UPDATE Q1/2017: INFRASTRUCTURE

1/2017 http://thailand.ahk.de

T H E M AG A Z I N E O F T H E G E R M A N - T H A I C H A M B E R O F C O M M E R C E

INFRASTRUCTURE Thailand plans massive investment in transport infrastructure

Fueling growth: Government spending on infrastructure spearheads economic recovery

Interview: Thailand as ASEAN’s transportation hub

FROM THE EDITOR Dear readers, The demand for new and improved infrastructures in the Association of Southeast Asian Nations (ASEAN) is enormous. The infrastructures of the transportation network, telecommunications, power and other sectors are being increasingly developed, following the recent establishment of the ASEAN Economic Community – a common market that comprises approximately 650 million people in the Southeast Asian region. Better regional connectivity is expected to help stabilise economic growth in the region, create jobs, reduce poverty and enhance the region’s competitive advantages at the global level.

With its strategic central location, Thailand aims to become the hub of ASEAN, especially in terms of its transportation network. On the positive side, roads in Thailand have been better developed and are more extensively connected than those in many of the neighbouring countries, i.e., Cambodia, the Lao People’s Democratic Republic, Myanmar and Vietnam. However, there are still several infrastructural issues and challenges that Thailand needs to address, in order to make its “Transport Strategy 2016-2022” successful.

Readers will find more detailed information about the infrastructure issues in this edition of UPDATE magazine, in articles contributed by GTAI and the Oxford Business Group, plus an exclusive interview with Mr. Kevin Burrell, CEO of DHL Supply Chain Thailand, Philippines and Vietnam. Other key infrastructure elements/success factors – including ICT, renewable energy and manpower – should be also taken into account, as shown in the articles contributed by Detecon, BayWa and Siemens.

Germany partners up with Thailand in supporting the further improvement of infrastructures in Thailand. A Joint Declaration of Intent (JDI) on co-operation in the field of railways was recently signed between Thailand's Ministry of Transport and Germany's Federal Ministry of Transport and Digital Infrastructure. The JDI marks the two countries’ determination to closely co-operate as well as exchange knowledge and experience in the development and extension of their rail systems as well as the training of railway experts, researchers and technicians.

As this is the first issue of UPDATE for 2017, GTCC would like to take this opportunity to wish our members, UPDATE readers and friends all the best throughout this new year.

Im Namen der Deutsch-Thailändischen Auslandshandelskammer wünsche ich Ihnen alles Gute und viel Erfolg für das Jahr 2017, und hoffe, Sie auch in diesem Jahr wieder bei unseren zahlreichen Aktivitäten begrüßen zu dürfen.

I trust you will enjoy an interesting and informative read.

Best regards,

Dr. Roland Wein UPDATE is published quarterly by the German-Thai Chamber of Commerce and distributed free of charge to members and qualified non-members in Thailand and abroad.

Subscription is also available at an annual rate of US$75 (airmail). Payment can be made in cash or by cheque to the German-Thai Chamber of Commerce, Empire Tower, 1 South Sathorn Rd., Bangkok 10120, Thailand. Tel.: +66 2 670 0600. Fax: +66 2 670 0601. E-mail address: info@gtcc.org.

Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber.

UPDATE welcomes story and photo contributions from members and non-members alike. Articles may be reproduced with acknowledgement, except for those taken from other sources.

Circulation per issue : 2,000

Publisher/Editor-in-Chief: Dr. Roland Wein Editor & Communications Director: Chadaphan Maliphan Advertising Director: Ganya Aparaks Design & Layout: Sorapol Liengboonlertchai Sub-Editor: Tony Oliver

Organizer:

SAVE THE DATE TWICE THE FEST, SUPERSIZE THE FUN The Authentic German Experience is back!

Friday, 20 October 2017 Saturday, 21 October 2017 18:30 - 01:00 hrs., Shangri-la Hotel, Bangkok

CONTENTS

14

Thai ICT infrastructure: Key enabler for industry and “Thai Digital Nation”

24 19 Joint Chamber luncheon with Thai-German Joint Declaration of Intent

31 Dual vocational training delegation visit

INFRASTRUCTURE

GTDEE INSIGHT

06 Thailand plans massive investment in transport

28 Quality assurance in vocational colleges under

08 Fueling growth: Government spending on

33 GTDEE basic mechanic examination

17 Interview: Thailand as ASEAN’s transportation hub:

MEMBERS’ CORNER

on co-operation in railways

the Thai Prime Minister

infrastructure

infrastructure spearheads economic recovery Infrastructural challenges and opportunities

BUSINESS BRIEFS 19 Thai Minister of Industry opens Schaeffler plant in Chonburi

20 Tenth year of anniversary of Rödl & Partner in Thailand

CHAMBER ACTIVITIES 22 GTCC business study trip to Germany: Motek 2016 23 Site visit to Umicore Autocat, ZF Lemforder 26 GTCC Young Professionals Network Evening with Heroleads

to Germany

39 HANNOVER MESSE 2017

German standards

34 New GTCC Members

TRADE FAIRS 36 37 38 39 40

Spielwarenmesse 2017 Wasser Berlin International EUROPEAN COATINGS SHOW 2017 HANNOVER MESSE 2017 DRINTEC 2017

06 INFRASTRUCTURE

Photo credit: www.realist.co.th Photo credit: www.suvarnabhumiairport.com Photo credit: www.realist.co.th

Photo credit: www.realist.co.th

Photo credit: www.realist.co.th

THAILAND PLANS MASSIVE INVESTMENT IN TRANSPORT INFRASTRUCTURE Dr. Waldemar Duscha

Thailand is aiming to set its course towards a long-term, sustainable and efficient national transpor t infrastructure within the next decade . Its estimated US$ 60 billion “Transport Strategy 2016-2022”, announced by the Public Debt Management Office in November 2016, not only promotes development, but also strengthens Thailand´s regional hub function in the ASEAN region.

While priority is given to railways, Suvarnabhumi International Airpor t and Bangkok´s transpor tation system will be taken into account.

The government plans to invest close to US$ 60 billion in the development of its national transport system between 2016 and 2022.

This is the current forecast, which was announced by the Public Debt Management Office in November 2016. The project will be mainly financed by loans (US$ 37.9 billion) as well as by the government budget (US$ 7.1 billion), contributions by public organisations (US$ 1.9 billion), Public Private Par tnerships (PPP) (US$ 12.6 billion) and toll charges (US$ 400 million).

The government’s priorities were already presented in the “Transpor t Infrastructure

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Development Strategy 2015-2022” in 2015.

Among the priorities, there are mainly 20 large-scale projects worth around US$ 51 billion. The largest share is being spent on nine railway lines (US$ 34 billion), followed by the expansion of the mass transpor t system in Bangkok for the Orange, Pink, Yellow, Red and Purple lines (US$ 11 billion).

In addition, Suvarnabhumi International Airport will be expanded (US$ 1.5 billion), in order to increase its annual capacity from 45 million to 60 million passengers. The remainder is apportioned to the container port Laem Chabang and three highways.

PPP AND FAST TRACK Some projects have already started (Red Line and Blue Line), are well advanced (Green Line), or have even been completed (Purple Line). A significant number of further projects are expected to be adopted quickly by the Cabinet and will start in 2017. In order to speed up administrative procedures, the Public Private Partnership Law was modified in a groundbreaking way in 2015. As a result, the approval process is expected to take only nine months, in contrast to the previous average of 24 months. Furthermore, they do

not have to be submitted automatically to the PPP Policy Committee, which is chaired by the Prime Minister, where they amount up to approximately US$ 150 million.

According to the "Fast Track Programme”, PPP projects are now being designed within 3.5 months, while the State Enterprise Policy Office has 15 days for making its review. The decision by the PPP Committee and the Cabinet should be taken within a maximum of 4.5 months. A PPP concession usually runs for 30 years.

The partnership in rail transportation normally consists of the state for land procurement and private organisations, responsible for the construction, operation and maintenance of the rail system. The pipeline to 2019 includes 66 PPP projects wor th a total of US$ 42 billion. For example, the additional Pink and Yellow mass transit lines have already been approved at an estimated sum of US$ 3.3 billion. So far, seven projects have been “fast tracked” by the Government; the other contenders include two highways and two high-speed train routes from Bangkok to Hua Hin and Rayong at a total cost of US$ 7.4 billion.

