Informa - January 2022 by Thai - Italian Chamber of Commerce

ISSUE

January 2022

INFORMA The Business Magazine of the Thai - Italian Chamber of Commerce

January 2022

“The interactions I had with the various teachers and coaches at Bangkok Patana gave me a good foundation on how I approach learning. I benefitted the most from the various activities I could participate in, which translated to ‘real world’ skills.” Kyle Harrison, Grad ‘13, Aerodynamicist

ow o th t ou DP a b IB Readt from w en

K Fo yle rm ula

Give your child a World of Opportunity at Bangkok Patana School admissions@patana.ac.th www.patana.ac.th Tel: +66 (0) 2785 2200 2

INFORMA

Bangkok Patana is a not-for-profit, IB World School accredited by CIS

PRESIDENT'S MESSAGE Federico Cardini President PRESIDENT Mr. Federico Cardini VICE PRESIDENTS Mr. Simone Callai Ms. Mallika Esposito Seu Margherita BOARD OF DIRECTORS Mr. Andrea Gallucci Mr. Brian K. Prasomsri Mr. Chakrit Benedetti Mr. Enzo Massimo Chiappa Dr. Francesco Pensato Mr. Luca Bernardinetti Mr. Rene Okanovic Mr. Yongyudht Teeravithayapinyo DESIGN AND ART DIRECTION: Ms. Sasithorn Amartmontee EDITOR Mr. Michele Tomea Thai-Italian Chamber of Commerce 1126/2 Vanit Building II, Room 1601B 16th Floor, New Petchburi Rd., Makkasan, Rajdhevee, Bangkok 10400 Tel: +66 2 253 9909, +66 2 255 8695 Fax: +66 2 253 9896 E-mail: secretarygeneral@thaitch.org TICC STAFF: Mr. Michele Tomea Secretary General Mr. Giacomo Iobizzi Deputy Secretary General Ms. Chenchira Boonchuai Membership Executive Ms. Sasithorn Amartmontee Media and Editorial Manager Ms. Sirintip Chungasa Accounting Manager Mr. Nattapong Phalathikom Event Manager SCAND-MEDIA REPRESENTATIVE Mr. Gregers Moller PUBLISHER Scand-Media Corp., Ltd. 211 Soi Prasert Manukitch 29, Prasert Manukitch Road, Chorakaebua, Ladprao, Bangkok 10230 Tel: +66 2 943 7166-8 Fax: +66 2 943 7169 Mr. Finn Balslev Director of Marketing 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

Dear Valued Members, I would like to extend my warmest greetings for the New Year to all. I am delighted to present you the first issue of INFORMA for 2022 that comes with information about business in Italy from our beloved members and partners and information about products for Thailand market. Furthermore, I would like to stress my strong support and encouragement to all our members and affected Thai institutions as Thailand is contending another wave of COVID-19. I am confident that the Italian and Thai business communities will be able to get through the pandemic and lead to significant improvements week after week. In this issue, I would also like to express my gratitude to the participants who contributed articles to this edition of INFORMA: we propose the economic outlook 2022 from the Office of the National Economic and Social Development Council (NESDC), Digital revolution update, an article about the Thai residency and citizenship, and other several topics from Bangkok Shipowners and Agents Association, Mahanakorn Partner Group, Specialty Innovation and Techni Waterjet. In the end of 2021, we organized three physical events: (1) Piazza Italiana (November 24th at Vanit Building), a B2B fair for food and beverage industry in the framework of the Italian Cuisine Week; (2) a networking event in Phuket (November 25th at Kudo, Phuket) in which we displayed two exclusive videos produced by the TICC under the project True Italian Taste; and 3) TICC Annual General meeting on December 1st at the Four Seasons Chaopraya. Last year we were unable to arrange the traditional Gala Dinner due to COVID-19 restrictions, but we hope to create new networking events in the upcoming months. However, as you may be aware, the Chamber is promoting business opportunities and our first event of 2022 available will be held on February 11th at Ma Maison with our partner, on that day we are going to open the 36 years of the Flower Art Exhibition with Nailert. TICC would like to express its sincere thanks to all members for their unwavering support and active participation in TICC. I look forward to a continued relationship in 2022! Arrivederci! Federico Cardini President

ABOUT US The Thai-Italian Chamber of Commerce (TICC) is a private, non-profit organization which has a network of companies from all around the world but mostly focusing on Italian and Thai companies with its headquarters in Bangkok, Thailand. The main goal of the Chamber is to enhance cooperation between Italy and Thailand, by developing programs of common interest in order to increase the awareness between organizations and public administrations in the two countries. In order to reach its goals, TICC constantly organizes activities, seminars, commercial missions, networking events and meetings to promote the development of commercial activities as well as industrial and cultural collaboration between organizations and entrepreneurs both Thai and Italian. TICC is a member of Assocamerstero (the association of Italian Chamber of Commerce abroad) (http://www.assocamerestero.it), the Joint Foreign Chambers of Commerce in Thailand (JFCCT) (http://www.jfcct.org) and is one of the founding partners of the European ASEAN Business Center (EABC).

January 2022

PERFORMANCE WORTHY OF THE WORLD’S TOP UNIVERSITIES #NordAngliaWay

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INFORMA

CONTENTS

THE WORLD ECONOMIC OUTLOOK FOR 2022

INSIDE THAILAND’S DIGITAL REVOLUTION WHY TECH STARTUPS AND INVESTORS FAVOR SOUTHEAST ASIA’S INNOVATION HUB

THAI ECONOMIC OUTLOOK FOR 2022

THAI PERMANENT RESIDENCY AND CITIZENSHIP

RCEP KICKS IN WITH THAILAND, CHINA AND 8 OTHER COUNTRIES........................................................................................16 WHAT IS RCEP? HOW WILL THAILAND BENEFIT FROM THE WORLD’S LARGEST FREE TRADE AREA?.......................................17 SUPPLY CHAIN DISRUPTION: OBSTACLES AND CHALLENGES OF THE THAI SEA FREIGHT SECTOR.......................................18 HEMP AND THE UNLOCK OPPORTUNITIES..................................................................................................................................21 THAILAND MANUFACTURED HIGH-PRESSURE WATERJET CUTTING SYSTEMS..........................................................................22 ITALIAN GELATO AND COFFEE: ESTABLISHING A STRONGER PRESENCE IN SOUTHEAST ASIA AND THAILAND..................24 PIAZZA ITALIANA: B2B EVENT DEDICATED TO ITALIAN FOOD & BEVERAGE IN BANGKOK...................................................25 FORTHCOMING EVENTS..............................................................................................................................................................26 FORTHCOMING TRADE SHOWS.................................................................................................................................................28 NEW MEMBERS............................................................................................................................................................................30

LIST OF ADVERTISEMENTS

P. 4

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P. 20

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P. 19

P. 15

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January 2022

THE WORLD ECONOMIC OUTLOOK FOR 2022

THE WORLD ECONOMIC OUTLOOK FOR 2022 The world economy in 2022 will continue the growth from the second half of 2021, following the notable recoveries of major economies led by the US, the Eurozone, the UK, Australia and the NIEs. This is mainly due to the relaxation of control measures, progress in vaccine distribution, and the invention of antiviral drugs which have boosted overall confidence and thus will continue to drive domestic demand and economic activities to return to pre-pandemic levels. However, the advanced economies are expecting some slowdowns following the high growth base from 2021 and the curtailment of fiscal support by the end of 2021. There are also limitations from the resurgence of Covid-19 outbreak from the new variants that can derail the recovery of domestic demand and service sector. Meanwhile, the Chinese economy tends to decelerate due to the economic structural reform policies toward sustainability and economic stability. Also, the impact from supply chain disruption due to port closures and the shortage of major raw materials is likely to be persistent, expectedly until the first half of 2022. Meanwhile, emerging economies and developing economies, particularly the ASEAN, are expected to perform strong growths in 2022, following the favorable recovery of major trading partners which will boost export-oriented economies and their manufacturing sectors. Additionally, the domestic demand is likely to rebound following more easing of outbreak control

and international travel restrictions after the vital progress on vaccine distribution. Key assumptions for the baseline projection include: (i) there will be no severe resurgence and prolonged infections as well as the virus variants do not decrease the effectiveness of vaccine that can lead to higher number of severe infections and deaths and will not thus lead to higher degree of containment and restrictions which eventually derails economic activity; (ii) the monetary policy will be able to effectively handle with the rising inflationary pressure in major economies and hence the policy would remain favorable for economic expansion. Likewise, the variation in the bond market will not heap more pressure on the central banks to raise the policy rates; and (iii) China’s structural reforms and economic stability will not notably weaken its economic growth and will not create volatility in financial and capital markets. Under this baseline scenario, the global economy and trade volume in 2022 are projected to expand by 4.8 percent and 6.5 percent, respectively, decelerating from the 5.6-percent and 8.0-percent growths in 2021. Prospects on key economies are as follows: The Eurozone Economy In Q3 2021, the Eurozone economy grew by 3.7 percent, decelerating from a 14.2-percent growth in the previous quarter, partly

due to high growth base in all member economies. Nevertheless, after seasonal adjustment, the Eurozone economy expanded by 2.2 percent, continuing from a 2.1-percent increase in the previous quarter (%QoQ swda). The recovery was contributed mainly by domestic demand, exhibited by continual growth of retail sales and the 13-quarter high of consumer confidence. In addition, manufacturing and services sectors continued to recover, reflecting by the manufacturing and service PMI registering at 60.9 and 58.4, respectively, which are higher than their respective levels of 52.4 and 51.1 in the same quarter last year. The inflation rate increased to a 39-quarter high at 2.8 percent. For key economic policies, the European Commission has disbursed funds under the Recovery and Resilience Facility for 16 countries, totaling 51.5 billion Euros, which were part of the part of the 672.5 billion Euros loans and grants under the Next Generation EU Recovery and Resilience Facility. Moreover, the ECB meeting on September 9th, 2021, agreed to hold the policy rates at a low level of 0.0 percent as well as to maintain other accommodative measures to support the economic recovery.1 In 2022, the Eurozone economy is expected to expand by 4.2 percent in 2022, compared with 4.9 percent in 2021. It tends to be supported primarily by the rebound of manufacturing following global economic

