64 percent to 42.74 percent in 2011.

In 2011, Thailand imported machinery for plastics and rubber processing approximately US$ 802.64 million, increased by 40.60 percent from 2010. Japan, with import value of US$ 328.08 million and 40.88 percent of market share, was the biggest supplier for Thai market.

Italy ranked at 7th largest supplier of machinery for plastics processing in 2011 and the value of import was US$ 17.01 million, increased from US$ 15.33 million in 2010.

Although the import value performed positively, value of share slightly decreased from 2.68 percent in 2010 to 2.12 percent in 2011. In TOP 10 ranking, there were only 4 suppliers of machinery for plastics and rubber processing from EUROPE; Germany, Italy, Switzerland and Austria.

Source: Italian Trade Commission, conducted by using information from Thai Customs Department

15

LEGAL ISSUE

Purchasing Property In Thailand It is recommended that you discuss your options and the process of purchasing in Thailand as a foreigner as it is essential to know the legalities involved in such an acquisition of property by foreigners before making any decisions on your purchase whether this is a condominium, land, house or a villa anywhere in Thailand.

By Jus Laws & Consult International Law Firm

The Author

Anika Tolani Business and Legal Advisor Jus Laws & Consult International Law Firm At Jus Laws & Consult we offer specialized services with our knowledgeable lawyers on local and International law to assist with foreign acquisition of property. Contact us today at our office either in Bangkok or in Phuket at Bangkok@juslaws.com or phuket@juslaws.com

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F

oreigners may own condominiums freehold and outright 100% therefore making this option the least complicated and the best option for a foreigner wishing to purchase property in Thailand. Since the year 1991the Condominium Act (No. 2) have enabled foreigners to be eligible to buy condominiums in Thailand and to have freehold title and also have their name contained in the title deed. Condominiums in Thailand are constantly on the rise, leaving no land to spare. Condominiums may be brought off-plan or one that has already been built. This purchase may also take place between natural persons or directly brought from the developer.

Thailand condominiums always have a foreign quota of 49% which means that only 49% of the total space of a condominium can be owned by foreigners on a freehold title. The other 51% refer to Thai Nationals. Before purchasing a condominium in Thailand, it is advised to ensure that the foreign quota has not exceeded.

Foreigners may also choose to lease out a premise for the maximum period permissible by law of 30 years. Generally, there is an extension of the lease permissible for a period of up to 90 years, however, the land departments are usually reluctant to register such a lease, and this is also upon the discretion of the land owner of the land the house is placed on. The lease options give a legal right to reside and possess the house with an option to sub-lease however with the permission of the land owner.

Leases are not transferrable however they are inheritable if it is agreed between the parties and is stipulated in the contract.

Title Deed Search

A title deed to outline the property in which is purchased is usually not provided up front.

For this reason, it is suggested that before making any such deposits or purchases, a title deed copy is obtained from the seller in which the original is contained at the relevant land department and a title deed search should be performed so as to avoid any negligent misrepresentations in the future with regards to the property that you wish to purchase. This will determine the true legal owner of the land and determine as well whether there are any registered encumbrances on the actual property

such as a mortgage or a lease. This investigation will also investigate whether there you are permitted to build upon the land by determining what kind of title deed the property possesses.

It can also be determined with a detailed due diligence the environmental zoning areas, residential and planning codes.

Reserving Your Property

Once a title search has been performed and you are happy to proceed with your purchase, it is usually requested by the developer or the seller that you make a first initial deposit or a reservation fee in order to reserve the property to provide for consideration. The seller will then reserve the property for you until the actual due date for the sales contract for the remaining payment. Note that the remaining payment should not be made until the actual transfer at the land department. Please bear in mind that if you decide to not go through with the contract, that in usual cases the reservation deposit will be forfeited. It must also be noted however, that sometimes a reservation fee is requested prior to such obtainment of title deed.

Sales and Purchase Agreement

When you have provided the reservation deposits, the contracts should be provided to you by the developer or the Seller. Usually if this is a developer, they will have a copy in English and in Thai. Regardless, once you have received a copy of the contract, it is recommended that before signing such a contract, that you review this with a Lawyer or Solicitor.