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“The government’s priorities were already presented in the “Transport Infrastructure Development Strategy 2015-2022”…. The largest share is being spent on nine railway lines…followed by the expansion of the mass transport system in Bangkok.”

RAILWAY GIVEN PRIORITY The railway is playing a more important role in the infrastructure, mainly due to the doubling of tracks, since around 90 per cent of the tracks are currently single tracked. The first phase involves seven projects with a length of 990 km and a total cost of US$ 4 billion. At the end of 2016, it was decided to lay the first three double-lane lines covering 403 km, at a cost of US$ 1.6 billion, from Lop Buri to Pak Nam Pho and from Hua Hin to Nakhon Pathom and Prachuap Khiri Khan. The second phase comprises seven additional double tracks with a total length of 1,536 km. The national budget for 2017 also includes four high-speed train services from Bangkok to Hua Hin, Rayong, Phitsanulok and Nakhon Ratchasima.

Japan and China are also taking a leading part in two major routes in the northern area, through government-to-government agreements. The Chinese project has a length of 867 km, running from Bangkok and Rayong to Nong Khai, which is close to the border with the Lao People’s Democratic Republic. The rolling stock and signal installations are based on Chinese technology. Construction of a 672 km route for high-speed trains (more than 200 km per hour) from Bangkok to Chiang Mai is being considered with Japan. In addition, three route sections in the east-west corridor from Bangkok to Kanchanaburi, Aranyaprathet and Laem Chabang are being taken into account. However, their development mostly includes an expansion from single to double track.

A BOOST FOR THE INDUSTRY Development of the Eastern Economic Corridor (EAC), comprising the three provinces Chon Buri, Rayong and Chachoengsao, is one of the government's flagship projects and is

likely to benefit the most from the new transpor t concept. The consultancy firm Krungsi Research expects major gains from the fields of logistics, energy, biochemistry and tourism. However, the retail, real estate and construction sectors will also prosper.

The law designed to manage the EAC and build up the infr astr ucture , is to be implemented in 2017, accompanied by massive government spending on transport facilities and industrial parks.

Within the larger political framework, the national transport concept joins, in the long term, with the objectives of achieving stronger industrial dynamics. The focus of the new national industrial concept, “Thailand 4.0”, on 10 clusters now being developed is partly due to their use of highly sophisticated structures and redesign. Agriculture, food, logistics, electronics, digital economics, biofuels as well as health and wellness tourism are seen as success-oriented clusters with broad ramifications and high expor t strength.

New clusters to be developed with a high potential for the future include the aerospace industr y, biochemistr y, industrial robots, medical technology and the next generation of automobiles.

Contact details: Dr. Waldemar Duscha Representative in Thailand Germany Trade and Invest (GTAI) www.gtai.de/thailand

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FUELING GROWTH: GOVERNMENT SPENDING ON INFRASTRUCTURE SPEARHEADS ECONOMIC RECOVERY Paulius Kuncinas and Tigran Karapetyan Thailand has ambitious plans for transport.

Citing poor infrastructure as a main obstacle to Thailand’s economic development, Transport Minister Arkhom Termpittayapaisith told The Nikkei that the government intended to spend near 1.8 trillion baht ($50.8 billion) on 20 major infrastructure projects by 2022.

Among these are two highways; terminal maintenance of international trade center, Laem Chabang por t; the expansion of Bangkok-area Suvarnabhumi Airport; and several rail projects. While an unsuccessful infrastructure overhaul was first attempted in 2013, this new plan, touted as more feasible, excludes “projects that could be tough to bring to fruition.”

Once underway, these are projected to boost the economic growth of Southeast Asia’s second-largest economy by 1%. Bidding will be completed by the end of 2017, with

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construction to begin soon after, and financing sources will include government budget, borrowing, and public-private partnerships.

A REGIONAL AVIATION HUB Deputy Prime Minister Somkid Jatusripitak pointed to the expansion of Suvarnabhumi Airpor t as the star ting point for future government megaprojects. With an eye towards making Thailand a regional gateway, development of Don Mueang International, U-Tapao, Hat Yai, Chiang Mai, Mae Fah Luang Chiang Rai, and Phuket airports are to follow, with Don Mueang International Airport to become a domestic hub while U-Tapao will be developed for commercial international flights.

By the first half of 2016, Airports of Thailand Plc (AoT) had signed three contracts worth 14.9 billion baht to expand Suvarnabhumi

Airport to increase its capacity to handle 90 million passengers per year by 2021. The first, worth 12 billion baht, involves Italian-Thai Development Plc constructing a concourse, parking bays, and a tunnel in the airport’s southern section. Contract number two, worth 1.98 billion baht and run by SG and Interlink Consortium, will set up the utility system, and the third, worth 879.9 million baht and by SG, has been hired to oversee the construction. A third runway and second passenger terminal will be the first of these projects to be mobilized after Environmental Impact Assessment, which could take until the third quarter of 2017.

AoT president, Nitinai Sirismatthakarn, remarked that the development plan for the six airports involved an investment over 10 years of 195 billion baht. The government will earmark 140-160 billion baht in the first five years.

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MOTORWAYS Three motorway projects: Pattaya – Map Ta Phut, Bang Pa-In – Nakhon Ratchasima, and Bang Yai – Kanchanaburi, will soon be undergoing a bidding process. Participation of the private sector in the operation and maintenance of these projects in accordance with the Cabinet Resolution is under consideration.

HIGH SPEED RAIL IN BANGKOK In the past two years, the government has been heavily investing in the country’s railway system.

After the State Railway of Thailand (SRT) approved high-speed trains from Bangkok to Hua Hin and to Rayong, Mitsubishi Heavy Industries received a formal order from the State Railway of Thailand to build urban rail in Bangkok. With Hitachi and Sumitomo Corporation, Mitsubishi will for m a consortium that will construct the Red Line: a fully elevated rail system with a length of 40 km from Bang Sue Station (northern Bangkok), and be made up of 26.4km North Line and 14.6 km West Line. The sixth railway in Bangkok, the Red Line will cost $930 and is scheduled for completion in 2020. Bang Sue Station is to become Bangkok’s main train terminal.

“ As 85% of transportation in the country actually depends on road transport (particularly goods and passengers), the Transport Ministry’s focus is still mainly on the railway projects and railway system.”

The North Line was financed by yen loans extended by Japan International Cooperation Agency to Thai government at annual interest rate of 4% - terms the Japanese government approved after concluding that the planned line is an “environmental” project to reduce air pollution and traffic.

A Japanese consortium also oversees Bangkok’s Purple Line, which began construction in August 2016. The 23 km stretch that will connect Bang Sue with Bang Yai district of Nonthaburi Province is being managed by East Japan Railway, Toshiba, and Marubeni, but contractors will be selected by tender. 63 Japanese-made rail cars have arrived already.

The Blue Line extension of Hua Lampong – Bang Khae and Bang Sue-Tha Phra, the Green Line extension of Mo Chit-Saphan Mai – Khu Khot and Bearing – Samut Prakan, and the Red Line extension of Bang Sue – Rangsit are all expected to be completed by 2019.

Contact details: Paulius Kuncinas The Pink Line (Khae Rai-Min Buri, 34.5km) Managing Editor, Asia and Yellow Line (Lat Phrao-Samrong, 30.4km), Tigran Karapetyan are the first lines set to be awarded under a Editorial Manager public-private par tnership, with bidding Oxford Business Group currently underway.

Tel: +66 2 016 6564 thailand@oxfordbusinessgroup.com Note: This article and its images are provided www.oxfordbusinessgroup.com courtesy of Oxford Business Group.