Key measures include: (i) maintaining asset purchases under Pandemic Emergency Purchase Programme (PEPP) with the total envelope of 1.85 trillion Euros; (ii) continuing monthly bond purchases under the Asset Purchase Programme (APP) with 20 billion euros envelope with reinvesting principals until ECB increases policy interests; and (iii) continued liquidity support through the third series of targeted longer-term refinancing operations (TLTRO III). 2 As of November 2nd, 2021, COVID-19 vaccination has covered 69.8 percent of the Eurozone population. 3 Key fiscal policies are consisted of: (i) long-term expenditure budget of the EU 2021 – 2027 worth 1.2109 trillion Euros; (ii) the “Next Generation EU” economic recovery plan for 2021 – 2023 worth 0.8069 trillion Euros; (iii) EU4Health, which is the EU’s response to the current COVID-19 crisis and future pandemic under the EU Health Programmes, worth 5.3 billion Euros spanning over 2021 – 2027; and (iv) the 94.3 billion Euros in financial support for 19 member states under the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE). 4 During the ECB’s latest meeting on October 28th, 2021, it was agreed that: (i) policy rates are to be maintained at the low level until inflation is sustainably at the target of 2.0 percent, although the target is allowed to be briefly exceeded; (ii) asset purchases under Pandemic Emergency Purchase Programme (PEPP) with the total envelope of 1.85 trillion Euros is to be maintained until March 2022 or until the ECB has considered that the COVID-19 crisis has subsided; (iii) monthly bond purchases under the Asset Purchase Programme (APP) with 20 billion euros envelope are to be continued with reinvesting principals until ECB increases policy interests; and (iv) the third series of targeted longer-term refinancing operations (TLTRO III) is to be continued. 1

INFORMA

THE WORLD ECONOMIC OUTLOOK FOR 2022

recovery and lower tariffs on steel and aluminum between the European Union and the US. Simultaneously, both domestic demand and services sectors incline to resume their growth as several countries have relaxed their containment measures since mid-2021 and allowed international travel within the 19 EU members regarding the satisfactory vaccination rate.2 In addition, the regaining of economic momentum is also buttressed by the major European Union fiscal policy3 totaling 1.361 trillion US dollars, or about 10.5 percent of GDP. However, the economic outlook tends to decelerate following the slow recovering trend of domestic demand due to the new wave of the outbreak in many EU members and the monetary policy direction in slowing down the pace of net asset purchases amid rising inflationary pressure4.

In 2022, the ASEAN economies are likely to improve as the pandemic situation abates in tandem with an increasing vaccination rate, and thus the governments can allow more relaxed containment measures. In addition, the manufacturing production and exports are projected to expand following the world economy and global trade. Meanwhile, the domestic demand is expected to recover continually because of the support from the government’s additional fiscal measures6 accompanied by the continued accommodative monetary policy. Thus, overall, the economies of Indonesia, Malaysia, the Philippines, and Vietnam will grow by 5.5 percent, 5.8 percent, 6.5 percent, and 6.7 percent, accelerating from 3.8 percent, 4.5 percent, 4.2 percent, and 2.8 percent, respectively.

The ASEAN Economies

Notwithstanding, there remains uncertainties that could derail the world economy and merchandise trade over 2022 from our baseline projection. The key limitations and risk factors needed to be consistently monitored include:

In Q3 2021, the ASEAN economies experienced a number of headwinds threatening to slow the recovery due to the resurgence of COVID-19, owing to the new strain virus. Henceforth, the governments had to reimplement the strict containment measures amid the low full vaccination rate. Consequently, the domestic spending and service sectors were severely affected, and some production bases were temporary suspended the operations which dampened the manufacturing and export sectors. Overall, the economies of Indonesia and the Philippines grew by 3.5 percent and 7.1 percent, decelerating from a 7.1-percent and 12.0-percent expansions in the previous quarter, respectively. Meanwhile, the Malaysia’s and the Vietnam’s economies shrunk by 4.5 percent and 6.2 percent, compared with an increase of 16.1 percent and 6.6 percent in the previous quarter. This was the first ever economic contraction of Vietnam since the record begin. This contraction was mainly due to the extensive lockdown of Vietnam’s factories and special economic zones to control the outbreak. Thus, many ASEAN countries were continually enacting fiscal policies4 to alleviate the detrimental economic impacts in tandem with maintaining historically low policy rates5.

(1) the high uncertainty regarding COVID-19 pandemic, particularly the virus mutation that tends to undermine vaccines’ effectiveness and thus lead to reimplementation of strict containment and prolonged international travel restrictions. In addition, delays in vaccine distribution in emerging and developing economies may result in persisted outbreak and increasing number of deaths, and potentially slow down the economic and merchandise trade recoveries to the normal level; (2) risks from faster-than-expected inflationary pressures that could lead to a shift in direction on monetary policy and tighter financial conditions, particularly from (i) rising commodity and energy prices in global markets, coupled with increasing international freight costs, and (ii) the rise in wage due to labour shortage. Therefore, if the surge in inflation persisted, the key central banks could reduce the scale of monetary easing and raise the policy interest rate faster than anticipated. This circumstance could diminish debt paying capability and thus accelerate

default risk, specifically in emerging markets and developing economies with a large percentage of debt in foreign currency; (3) the lingering supply chain disruption, which will undermine the economic recovery and heap more pressure on inflation, due to: (i) the outbreak situation in several countries that affected industrial areas and has resulted in the closure of factories and production base, especially those producing raw materials and capital goods; (ii) the shortage of semiconductors which is likely to restrict the manufacturing production in key supply chains such as automobiles, computers, electronic components, motorcycles and household appliances (iii) the shutdowns of Chinese ports due to the pandemic and problem in container management that have caused shipping delays and continued to increase freight rates; (4) the risk of a slower-than-expected growth of the Chinese economy which may weaken the recovery of the world economy and global trade volume, especially emerging economies in Asia that highly-connected to the Chinese economy. However, in the base case, China’s economic reform is expected to be a gradual transitory with limited impact, while the shortage of electricity will be temporary; (5) the fluctuations in the global financial system, and the volatility of international capital flow under the highly uncertain outbreak situation which may result in exchange rate fluctuation, the policy direction of major economies, particularly under less fiscal space amidst the high public debt in major economies, and the default debt of Chinese real estate companies, which could lead to greater volatility in asset prices; (6) the international conflicts, including geopolitical conflicts that cause domestic unrest, such as the conflict in Afghanistan, the conflicts in the Middle East which could impact oil price levels, as well as the conflicts between trade and technology, particularly the US-China tension that could put pressure on international trade and investment.

The Malaysian government approved the 150-billion-ringgit PEMULIT project in late June, which will be effective for the rest of the year. This project is considered as an extension of the previous PEMERKASA Plus program. It contains the measures regarding granting money to low-income households, supporting newly graduate unemployed students, manipulating prices of foods and energy, providing a discount on the electrical bill, subsidizing wages, etc. Similarly, the Philippine government enacted the 400-billion-peso Bayanihan III law in late June, which will also be effective for the rest of the year. This law is also about granting money to affected households, subsidizing on wages, assisting unemployed workers, supporting the agricultural and fishery sector, etc. 5 The policy rates of Vietnam, Malaysia, Indonesia, and the Philippines remained at 2.50 percent, 1.75 percent, 3.50 percent, and 2.00 percent, respectively. 6 The Malaysian government has allocated a budget of approximately 80 billion US dollars to stimulate economic recovery in 2022, in aspects of providing financial assistance to those affected, investing in additional infrastructure and economic stimulus measures, etc. Meanwhile, the Indonesian government approved the 2022 budget of 180 billion US dollars allocated to the health expenditures to deal with the COVID-19 situation (18 billion US dollars), the development of government welfare (30 billion US dollars), and infrastructure (27 billion US dollars). 4

January 2022

THAI ECONOMIC OUTLOOK FOR 2022

The Thai economy in 2022 tends to grow more-pronouncedly from the low base in 2021, supported mainly by the domestic demand resumption after improved outbreak situation and progress in vaccine distribution. In addition, the key supporting factors include the tourism recovery due to easing of international travel restriction, and exports and manufacturing expansion following the world economy and trade recovery. Moreover, the economy will be driven by government spending from both the annual budget and the loan decrees. However, key risks and limitations which could undermine the baseline growth consist of: (i) the uncertainty of COVID-19 outbreaks amidst virus mutations; (ii) weak financial conditions of the households and business sectors; (iii) possibility of prolonged disruptions in global supply chain and logistics undermining exports and manufacturing; and (iv) volatilities in the global economic and financial landscape amidst the heightened inflation pressure. Supporting factors for the economic growth: 1) The continued improvement of domestic demand, contributed by better domestic outbreak situation as well as a surge in vaccine distribution across the country, reflected by a decline in number of new cases and new deaths per day, which resulted in continual relaxation of restriction

and containment measures1, causing economic activities and domestic spending to return to normal operations continuing from the last quarter of 2021. Moreover, there have been more resilient in term of households’ and businesses’ behavior to adapt and to counter the new normal pattern as a result of the pandemic. The domestic demand will also be supported by government economic packages to increase purchasing power and stimulate the economy. Meanwhile, private investment tends to expand in line with a growth in manufacturing and exporting sectors. 2) The recovery of tourism sector, driven by the easing of the containment measures and the reopening of the international travel since November 1st, 2021. Under this new guideline, fullyvaccinated tourists from 63 eligible countries can arrive in Thailand without quarantine, only RT-PCR is required (Test and Go). Furthermore, there also introduced the tourism sandbox areas (Blue-zone areas) which are pilot areas that can lift the restriction measure to attract both domestic and foreign travelers.2 Furthermore, the pandemic situation in major countries of tourist origin has improved and thus many countries started to relax the international travel restriction. Therefore, numbers of inbound tourists

in Thailand are expected to increase considerably especially in the second half of 2022. This is also consistent with UNWTO estimation that global tourism arrivals will increase by 60 percent in 2022. 3) The continual recovery of the world economy and global trade volume, led by the continual expansion in major industrial economies especially the US, the Eurozone, Japan, and China. The global recovery will be supported by more eased pandemic situation and the vaccination progress which will bolster expansion of manufacturing and service sectors, as well as domestic demand in each country. In addition, contribution from exports will drive world trade volume and will therefore boost the exportdependent economies namely the NIEs and the ASEAN to grow satisfactorily. Key export goods that tend to expand from increasing demand include work-from-home-related electronic appliances and equipment, vehicles and parts, and petroleum products such as plastics and chemical products which should grow in line with higher oil prices. In addition. Thai exports will be able to reap up benefits from the ratification of Regional Comprehensive Economic Partnership (RCEP) effective since January 1st, 2022 which will subsequently increase export opportunities in a wider array of goods.