A review of the Sales and purchase agreement will involve identifying your rights as a buyer in order to protect your interest in the event that the Seller defaults in the completion of a property development, or in the event that there was a breach of contract. This will also determine the various taxes payable and the whether the payment method is appropriate.

Whether purchasing a condominium, villa or a house, it is suggested that prior to making such a purchase, once you have found something of interest, to contact a lawyer or solicitor before proceeding.

REVIEW

Italian Mozzarella and Tomato key players in the Mediterranean diet In 2010, the Mediterranean Diet was inscribed on UNESCO’s Representative List of Intangible Cultural Heritage of Humanity. It is a nutritional model inspired by the traditional foods of European and North African countries around the Mediterranean basin, including Italy, Greece, Spain and Morocco. The fundamental ingredients are green vegetables, seasonal fruits, cereals, fish, meat and animal fats in small quantities, olive oil (preferably “Extra Virgin”), wine - in moderation - and both fresh and dried pulses.

By Massimiliano Tondato

Food Pyramid

At the base of the pyramid are the most commonly consumed foods – such as bread, pasta, rice, polenta, fruit and vegetables. Further up are those foods that are less frequently consumed, such as fish, white and red meat, eggs and cheese, as well as wine in moderate amounts. The nutritional breakdown of the diet is around 55-60% carbohydrates, up to 30% fats and 10-15% proteins. The Mediterranean Diet encompasses a mix of culinary customs as well as an entire cultural system characterised by healthiness, food quality and the distinctive nature of the food ingredients in each territory.

It consists of three main meals (breakfast, lunch and dinner) as well as two snacks during the mid-morning and mid-afternoon, and the dining table serves as a meeting place for friends and family.

Benefits

According to numerous research studies, this diet offers many health benefits. A recent study, carried out by a team led by Francesco Sofi, a nutritionist at the University of Florence, and published in the British Medical Journal, indicates that the Mediterranean Diet reduces the rate of mortality from cardiovascular disease and tumours, as well as reducing the incidence of illnesses such as Alzheimer’s and Parkinson’s.

Mozzarella di Bufala Campana Cheese and San Marzano Tomato: key ingredients in the Mediterranean diet

San Marzano Tomato

Event: TICC, in cooperation with Consorzio San Marzano and Consorzio di Tutela della Mozzarella di Bufala Campana will organize the Get-Together event in May 2012, in order to showcase these Italian traditional products. For more information please visit TICC website at www.thaitch.org

Perhaps one of the most iconic images of the Mediterranean Diet is the “Caprese”.

This dish of soft mozzarella cheese and tasty tomatoes garnished with basil leaves is without doubt a favourite of lovers of Italian cuisine.

And for these aficionados of the Caprese, there is good news from Italy, where The Consortium for the Protection of the Buffalo Cheese of Campania and the Consortium for the Protection of San Marzano dell’Agro – Sarnese Nocerino Tomato have decided to strengthen their cooperation in South East Asia, and in particular in the Thai market. The both Consortium have successfully registered their products for denomination with “Protected Designation of Origin” (PDO), and it is granted to agricultural products and foodstuffs that are prepared in a specific geographical area using recognized know-how. Mozzarella di Bufala

Mozzarella di Bufala Campana Cheese Campana cheese (PDO) originates from the Central-Southern region of Italy, specifically from the provinces of Caserta, Salerno and from any village in the provinces of Naples, Latina, Frosinone and Foggia. It has different characteristics to other mozarella, being richer in proteins, in fats and, most importantly, in calcium. The name “mozzarella” derives from the term “mozzare”, which refers to a specific operation still used today in all Italian dairies where the curd is manipulated by hand allowing the dairy master to cut single pieces of mozzarella in their traditional rounded shape. The tomato is probably the single most important vegetable in healthy Italian cuisine.

One of the better-known types of Italian tomato is the San Marzano variety. This tomato is named after the village of San Marzano sul Sarno, a small village about 10 thousand people in the province of Salerno. The success in safeguarding this variety is thanks to the intervention by the Campania Region and the current actions of the Consortium. Tomatoes grown in the Sarno valley have a bittersweet taste, and enclosed in a smooth red skin; their unique nutritional properties derive from the rich soil, covered for the most part by volcanic material, and from the temperate regional climate.