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MOVING FORWARD SUSTAINABLY: HOW RENEWABLE ENERGY IS TAKING OVER ASEAN Daniel Gaefke

Southeast Asia is experiencing a growth boom. The region is not only one of the strongest global growth markets in terms of economy, the energy demands of its more than 600 million inhabitants are increasing rapidly. At the moment, per capita consumption in the region is still at half of the global average. Results from Southeast Asia Energy Outlook, however, point to a possibly record increase of 80 per cent in energy demands in the region by 2035. In the face of such an increase, together with rising prices for fossil fuels, energy imports from foreign countries, which regional energy suppliers have relied on until now, will barely suffice anymore. Now seems to be the time to come up with a new plan.

The future of energy is renewable sources, and the climate conditions in Southeast Asia are a perfect match—photovoltaics, wind power and others—have already begun to triumph in the region. However, the switch to renewable energy will only work if politicians set the course. Here Thailand is the leader of the pack. The liberalisation of Thailand’s electricity market in 2006 paved the way for the development of renewable energy. Plants for the generation of electricity from renewable energy have now been installed in Thailand with a total capacity of 7,000 megawatts. The main roles are being played by solar energy, wind power and biomass.

been able to establish itself in a market that is also attractive to international investors. The reasons for the increased interest in ASEAN countries shown by international project developers and service providers is obvious; in addition to the ideal climate conditions in the region, as mentioned above, plants for the generation of electricity from renewable energy sources are relatively affordable to build and operate, thus giving them a competitive edge.

As an energy company, BayWa r.e. renewable energy GmbH, headquartered in Munich, Germany, is active in the region. Since the beginning of 2016, the company has also established subsidiaries in Bangkok and Australia in addition to those already in operation in Japan and Singapore. As a full subsidiary of BayWa AG, BayWa r.e. groups together the activities of the solar energy, wind energy, bioenergy and geothermal energy business units. However, in SouthEast Asia, the focus is mainly on photovoltaic plants.

USING SOLAR ENERGY FLEXIBLY

INCENTIVE MEASURES OPEN DOORS

Solar energy is, thanks to customisable plant sizes, attractive to a wide array of customers. Small photovoltaic plants can be installed on the roofs of private homes and apartment buildings, but it is the large surfaces such as the roofs of factories and public buildings that are ideal for harvesting solar energy.

Thanks to incentive measures such as the cancellation of value-added tax and import tariffs in the renewable energies sector, Thailand has

In addition to this flexibility in terms of size, PV roof systems can also be customised according to individual structural conditions. They are

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“The future of energy is renewable sources, and the climate conditions in Southeast Asia are a perfect match—photovoltaics, wind power and others—have already begun to triumph in the region....Thailand is the leader of the pack.” cheap to purchase and can be operated independently of other factors, such as the existence of a large power plant. This makes them ideal for installation in conurbations and their neighbouring regions that have no access to centralised energy supply. They are also able to supply enough electricity to meet peak demand during the day, reducing electricity costs.

already offer turnkey plants including project planning, financing and long-term solutions for electricity production under so-called Power Purchase Agreements.

Another benefit is that the additional energy harvested is not detrimental to the environment, but rather it assists in the environmentally-friendly use of natural resources—this represents the possibility to make a profit while consciously doing business that is environmentally friendly, especially for multinational companies which are under tight scrutiny. To ensure that companies receive robust production plants that meet high standards of quality, they should rely on a service provider with years of experience and comprehensive services, and which only produces high-quality components.

THE FUTURE IS GOING RENEWABLE

Another option is large-scale plants for commercial applications that help local and regional companies and other commercial entities to meet a portion of their electricity demand.

Many ASEAN countries also offer attractive feed-in tariffs, which makes generating plants even more profitable both for commercial and private applications. In Thailand, the pioneer country, these feed-in tariffs are not even necessary anymore for commercial plants. BayWa r.e. can

Be it on the roofs of single companies or in large-scale solar farms, photovoltaic plants are set to become an integral energy supply component in Thailand in the future. Today, almost 10 per cent of Thailand’s energy c o me s fro m re ne wable s o ur ces, a nd expansion has already been agreed upon: According to the Power Development Plan, which was passed by the Government of Thailand in 2015, the propor tion of renewable energy should be increased to 25 per cent of energy generation by 2036. It is planned for solar energy to provide the lion's share. In addition to solar farms, individual rooftop PV plants are a promising method for reaching this goal not only in Thailand, but also in the entire Southeast Asian region.

Contact details: Daniel Gaefke Managing Director BayWa r.e. Solar Pte. Ltd. and BayWa r.e. (Thailand) Co. Ltd Tel.: +66 8 3989 2019 daniel.gaefke@baywa-re.com http://asia.baywa-re.com

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SIEMENS TRAINS THAI RAIL EXPERTS TO SUPPORT NEW INFRASTRUCTURE PLAN Ploi Phayakvichien

Twenty years ago, it would have been difficult to imagine that Bangkok would have a comprehensive mass transportation system. Today, many of us rely on the BTS (Skytrain) or the MRT (subway) networks to get to work, while Suvarnabhumi International Airport is just a few minutes’ ride via the Airport Rail Link.

The transportation network that Bangkok, and on a bigger scale, Thailand, has now is just the beginning of a large-scale expansion plan by the Government, which is intended to be the foundation for long-term, sustainable economic and social development for Thailand. This includes building a strong infrastructure, energy security, digital infrastructure, and a solid and economical transportation network.

In terms of transportation infrastructure, important projects are currently being initiated, such as the expansion of the current mass rapid transit system, development of the rail freight centre at Laem Chabang seaport, development of dual track railway systems and many other projects. Even the current mass transit systems in Bangkok are being extended.

With the growth of the railway industry, other key aspects to be considered apart from the technical solutions are manpower and expertise. The large-scale expansion plan requires a huge number of railway engineers, experts and technicians. Relying on knowledge and personnel from abroad will not suffice in the long term, economically and logistically. That is why education and people development is just as important as the physical solutions and technology needed to support the Government’s ambitious railway roadmap.

Siemens, the installer of the three Bangkok current mass transit projects – the BTS (Skytrain), the MRT (subway) initial Blue Line and the Airport Rail Link, has been educating and training a huge number of local Thai railway industry experts ever since the first mass transit project started in 1995.

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To date, Siemens has trained more than 600 railway industry experts who are providing rail services to railway customers in Thailand and throughout South-East Asia, through three Centres of Competence for Rail Services, Rail Automation and Rail Electrification.

In addition to tr aining engineer s and technicians, there is also a great need to build a strong educational foundation for the younger generation. This is why Siemens, together with the Office of the Vocational Ed uc atio n Co mmis s io n (OV EC ) a nd Thanyaburi Technical College (TTC), are collabor ating on the Dual Education Programme to develop a larger skilled workforce for the railway industry.

The programme’s aim is to teach vocational students the skills needed by the railway industry. They undergo both theoretical and practical training in real working situations for two years at Siemens’ facilities. To graduate from the programme, the students have to undergo and pass 18 months of theoretical education at TTC, including three months of lectures by Siemens Rail Services, and six

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months of practical on-the-job training at Siemens railway ser vice offices. The programme helps to prepare the students for the real working environment of railway engineers and technicians.

At the graduate level, Siemens also helps to foster young future engineers by providing leading universities, such as Chulalongkorn University, King Mongkut’s University of Technology Thonburi and Mahidol University, with the experts and knowledge necessary for teaching railway subjects.

Despite this education programme, for future planned routes there is still a large gap between railway personnel supply and demand. It is estimated that at least 2,000 more engineers and technicians are needed.

Therefore, if Thailand wants to continue to be the hub of railway knowledge within the region, an extensive plan must be put into place to build up and train local Thai engineers of the next generation to ensure that there will be enough experts to support the vast railway network in Thailand. It is in this area that it is important for the private sector and the Government to co-operate closely.

A step towards this was the recent signing of the Joint Declaration of Intent (JDI) on the Further Development of the Co-operation in the Field of Railways between the Ministry

“The large-scale expansion plan requires a huge number of railway engineers, experts and technicians. Relying on knowledge and personnel from abroad will not suffice in the long term, economically and logistically.

That is why education and people development is just as important as the physical solutions and technology needed to support the Government’s ambitious railway roadmap.” of Transport of the Kingdom of Thailand and the Federal Ministry of Transport, Building and Digital Infrastructure of the Federal Republic of Germany. The JDI’s aim, among other things, is to share best practice policies as well as exchange and train railway experts, researchers and technicians.