The Centre for COVID-19 Situation Administration (CCSA) announced on November 13th, 2021, that only six provinces are still under maximum restriction, accounting for 3.8 percent of GDP, compared with announcement date August 3rd, 2021, that 29 provinces are under maximum restriction, accounting for 77.6 percent of GDP 2 Sandbox area guideline will be conducted in three phases; (1) From November 1st -30th, 2021 , 17 provinces as followed, Bangkok, Krabi, Chonburi (Pattaya, Bang Lamung, Na Chom Thian, Bang Sare), Chiang Mai (Muang, Mae Rim, Mae Taeng, Doi Tao), Trad (Koh Chang) Buriram (Muang), Prachuap Kirikhan (Hua Hin, Nong Kae), Phang-nga, Petchaburi (Cha-am), Phuket, Ranong (Ko Phayam), Rayong (Ko Samet), Loei (Chiang Kan), Samut Prakan (Suvarnabhumi Airport) Surat Thani (Ko Samui, Ko Pa-ngan, Ko Tao), Nong Kai (Muang, Sangkhom, Sri Chiang Mai, Tha Bo), and Udon Thani (Muang, Ban Dung, Kumphawapi, Na Yung, Nong Han, Prachaksinlapakhom), considered by foreign tourism income accounting for 15 percent of total tourism income. (2) From December 1st – 31st, 2021, additional 20 provinces under the condition that income from tourists accounts for 15 percent of total tourism income and there must be cultural products and border with other countries (3) From January 1st, 2022, provinces under the condition of economic sandbox with border with other countries 1

INFORMA

THAI ECONOMIC OUTLOOK FOR 2022

4) The support from government spending both from the annual budget, state-owned enterprise, and the loan decree, which will support government consumption and public investment despite previous year’s high growth base: (i) the FY2022 annual budget disbursement rate in the baseline assumption is expected to be at 93.4 percent of the overall budget framework, including the current budget and the capital budget at 98.0 percent and 75.0 percent disbursement rate to total budget, respectively. Consequently, it is expected that the FY2022 annual government budget should be disbursed around 2.782 trillion baht. Besides, the FY2022 carry-over budget disbursement rate is anticipated to be at 82.9 percent, accounting for approximately 196.7 billion baht; (ii) the disbursement by state-owned enterprises’ capital budget in FY2022, especially investments in key infrastructure investment projects, is anticipated to have a disbursement rate of 70.0 from the total budget of 468.8 bath billion (including SOEs which are listed companies), 8.3 percent growth from 432.9 billion bath; (iii) the disbursement under the 1 trillion loan decree is expected to be disbursed around 131.1 billion Baht within FY2022 (13.1 percent of total budget), resulting in full disbursement from the budget within the second quarter of FY2022; and (iv) the disbursement under the additional 500 billion baht loan decree is expected to be disbursed around 390.2 billion baht within FY2022 (78.0 percent of total budget). 5) The unusually low growth base of the economy in 2020 and 2021 due to the COVID-19 outbreak. In fact, the Thai economy in 2020 decreased by 6.1 percent which was the first recession in 11 years, before rebounding by 1.2 percent in 2021. The domestic demand rebound, however, has been restricted by the COVID-19 resurgence. Given such conditions, the Thai economy in 2022 should regain its growth momentum from domestic demand and goods exports recovery. Risks and limitations to economic growth: 1) The uncertainty of the COVID-19 pandemic amid the viral mutations, which appears to be easily transmissible and possibly reduce the effectiveness of vaccines to preventing the infection, which could be the risk of the new outbreak and could thus lead to the reintroduction of stringent control measures and also restrict the international travel, particularly in the

major tourist origin countries for Thailand. In addition, the delay of vaccine distributions, especially in developing countries and low-income countries would discourage tourism confidence and considerably slow down the recoveries of domestic demand and the whole economy. Moreover, the domestic pandemic situation in Thailand remains highly uncertain due to the risk of the virus mutation which are needed to be closely monitored, especially after the relaxations of containment measures and tourism reopening. At the same time, the vaccine, medicines, medical supplies, and other healthcare equipment have to be well prepared and effectively distributed in order to cope with any unexpected pandemic which could thus control the number of severe disease or death rate to remain under the public health capacity. 2) Weakened financial conditions of the households and business sectors, especially through rising household and business debt burden, compared with pre-pandemic levels. Household debt to GDP in the second quarter of 2021 was 89.3 percent, compared with 78.4 percent in the same period last year, while the non-performing loans (NPLs) and special mentioned loans (SMLs) to total SMEs loans in the second quarter stood at very high rates of 7.3 percent and 12.4 percent, compared with 4.5 percent and 3.2 percent in the same quarter of the last year, respectively. High levels of debt burden in the private sector would aggravate both recoveries in domestic demand and the ability to repay debt in the following periods. Moreover, the recovery path will be further restricted by the not-fully recovered labor market, reflecting in the number unemployed receiving unemployment insurance benefits from the social security fund of 273,157 persons in the third quarter of 2021, slightly lowered from 307,883 persons in the last quarter but remained much higher than 172,412 persons in the same quarter of last year. 3) The growth momentum from export and manufacturing sectors could be exacerbated by prolonged constrains in global supply chain and international logistics, as well as a shortage of migrant workers as follows: (1) the global supply chain disruption caused by a shortage in shipping containers and ports closure in China, together with a shortage in semiconductors, have intensified transportation and production costs. If these bottlenecks could not be resolved until the beginning

of 2022, the global supply chain would be further constrained and, consequently, would aggravate recovery in the Thai exports sector; and (2) the shortage of migrant workers as shown in a report from the office of foreign worker management in the department of employment under the ministry of labor where a total number of permitted foreign workers in Thailand were 2,374,501 workers in September 2021, lowered than 2,424,490 workers and 3,090,825 workers in the same months of 2020 and 2019, respectively. The decline of foreign workers reflected the shortage trend due to the fact that many foreign workers returned to their home countries during the pandemic and they have not yet been allowed to come back to work in Thailand. If, however, the shortage problem is pursued, the foreign labor dependent sectors would be affected significantly, particularly agricultural and food industries, garment industries as well as the service sector. 4) The volatility and uncertainty of the world economy and financial market which may affect the economic growth and economic stability that need to be closely monitored and assessed are as follows: (i) the uncertainty of the COVID-19 pandemic amid the viral mutations, which appears to be easily transmissible and tend to affect the effectiveness of current vaccines; (ii) an increasing trend of the inflation rate, the change in the monetary policy directions, and the effect on the bond market of the major economies; (iii) the fluctuations of global financial market and international capital flow due to the uncertainty of the pandemic situation amid the viral mutations that affect the volatility of exchange rate and capital flow, including Chinese business regulatory reform and the default on debt of real estate companies in China that could slow down the economic growth and cause a volatility of asset price; (iv) the policy direction of major economies, specifically the US and China, including the US, China, and Taiwan’s positions on entering the Trans-Pacific Partnership’s Comprehensive and Progressive Agreement (CPTPP); and (v) geopolitical conflicts such as the conflict between China and Taiwan, the unrest in Afghanistan, the conflict within the Middle East which may affect energy prices volatility, and the conflict between Australia and Asia-Pacific countries due to the new Australian submarines.

Office of the National Economic and Social Development Council (NESDC) Address: 962 Krung Kasem Rd, Wat Sommanat, Pom Prap Sattru Phai, Bangkok 10100 Tel: +66 (0) 2 280 4085 | www.nesdc.go.th

January 2022

ITALY

ECONOMIC FAST FACT

Population

Female

million people

million

Male

Currency

Capital City

ROME

83 years

million

Total Area

EURO

Life expectency

GDP

1,790.7

301,338 KM²

Billion Euro VALUE ADDED SHARES Services 74% Industry & Construction 23.9% Agriculture, Forestry & Fishing 2.1%

ITALY IS THE WORLD'S 8TH LARGEST ECONOMY

TOP TRADE PARTNER 2019

TOP EXPORT GOODS 2019

3 3

Non-EU Partners Italy is the member of the European Union (EU)

Italy began showing a positive balance in the mid-1990s. Trade with other EU members accounts for more than half of Italy’s transactions. All products imported by companies must comply with both local and EU regulations. The EU has the authority to negotiate trade agreements with third states.

Industrial Machinery, Motor Vehicles & Parts, and Pharmaceuticals

Energy Import

Primary Source of

INCOME

80%

Main industries

GOODS

Raw Materials

Chemicals

Electronics

Fashion (textile and cosmetic) Tourism Automotive/ Aviation Food and beverage

Food

Priorities for Structural Reform in 2021 of Italy

Import Procedures in Italy

EU License

10 INFORMA

EU Law

Origin of Products

The Weaknesses Lack of raw materials and energy resources

MAIN IMPORT

Motor Vehicles

The Strength Metallurgical and Engineering Industries

Machinery, Chemicals, Automotive, Textile, Fashion design, Tourism, Agriculture (Wine production)

Fuel

Other major trading partners include the United States, Russia, China, and members of the Organization of the Petroleum Exporting Countries (OPEC).

EU Labeled

Infrastructure

Good Governance

Education / Labor

Tax System

Productivity & Creativity

THE SOURCES FROM : ITALIAN TRADE AGENCY, WORLD BANK RESEARCH, OECD ECONOMIC SURVEY, WORLD, INTEGRATED TRADE , SOLUTION (WITS) , BRITANNICA, EU BUSINESSES

THAILAND ECONOMIC FAST FACT

Population

Female

millions people

millions

Capital City

BANGKOK

Male

73 years

GDP

513,120

BAHT (THB)

Life expectency

34 millions

Total Area

Currency

501.795

KM²

Billion dollars

MAIN ECONOMIC SECTORS Agriculture Manufacturing Services

THAILAND IS SOUTHEAST ASIA'S SECOND-LARGEST ECONOMY

TOP TRADE PARTNER 2019

TOP EXPORT GOODS 2019

3 4

The major project for

Thailand economy

Refined petroleum

Rubber

Rice

The Thai Cabinet authorized the Eastern Economic Corridor Development project on June 28, 2016, with the goal of expanding Thailand's Eastern Seaboard into a prominent economic zone in ASEAN. Rayong, Chonburi, and Chachoengsao are the three Eastern provinces that make up the EEC, with a total area of 13,285 square kilometers. The project was suggested by the Office of the National Economic and Social Development Board, which stated that Thailand's Eastern Seaboard is now its primary industrial production base, particularly in the petrochemical, energy, and automobile industries.