17

BUSINESS FOCUS

The Low Cost business is taking off in Southeast Asia market There is a common idea which commercial airliners industry is a non- profitable business. As a matter of fact, if we look at last 9 years, the industry registered a loss for six years and when there is a net profit, only in three years, it is below the 3% of total revenue (Source: IATA,ICAO; Global Commercial Airlines vital figures).

By Edoardo Bruno

I

n spite of this data, there is a region of the world where the airline businesses is growing fast and lead the global demand of new aircrafts: the Southeast Asia. In this region, the growth is driven by the proliferation of low-cost carriers which are positively related with the region’s booming economy.

A research demonstrates that when the per capita GDP come through US$ 3,000 a year, people can afford air travel but, if we compare the average flight per year between Asian users and US-UE users, these last, they fly 10 times more than Asian passengers. It means that there is a big opportunity to develop market improving new demand.

According to Boeing, the market demand will increase by 13% annually until 2020, with a total market share of low-cost company (LCC) careers of 31% in the end, instead the currently 19%. The market more attractive for growth rate are in order Indonesia, Singapore, Vietnam, Thailand and Malaysia, while Cambodia, Myanmar and Laos have yet to present market opportunities.

Thailand market overview

With a population of 66 million and the rise of a middle class with a greater disposable income, in Thailand actually the 1.5% GDP is related to aviation industry, and it involves about 400 thousands direct jobs. In addition, Thailand leads the list of countries per national budget airliners based on, with a number of five: Bangkok Airways, Nok Air, (Thai) Air Asia, Orient Thai Airlines and the newest Thai Smile, a low cost company of Thai Airways.

According to Airports of Thailand data, low cost company continues to expand more rap-

18

idly than full-service carriers at Suvarnabhumi as well as other major airports in Thailand.

This expansion is surprising especially because in Asia there is a lack of cheaper secondary airports as in Europe.

Thai Smile, which the name was chosen from a pool of 2.229 entries in a contest, is born with a strong strategy: to expand itself in entire Southeast Asia. Initially, Thai Smile will operate only five domestic routes, leaving the rest for Thai and Nok Air, but when Thai Smile will be fully operative in 2013, she will fly to China, India and other 10 ASEAN countries in a four-hour flight range. Thai Airways is investing millions to buy and lease 11 new Airbus A320, to roll out from June until 2015 and it is planned Thai Smile can do an annual profit about 5 million THB within two years.

In the competitive scenario, the role of Thai Smile is to compete more effectively against Air Asia (the Malaysian based low cost airline) and precisely with the subsidiary Thai-Air Asia. Actually Air Asia is the largest LCC in Asia with 6 subsidiaries (Thai-Air Asia, Indonesia Air Asia, VietJet Air Asia, Air Asia Philippines, Air Asia X, Air Asia Japan) and she is leader of budget routes with a market share of 43% in Thai Market (data refers to 2011). Which a fleet of 93 airplanes, Air Asia is able to serve more than 400 routes in 25 countries. Only to serve Thai market, there is a subsidiary called Thai-Air Asia. Thai-Air Asia has expanded rapidly over the last few years and now competes against Thai Airways on nearly every domestic route, including nine of Thai’s 10 largest domestic routes.

In these days, Thai Air Asia launched an IPO to raise capital to expand its Airbus A320

fleet from 23 to 40, in order to serve a large number of short routes (maximum 3, 5 hours) in Southeast Asia and Southeast India.

In fact, at the moment Thai-Air Asia will focus on further growing its short-haul international network. To be stronger on market, the last idea of Air Asia is the introduction of loyalty program that allows passengers to earn points to be redeemed for free plane tickets, really unusual for a LCC but Tassapon Bijleveld, CEO of Thai-Air Asia, said “we expect 1.5 million people in Thailand could join the program this year”.

On the other side, Thai Smile will have a low cost base in order to compete more effectively against AirAsia, which has one of lowest unit costs in the world. To reach this goal, could share Thai’s Suvarnabhumi base, but at the moment is not probable this solution and Thai Airways spokesman declared at Thai Smile, low fixed-cost will be achieved through aspects typical of the LCC business model, such as single aircraft type and a new fleet, more efficient in terms of fuel consumption and maintenance costs.

But competition in this area is strong and involves many others Asia-Pacific careers that, born to operate on a long range, are now searching for teaming (Qantas and Jal) or joint venture (Air Asia and ANA) to enter short range market.

