e-UPDATE, 12 September 2016

GTCC e-UPDATE: 12 September 2016

If you have trouble viewing this in email, please click here

Upcoming GTCC Events Register now for our upcoming events: 16.09.2016 GTCC Site Visit to Liebherr & Eastern Seaboard Networking by Beluthai 21.09.2016 Chiang Mai Networking Dinner 22.09.2016 Phuket Networking Dinner 28.09.2016 Executive Breakfast Talk: “Labour Law Matters – How to Avoid Labour Disputes in Thailand” 29.09.2016 Ice Breaker Networking: GTCC-FTCC-TICC Innovation & Lifestyle Night

Thailand Economic Factsheet

05.10.2016 Thai-German Industry 4.0 Symposium – The future of smart manufacturing / Technology solutions for Thailand 21.10.2016 GTCC Eastern Seaboard Stammtisch 22.10.2016 Oktoberfest Pattaya 2016

Update Magazine

Sponsorship Opportunities at GTCC Eastern Seaboard Stammtisch GTCC is very pleased to invite you to become our sponsor for GTCC Eastern Seaboard Stammtisch on Friday, 21 October 2016, at Hotel Baraquda Pattaya MGallery by Sofitel. The event regularly welcomes over 100 guests from German-Thai, Australian, American, British, Belgium / Luxembourg-Thai, Canada, South African-Thai, Singapore-Thai and Netherlands-Thai Chambers of Commerce and European Association for Business and Commerce. It is definitely an ideal platform for your brand’s exposure to various business communities in the Eastern Seaboard area. More

Q3/2016: Bangkok Megacity Feature: Bangkok becoming a megacity as BTS Skytrain expands to urban satellite areas; Bangkok facing major challenges as a megacity; Huge potential of construction and infrastructure sectors for Thailand’s AEC hub role // Business Brief // Chamber Activities // GTDEE Insights // GTCC Gala Night 2016 // Trade Fairs // Members' Corner

Preferred Benefits

Economy TDRI urges increase in minimum pay Thailand Development Research Institute (TDRI) yesterday urged the government to consider a belated increase in the minimum wage, based on cost-of-living rises in each province in the past three years. Based on its research, over the past three years, the Consumer Price Index (CPI) in Nonthaburi rose by 9 per cent against just 4 per cent in Krabi, while the country's CPI surged by 6 per cent. (The Nation, 08/09/2016) More Thailand ready to bridge G20 and G77 Thailand is ready to serve as a bridge linking the Group of 20's major industrialised economies and the developing economies in the Group of 77, Prime Minister Prayut Chan-o-cha says. (Bangkok Post, 05/09/2016) More BOI to promote Thailand as a medical hub and 3 southern districts BOI board agrees over the measures to promote pharmaceuticals manufacturing & devices. Pharmaceutical manufacturing will receive a 5-year Corporate Income Tax (CIT) exemption. Medical devices manufacturing is included in the list of SMEs promotion activities. An investment promotion measure to develop 3 districts in 3 southern provinces is also approved. (BOI,

"Niche", at Siam Kempinski Hotel Bangkok is offering GTCC members a 10% discount on Food & Beverage. Niche is a venue for funfilled informal dining where guests may chosing their favorite ingredient and decide upon an Asian or nonAsian presentation. Niche is certainly a new social place to be seen.

02/08/2016) More Chinese investment gains speed China’s investment in Thailand has shown a fast growth pace (second only to Japan), with the value of projects submitted for tax privileges in the first seven months hitting Bt21 billion. Chinese enterprises are attracted to the policy to promote 10 target industries and the Eastern Economic Corridor. According to BOI, under the "10 targeted industries" scheme, foreign companies applied for incentives for 161 projects with proposed investment of Bt57.9 billion from January to May. (The Nation, 02/09/2016) More BOT welcomes fintech despite risks The Bank of Thailand welcomes new financial technology (fintech) despite the risks associated with more electronic financial transactions. According to BOT, "fintech sandbox" regulations would be ready in September, while the provision and use of new e-financial services would increasingly prevail around the country. (The Nation, 31/09/2016) More

Jaispirit Co., Ltd. is offering GTCC members a 20% discount on all services together with 15 months for the one year subscription of 'Managed Hosting' instead of 12 months, and additionally 2 months free 'Managed Hosting' for every successful referral of a new 'Managed Hosting' subscription.