Siemens is ready to support the undertaking of the content in the JDI through its pool of railway experts and technicians. The company will also continue its own initiative of training Thai engineers and technicians as well as students to become experts in the railway industry.

Contact details: Ploi Phayakvichien Media Relations and Communications Manager Siemens Ltd. Tel: +66-(0)2-715-4045 ploi.p@siemens.com www.siemens.co.th

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THAI ICT INFRASTRUCTURE: KEY ENABLER FOR INDUSTRY AND “THAI DIGITAL NATION” Thomas Wehr and Thomas Kessler

During the past few years Thailand’s ICT industr y has made tremendous steps in development that, among other aspects, have manifested themselves in a steep improvement of this country’s global ICT Development Index (IDI) from a ranking of 92 in 2010 to 74 in 2015. Within the Asia-Pacific region Thailand’s IDI ranking rose during the same period from 16 to 10, making Thailand a premier

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ICT hub in the region that is able to compete with markets such as Singapore and Malaysia. One of the main drivers of this development was the awarding of 3G licences to Thai operators in 2012 while 4G licences awarded in 2015/16 will further stimulate mobile broadband usage in the country.

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For the future, the Government of Thailand has set ambitious targets for the country’s “Digital Economy” including placing Thailand within the top 40 countries in the IDI index and within the top 15 countries in the World Competitive Index (World Economic Forum), all within the next 10 years. This ambition is embedded in Thailand’s Digital Economy Plan in which the Government has defined five focus areas for Thailand’s digital economy: Hard infrastructure; Soft infrastructure; Service infrastructure; Promotion and innovation; Society and knowledge.

The ICT industry is the foundation for Thailand’s digital ambitions. Therefore it holds the responsibility for mastering the key challenges in the coming years. These challenges include: Providing broadband Internet access and sufficient Internet access speeds everywhere and anytime; Development of smart infrastructure sharing models; Exploring successful PPP models; Implementing a state-of-the-art regulatory framework; Building a world-class data centre infrastructure and capacity for cloud-based services; and Ensuring sufficient capacity and reliability for international connectivity.

The development progress of a countrywide ICT infrastructure to enable the “Thai Digital Nation” will be ideally monitored with a comprehensive ICT Infrastructure KPI Monitoring Framework comprising three dimensions.

All these dimensions require a detailed outline of defined KPIs, both for public and private stakeholders, which will need a total of more than 100 KPIs to transparently track the development of ICT infrastructure. The detailed definition and implementation of such a framework is the responsibly of the Government and requires constant updates in line with consumer trends and technological progress.

While the ICT industr y has to lay the groundwork, joint effor ts by all industries are required – society and the Government combined – to build the “Thai Digital Nation”.

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“……the public sector and each industry vertical will require its own well-defined approach to digitization (including the use of M2M and IoT technologies) as there is no one-fits-all solution.”

In particular, Machine to Machine (M2M) and Internet of Things (IoT) services will enable increased employee productivity, improved production costs, new individualized/ personalized service offerings and faster time to market, a higher quality of life and much more. However, the public sector and each industry ver tical will require its own well-defined approach to digitization (including the use of M2M and IoT technologies) as there is no one-fits-all solution.

For Thailand’s key industries (relative to their GDP contributions)—manufacturing, wholesale/retail, agriculture and tourism— it is of the utmost impor tance that this digital transformation process is successfully mastered. While digitization in these industries offers lucrative opportunities, at the same time there is a high risk that a failed transformation in one industry will have a severe impact on Thailand’s economy and position both within ASEAN and in the world market. Fur thermore, digitization provides an opportunity for other industries in Thailand to rise to national, regional and subsequently global significance.

To seize this oppor tunity, companies in Thailand need to develop a digital mindset for focusing their business priorities around the following key recommendations:

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Don’t wait! Act now to (a) understand the digital needs of your customers, (b) develop digital business models and (c) break with old business rules, e.g., prioritize execution over planning; Take an active part in Thailand’s Digital Community and platforms in driving the country’s digital ecosystems; Hire digital minds and break with conventional human resources practices and working models; Seek support from local and internal partners who have knowledge of, and exper ience in executing digital tr ansfor mation projects.

Contact details: Thomas Wehr / Thomas Kessler Fur ther investment and developments in Managing Partner Thailand’s ICT infrastructure are crucial to Detecon Asia-Pacific Ltd. ensuring a prospering digital ecosystem. A Tel: +66 2634 9000 transparent KPI framework ensures constant Thomas.Wehr@detecon.com, monitoring and improvement of set ICT Thomas.Kessler@detecon.com development goals. Thailand, like the rest of www.detecon.asia the world, is just at the beginning of a new infrastructure age that has yet to be explored.

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THAILAND AS ASEAN’S TRANSPORTATION HUB: INFRASTRUCTURAL CHALLENGES AND OPPORTUNITIES Kevin Burrell

With its strategic central location, Thailand aims to become the hub of the Association of Southeast Asian Nations (ASEAN), especially in terms of its transportation network. The Government of Thailand recently announced “Transport Strategy 2016-2022” to promote the development of national infrastructure and to strengthen the country’s regional hub functions in ASEAN. However, there are still several infrastructural challenges for Thailand to take into account.

In this issue of UPDATE magazine, GTCC had a great opportunity to interview Mr. Kevin Burrell, Chief Executive Officer of DHL Supply Chain, Thailand Cluster. Mr. Burrell has more than 20 years of experience in logistics industry and spent the last 15 years in Asia in senior leadership, operations and business development roles in the logistics industry with an unrelenting attitude to develop businesses in size, profitability and quality. He kindly shares with us his viewpoints on the development of Thailand’s infrastructure, including the challenges that Thailand needs to address, in order to make its plan possible.

DHL was established in Thailand in the mid 90’s, when the country’s infrastructure wasn’t very well developed. What opportunities did DHL see in expanding to Southeast Asia?

First of all, Asia is a growing market—back then as well as it is today.

Therefore, there are huge opportunities for companies like ours to expand their business. DHL is the leading global brand in the logistics industry. DHL offers an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. Even if there was no highly developed infrastructure in Thailand in the beginning, in order to achieve that goal, you have to be on site and work with the given structures. Additionally, Thailand is conveniently located from a logistic point of view. From the center of the ASEAN region, you have every opportunity to reach neighboring states by boat, truck or plane.

What changes in Thailand’s infrastructure do you have experienced?

Thailand, especially Bangkok, went through some major changes regarding its infrastructure. Many improvements have been made,

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18 INTERVIEW

from the elevated express ways to the involvement of BTS, as well as the development of the subway and the brand new Suvarnabhumi airpor t. It helps maximizing the country’s capacity to facilitate and support flows of goods and commuters internationally and domestically. Although the transition from existing Don Muang airport was not very smooth, it has successfully worked in the end.

This example illustrates well how Thailand has developed its infrastructure, and also made Thailand more attractive for foreign investments. I believe in the Thai government. They did a great job investing in country infrastructure development and will contentiously improve it to ensure all necessary country fundamental systems are ready to ease and promote the investments as well as tourism industry—the only question they have to ask themselves is whether it is quick enough.

What are the major infrastructure issues Thailand is facing now?

There are plenty of things to improve in the road system, especially town planning, automatic traffic light system and truck ban regulation which would actually help a lot. Nobody wants to see big trucks inside the city. But from a logistics service provider’s point of view, it is simply not efficient. If trucks have to be unloaded outside the city, the goods have to be reloaded in smaller vehicles and then enter Bangkok. It is an extra effor t which costs time and money. But if forcing private vehicles outside the city and encouraging people to use public transportation, there can be a better and more favorable way to get goods into Bangkok. Roads also have to be able to sustain the safety for large vehicles.

Another issue is the railway connectivity with neighboring countries which is still not fully covered. To enhance its connectivity, it will help increase the potential to serve more passengers and cargos and products will be delivered much faster and more safely. But, it becomes an interesting tool when exporting to neighboring states while train transportation would make sense for long distance as it will meet economic models. The challenges you are facing right now are obstructive when bringing goods into other countries. I hope transferring goods in the ASEAN region soon will be as efficient as it is in the EU today.