Raw sugar

The Strength

Primary Source of

INCOME

The Weaknesses

Regional hub Richly endowed in agricultural resources (natural rubber, rice and sugar cane) Diversified exports: tourism, machines, car parts, electronic components, agriculture-food products, fish and shellfish

Tourism, Auto production industries, Steel production industries, Electric industries

TOP IMPORT

GOODS Electrical machinery, equipment

Mineral fuels

Machinery Vehicles including computers

Iron, steel, gems and metal

Plastics

Medicals and chemicals

Inadequate infrastructure Aging population and shortage of skilled labor Uncertain political situation; antagonism between rural and urban areas High corruption perception and large informal economy High household debt levels

Main industries Tourism Textiles and garments Agricultural processing Beverages Tobacco Cement Light manufacturing such as jewelry and electric

Appliances Computers and parts Integrated circuits Furniture Plastics Automobiles and automotive parts

Thailand in the Eastern Economic Corridor projects: Target to Combine Public and Private investment

U-Tapao International Airport

Hospital

Tourism

Industry

Motor way

Dual track railway

Good Governance

Laem Chabang Port

The sources from: Trading Economics, Thailand Board of Investment, The World Bank, Investopedia, Thailand Business News, The EEC Thailand

Map Ta Phut Port

January 2022

INSIDE THAILAND’S DIGITAL REVOLUTION WHY TECH STARTUPS AND INVESTORS FAVOR SOUTHEAST ASIA’S INNOVATION HUB

INSIDE THAILAND’S DIGITAL REVOLUTION WHY TECH STARTUPS AND INVESTORS FAVOR SOUTHEAST ASIA’S INNOVATION HUB Just a few years ago, two young expatriate Thai engineers were building their careers on opposite sides of the U.S. In California, Varayuth “James” Yenbamroong was heading a satellite systems team at aerospace and defense contractor Northrop Grumman. In Boston, Aukrit Unahalekhaka was pursuing graduate studies at the prestigious Massachusetts Institute of Technology after spells working in Silicon Valley with Cisco Systems and as an advanced systems and technology consultant for professional services giant Accenture. Both men’s future prospects in a country where they had studied and worked for more than a decade could have been assured. Instead, they decided to head home to Thailand to join the vanguard of a digital revolution that is transforming Southeast Asia’s second largest economy. The two entrepreneurs’ visions stretch literally from the earth to the sky. Aukrit, 32, co-founded Ricult, a startup that uses big data, artificial intelligence, machine learning and financial-based digital solutions to disrupt one of the world’s most valuable industries – the $5 trillion farming and agriculture sector. Varayuth, 37, founded mu Space, which has established a space data center in Bangkok and is poised to launch its first satellite in 2021. Major investments by digital and tech giants such as Switch of the U.S., Bosch of Germany, NTT Global Data Centers of Japan and Huawei of China are also helping Thailand to leapfrog into the digital economy and become the innovation hub of Asia.

12 INFORMA

The global pandemic, far from hindering Thailand’s digital ambitions, has only made them more timely. “The outbreak of Covid-19 has accelerated the digital transformation process and made it a business imperative,” Joseph Hong, Managing Director of Bosch Thailand and Laos said in an interview. Under a strategy sometimes known as Thailand 4.0, Government agencies have worked with the private sector to create digital infrastructure that’s unmatched in the region. After creating a 13,000 square kilometer high tech zone outside Bangkok known as the Eastern Economic Corridor, Thailand can now boast Southeast Asia’s most extensive 5G telecommunications network and its most advanced data center, submarine cable networks, digitalized factories and has started to build the first of a network of smart cities utilizing the Internet of Things. As a result, Thais have become among the most connected citizens on earth. In 2020, 84 percent of the population shopped online compared with the global average of 77 percent, according to the 2021 Global Digital Report compiled by research firms We Are Social and Hootesuite. Overall, Thailand’s digital economy will triple in value to $53 billion within four years, the e-Conomy SEA 2020 report compiled by Google, Singapore Sovereign Wealth Fund Temasek and U.S. Consulting firm Bain & Co. estimates. Such opportunities have inspired both Thai entrepreneurs and the investors who fund them. Aukrit of Ricult and Varayuth of mu Space have attracted high profile backers from the U.S., Europe and Japan and

believe their companies are on track to become “unicorns” – the moniker given to startups valued at more than $1 billion. Should they succeed, they won’t be the first in Thailand. Flash Group, a logistics and e-commerce company founded by Komsan Lee, 29, a self-made entrepreneur born in a remote village in northern Thailand, has already passed that billion-dollar funding milestone. “When I returned from the U.S., I was amazed to find how digital connectivity had spread throughout the country,” Aukrit says. “Thailand is in a unique sweet spot. We are ready for the digital economy because we have created the infrastructure.” Varayuth also highlights Thailand’s strategic location as a regional crossroads and its strong talent pool as additional factors that persuaded him to establish his startup back in the land of his birth. “Thailand is central to Southeast Asia – a pathway connecting the Pacific Ocean to the East with Europe to the West,” he says. “Thai people are also really creative. For me, starting my business in Thailand was the perfect choice.” A key player in this digital revolution is the Thailand Board of Investment (BOI), which offers companies in the digital sector a suite of incentives that range from multi-year tax holidays and import duty exemptions to so-called smart visas that streamline immigration formalities for key talent. These BOI benefits are available to companies involved in all stages of digital evolution, from investments in technology infrastructure, to software development

INSIDE THAILAND’S DIGITAL REVOLUTION WHY TECH STARTUPS AND INVESTORS FAVOR SOUTHEAST ASIA’S INNOVATION HUB

and digital services and platforms. They are also applicable to companies adopting Artificial Intelligence and the Internet of Things to upgrade manufacturing and boost productivity. BOI incentives have certainly been key to luring digital industry giants from all points of the compass. In 2017, SUPERNAP (Thailand), a joint venture between U.S.-based Switch, the global leader in digital infrastructure, and leading Thai investors, opened a multi-

Abel Deng, CEO of Huawei Technologies (Thailand), a unit of China’s leading telecommunications company and owner of the world’s largest portfolio of 5G patents, describes Thailand as the most advanced country among the 10-member Association of Southeast Asian Nations (ASEAN) in terms of rolling out 5G technology. “Bangkok is the city with the largest number and the highest density of iPhone 12 5G mobile phones -- more than 1 million,” he says. “This far exceeds the industry’s expectations.” Deng is well placed to know. In 2016, Huawei established its regional headquarters for ASEAN in Bangkok, in 2019 it launched the region’s first 5G test bed in the Eastern Economic Corridor and is now about to open its third cloud data center in the kingdom. The company estimates that Thailand’s digital economy is growing so quickly that by 2025 it will account for 35 percent of the country’s GDP compared with 20 percent today. Bosch, the German engineering and technology behemoth that has been

million-dollar, 20 megawatt capacity data center identical to the highest rated so-called Tier IV Gold Standard data centers Switch builds in its home market. Furthermore, the company is planning in the future to triple that capacity by building two more data centers to meet the growing demand, SUPERNAP (Thailand) CEO Sunita Bottse said in an interview. “The BOI incentive program supported our decision to invest in Thailand,” Bottse said, adding that other factors included the

doing business in Thailand since 1923, says it wants to be part of that growth. As the world’s largest auto parts manufacturer, Bosch’s Thailand unit is a key player in the country’s highly successful auto industry, which exports vehicles to all parts of the globe. Bosch is also a trailblazer in the development of smart manufacturing and the so-called Artificial Intelligence of Things (AIoT) – the combination of Artificial Intelligence technologies with Internet of Things infrastructure. In Thailand, it has teamed up with leading Thai 5G telecoms operator AIS to trial smart factory digital technology and is exploring market potential for smart connected solutions. “Bosch has the vision to be one of the leading global AIoT companies,” Hong says. “Thailand’s digital journey will definitely help realize the market potential for Bosch.” Back in Thailand’s startup scene, the founders of Ricult and mu Space believe they are also raising the digital bar. At mu Space, which is about to open its second factory, Varayuth envisages a day when

kingdom’s proximity and connectivity to neighboring Vietnam, Myanmar, Cambodia and Laos, excellent telecommunications and cable networks, and the business opportunity to house data to support Thailand’s smart cities projects. “Thailand 4.0, the Thai citizens’ embracing of the digital revolution and the country’s strategic geographical location at the center of Southeast Asia have easily positioned the country as the regional digital hub,” she added.

his satellites won’t need to be launched in the U.S. but at home in Thailand. When that happens, Varayuth will offer the millions of tourists who visit Thailand for its temples and beaches the additional attraction of space travel. “It would be taking Thailand beyond a digital hub to becoming a spaceport hub,” he says. Over at Ricult, CEO Aukrit’s ambitions, while firmly rooted in the earth, are equally ambitious. It was while studying at MIT that Aukrit hit on the idea of founding a company that could use digital technologies to lift two billion farmers in developing economies out of poverty by improving their productivity. But although a social enterprise, the idea goes far beyond philanthropy and is most definitely a “for profit”. Indeed Aukrit’s digital toolbox aims to profit everyone in the food chain including the banks that lend money to the farmers and the food mills and giant agribusiness that buy their crops. “We are at the nexus of fintech and agtech,” Aukrit explains. “We are a double bottom line. We believe we can do good and do well at the same time.”

January 2022

THAI PERMANENT RESIDENCY AND CITIZENSHIP

THAI PERMANENT RESIDENCY AND CITIZENSHIP Obtaining status as a Permanent Resident (PR) in Thailand has many advantages. It allows a foreigner to live permanently in Thailand, with no requirement to apply for an extension of stay. PRs can also have their name on a house registration document, and will be able to buy a condominium without making a bank transfer from abroad. Getting a work permit is also made easier once a foreigner has PR status.

the right to own land and property; relief from the documentary burdens of Thai immigration procedures; the ability to work in Thailand without a work permit; and easier access to bank products. For applicants domiciled in Bangkok, applications for naturalization to Thai citizenship start with the Special Branch of the Royal Thai Police, and then proceed to the Ministry of Interior for consideration and approval.

In addition to this, the PR can be eligible to become a director of a Thai public company, as well as eventually apply to become a naturalized Thai citizen. The PR will also be able to apply for an extension of stay and Permanent Resident status for non-Thai family members.