Today, the budget airlines cover the 20% of total flights in the Asia-Pacific and it is clear that the value of Asia’s aviation market is expanding.

TICC EVENTS

TICC Visits Camillian Home

T

ICC had visited the Camillian Center in Lat Krabang on Saturday 3 March 2012, in occasion of “Open Heart and Open Home Fun Fair.” The project follows the “The Bridge of Hope” charity gala dinner, organized in December 2011, as a mark of support from TICC to Camillian Foundation also in 2012.

The “Open Heart Open Home Fun Fair” aims to be more engaged with the local community, encouraging local residents, companies, community groups, charities, and friends to learn more about Camillian Home’s activities. During the day, have been organized a lot of activities such as face painting, soft play area, music, singing and dancing and a final raffle with over 50 prizes which raised over Baht 250,000, all destinated to Camillian Home for children living with disabilities.

Water and Flood Risk Management: Prevention and Remedial Actions 28 March 2012 Crowne Plaza Hotel

T

he Thai-Italian Chamber of Commerce in cooperation with the Franco Thai Chamber of Commerce and MDA Consulting S.E.A. organized “Water and Flood Risk Management: Prevention and Remedial Actions” Business Luncheon. At the event, Italian experts, Ferdinando Ferraro,General Manager of HYDRO-AIR-BANK™ (HAB)and Antonio Mancini,Project Manager at PER-X Company presented new techniques and approaches in water management and flood damages recovery and risk related reduction.

All Chambers Young Professional Networking Event 29 March 2012 The Lotus Garden, Centara Grand Central World

T

his event was the first gathering of All Chambers young professionals in Bangkok for an unique networking experience.

Ranging from all nationalities and professions, this was the first time ever they were together under one roof at Centara Grand, with great drink discount and tasty assortment of treats, topping off with great lucky draw prices from preferred sponsors.

All proceeds will be donated by the contributing Chambers of the Office of Basic Education to support flood affected schools.

Aperitivo Italiano – Get Together in Pattaya 30 March 2012 Mercure Hotel, Swimming Pool Area

F

or the first time in Pattaya, The Thai-Italian Chamber of Commerce in collaboration with AroyItaly and Italasia organized Aperitivo Italiano – Get Together in Pattaya. This was the perfect occasion to network with the Italian and International business communities of Pattaya and eastern Seaboard. The guests tasted a delicious Italian food and wine served in occasion of this event.

19

TICC FAIR & UPCOMING EVENT

International Trade Fairs in Italy (April-June 2012) Exhibitions In Italy

Detail

Date

Venue/Website

Salone International del Mobile

International Furniture Exhibition

17 – 22 Apr.

Milan, Italy www.cosmit.it/en/salone_internazionale_ del_mobile

Power Gen Europe

the showcase of various products and solutions related to power industry.

12 – 14 Jun.

Fiera Milano, Milan, Italy www.powergeneurope.com/index.html

CIBUS

Food Processing & Packaging Exhibition

7 – 10 May

Parma, Italy www.fieraparma.it

Vicenzaoro Charm

Products, machinery and equipment for goldware and jewelry manufacture.

Gemological instruments.

19 – 23 May

Vicenza, Italy www.charmevent.it

Si-Sposaitalia

International presentation of bridal and formal wear

22 – 25 Jun.

Milan, Italy www.sposaitaliacollezioni.fieramilano.it/

International Trade Fairs in Thailand (April-June 2012) Exhibitions In Thailand

Detail

Date

Bangkok International Gift Fair and House Fair

International Fair

Automotive Engineering Asia

Automotive

17 – 20 May.

Bangkok www.umbthailand.com

THAIFEX- World of Food Asia 2012

Food & Beverage, Featuring, Food Technology, Catering

23 – 27 May.

Impact Muang Thong Thani www.worldoffoodthailand.com

Pump & Valves Asia

International Fair

6 – 9 Jun.

Bangkok www.ubmthailand.com

17 – 22 Apr.

Venue/Website Bangkok www.thailandexhibition.com/Fair/2012/ Apr/BIG+BIH_2012.html

Upcoming Events February – April 2012 Date

Event

Location

22 Sun. – 23 Mon.

Asia Area Meeting in Dubai

Dubai United Arab Emirates

27 Fri.

Get-Together in Phuket

Da Vinci Restaurant

3 Thu.

Get-Together

To be confirmed

9 Wed.

European Day

To be confirmed

15 Tue./22 Tue.

Italian Wine Course

To be confirmed

April

May

June 2 Sat.