What should Thailand do to become the hub of ASEAN in terms of infrastructure?

As I said earlier, Thailand is very conveniently located and with the infrastructure and the links to other countries, it has all conditions to become the hub of ASEAN. However, there are a few points Thailand has to improve in order to maintain competitive.

The access to unskilled labor force, for example, is very important.

In our business, it becomes very hard to find semi-skilled or unskilled Thai employees—who generally want to up skill themselves and may not want to work in factories or distribution centers—as such we have opened our jobs to foreign labor from neighboring countries. But the regulations around foreign labor is understandably detailed and complicated. As a result, we have looked at mechanisms to derive greater efficiencies and have started to increase mechanization by

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“Thailand is conveniently located from a logistic point of view...., you have every opportunity to reach neighboring states by boat, truck or plane.” introducing the automation systems in some facilities. Availability of labor force will always be a critical factor to ensure our business is successful, and certainly should be high in the thinking to ensure Thailand is the logical hub for ASEAN. Additionally, tax regulations are not optimal. There already are some improvements regarding company dues, but it has not gone far enough, yet. It is more attractive for companies to establish headquarters in Singapore, from a financial point of view. Corporate taxes, holding taxes, income taxes for foreign employees—all these aspects play a part, when companies decide where they should set up. Other countries have an advantage here, which Thailand has to compensate.

Finally, Thailand would massively benefit from joining a global trade agreement like TPP. Right now, Vietnam is becoming an even bigger competitor, because companies simply see better business opportunities there. With the country’s decision in joining TPP, it now has a direct link to the US market and you can see large manufacturing companies move their business to Vietnam. So, aside from all the great things the government and the BOI did for companies to establish, they have to think about the long term attractiveness and open themselves to a global market.

You can say, Thailand has everything, but it is now the next evolution to make it even better.

Interviewed by Laurenz Drescher, Communications and Membership Trainee

BUSINESS BRIEFS 19

THAI-GERMAN JOINT DECLARATION OF INTENT ON CO-OPERATION IN RAILWAYS The Signing Ceremony of the Joint Declaration of Intent (JDI) on co-operation in the field of railways between Thailand's Ministr y of Tr anspor t, rep r es en te d by M i n i s t e r o f Tr a n s p o r t , H.E. Mr. Arkhom Termpittayapaisith, and Germany's Fede r al M in is tr y o f Tr a n s p or t a n d D i g i t a l Infrastructure, represented by German Ambassador to Thailand, H.E. Mr. Peter Prügel, took place on 23 November 2016 at the Thai Ministry’s head office.

The signing of the JDI marked the two countries’ determination to closely co-operate and exchange knowledge and experience in the development and extension of their rail systems as well as exchanges and training of railway exper ts, researchers and technicians.

THAI MINISTER OF INDUSTRY OPENS SCHAEFFLER PLANT IN CHONBURI opening speech in which she said “Schaeffler currently employs more than 180 people at its facilities in Thailand, including 150 employees at this new plant. I am sure that as Schaeffler expands its operations here in Thailand, you will draw from this talent pool and further enhance your collaboration with universities and technical institutions here”.

Schaeffler Group celebrated the inauguration of its first plant in South-East Asia on 13 October 2016 at the Hemaraj Chonburi Industrial Estate 2 in Chonburi province. Thailand’s Minister of Industry, H.E. Dr. Atchaka Sibunruang, who was the guest of honour, delivered an

After taking par t in the ribbon-cutting ceremony, Dr. Atchaka Sibunruang joined a guided tour of the manufacturing facilities and held discussions with members of Schaeffler’s management. Among them were Mr. Georg Schaeffler, Chairman of the Super visor y Board of Schaeffler AG and shareholder of the Schaeffler Group, Mr. Oliver Jung, COO Schaeffler Group, Mr. Norber t Indlekofer, CEO Automotive Schaeffler Group and Mr. Andreas Schick, CEO Schaeffler Asia Pacific.

http://thailand.ahk.de

20 BUSINESS BRIEFS

TENTH YEAR ANNIVERSARY OF RÖDL & PARTNER IN THAILAND On 6 October 2016, more than 100 guests, clients and business par tners celebrated the Rödl & Par tner 10-year anniversary at L’Appart Rooftop Bar in the Sofitel Bangkok Sukhumvit. Guests of honour included German Ambassador to Thailand Mr. Peter Prügel, as well as the former Thai Ambassador to Germany, Ms. Nongnuth Phetcharatana.

The event was opened by Rödl & Partner CEO, Prof. Dr. Christian Rödl, who gave an introduction to the history of Rödl & Partner in Germany, Asia as well as Bangkok in particular. The former individual law practice of Mr. Martin Klose and Mr. Arnuparp Tishyadatta and other partners was transformed into the office of Rödl & Partner in 2006 and has since grown to become a successful one-stop consultancy and first point of contact for many German and other international clients. Prof. Rödl’s speech was followed by Ambassador Prügel’s address highlighting the significance of suppor t from professional consulting companies in the interesting, yet challenging market of Thailand. As the final speaker, Ms. Nongnuth Phetcharatana provided insights gained during her time as the Thai Ambassador to Germany about German-Thai business relationships, cross-border co-operation, past achievements, and the outlook and opportunities that lie ahead.

GSF GROUP OPENING NEW BRANCH IN BLUPORT HUA HIN RESORT MALL

The GSF Group celebrated the opening of its 400th doors in ASEAN at Bluport Hua Hin Resort Mall, Thailand on 1 October 2016. This was another milestone for the company in becoming the most desirable sports lifestyle company in Thailand and ASEAN, according to Chairman and CEO of the GSF Group, Mr. Uwe Hufschmidt.

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Established in 1984, the GSF Group is an exclusive distributor in Thailand, Myanmar, the Lao People’s Democratic Republic, Macau, China for Puma, Porsche Design, Thomas Sabo, Ferrari Fanwear, Automobili Lambhorghini, Formula 1 (F1) and Arsenal, among other world-class brands. It is also a franchisee of Adidas in Thailand.

BUSINESS BRIEFS 21

GTB SIGNS WATER TUBE BOILER AGREEMENT Mr. Prasarn Jitpratak, Vice-President, Industrial Boiler, Getabec Public Company Limited (GTB) (second left) and Mr. Jung Dong Kim, Site Manager, Posco Engineering Company Limited (second right) signed an agreement recently on supplying the "Water Tube Boiler and the Balance of Plant” at the Novotel Bangna.

NEW MEMBER CARD ON THE WAY Your new GTCC card is being mailed to your office.

Provided your membership status is in good standing, you will receive your card within January 2016. Otherwise, please contact us immediately.

BE SURE TO HAVE YOUR CARD HANDY!

Name Last Name Company Name 0001-0001

Since 31 December 2016

As a GTCC card holder, you are entitled to: Bypass the regular line at all GTCC events Enjoy exclusive privileges at participating outlets (M2M) Make your birthday special – all the more so at Marriott Executive Apartments - Sathorn Vista Bangkok, Mövenpick Siam Hotel Pattaya, RCD Design Center, Renaissance Bangkok Ratchaprasong Hotel, Samitivej Hospital and W Bangkok Find out about how you can get benefits even more with a GTCC card at www.thailand.ahk.de or follow us on German-Thai Chamber of Commerce.

http://thailand.ahk.de

22 CHAMBER ACTIVITIES GTCC, in co-operation with the National Science and Technology Development Agency (NSTDA) of Thailand, organised a business study trip to Germany on Automation at Motek 2016 from 11 to 18 October 2016. The trip was part of "Industry 4.0 and Electric Mobility: Sharing experience with world leaders in technology" to suppor t Thailand's advances in industrial development.