Glossary

Companies & Industrial Sectors Phase 2 of Asiatique The Riverfront to cost Bt10 billion TCC Land Asset World, owned by liquor tycoon Charoen Sirivadhanabhakdi, is earmarking more than Bt10 billion to develop the second phase of Asiatique The Riverfront to include a five-star hotel, convention centre and shopping mall, with completion set for 2020. Construction is scheduled to commence in 2018. (The Nation, 08/09/2016) More Thai firms told to eye life-end service segment The Commerce Ministry has urged Thai enterprises to respond to the country’s ageing population by penetrating the life-end service industry. The life-end industry also includes asset management, consultant agencies for heritage, medical and nursing services, |tomb reservations, flower decorations and souvenirs. Each family will have to spend about Bt650,000 per household (on average), according to the director-general to the International Trade Promotion Department. (The Nation, 05/09/2016) More Mall of Korea plans more shopping malls in Thailand A group of Korean entertainment companies, The Mall of Korea (MOK), is set to expand its business in Thailand, beginning with a new shopping mall at Show DC, scheduled to open in November this year. MOK currenly occupies 18,000 sq.m. with an investment of Bt1 billion in the K-District project at Show DC in

AEC

Asean Economic Community

BOI

Board of Investment

BOT

Bank of Thailand

CIT

Corporate Income Tax

CLMV

Cambodia, Laos, Myanmar, Vietnam

CPI

Consumer Price Index

DAAT

Digital Advertising Association of Thailand

GMS

Greater Mekong Subregion

MOK

Mall of Korea

HV

Hybrid vehicle

PDI

Padaeng

Bangkok. MOK will manage and scout for more tenants, particularly small and medium-sized businesses from South Korea to expand their business in Thailand and across the world. (The Nation, 1/09/2016) More Tyremakers bash Thai rubber Major tyremakers including Michelin and Bridgestone, have complained about the low quality of rubber, which mostly comes from the North and Northeast.

They have threatened to stop buying rubber from Thai farmers because of low quality (Bangkok Post, 31/08/2016) More

Industry TDRI

Thailand Development Research Institute

TMC

Toyota Motor Corporation

Digital ads see 15% hike in first half Digital advertising grew nearly 15% in the first half of the year as more brands and companies switched to digital media, according to the Digital Advertising Association of Thailand (DAAT). Digital advertising stood at 4.73 billion baht in the first half and is estimated to reach 9.88 billion for the whole year, up 22%.

Haircare, skincare, automotive and non-alcoholic drinks companies prefer digital advertising to convey their message to target customers. (Bangkok Post, 30/08/2016) More

ACREX India 2017 Presentation 19 September 2016

Thailand and ASEAN Thailand signs up for more Lao power Thailand has increased its purchase of electricity from 7,000 to 9,000 megawatts from Laos this year to ensure sufficient supply and meet rising demand. A power purchasing agreement was signed on 6 September 2016, during Prime Minister of Thailand’s visit to the Prime Minister of Laos, while attending the 28th and 29th ASEAN Summits and related meetings from 6-8 September in Vientiane.

(The Nation, 09/09/2016) More Push for more Thai SMEs investment in CLMV Despite the strong economic growth of Cambodia, Laos, Myanmar and Vietnam (CLMV), very few Thai small and medium-sized enterprises (SMEs) have invested or expanded their businesses into the four countries. Customs data shows Thai exports to all ASEAN accounts for around 25% of total exports.

Trade value along Thailand's borders is worth 1.2 trilion baht, expected to grow by 10% per year. (Bangkok Post, 09/09/2016) More Thailand bids to become regional financial hub An initiative driven by Thailand to develop closer financial integration and

GTCC Experts Meeting - Beverage Industry 26 September 2016

cooperation among Greater Mekong Sub-region (GMS) countries could bolster Bangkok’s position as a capital markets and banking centre. Starting in June 2016 with the hosting of a two-day summit for Cambodia, Laos, Myanmar, Vietnam and Thailand (CLMVT), entitled “CLMVT: Prosper Together”, it was Thailand’s campaign to strengthen fiscal and economic ties with neighbours.