Requirements for eligibility will depend on the applicant’s circumstances. In most cases, unless the applicant demonstrates a strong relationship with Thailand (i.e. marriage to a Thai national, having children with Thai citizenship), they will need to have permanent residency and reside continuously in Thailand for at least five years. If the applicant is applying for naturalization via the permanent residency route, they must meet the following criteria:

All applications for Thai Permanent Residency are processed by the Royal Thai Immigration Commission. The annual quota for granting permanent residency in Thailand is a maximum of 100 persons per country. The application period for Thai PR usually spans from October to the end of December of every year. In order to apply to become a Thai Permanent Resident, the applicant must meet the following requirements: 1. The applicant must have had a Thai non-immigrant visa for at least three years prior to the submission of the application. Holders of multiple non-immigrant visas can not apply. The applicant must have three consecutive yearly extensions in order to qualify. 2. The applicant must be a holder of a non-immigrant visa at the time of submitting the application. 3. The applicant must be able to meet one of these categories to apply for PR status in Thailand: ◘ Investment category (minimum THB 3-10 Million investment in Thailand) ◘ Working/Business category ◘ Support a family or Humanity Reasons category: In this category, the applicant must have a relationship with a Thai citizen or an alien who already possesses a residence permit as a husband or wife; father or mother; or a guardian of a Thai child under 20 years of age. ◘ Expert/academic category ◘ Other categories as determined by Thai Immigration The applicant should note that the list of required documents for the application depends on the category under which the application is made. Once the application for Thai Permanent Residency is approved, a residence Blue Book is issued to the PR. PRs must then register their place of residence in Thailand at the local Amphur (district) and obtain a House Card. A week after the receipt of the residence certificate, the PR can then apply for an alien book (Red Book) at the local police station, which is the equivalent of the Thai national ID card. The PR must re-register there every year. The Residency Permit itself never expires, unless revoked. To be able to leave the country and return to Thailand, however, requires the PR to apply for a re-entry permit (endorsement). The PR can file an application to become a Thai naturalized citizen after holding Permanent Resident status in Thailand for five consecutive years. Obstacles to foreigners in Thailand may be mitigated with permanent residency, and then completely eliminated with naturalization to Thai citizenship. Among the benefits of obtaining Thai nationality is the ability to own more than 49% of a Thai company’s shares;

1. A legal adult under both Thai law and the law of the applicant’s country. 2. Has demonstrated good conduct in respect to criminal records, political actions, and behavior involving drugs. 3. Has a stable career. The applicant must have a work permit from the Office of Work Permit or the Provincial Office of Employment and a minimum income that meets the following criteria: 3.1. If the applicant does not have a strong relationship with the Kingdom of Thailand, he or she must have an income of at least 80,000 Baht per month. ◘ To meet this criteria, the foreigner must submit an income certificate together with documents showing that he or she has paid personal income tax for more than 3 years, or documents which show that he or she has paid personal income tax for an income of at least 100,000 Baht in the year prior to filing the request for naturalization to Thai citizenship. 3.2. If the applicant has a strong relationship with the Kingdom of Thailand (e.g. marrying a Thai national, having a child with Thai citizenship, or graduating from higher education in Thailand), he or she must have an income of at least 40,000 Baht per month. ◘ To meet this criteria, the foreigner must submit an income certificate together with documents showing that he or she has paid personal income tax for more than 3 years, or documents showing that he or she has paid personal income tax for an income of at least 50,000 Baht in the year prior to filing the request for naturalization to Thai citizenship. 4. Have permission to reside in the Kingdom of Thailand under Immigration Act B.E. 2522. To prove such, the applicant must submit a Certificate of Residence, a Certificate of Foreign Identity, or Civil Registration (tabien baan) (Tor.Ror.14). 5. On the date of filing the request for naturalization to Thai citizenship, the applicant must have been continuously domiciled in Thailand for at least 5 years (i.e. permanent residency). ◘ This is certified by a Certificate of Residence, a Certificate of Foreigner Identity, or Civil Registration (Tor.Ror.14). 6. The applicant must demonstrate Thai language proficiency. He or she must be able to speak, listen, and understand the Thai language, and also be able to sing the Thai National Anthem and Thai Royal Anthem. Some requirements are reduced in special cases, such as marriage to a Thai spouse. For instance, in the case of an applicant who is the husband of a Thai national, the marriage must be legally registered for at least three years, and the applicant must have resided continuously in Thailand (certified by either Tor.Ror.13 or Tor.Ror.14).

For more information on the requirements for Permanent Residency and Thai Citizenship, please contact MPG at info@mahanakornpartners.com. The author: Ms. Vilasinee Thephasadin Na Ayuthaya is Managing Partner at Mahanakorn Partners Group (MPG), with over two decades of experience in immigration, property investment, civil and commercial law. She is a trusted advisor to the consular sections of many embassies in Thailand.

14 INFORMA

January 2022

RCEP KICKS IN WITH THAILAND, CHINA AND 8 OTHER COUNTRIES

RCEP KICKS IN WITH THAILAND, CHINA AND 8 OTHER COUNTRIES With 15 Asia-Pacific countries covering about 30% of the world’s gross domestic product and population, the RCEP takes effect among 10 members that completed ratification: China, Japan, Australia, New Zealand, Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam.

The agreement encompasses several areas of cooperation, with tariff concessions a central principle. It will eliminate 90% of tariffs within the bloc, and these concessions are key in understanding the initial impacts of the RCEP on trade, both inside and outside the bloc.

The new Asia-Pacific free trade agreement entered into force on 1 January 2022 creating the world’s largest trading bloc by economic size.

Under the RCEP framework, trade liberalization will be achieved through gradual tariff reductions. While many tariffs will be abolished immediately, others will be reduced gradually during a 20year period.

With 15 Asia-Pacific countries covering about 30% of the world’s gross domestic product and population, the RCEP takes effect among 10 members that completed ratification: China, Japan, Australia, New Zealand, Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam. South Korea will follow on Feb. 1. The remaining four signatories are Indonesia, Malaysia, Myanmar and the Philippines. By comparison, other major regional trade agreements by share of global GDP are the South American trade bloc Mercosur (2.4%), Africa’s continental free trade area (2.9%), the European Union (17.9%) and the United States-Mexico-Canada agreement (28%). A significant impact on international trade An UNCTAD’s analysis shows that the RCEP’s impact on international trade will be significant. “The economic size of the emerging bloc and its trade dynamism will make it a centre of gravity for global trade,” the report says. It also cites Thailand’s example, where trade creation effects completely compensate for the negative trade diversion effects. The Commerce Ministry estimated Thailand has 39,366 goods that would benefit from the duty reduction (South Korea has 11,104 items, Japan 8,216 items, China 7,491 items, New Zealand 6,866 items, and Australia 5,689 items). Thailand has 29,891 goods that should enjoy zero tariffs immediately after the pact’s implementation. Amid COVID-19, the entry into force of the RCEP can also promote trade resilience. Recent UNCTAD research shows that trade within such agreements has been relatively more resilient against the pandemic-induced global trade downturn. Eliminating 90% of tariffs within bloc

The tariffs that remain in force will be mainly limited to specific products in strategic sectors, such as agriculture and the automotive industry, in which many of the RCEP members have opted out from trade liberalization commitments. China is expected to open its market to 653 Thai items after originally committing to 33 items, such as pepper, pineapple processing, coconut water, TV receivers, styrene, auto parts and paper. China is expected to reduce the tax on flavoured pineapples, pineapple juice, coconut juice and synthetic rubber from 7.5-15% to 0% within 20 years, auto parts (electrical equipment for lighting or signalling and windshield adjusters), wire and cable for wiring harnesses used in cars from 10% to 0% within 10 years. Uneven benefits among members The report highlights that the RCEP members are expected to benefit to varying extents from the agreement. Tariff concessions are expected to produce higher trade effects for the largest economies of the bloc, not because of negotiations asymmetries, but largely due to the already low tariffs between many of the other RCEP members. UNCTAD’s analysis shows Japan would benefit the most from RCEP tariff concessions, largely because of trade diversion effects. The country’s exports are expected to rise by about $20 billion, an increase equivalent to about 5.5% relative to its exports to RCEP members in 2019. The report also finds substantial positive effects for the exports of most other economies, including Australia, China, the Republic of Korea and New Zealand. On the other hand, calculations show RCEP tariff concessions may end up lowering exports for Cambodia, Indonesia, the Philippines and Viet Nam. This would stem primarily from the negative trade diversion effects, the report says, as some exports of these economies are expected to be diverted to the advantage of other RCEP members because of differences in the magnitude of tariff concessions.

RCEP encompasses 15 Asia-Pacific countries covering about 30% of the world’s GDP and population

For example, some of the imports of China from Viet Nam will be replaced by imports from Japan because of the stronger tariff liberalization between China and Japan.

About the author Olivier Languepin - Bangkok Correspondent for Siam News Network. Editor at Thailand Business News Source: https://www.thailand-business-news.com/trade/86875-rcep-kicks-in-with-thailand-china-and-8-other-countries.html

16 INFORMA

WHAT IS RCEP? HOW WILL THAILAND BENEFIT FROM THE WORLD’S LARGEST FREE TRADE AREA?

WHAT IS RCEP?

HOW WILL THAILAND BENEFIT FROM THE WORLD’S LARGEST FREE TRADE AREA? RCEP (Regional Comprehensive Economic Partnership) is the world’s largest free trade area, effective January 1, 2022, with Thailand being one of the 15 countries that co-founded. The prerequisite states that when at least six ASEAN members and at least three non-ASEAN countries have ratified, the agreement will be in effect. Therefore, from January 1, RCEP will be in effect with member states Brunei Darussalam, Cambodia, Laos, Singapore, Thailand, Vietnam, Australia, China, Japan, and New Zealand. Not yet ratified include the Philippines, Indonesia, Malaysia, and Myanmar, which are expected to be expedited and will be ratified soon. How important is RCEP? According to the information from the Department of International Trade Negotiations, Ministry of Commerce, RCEP is the world’s largest Free Trade Agreement (FTA) and Thailand’s 14th FTA, with 15 member states, including 10 ASEAN countries, Japan, South Korea, China, Australia, and New Zealand. It has a combined population of 2.3 billion (30.2% of the world’s population), a gross GDP of $28.5 trillion (33.6% of global GDP), and a total trade of $10.7 trillion (30.3% of global trade). For the benefits that Thailand will receive from the RCEP agreement, for example, RCEP members canceled import duties on 39,366 items of Thai goods, immediately reducing the tariffs to 0% on 29,891 items. Tariffs on goods exported from Thailand will be reduced or eliminated in parts of China, Japan, and South Korea, in addition to existing FTAs on goods such as fresh and processed fruits, fishery products, fruit juices, rubber, rubber products, automobiles components, plastics, chemicals, electrical components, computer components, etc. In addition, the RCEP agreement will provide trade facilitation to its members, such as perishable goods that will receive customs clearance within 6 hours and normal goods within 48 hours, and will also expand opportunities in Thailand’s service business to RCEP member countries. such as construction, retail, health, film, and entertainment, etc. “This agreement will be one of the key tools to help restore the Thai economy and RCEP members from the COVID-19 crisis. Before the RCEP agreement comes into effect next year, entrepreneurs, especially SMEs, should expedite their preparation to understand various trade regulations, study consumer behavior in RCEP member countries in order to prepare business strategies and develop products to meet the needs of the RCEP market fully” - Mrs. Oramon Supthaweetham - Director-General of the Department of International Trade Negotiations.