GTCC BUSINESS STUDY TRIP TO GERMANY: MOTEK 2016

APK 2016 IN HONG KONG The fifteenth Asia-Pacific Conference of Ger man Business 2016 (Asien-Pazifik Konferenz der deutschen Wirtschaft: APK), which was held in Hong Kong from 4 to 5 November 2016, attracted participation by hundreds of business and political leaders from Germany and Asia, including Germany's Economy Minister Sigmar Gabriel and the Ger man Ambassador to Thailand, H.E. Mr. Peter Prßgel. Thailand's Industr y Minister, H.E. Dr. Atchaka Sibunruang, was invited to deliver an address at the Ministers' Dialogue, while GTCC’s Executive Director, Dr. Roland Wein was one of the speakers at two AHK Breakfast Meetings on Free Trade Agreement (FTA) and ASEAN. APK is the flagship event in the region for business leaders, executives and government representatives to discuss and promote economic relations between Germany and Asia. The conference was first organised in 1986 and is held every two years in various locations in Asia. Since its debut the event has evolved into the largest German networking event in the region.

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CHAMBER ACTIVITIES 23

SITE VISITS TO UMICORE AUTOCAT, ZF LEMFORDER GTCC led 30 Chamber members on a visit to two production sites in Rayong—Umicore Autocat (Thailand) Co., Ltd. and ZF Lemforder (Thailand) Co., Ltd—on 21 October 2016.

UMICORE AUTOCAT (THAILAND) CO., LTD. Umicore is one of the world's leading producers of catalysts that are used in automotive emission systems for light-duty and heavy-duty vehicles. The company’s catalysts, which are used in a wide range of powertrains, including petrol and diesel engines, natural gas and alternative fuels, are becoming increasingly impor tant in engines suppor ting semi and full hybrid vehicles. The new Umicore plant is at Hemaraj Rayong Industrial Land in Rayong.

ZF LEMFORDER (THAILAND) CO., LTD. ZF Lemforder (Thailand) is a wor ld-leading manufacturer of automotive chassis components and complete axle systems and modules. The company was established at Amata City, Rayong, in June 2002 and started business with BMW before moving in 2011 to the Eastern Seaboard Industrial Estate, Rayong, with a production capacity of 240,000 units per year. The move was in response to demand from key customers such as BMW, Mercedes-Benz, GM and Ford.

www.thailand.ahk.de

24 CHAMBER ACTIVITIES

SEMINAR: “FUTURE-FIT PERFORMANCE MANAGEMENT SYSTEM WITH APM” GTCC, in co-operation with APM Group, hosted the GTCC HR Seminar II titled “Future-Fit Performance Management System with APM” on 11 November 2016 at the Pacific City Club, Two Pacific Place Building, Bangkok. The seminar mainly discussed the Performance Management System (PMS) with a focus on PMS thinking and design

in the modern world as well as how to evaluate the design of PMS. There was also a PMS Workshop for participants to learn awareness about common pitfalls and key success factors when designing and implementing their PMS.

JOINT CHAMBER LUNCHEON WITH THE THAI PRIME MINISTER GTCC, in co-operation with the Joint Foreign Chambers of Commerce in Thailand (JFCCT), hosted a joint chamber luncheon during which Thailand’s Prime Minister General Prayuth Chan-o-cha gave an address on "Open for business: The next chapter in Thailand's competitiveness" on 25 November 2016 at the Shangri-La Hotel, Bangkok.

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CHAMBER ACTIVITIES 25

EXECUTIVE BREAKFAST TALK “ASEAN HEADQUARTERS IN THAILAND”

GTCC and Lorenz & Par tners (L&P) co-organised an executive breakfast talk on “ASEAN Headquarters in Thailand: Ways to save personal and corporate income tax” on 28 November 2016 at the Pacific City Club, Two Pacific Place Building, Bangkok. L&P business

consultants Mr. Till Morstadt, Dr. Constantin Frank-Fahle, and Mrs. Athitaya Chanthasirichot presented and discussed key investment promotions and tax-saving possibilities when setting up the ASEAN Headquarters in Thailand.

BUSINESS LUNCHEON ON SUSTAINABLE BUILDINGS In co-operation with OIA (Office for Interior & Architecture Co., Ltd.) and EGS-plan (Bangkok) Co., Ltd., GTCC organised a business luncheon on “Sustainable buildings—innovative architecture and architecture, engineering and solar energy.”

Elmar Kleiner, founder and director of OIA, Dr. Robert Himmler from EGSplan Bangkok, and Prof. Norbert Fisch from EGS-plan International in Stuttgart, provided the participants with the different approaches to sustainable architectural design in building technology and innovation that can help to save a great deal of energy and money.

www.thailand.ahk.de

26 CHAMBER ACTIVITIES

GTCC YOUNG PROFESSIONALS NETWORK EVENING WITH HEROLEADS GTCC launched the second GTCC Young Professionals event on “Big data: How to align marketing strategies with today's Thai consumer” on 14 November 2016 at Mode Sathorn Hotel Bangkok. Co-Founder and Managing Director of Heroleads, Mr. Carlo Herold, was invited as the event’s keynote speaker. Heroleads is an online performance advertising agency from Germany.

NETWORKING EVENING GTCC STAMMTISCH BANGKOK GTCC hosted its last Stammtisch Bangkok of the year 2016 on 15 December at Deutsches Eck, where GTCC members, guests and friends enjoyed networking together with variety of German food and beer.

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Organised by:

Supported by:

Music for A Better World Concert by the Immanuel Music School Orchestra

SHOM (Spouses of Heads of Mission) Bangkok cordially invites you to join our 2017 Charity Dinner Date: Saturday, 4 February 2017 Time: 18:00 – 21:00 hrs.

Venue: The German Ambassador' s Residence 9, South Sathorn Road, Bangkok 10120 Price: THB 4,000 (one ticket) THB 36,000 (table of 10) *The proceeds of the evening will benefit the children of the Immanuel Music School*

Contact: Khun Chutiporn Chongmankongcheep Tel: 02 287 9014 Email: pol-200@bangk.auswaertiges-amt.de

28 GTDEE INSIGHT

DISCUSSION ON “PROFESSIONAL INTERNATIONAL CODE UNDER ILO” Representatives from the public and private sectors met on 20 September 2016 at the Thailand Professional Qualification Institute (TPQI), at Suntower Bangkok, to discuss the “professional international code under ILO”, which was presented by a high-level official from the Department of Employment, Thai Ministry of Labour.

Senior Project Manager, Dr. Kamonsak Suradom, who represented the German-Thai Dual Excellence Education (GTDEE) project, provided a presentation on the subjects of the quality of vocational school assessment in German system, co-operation between college and company, and the examination and certification system.

QUALITY ASSURANCE IN VOCATIONAL COLLEGES UNDER GERMAN STANDARDS On 6 October 2016, Mr. Markus Hoffmann, GTDEE Project Director, and Dr. Kamonsak Suradom were invited as speakers on the topic of “Guidelines for quality assurance in vocational colleges under German standards” at an annual conference on “Management and teacher annual meeting 2016: Spring up private TVET towards Thailand 4.0”, held at the Miracle Grand Hotel Bangkok.

The conference attracted 500 participants from various areas including those at the management level as well as colleges under the Association of Private Technological and Vocational Education Colleges of Thailand and colleges under the Patronage of Her Royal Highness Princess Maha Chakri Sirindhorn.

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GTDEE INSIGHT 29

IMPROVED TEACHING PLANS WITH BMW AND KANCHANAPISEK MAHANAKORN A me e ting b e twe e n BMW Tha ila nd, Kanchanapisek Mahanakorn and GTDEE was organised on 14 October 2016 at the GTCC office to discuss future co-operation under the BMW service apprenticeship programme.

All par ties agreed to establish a joint plan for 25 students in the BMW apprenticeship programme, 2016 batch. It will also be aimed at improving teaching and training to meet the expectations of the three parties.

MEETING WITH DON BOSCO COLLEGE ON CO-OPERATION IN HOSTING THE CENTRAL INDEPENDENT EXAMINATION VENUE GTDEE met with Francis Wichai Srisura Deputy Director and Head of the Electro-Technic Depar tment and the Auto-Mechanic Department, to discuss “The direction for co-operation in working for the GTCC final examination”. Held on 13 October 2016 at Don Bosco Technological College Bangkok, the meeting exchanged ideas

on co-operation in hosting the central independent examination venue. GTDEE focused on preparation materials, examination venue, examiners board, and examiners for professional qualifications in the subjects of mechanics, electronics, electric power and mechatronics.

www.thailand.ahk.de

30 GTDEE INSIGHT

VISIT TO TPQI ON FUTURE CO-OPERATION IN MECHATRONIC EXAMINATIONS Mr. Markus Hoffmann and Dr. Kamonsak Suradom visited the mechatronic testing cen t r e at th e T h ai l a n d P rofe s s i on a l Qualification Institute on 14 October 2016.