Italian National Day

20 Wed.

IP Seminar by EABC

20

To be confirmed

The Secret to Good Grades – It’s in a Book

By Michael Hirsch, Secondary School Principal at KIS

T

he following is an example of an SAT math question. It is one of 44 multiple choice questions that students will need to take, in addition to another 10 free response questions.

A special lottery is to be held to select the student who will live in the only deluxe room in a dormitory. There are 100 seniors, 100 juniors, and 200 sophomores who applied.

Each senior’s name is placed in the lottery 3 times; each junior’s name, 2 times; and each sophomore’s name, 1 time.

What is the probability that a senior’s name will be chosen?

Students will have 70 minutes to answer the above and all the other 54 questions, meaning that they will have a little over one minute to read and comprehend the question, and then to make the necessary calculations.

Let’s take another example, in this case of an IB Standard Level Maths question: 75 metal spherical cannon balls, each of diameter 10 cm, were excavated from a Napoleonic War battlefield. (a) Calculate the total volume of all 75 metal cannon balls excavated. [3 marks] The cannon balls are to be melted down to form a sculpture in the shape of a cone. The base radius of the cone is 20 cm. (b) Calculate the height of the cone, assuming that no metal is wasted. [3 marks]

This question is worth a total of 6 marks. The test has a total of 90 marks, and students have 90 minutes to complete the exam.

What are we testing?

Are these examples of math tests, or reading tests? Perhaps they’re both. Test takers must decode and comprehend the questions.

There is vocabulary that is key to getting the questions right (cone, base radius, diameter, spherical, probability, etc.) and there are other words that are not crucial for getting the question correct that can be sources of distraction (Napoleonic, excavated, sculpture, assuming, deluxe, dormitory, senior, junior, sophomore, etc.)

There are plenty of students who will get these questions wrong who understand geometry and probability, some of whom are native English speakers, because of their reading skills. These students could not decode the question, or could not decode it quickly enough.

Remember, in each exam students have only about a minute for each mark / question – not only is it important to be able to understand what you read, but it is important to be able to do so quickly.

Reading the challenge A student’s ability to read is probably the factor that is most correlated with both their academic success in school, and their success on exams like those they take for their IB Diplomas, or exams that they take for college admissions. At KIS International

School students are encouraged to read through a variety of activities, such as book week, mother tongue language day, “Drop Everything and Read”, quiet reading time, buddy reading and other strategies.

Thailand is not generally thought of as a country of readers – people are more likely to be using their iPad or phone for playing Angry Birds than to be reading a newspaper or book on the Sky Train or while relaxing at a Starbucks.

Thailand ranked 53rd on the Organisation for Economic Co-operation and Development’s Programme for International Student Assessment reading exam. This result placed us behind countries like Romania, Mexico, Uruguay, and Serbia, not just economic powerhouses like Hong Kong, Singapore, and Finland.

Books – not money So, what can we do about it? We can read. We can encourage our children to read.

We can buy our children books for their birthday, for Christmas, or even as a reward for having done well on their report card.

The research on this is conclusive. Researchers from the University of Nevada, UCLA, and the Australian National University published a report in the journal, Research in Social Stratification and Mobility looking at the effect of the size of family libraries on educational attainment in 27 different countries.

Controlling for parent

education and wealth the study found that children who lived in homes with more than 500 books went significantly farther in school. In China having a library of over 500 books equated to the child on average earning an additional 6.6 years of education, while the international average was over 3 years.

There is actually a stronger correlation between family library size and a student’s academic success than there is between family wealth or parent education and student academic success.

If you want your child to be successful, don’t by them an iPad, buy them a book - or at least buy them digital books or magazines for their iPad! Set time for reading Malcolm Gladwell in his book Outliers suggests that to truly master a set of complex skills we must spend 10,000 hours on it. Most students start to develop literacy skills at around 3 years old.

If we want to have our students be master readers by the age of 16 when they start their IB Diplomas, that would mean that they would need to average reading a little bit over 2 hours a day, 365 days a year, for those 13 years. This may sound like a lot, but how many days has your child spent over 2 hours watching TV or movies, or over 2 hours playing video games?