Business Perspective Analysis by Kasikorn Research Center (KResearch) states that in terms of international trade, the marginal benefits of this tariff reduction are limited as most of the goods have already been liberalized under the ASEAN FTA Agreement with the Plus 5 counterparts, with clear direct positives being in the Chinese and South Korean markets. Thailand does not export a lot of agricultural, food, and industrial products. While indirect positives come from Plus 5’s first liberalization of trade, it is in this group that Thailand’s original production chain exports to Plus 5, such as automotive, plastic resins, chemicals, rubber, electrical and electronic components. In terms of investment, the RCEP is one of the key tools that helps Thailand stay in the global production chain in Asia. With the strength of being the world’s largest integrated production base with rules of origin covering 15 countries, it makes investments in the region more attractive. Kasikorn Research Center believes that Thailand, which is part of the RCEP production chain, still has the opportunity to benefit from investments in the future, extending the production that uses traditional technologies such as hard disk drives, ICs, printed circuit board assembly, and automobiles. The next step is to attract foreign direct investment (FDI), a key technology group that will help upgrade Thailand’s manufacturing structure to the S-Curve industry. However, to attract FDI, Thailand must compete with other ASEAN countries as well. In particular, Vietnam and Indonesia are both in the RCEP, so they have the same opportunity to grab investments as Thailand. Therefore, investment readiness is an important factor for investors when making investment decisions. It is an urgent matter that all sectors cooperate to develop in order to make Thailand more attractive for investment than competitors, both by establishing FTAs with key countries that are target markets. Creating an investment climate that enhances business flexibility preparing for the ESG trend as well as pushing for investment promotion measures.

Source: BBC Thai News (https://www.bbc.com/thai/59847341)

January 2022

SUPPLY CHAIN DISRUPTION: OBSTACLES AND CHALLENGES OF THE THAI SEA FREIGHT SECTOR

The coming year 2022 is expected to remain a challenging year for global trade. Although the maritime industry will gradually deliver nearly 30% of newly built ships over the next 24 months, the current supply chain disruption has made everyone realize the importance of maritime transport to the system supply chain. It is also known that the shortage of freight ships or containers is caused by the COVID-19 epidemic, which has a direct effect on workers moving goods from one point to another.

In the context of Thailand, I think it is imperative that all sectors work together to support the country’s trade potential to get out

Mr. Piset Rittapirom Country Manager – Thailand Cluster, Sealand – A Maersk Company Chairman - Bangkok Shipowners and Agents Association

of the crisis quickly, prevent problems from reoccurring, and laying the foundations to create the S curve based on the potential of export trade, where maritime transport is the core. The BSAA,

of container yards. These three are the most important physical

representing the maritime industry, has had the opportunity to

factors that drive transportation. Traffic problems in the port areas

work with all sectors in the country over the years, from Eastern

and container yards currently point directly to the obstacles to the

Seaboard to the present EEC, which is expected to form the next

S curve and the EEC.

S Curve while the context of global trade and the potential of countries producing similar products has greatly improved. But

2. The need for technology-assisted workflows to communicate in

Thailand is facing the challenge of aging society and some

advance between the three sectors will enable all parties to plan

regulations and customs still hinder the shift in digital transformation,

an efficient ground handling of containers and continues to the

which will become the main topic in the transport sector in the

use of e-payments, etc.

next 5 years. The benefit is that it will help solve the problem of labor shortage, increase business efficiency cost reduction in the

3. The last point is the point which I think is very important to truly

next phase and fostering transparent trade.

upgrade Laem Chabang Port to be on par with other international ports, because the efficiency of the port is not just a matter of

In my opinion, in Thailand, we have 3 important issues that we must

capacity or productivity, but what is lacking is transshipment,

work together:

which still has limitations on the rules and understanding of government agencies which, if corrected, will directly benefit the

1. A holistic planning that relates to the linkage of ground container

country’s exports and imports in terms of ship volume, container

shipments between ports, trucking efficiency, and improvement

volume, and unit cost.

Bangkok Ship Owners and Agents Association (BSAA) 127/5 Panjathani Tower, 5th Floor, Nonsee Road, Chongnonsee, Yannawa, Bangkok, Thailand 10120 bsaa@thaibsaa.com | (66) 02-294-4525-6 | www.thaibsaa.com

18 INFORMA

MILLENNIUM WATER A thousand-year-old water that nature has protected for more than 5,000 years.

THOUSAND YEARS Slowly flowing throught the rocks for a thousand years.

PURITY Extraordinary purity less than 0.0001% of Nitrates

The new creation from Acqua Minerale San Benedetto Distributed by Italasia Trading (Thailand) Co., Ltd. More information +66 2 261 7990-9

January 2022

HIGH QUALITY INDUSTRIAL PACKAGING SOLUTION

FROM THAILAND'S LEADING MANUFACTURER OUR SERVICES Wooden Packaging Cardboard Packaging Hazardous Goods Packaging Lashing and Securing materials 3PL and Warehousing

T-Pack consider personalized packaging and wrapping solutions We have enough space of 11,000m2 for temporary storage, handling spare parts and finished products.

SAFETY OF YOUR GOODS IS OUR PROMISE 20 INFORMA

HEMP AND THE UNLOCK OPPORTUNITIES

HEMP AND THE UNLOCK OPPORTUNITIES Specialty Natural Innovation (SNI) group of companies started from the purpose of as a world class Innovator, we create and deliver the best of local Thai Herb to empower people to live well in a sustainable way. Our mission is to be Leading innovator, producer and exporter of Health and Beauty products by Utilization of Thai natural herbs that empower local farmers and entrepreneur by focus on product safety and reliability by having control over the natural plants supply chain and sustainability. In our group of companies, we consist of from farm to market supply chain Specialty Natural Products Co., Ltd. Thai botanical extract manufacturer, Specialty Innovation Co., Ltd. Original Innovation Manufacturer creating a one-stop service for Wellness & Beauty products creation, and Kanae Innovation Co., Ltd. a joint venture with Kanae Japan for smart flexible packaging for modern lifestyle. Specialty Natural Products Co., Ltd. (SNP) is the leading manufacturer in standardized Thai botanical extract to the world’s pharmaceutical, dietary supplement, nutraceutical, functional food, and cosmetic industries. SNP at the same time provides innovative semi-formulations to cosmetics manufacturers. SNP is recognized as a prototype of a brand-new industrial sector concerned with the production of medicinal plant extract, using the most advances production techniques available. During the past few decades, plant extract was manufactured via improvised craft technique. As a result, products varied from batch to batch, location to location, and season to season. Thus, it is now possible to produce botanical ingredients to an astonishing degree of standardization, reliability, and efficacy. For the first time, we assured supplies of active ingredients at specific concentrations and clinical efficacy are available to wholesalers around the worlds. Specialty Innovation Co., Ltd. (SI) offers a one-stop service for Wellness & Beauty products creation including personal care, cosmeceutical, food supplements, and traditional medicine to fulfill our service portfolio, Specialty Innovation provides guidance in concept initiation, original product development & formulation, packaging and brand design, registration and paperwork, and manufacturing. We are absolute in terms of quality from material selection and throughout production process to reassure highest product quality to serve customer’s need.

We continue to develop and innovate new products in wellness and beauty industry through our state-of-the-art research and production facilities combined with skilled and experienced team. Our research & development team is considered top experts in aspect of usage and applications of Thai herbal extracts in wellness and beauty products. Specialty Innovation believes in the quality and potential of Thai products and have made it company’s mission to further develop them to their full potential in order to lead Thai original products to the global market. Kanae Innovation Co., Ld. (KI) is a joint venture with Kanae Co., Ltd. from Japan which was established in 1956 as a company that provides optimal packaging solutions to the market. KI serves customer in a wide range of business fields which are pharmaceuticals, personal care, cosmetics, food industries, and medical devices. KI implements state of the art technology from KANAE Japan to create smart packaging for modern lifestyle. We believe that good packaging materials with good design can preserve high quality of natural product, reduce the cost and increase ease of use of the product. Specialty Natural Innovation can provide services from start to finished of the product supply chain from ingredients to formulation and manufacturing of the products. We base our self as a HERBAL INNOVATOR FOR SUSTAINABLE HEALTHY LIVING. If you would like to explore us more, please contact us at www.snicorporation.com

January 2022

THAILAND MANUFACTURED HIGH-PRESSURE WATERJET CUTTING SYSTEMS

THAILAND MANUFACTURED HIGH-PRESSURE WATERJET CUTTING SYSTEMS LOCAL STATE-OF-THE-ART SEPARATION TECHNOLOGY

Being established in 1989, Techni Waterjet™ is one of the oldest and most experienced waterjet manufacturers in the world. The business started in Australia and was recently acquired by the Italian GMM Spa Group. Today, Techni is a global corporation with machines installed in 36 Countries around the World. With dedicated engineering and R&D facilities, Techni have developed some revolutionary technologies. Among the others, the most significant was the Electric Servo Pump, an extremely energy efficient waterjet pump. High-Pressure Waterjet Cutting Machines The Intec-G2® Series represents the latest in the evolution of innovation to create a precise, easy-to-operate, safe and highly reliable waterjet cutting machine. This series of machines can cut almost any material to 200mm (8”) thick. Every Intec-G2® is designed and built to the highest quality standards of profile cutting machine manufacture, incorporating practical design features and superior components. These design solutions won the prestigious “Excellence in Product Design” Award at the Manufacturing Innovation Excellence Awards upon its introduction into the market, back in 2001. Techni aims to provide each customer with a durable product that requires minimum maintenance while delivering an easy to use, fast and accurate system at a competitive price.

22 INFORMA

Pumping Technology and Innovation Any manufacturer in the market for a new waterjet will be faced early on with a critical choice: whether to invest in a direct-drive or intensifier pump. Techni Waterjet™ offers a third option, designed to combine the advantages of both.

THAILAND MANUFACTURED HIGH-PRESSURE WATERJET CUTTING SYSTEMS

Both two traditional types of waterjet pumps draw, pressurize and eject water by moving a piston-plunger assembly back and forth within a sealed chamber. The difference lies in the mechanism used to drive the plunger. Direct-drive models use a crankshaft, whereas intensifier pumps use hydraulic cylinders.

Other advantages over traditional waterjet pumps include up to 75% less cooling water requirement, as well as longest life fittings and tubing due to the elimination of “dead head” pressure spikes, easy maintenance, silent operation, and a significantly reduced footprint.