During the visit, they focused on the possibility for future co-operation in mechatronic examinations.

VISIT TO KASETSART UNIVERSITY

On 14 October 2016, Mr. Markus Hoffmann and Dr. Kamonsak Suradom visited the Cane and Sugar Research and Development Centre at Kasetsar t University Kampheang Saen Campus. They consulted with Assoc. Prof. Dr. Rawat Lersrutaiyothin, Head of the Centre, on the final examination on Plants Science under the Field Crop Programme. Currently, 34 apprentices are participating in the Mitr Phol Vocational Programme for training Plant promotion

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GTDEE INSIGHT 31

DUAL VOCATIONAL TRAINING DELEGATION VISIT TO GERMANY

GTDEE, represented by Dr. Kamonsak Suradom, joined a delegation visit to Germany from 6 to 12 November 2016 on the topic of “The dual system of vocational training in Germany II”. Delegates from 19 countries – Argentina, Belarus, China, Chile, Georgia, Greece, Hungar y, India, Kazakhstan, Lithuania, Mexico, Montenegro, Poland, the Russian Federation, Slovakia, Taiwan, Thailand, Trinidad and Tobago, and the United States participated in the visit.

The delegation visited the Ministr y of Education and Research in Bonn, Ford Werke GmbH at Cologne as well as visits in Berlin to the Missions of the Confederation of German Employers’ Associations (BDA), Senior Vocational High School Centre for Business Administration, Vocational Education and Training for Small Enterprises, Contorion GmbH, the Senate Department of Labour, Integration and Woman’s Issues, the Faculty of Engineering at Beuth University of Applied Science, the Confederation of German Trade Unions and the Federal Ministry of Foreign Affairs.

On his return to Bangkok, Dr. Kamonsak noted that he “received fulfillment and gained direct knowledge and experience from the delegation visit. The trip was inspirational and I would like to adapt and implement what I learnt to the GTDEE project in Thailand. It was also an excellent platform for me to strengthen networking with other delegates from the other 18 countries”. Dr. Kamonsak said he appreciated the opportunity to join the trip through the support provided by German Embassy Bangkok and the Federal Ministry of Foreign Affairs in Berlin.

www.thailand.ahk.de

32 GTDEE INSIGHT

FOURTH VOCATIONAL EDUCATION COMMITTEE MEETING GTDEE invited company partners for a meeting at GTCC . Seven companies, namely Amata B.Grimm Power Limited, Mercedes Benz (Thailand), BMW (Thailand), Grohe Siam Limited, Ducati Motor (Thailand) Co., Ltd., ThyssenKrupp Elevator (Thailand) Co., Ltd., and Mitr Phol Sugar Co., Ltd., attended to the meeting. The discussion were on several topics including the introduction of the new GTDEE team structure, status quo, GTDEE consultancy service, responsibility of the Vocational Education Committee, and work load around the time of examination.

FIFTH VOCATIONAL EDUCATION COMMITTEE MEETING On 26 October 2016, a GTDEE team led by Mr. Markus Hoffmann, GTDEE Project Director, Dr. Kamonsak Suradom, GTDEE Project Manager and Mr. Katiphot Kanoknorrasade, GTDEE Senior Consultant, joined the 5th Vocational Education Committee (VEC) meeting arranged at ThyssenKrupp Elevator (Thailand) Head Office with representatives from GTDEE partners, Mercedes-Benz (Thailand), BMW (Thailand), Ducati Motor (Thailand) Co., Ltd., Mitr Phol Sugar Co., Ltd., Boonrawd Brewery Co., Ltd., Bosch Packaging Technology (Thailand) Co., Ltd., Bosch Automotive (Thailand) Co., Ltd., Grohe Siam Limited (Thailand), ThyssenKrupp Elevator (Thailand) Co., Ltd. and Francis Wichai Srisura, Vice-Director of Don Bosco Technical College Bangkok.

The main objective of the meeting was to inform all VEC members about the details of the GTDEE Final Examination in 2017, the venue and duration, examination dates for each profession, the examination board and expenses. Mr. Markus Hoffmann also introduced Francis Wichai, who provided detailed information with regard to the examination location and the examination materials for each profession.

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GTDEE INSIGHT 33

GTDEE BASIC MECHANICS EXAMINATION

During 15-16 September 2016, GTDEE Team, Robert Dyckerhoff Foundation and Mae Sariang Vocational College, arranged the Basic Mechanics Examination for four mechanic students from Mae Sariang Vocational College. The examination comprised two parts; a project and examination. On 15 September, the students presented their project to the examiners board and participated in the oral examination. Furthermore, on 16 September, the students took par t in the theoretical and practical examination. All the students passed the examination and received the cer tification in Basic Mechanics under the German element.

“AdA” TRAINING THE TRAINERS COURSE IN GERMANY Recently joining GTDEE Team as Project Manager, Mr. Panuwat Jaitham had undertaken a training course (AdA – training the trainer) in Berlin from 31 October to 8 November 2016. This course is designed to provide trainers with a guide to become competent instructors worldwide. It is ver y useful for supervisors and trainers who aim to share their knowledge and competences with apprentices, as well as to update their skills. Several VETnet colleagues from India, China, Spain, Kenya, Slovakia, Italy, Russia, Greece and Germany, also took par t in the course. After 6-day intensive trainings and 2-day examinations, Mr. Panuwat successfully obtained his ordinance aptitude instructor certificate on 9 October 2016.

Photo by DIHK

From now on, all interested companies and institutions are welcome to inquire more information at GTCC on the AdA international training courses.

www.thailand.ahk.de

34 MEMBERS’ CORNER

NEW GTCC MEMBERS up to 31 December 2016

German-Thai Chamber of Commerce warmly welcomes 11 new members!

BST eltromat South East Asia Co., Ltd.

Lohmann Thailand Co., Ltd. 41/84, Moo 6, Soi Pool Charoen, Bangna-Trad Road (k.m. 16.5), Bang Chalong, Bangplee, Samutprakam 10540 Thailand Tel: +66 2 683 3443 to 44 Fax: +66 2 683 3401 www.lohmann-tapes.com

455/21 BIZ Pattanakarn-Onnuch Village, Pattanakarn Road, Prawet Sub-district, Prawet District, Bangkok 10250 Thailand Tel: +66 2 107 2530 Fax: +66 2 107 2531 southeastasia@bst-international.com www.bst-international.com

Activities Manufacturing, importation and exportation of tape film, film coating for used in any kind of industries, Wholesale and retail any adhesive tapes, transparent films, coating film, adhesive film for used in any industries.

Activities Regional head office that offers sales, service and engineering for the whole range of quality assurance systems used in the printing, packaging, coating, converting, foil, rubber and tire production.

Chamber Representative Michael Boerner and Chinoros Pongsamritphol

Chamber Representative Oliver Finkeldey and Pimpanita Tintarnee

Mr. Florian Booneiam GTCC MEMBER 2017

304/205 Moo9, Bansuan, Meuang, Chonburi 20000 Thailand Tel: +66 62 962 8584 florian.booneiam@gmail.com Activities A Lecturer of Thammasat University, Faculty of Liberal Arts (BEC International Program Rangsit Campus).

Kiidu Thailand Co., Ltd. 63 Bangkok Ekamai, 1323/2 Sukhumvit Rd., Watthana Bangkok 10110 Thailand Tel: +66 97 234 8490 contact@kiidu.com www.kiidu.com Activities Online platform connecting parents to trustworthy nannies, maids, tutor, senior caregivers. We are interested in partnerships with hotels, international schools, spa, golf clubs, gyms, travel agencies.