If you want your child to have an advantage for their education and future, set aside daily time for reading – every little bit helps.

MEMBER AREA

Welcome New Members EURO CREATIONS Mr. Kevin Gambir (Business Development) Head Ofiice 1050 Soi Sukhumvit 66/1 Bangjak, Phrakanong, Bangkok 10260 Thailand Showroom: 119 Sukhumvit 55, North Klongton, Wattana, Bangkok 10110 Tel:+66 2 7449624-5 Fax:-66 2 7449731 Website: www.eurocreations.co.th Sector: Importer high-end Furniture and home accessories from Europe

EUROPAC CO., LTD. Mr. Monkolkul Urpatra (Managing Director) 515/307-308 Soi Suan Phlu 8, Sathorn Rd., Thungmahamek, Sathorn, Bangkok 10120 Tel: +66 2 287 3939 Fax: +66 2 287 2237 Email: sales@europac.co.th website:www.europac.co.th Sector: Food Manufacturing

SELECTA ALIMENTA CO., LTD. (BELLA NAPOLI RESTAURANTS) Mr. Claudio Conversi (Managing Director) 3/3 Sukhumvit 31, Klonton Nua, Wattana, Bangkok 10110 Tel: +66 2 259 0405 Fax: +66 2 258 0862 Email: conversicompany@hotmail.com Sector: Italian Restaurant

STEBEL (ASIA PACIFIC) CO., LTD. Issara Sereewatthanawut 118 Village No. 3, Bankhai-Nonglalok Rd, Nonglalok Sub-district, Bankhai District, Rayong 21120 Tel: (+66) 2 225 9520 ext 906 Fax: (+66) 2 225 9106 E-mail: md@bvtauto.com Sector: Manufacturing and Trade

Individual Member Mr. Enzo Tirandi E-mail: enzo2602tiranti@yahoo.com

Q.YIELD ASSOCIATES CO.,LTD. Ms.Chutima Sukjamsai (Business Development Manager) 715 Hathairat Road, Bangchan, Klongsamwa, Bangkok 10510, Thailand Tel: +66 2 548 7290-3 Fax: +66 2 548 7296 E-mail: qyield@qyield.com Sector: Agriculture phases including plant protection and fertilizer.

SOCIETA' DANTE ALIGHIERI

TICC Business Directory 2012

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2012

ITALIAN LANGUAGE COURSES Two ITALIAN LANGUAGE COURSES are offered by the Dante Alighieri Association (La Dante), a non-profit organization for Italian language and culture promotion. The two courses will start on Tuesday, April 24th, 2012 at the Thai-Italian Chamber of Commerce, 16th floor, Vanit II Building, 1126/2 Petchburi Road (accessible from BTS, Ploenchit Station). The two courses are “True Beginners” and “Say it in Italian: travel, food, fun”.

Classes will meet twice a week, on Tuesdays and Thursdays from 6:00 p.m. to 7:30 p.m. for five weeks; the course fee is 4,000 baht, discounted to 3,500 baht for members of Dante Alighieri and staff of TICC members. The students’ number is limited to ten per class. Classes are taught by instructors who have graduated from Italian universities and are experienced in teaching Italian as a foreign language. La Dante also offers individual lessons and conversation classes. For reservations or additional information please contact danteclass@gmail.com or call 082-4490598.

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The TICC's is proud to announce that Business Directory 2012 has been published. The business directory is our main publication and provides economic outlook of Italy and Thailand, a list of fairs and exhibitions in both countries, a description of the Chamber and his activities. In the business directory you will find also all company profile of our members, with a complete description of the business, the company background and the contact information.

Copies of the Business Directory can be obtained for TICC members at different prizes: • Paper printed 800 baht • Digital format 500 baht Please contact the TICC office by e-mail (pr@thaitch.org), Tel: (+66 2 255 8695) or by fax (+66 2 253 9896) for further details or to purchase.

Co van Kessel Bangkok Tours Bangkok’s original award-winning bicycle tour Operating for over 30 years

Join us to go where nobody else will take you...

to see a side of Bangkok you never knew existed!!! www.covankessel.com Tel: +66(0)2688-9933

TAT License 13/01461