“When we decided to develop our own pump, we knew we weren’t going to make another intensifier pump, the technology has been around since 1975 and hasn’t really changed since then. During the design stage, I came up with the idea to get rid of the hydraulic cylinder used in traditional intensifier pumps and replace it with a servo motor. We had experience in building our own servo motors from the 5-axis PAC60™ head, which is also a Techni invention developed in-house.” [Darren Reukers, former MD at Techni Waterjet and MD at QuantumSPT]

The ESP actuator is widely controllable, and it has been designed so that it can be easily adapted to other pumping applications. Quantum™ ESP, currently at its 4th generation of development, is indeed now successfully applied to other industries, other than just waterjet cutting, like robotics for automotive industry. The ESP is also equipped with a sophisticated yet user-friendly advanced diagnostic system, which prevents the pump from failures.

The Quantum™ Electric Servo Pump (ESP) combines the advantages of the two most prevalent pump types while avoiding their drawbacks. Replacing hydraulics with servo motors is not entirely new. The direct servo technology was first applied by Nasa for the Space Shuttle Program by replacing old-fashioned hydraulic cylinders with new, highly compact, efficient, reliable and infinitely controllable servo linear actuators. Back in 2010 Techni was conferred an Award that declares the Electric Servo Pump as the most innovative product in the category of “Separation Technology”. “Quantum™ ESP is the only waterjet pump that uses only the power required for any given pressure and flow rate. The pump is about 90% efficient because it is only working when producing water to come out of the head. So, on a typical average machine, you talk about 60 to 70% improvement in energy efficiency over an intensifier pump.” [Darren Reukers]

Recently, Quantum™ ESP has been further developed into the Ultimate Series which is able to deliver water pressure up to 6000 Bar (so called hyper-pressure), allowing faster cutting. The Ultimate Series ESPs can still reach the hyper-pressure while keeping the power consumption to a minimum, bringing along all Quantum™ technology advantages. To cut faster not only means faster turnarounds, but also lower abrasive requirements due to completing the job earlier and using a higher power density cutting stream. Considering that abrasive usage contributes to more than 50% of the overall operating cost of the waterjet, Quantum™ Ultimate Series has a short payback cycle. Today’s leading corporations place sustainability and CO2 Output as a KPI in their business models and in their mission statements. Governments incentivise investments into green technologies. Quantum™ is currently the only waterjet pump to fully meet these new eco-friendly criteria. It is future-proofed technology.

Manufactured in Thailand Techni Waterjet™ is currently the only waterjet manufacturer present on Thailand territory. Therefore, customers can expect unmatched services, from OEM installation and training to aftersales and spare parts always available. Furthermore, buying directly from the manufacturer means lower cost of purchase and fast delivery, with the peace of mind of having local support whenever you need it.

Techni Waterjet Co., Ltd. 300/21 Moo 1, Tambol Ta Sit, Ampur Pluak Daeng, Rayong, 21140 Tel: +66 (0) 33 012561 | Email: natthaponkt@techniwaterjet.com | Website: www.techniwaterjet.com

January 2022

ITALIAN GELATO AND COFFEE: ESTABLISHING A STRONGER PRESENCE IN SOUTHEAST ASIA AND THAILAND

ITALIAN GELATO AND COFFEE ESTABLISHING A STRONGER PRESENCE IN SOUTHEAST ASIA AND THAILAND 17 January 2022 | Author: Giacomo Iobizzi Italy recorded 4.7 million cases of Coronavirus (as of 14 October 2021), representing as one of the most affected countries worldwide. The effects have negatively inﬂuenced the performance and production in the Food and Beverage industry, a sector in which Italy has always been amongst the global market leaders, causing an important domestic recession which has recorded -40% in sales of coffee and -30% in sales of ice cream machineries. However, the export, has significantly grown in Asia and North America for Artisanal Gelato (SIGEP Observatory 2021), China, Southeast Asia, and the Middle East, for ingredients and semi-ﬁnished products (+6%). Germany and South Korea are leading importers of production machineries. In fact, 70-80% of Italy’s total production of machinery and technology are for export. Europe and the USA remain vital markets, confirming Germany as Italy’s main market, followed by Spain and Poland. The Gelato industry in Thailand seems to be vigilant and proative, in fact, according to Mr. Beniamino Francesco Pellin, Partner of Easy Best Ingredients Co., Ltd, “In 2021 we have been able to outperform the previous year (2020), selling more ingredients and gelato bases, produced locally. However, our clientele had changed, incrementing the number of restaurants, and lowing the sales volume generated by the hotels which remain the biggest share in the market. We wish to recover contracts with the hotels for 2022, and to double our revenue by the end of the year”. Mr. Beniamino who is also importing Italian coffee, Motta brand, has stated “Our sales volumes have remained the same, with no changes in the ratios: 20-30% Restaurants and 80-70% Hotels, recording a big consumption and serving of Espresso and Cappuccino, logically preferred by the Expats and Tourists. Thais, instead, are giving more attention to the origin of the coffee, willing to experience a more ‘authentic’ taste, produced and roasted locally, better if organic or of a special and rare variety. This trend is also driven by the increment of the costs, due to Covid outbreak and the global backlashes. Newer Thai generations are no more consuming tea, if not related to ‘bubble tea’ – the one with the tapioca pearls – because they discovered the adaptability of coffee in any kind of beverage, creating new refreshing drinks by adding ice cubes and syrups or fruit juices.” A different overview has been provided by Mr. Simone Ruggenini, General Manager of Good Drink 2018 Co., Ltd (Churn Ice Cream brand and distributor of Lauretana mineral water): “Thailand’s forced closing and restrictions for hotels, restaurants, and bars have penalized our performances in 2021 which hasn’t registered an impressive growth.

We have turned this negative aspect into a pause for us to restart and establish a new concept for the company. We adopted the strategy to ‘diversify our flavors and formulas’ to be more ‘flexible’ and ‘accommodating’, collecting a very good start for this 2022. We are now having success in participating in local (and temporary) Pop-up stores, transforming our gelato flavors offer based on the themes of each event (i.e., Urban Eatery with Italian classic flavors, Garden Blossom theme with local flower-inspired flavors, and so on). Good Drink and Churn have inevitably landed on online platforms to be able to answer the needs of our customers, launching our ‘family’ portion of gelato and our signature’s Brioche al gelato”. Ms. Philumpa “Aom” Jirasathit, Business Development Manager of Albero Gelato (Italian artisanal gelato) in Bangkok, added that “2021 has registered less sales even if we were supposed to have more. The main reason was a minor traffic of people roaming in the Department Store (where the gelato shop is located). Unfortunately, our Gelato is a product that is not so easy to sell online as people would prefer to experience it directly in our shop or while walking for shopping. Our customers love our gelato, and we are receiving many caring massages and support from influencers and clientele who decided to post their pictures on their social media accounts posing with our cones and cups. We are extremely satisfied of our status, now Albero is becoming a strong brand and, for 2022, we would like to expand the business and open 2 more branches, of course, if the situation will remain positive. In March, we will launch a new flavor which we’ve tested last year, and it was successful, we can’t wait to let our audience try it.” 2021 wasn’t so bad for the Italian gelato machine industry, “Iceteam 1927 – Cattabriga is a manufacturer of ice-cream and gelato machines. We have a Rep. Office in Bangkok and a sale and service network. Due to improvement of the sanitary situation, we have register in Thailand a +15% turnover. Majority of customers are semi-professional operators, doing gelato for online sales. We expect a further growth in 2022 based on re-opening of stores” insisted Mr. Emanuele Franchi, Resident Manager – Asia Pacific of IceTeam 1927. Regarding the Coffee Industry in Thailand, the panorama is not showing revolutionary results for the sale volumes as Ms. Kornchasa “Sandy” Thonglairuam, Senior Sales Manager of Bon Café Thailand and distributor of Segafredo Zanetti, has shared with us: “in terms of consumption, Bon Café has recorded -20% of sales due to Covid-19 effects on Hotels and Restaurants -the group’s main market is HORECA- especially in touristic

areas/cities like Phuket, Chiang Mai and Samui”, however, the company “has been able to grow in the Retail market thanks to its loyal customers who have kept consuming and ordering online, recording an increment between +20 -30% of sales through online platforms and website. Nonetheless, Segafredo in October-November 2021 has also launched its own retail cans, available at convenience stores nationwide, 7Eleven, in Thais’ favorite ﬂavors: Americano and Latte.” The situation above-mentioned shares some similarities also with Illy Thailand, Mr. Gian Carlo De Cesare, Director Thailand – Illy Caffe’ (distributed by Italasia), has stated that “Illy has certainly grown (+40%) in 2021 if compared to 2020 but it will require more time to resume the sales volume of 2019. Illy recorded +200% sales from online channels (especially for machines and coffee capsules) while sales volume for HORECA hasn’t shown important progresses. From February 1, 2022, Illy will also increase of 15% its price list due to global increment of raw material costs, logistic costs, and foreign exchange rates (USD to THB). A trend of +15% sales from online channels is supposed to be performed for the following months.” Furthermore, Mr. De Cesare will launch in 2022 “OraSì, a new ‘100% Made in Italy’ vegan beverage (plant-based available in Soy, Almond, Hazelnut, Walnut, Oat and Rice) that will complete the bar offer for both professional and amatorial spheres. The new product is supposed to compete with other existing products on both digital and retail sectors but will not fear to fail because of its Italian origins and excellent qualities”. Regarding the import of Italian Coffee machines, Ms. Phattama “Pat” Wanalaijaroenjit, Executive Assistant at Caffa Coffeemaker, “2021 has suffered if compared to 2020, our sales volumes and channels have remained stable: 80% B2C and 20% B2B, with a small increment for retail. However, our company is specialized in machines, blenders, and grinders, providing to our customers also coffee grains (sourced locally and/or imported) that we are roasting in our factory in Chiang Rai.” In addition, ASSOLATTE (Italian Dairy Association) confirmed a positive trend in 2021, growing double- digit in Italian dairy exports in USA (+25 %), Poland (+22 %), Belgium (+18 %), France (+13 %). Among the specialties, the most exported products were Mascarpone (+38 %), Provolone and Pecorino (both +20%), Mozzarella (+12 %) and Grana Padano and Parmigiano Reggiano (both +6 %).