(Oxford Business Group, 06/09/2016) More New Myanmar investment law is the "right move" International lawyers have welcomed Myanmar’s new investment law, saying it will create a better investment environment for both local and foreign investors once enforced. (The Nation, 12/09/2016) More Myanmar car importers struggle to survive Myanmar car importers are fretting that auto sales will continue to drop until the end of 2017 if the government does not come up with a clear, comprehensive auto policy. Importers were waiting for the policy and the future did not look bright if it was not announced soon. (The Nation, 05/09/2016) More Pranda eyeing ASEAN jewellery sales Pranda Jewelry Plc is strengthening its manufacturing facilities in Thailand, Vietnam and Indonesia to become its export centres in some potential markets around the world. (The Nation, 05/09/2016) More Chin State invites hydropower investment The Chin State government welcomes local and foreign investment into hydropower production, according to Salai Isaac Khen, state minister for development, electricity and industry.The state government has the power to award small- and medium-sized power projects, but any dam with the capacity of greater than 30 megawatts must be approved at Union level. The Chin government is in discussions with three foreign companies, which are carrying out feasibility studies. (Myanmar Times, 26/08/2016) More

Oktoberfest Pattaya 2016 22 October 2016

Green Technology PDI plans Bt1.5 bn for solar farms Padaeng Industry (PDI), a zinc producer listed on the Stock Exchange of Thailand, plans to spend a total of Bt1.5 billion this year and next mainly on its solar-farm business as part of its shift towards green businesses. (The Nation, 09/09/2106) More Techen boosts solar power Qing Dao-based Techen Technologies (Thailand) announced that its new Thai factory slated to make solar panels will start operations next month. The new production facility, worth about USD 100 million, is the company's fourth, after

Festival of the Germans 26 November 2016 Deutsch / English

Contact Person

the other three in China, Brazil and Peru. Around 60% of the panels produced at the factory will be sold in ASEAN countries, while the remaining 40% will be sold in Europe and the United States. (Bangkok Post, 02/09/2016) More Bidding urged for solar and wind farms Renewable energy no longer needs subsidisation by the government, which should organize competitive bidding for solar and wind farms, according to chairman of the Energy for Environment Foundation. The government should use "avoided costs" to consider purchasing from other types of renewable energy such as biomass and biogas, he told the foundation's seminar on unlocking renewable energy. (The Nation, 01/09/2016) More Chadaphan Maliphan Toyota eyes battery plant & proposes tax incentives to promote HVs Toyota Motor Corporation (TMC) is considering setting up a production base for hybrid-vehicle (HV) batteries in the ASEAN region to lower the production costs and to capture the strong demand for HVs in the region including Thailand. (The Nation, 05/09/2016) More The company is also preparing a proposal for a tax package on hybrid vehicles (HVs), which are currently 20-30 per cent more expensive than conventional cars. The tax incentives would help expand its market size to 100,000 units annually in five years, and reaching economy-of-scale production. (The Nation, 1/09/2016) More

Bilateral Business Lohmann Asia Pacific to set up Lohmann Thailand With approx.1700 employees worldwide, coating plants in Europe, Asia and America, 29 subsidiaries and exclusive sales partners in over 50 countries, Lohmann solutions are in high demand globally. Through its Business Unit Asia Pacific, Lohmann is successfully working in many Asian countries, including China, India, Korea, Japan, and Singapore. The company will establish a new site in Thailand, scheduled for November 2016, to increase its presence in the growing region – South East Asia (ASEAN). More

Publication and Communication Manager Tel: +66 2 670 0600 ext 2005 Email: chadaphan@gtcc.org

Member News New plastic food packaging film adopted BASF’s renewable materials A.J. Plast’s new BOPA food packaging film is made from BASF’s Ultramid® biomass balance polyamide, which is derived from renewable raw materials.

This groundbreaking methodology helps reduce overall greenhouse gas emissions. The quality films also extend food shelf life with barrier to oxygen and flavor. More Chatrium Hotel Riverside Bangkok awarded “Top 10 Loved by Guests” in Hotels.com Chatrium Hotel Riverside Bangkok is the recipient of 4th position in the Hotels.com “Top 10 Loved by Guests” awards -- an annual awards program counting votes by over 20 million trusted reviews from guests of the hotels.More B Grimm Power delays listing plan over change in accounting B Grimm Power, a flagship company of the trading and manufacturing concern B Grimm Group, will postpone to next year its plan to list on the stock market because of a change in accounting standards. It expects to invest around Bt59 billion to grow its generating capacity by 46.5 per cent - from 1,626 megawatts at present to 2,383MW - in five years. (The Nation, 8/09/2016) More

Have you followed us on Social Media?

Click here to unsubscribe this GTCC e-UPDATE

25th Floor, Empire Tower 3, 1 South Sathorn Road, Sathorn, Bangkok 10120, Thailand Tel.: +66(0) 2670 0600 Fax: +66(0) 2670 0601 http://thailand.ahk.de e-mail: gtcc@gtcc.org

Deutsche Bank AG Bonn (BLZ 380 700 59) Nr. 0647669 Bangkok Bank Ltd. Bangkok A/C 118-301859-5