Sources: https://www.ilsole24ore.com/art/delivery-export-e-qualita-gelaterie-pasticcerie-e-paniﬁcatori- preparano-rilancio-sigep-ADOwo5NB?refresh_ce=1 https://news.italianfood.net/2021/09/13/gelato-goes-to-the-conquest-of-asian-and-north-american- markets/ https://www.efanews.eu/en/item/22734-record-breaking-exports-for-the-italian-dairy-industry.html

24 INFORMA

PIAZZA ITALIANA: B2B EVENT DEDICATED TO ITALIAN FOOD & BEVERAGE IN BANGKOK

B2B Event Dedicated to Italian Food & Beverage in Bangkok Second Edition (2022) Italian Gelato & Coffee / Italian Pasta, Olive Oil and Vinegar / Italian Wines & Spirits After the great success of PIAZZA ITALIANA in November 2021, the B2B Fair organized by the Thai-Italian Chamber of Commerce (TICC) and dedicated to Italian Food and Beverage in Bangkok, the Chamber has confirmed the format for 2022 to be developed into 3-themed B2B events: • Italian Gelato and Coffee on March 10 at the Conference Room at Vanit Building 2, in Bangkok. • Italian Pasta, Olive Oil, and Vinegar on July 6 at the Conference Room at Vanit Building 2, in Bangkok. • Italian Wines and Spirits on September 21-24 at “Bellavita Expo” at Food Hotel Thailand Fair 2022, in Queen Sirikit National Convention Center, Bangkok. Piazza Italiana is aimed at welcoming Italian and International SMEs (Small and Medium Enterprises) that want to explore and learn about the Thai market. In this regard, the Chamber will offer essential information about the food sector, new market trends, assistance in finding business partners, preliminary analyses related to the presence of alternative products or the existence of competitors, guidelines and suggestions, and much more. ABOUT THE EVENT Italian Gelato and Coffee Edition 2022 to be held on 10 March 2022, from 10.30 to 17.00, at Conference Room in Vanit Building Place, Bangkok, Thailand. This first event of the series “PIAZZA ITALIANA” is entirely dedicated to Italian Gelato and Coffee, the Chamber invites Italian, Thai and International companies to visit the fair and meet with Italian producers, brands, and local partners (importers and distributors). A total of 12 booths are expected to offer the audience the very best of this world, presenting new trends, special coffee varieties, and innovative techniques of brewing coffees as well as serving Gelato. The b-to-b event doesn’t require an admission fee, and it is entirely Free of Charge. However, the Chamber recommends registering in advance as no walk-in will be allowed due to current (Covid-19) safety measures. Date: Thursday, 10 March 2022 Time: from 10.30 am to 5.00 pm Venue: Conference Room of Vanit Building Place, Bangkok, Thailand Address: 1126/2 Phetchaburi Rd, Makkasan, Ratchathewi, Bangkok 10400 Ticket: Free Admission (Registration is mandatory) Exhibitors: TBA Please register via email to Reservations@thaitch.org by providing your Company Name and Representative Name, Mobile Phone, and E-mail Address. Companies interested in purchasing a booth can contact Mr. Giacomo Iobizzi at Trade@thaitch.org

January 2022

FORTHCOMING EVENTS

FORTHCOMING EVENTS The Thai-Italian Chamber of Commerce (TICC) invites members and friends to join the online Webinar related to the Development of HR in 2022: New Jobs Require a Search for New Skills, in collaboration with PRAXI Alliance on Tuesday, 18 January 2022 at 18:00 – 19:00 hrs. About PRAXI Alliance Shared principles, professional culture and a passion for client service brought our founding European members together almost two decades ago. Globalization has been the driving force of our expansion outside of Europe and in 2012, with the formal sponsorship of PRAXI Group, PRAXI Alliance became official. Our members form the backbone of the organization, including the organizational governance entrusted to our Steering Committee. We are present in more than 35 of the world’s leading economies. Our mission is to become a globally recognized and trusted source for Executive Search and HR Consulting. Event Details 18 January 2022 (Thursday) at 18:00 - 19:00 hrs. on the platform Zoom Meeting.

The Thai-Italian Chamber of Commerce (TICC) invites members and friends to join the online Webinar related to the Tips on Importing Food Products to Thailand, in collaboration with Federal Express Thailand (FedEx) on Thursday, 10 February 2022 at 15:00 – 16:00 hrs. About FedEx FedEx Express is one of the world’s largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a define time and date supported by a money-back guarantee.

Event Details 10 February 2022 (Thursday) at 15:00 - 16:00 hrs. on the platform Zoom Meeting.

The Thai-Italian Chamber of Commerce (TICC) would like to invite you to attend our monthly Networking Italiano at Ma Maison, Nai Lert Park on the Friday, February 11, 2022 from 17:30 hrs. – onwards. Join us for a pleasant evening and meet with our members, businessmen and entrepreneurs. Event Details Date: Friday, February 11, 2022 Time: 17:30 hrs. – onwards Venue: Ma Maison, Nai Lert Park (availability to use outdoor area and the porch) Ticket: Member 650 THB | Non-Member 850 THB » Limited ticket available » All attendees are required to be immunized (fully vaccinated) and take a compulsory on-site ATK test. » Pre-registration and pre-payment are required to confirm your booking. » No walk-ins and no payment at the event please. Thank you for understanding and empathizing with our situation. For more information, please contact us at reservations@thaitch.org | 02 255 8695 ext. 103

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January 2022

FORTHCOMING TRADESHOWS

FORTHCOMING TRADESHOWS ALTITUDE WORLD SUPERMODEL The mission of AWS is to create one of the world’s most exquisite international model contests that not only discovers top models but also offers an exclusive inside look of the model life through the competition. Furthermore, the aim is to create more opportunities for models around the world, showcase their modeling abilities and introduce an alternative model contest platform to the industry. The World Finals Show of Altitude World Supermodel and World Fitness Supermodel 2022 will be held on March 19th, 2022 in Bangkok, Thailand. Celebrities, franchise holders, and supporting teams from around the world will participate in this event. Spectacular shows are awaiting you at this event. Ticketing will be updated at www.worldfitnesssupermodel.com For Sponsorship, please contact us at trade@thaitch.org

Agritechnica ASIA 2022

INTERMACH & SUBCON THAILAND 2022

AGRITECHNICA ASIA emphasizes on agricultural engineering solutions that are both relevant and important to the development of agriculture in the Asian markets. Mechanization through modern machinery will increase significantly in the next decade mainly due to the growing labor shortages, more competition and therefore the requirement to reduce production costs.

The leading international trade fairs, AGRITECHNICA ASIA and HORTI ASIA, will be rescheduled to take place again from 25 to 27 May 2022 in Bangkok.

ASEAN SUSTAINABLE ENERGY WEEK

HERO WORLD SERIES THAILAND

ASEAN Sustainable Energy Week is the major platform to introduce, exchange knowledge, and technology for professionals in the energy and related industries including Public Sector, State Enterprises, Private sectors, and Education Institutes. Don’t miss the opportunity to showcase your innovation and technology where professionals in energy and related industries meet.

HERO THAILAND is Asia’s first and incredibly inspirational mountain bike marathon. The event will host in Chiang Rai, it will be the nature of the landscape which will certainly impress the bikers, who will cycle their marathon in the rainforest around Chiang Rai. From 13 to 15 NOVEMBER 2021, a threeday long programme packed with exciting events and features to delight all the participants as well as their families and friends.

14 – 16 September 2022 at QSNCC, Bangkok

12-26 November 2022 at Singha Park, Chiang Rai www.heroworldseries.com

28 INFORMA

January 2022

NEW MEMBERS

NEW MEMBERS AROMI CO., LTD. (VIVA ROOFTOP AND RESTAURANT) Address: 3/41 Soi Samkong 1, Ratsada, Mueang Phuket, Phuket 83000 Tel: +66 (0) 65 348 4843 Email: vivaristorante.phuket@gmail.com

Viva Rooftop and Restaurant is an Italian Restaurant on 7th floor of Homa Phuket Town. We provide various kinds of Italian food (Seafood, Meat, Homemade Pasta and Pizza).

CRAFT SELECT CO., LTD. Address: 3/349 Soi Chang Watthana 14, Thung Song Hong, Lak Si, Bangkok 10210 Tel: +66 (0) 92 589 5553 Email: napachart.Nimkibrtkajon@gmail.com

ISABELLA YACHTS CO., LTD. Address: 24/26 Moo. 6, Cherngtalay, Thalang, Phuket 83110 Tel: +66 (0) 82 804 0049 Email: director@isabellayachts.com Website: www.isabellayachtsphuket.com Discover Phuket’s best kept secrets - Avoid the crowded speed boat tours! Our professional Captains are trained to stay away from the most touristic areas and show our guests only the best spots to enjoy quality time with your family and friends. At Isabella Yachts Phuket, we also focus on giving more freedom to our guests. If you wish to stop on another island along the route, or relax for longer on a particular beach you like, we will be happy to accomodate your needs. No rush or pressure from our side...you are on holidays, live your perfect day!

PLASTART CO., LTD. Address: 5/48 Moo 3, Vichit, Muang Phuket, Phuket 83100 Tel: +66 (0) 95 420 9288 Email: marco.claudio@icloud.com Website: www.mcliving.it Import Italian furniture for condo project, hotel project, Villa project. Design Installation and Consulting. All 100% Made In Italy.

SIMPSON MARINE (THAILAND) CO., LTD. Address: 199/112 Moo 6, T. Paklok, A. Thalang, Phuket 83110 Tel: +66 (0) 76 317 305 / Fax: +66 (0) 76 317 306 Email: thailand@simpsonmarine.com Website: www.simpsonmarine.com Asia’s leading new yachts sales, brokerage and service company, Simpson Marine partners with the world’s leading yachts brands Sanlorenzo, Bluegame, Fairline Yachts, Beneteau, Lagoon & Aquila Power Catamarans, to offer the best new yachts for sale for all usage plans and budgets. They have a wide variety of pre-owned yachts with over 300 listings across Asia and can help you with a new build superyacht project through the Simpson Marine Superyacht Division. Whatever your yachting dream, Simpson Marine can make it a reality.

30 INFORMA

January 2022

St. Andrews International School 32 INFORMA

Informa - January 2022

Articles inside

NEW MEMBERS

FORTHCOMING TRADE SHOWS

THAILAND MANUFACTURED HIGH-PRESSURE WATERJET CUTTING SYSTEMS

SUPPLY CHAIN DISRUPTION: OBSTACLES AND CHALLENGES OF THE THAI SEA FREIGHT SECTOR

RCEP KICKS IN WITH THAILAND, CHINA AND 8 OTHER COUNTRIES

ITALIAN GELATO AND COFFEE: ESTABLISHING A STRONGER PRESENCE IN SOUTHEAST ASIA AND THAILAND

WHAT IS RCEP? HOW WILL THAILAND BENEFIT FROM THE WORLD’S LARGEST FREE TRADE AREA?

HEMP AND THE UNLOCK OPPORTUNITIES

FORTHCOMING EVENTS

PIAZZA ITALIANA: B2B EVENT DEDICATED TO ITALIAN FOOD & BEVERAGE IN BANGKOK