Chamber Representative Alfiah Strohal and Sattra Rattanopas

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GTCC MEMBER 2017

Mr. Luc Van Hocht 303/10 Prapasuk Tower, Sukhumvit soi 31, Khlong Toei Nua, Wattana, Bangkok 10110 Thailand Tel: +66 86 817 5799 Luc.vanhocht@gmail.com www.parleybkk.com Activities Online Marketing and Branding.

Membership benefits solutions.

Membership association.

ONGA ARTFUL LIGHT CO., LTD. 43 Soi Pheungmee 9 Sukhunvit Road 93, Bangchak, Prakanong, Bangkok 10260 Thailand Tel: +66 2 332 4800 to 2 Fax: +66 2 332 4801 www.onga.co.th buyer@onga.co.th Activities Specialist Lighting Design for Architecture, landscape, Interior design and products design.

Chamber Representative Dutchanee Ongarjsiri and Zhang Ming

MEMBERS’ CORNER 35

Prime Asia Associate Co., Ltd.

StrikoWestofen SEA Ltd.

122 Krungthep Kreetha Road, Saphan Sung, Bangkok 10250 Thailand Tel: +66 2 735 9753 Fax: +66 2 735 9754 ds@prime-asia.co.th www.prime-asia.co.th

1 Empire Tower, 24th Floor Tower 1 Unit 2402, South Sathorn Road, Yannawa, Sathorn, Bangkok 10120 Thailand Tel: +66 2 287 3589 Fax: +66 2 287 3590 www.strikowestofen.com

Activities Imported and self-developed Aluminium Windows, Doors and Facades. uPVC high insulating Window Systems. Prime Asia installs and manufactures for prestigious projects throughout Thailand and the AEC area. Expat engineering team warrants highest standard and quality.

Activities StrikoWestofen, with over 60 years of experience and more than 8000 installations worldwide, is the global market leader of high-end furnace technology for the light metal casting industry. With our most energy efficient and low emission furnaces we serve the automotive, aeronautic and electronic industry.

Chamber Representative Dario Simic

ROBINSON Club Maldives Pvt. Ltd. H. Maaram Building 5th Floor, Ameer Ahmed Magu/ Male', Maldives 20077 Maldives Tel: +960 797 00 53 www.robinson.com Activities Robinson Club GmbH, a subsidiary of TUI AG headquartered in Hannover, is the German quality and market leader for resort holidays within the premium segment. The portfolio currently contains 24 club resort in eleven countries with a capacity of 13,000 beds.

Chamber Representative George H. Mandler-Maxheim and Heinz Trautmann

Schüco International KG (Thailand Representative Office)

805, 21 Tower, 10th Floor, Srinakarin Road, Suanluang Bangkok 10250 Thailand Tel: +66 2 720 5812-15 Fax: +66 2 720 5805 www.schueco.com

Chamber Representative Rainer Jochim Erdmann

Ventury Co., Ltd

19/83, 10th Floor, Sukhumvit Suite, Sukhumvit Soi 13, Vadhana, Bangkok 10110 Thailand Tel: +66 2 651 0860 Fax: +66 2 651 0861 www.venturyasia.com Activities Turn-key Factories, EPC, M&E Works, Electrical Work, Air Conditioning, Ventilation, all Facilities (Steam, Gas, Compressed Air, RO/DI Water, Machine Cooling, Vacuum, Dust Collectors, …), Clean Rooms for Food, Automotive & Pharmaceutical Industries, Oil Mist Collection with Electrostatic Cleaner, Environment Control (Temperature, Humidity, Dust, Cleanliness, Noise).

Chamber Representative Philippe Claire and Nicolas Burkart

Activities The Schüco Thailand representative Office supplies high-quality aluminium window, door and façade systems for sustainable and energy-efficient Buildings for Thailand and neighboring countries. We support, consult, supply, train and certify a selected network of local fabrication partners.

Chamber Representative Oliver Yodrak Buranadis

www.thailand.ahk.de

36 TRADE FAIRS

SPIELWARENMESSE 2017, WORLD’S LARGEST TOY FAIR 1 to 6 February 2017

Spielwarenmesse Dialogue 2016, organised at The Peninsula Hotel Bangkok on 8 November 2016, attracted around 40 participants.

The event started with a welcoming address by Dr. Peer Gebauer, Minister/Deputy Head of Mission, Embassy of the Federal Republic of Germany to Thailand, and GTCC Deputy Executive Director, Mr. Marius Mehner.

The press conference featured presentations on Spielwarenmesse 2017, the world's largest and leading toy trade fair, and trends in the global toy industry by Mr. Ernst Kick, Chief Executive Officer of Spielwarenmesse eG, and Ms. Cornelia Donndorf, Spielwarenmesse eG Head of Sales, together with a special insight shared by Mr. Fahdol Na Nagara, Managing Director of Taksa Toys.

“At first, our company went to Spielwarenmesse as a visitor. My first experience with Spielwarenmesse was very inspirational, both by the size of exhibition and the variety of toy products and new trends showcased there. Subsequently, we came up with the idea that we would like to get our products into the public eye and make them better known. So, one year later, we joined Spielwarenmesse as an

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exhibitor—and the result was totally successful. We have made many new business contacts, plus feedback and suggestions, and have received product orders from all over the world”, Mr. Fahdol explained.

During the Q&A session, Ms. Uraiwan Bunnag, President of Thai Toy Industry Association (TTIA), provided information on how TTIA would support Thai exhibitors, importers/exporters and visitors, and suggested that GTCC could help to co-ordinate with German Embassy with regard to issuing business visas and logistical support.

Next year, Spielwarenmesse will take place for the sixty-eighth time from 1 to 6 February 2017 in Nuremberg. By participating in this trade fair, manufacturers and trade representatives will gain a comprehensive overview of the market, while forging high-quality contacts and accessing information on the latest trends. The industry’s decision makers come together during this event at which they will be presented with more than 75,000 new products—more than at any other specialist toy fair. Numerous services are also provided to help visitors, while providing genuine added value to their everyday business activities.

TRADE FAIRS 37

WASSER BERLIN INTERNATIONAL: EVERYTHING ABOUT WATER 28-31 March 2017, Berlin Wasser Ber lin Inter national (WBI) is Germany's biennial international marketing platform devoted to the topic of water.

Trade visitors can find products, services and solutions from every part of the water industr y in an area covering six halls. In addition, the Wasser Berlin International Congress, which features high-ranking experts, takes the format of an enclosed hall forum and is an integral part of the fair.

Wasser Berlin International 2015 was held on an area covering 36,000 m2. A total of 557 exhibitors from 26 countries were represented in Berlin, while 22,686 trade visitors were recorded from 104 countries.

The next WBI will take place on the exhibition grounds at Berlin ExpoCenter City from 28 to 31 March 2017.The key topics will include water infrastructure, pipeline construction, ‘No Dig Berlin’ and water extraction.

During the previous event reactions to the board meeting area were very positive and this will continue to expand. Associations and institutions belonging to Wasser Berlin e.V. were able to hold meetings and annual conferences, with WBI providing the overall venue and specialist event. The Flood Management Berlin Symposium was very well received and in 2017 will be made a hall forum and integral part of the exhibition.

The exhibition hall layout at WBI is planned based on the water cycle. This 360-degree

concept makes it easier for visitors to find their way around the exhibition site. It also symbolizes the principle of sustainability and emphasizes the fact that the trade fair features products, services and solutions for the entire water management sector.

At next year’s show the excursion day called Schaustelle Wasser, for which Berliner Wasserbetriebe are partners, trade visitors at Wasser Berlin International will have an oppor tunity to find out about the theoretical and practical aspects involved.

On 3 0 M arc h 2017, two separate themed tours will take place. The first will focus on plant construction, and show modern and complex processes and systems serving Berlin’s infrastructure, such as a system for managing wastewater disposal. The excursion will also look at new technology for safeguarding water supplies, and providing wastewater treatment.

The focus of the second tour will be on pipeline construction. The third ‘No Dig Berlin’ will devote an entire section to this topic. This excursion will cover every area of pipeline construction, and highlight innovative and environmentally safe pipeline construction methods.

Both excursions are full-day events and will take place from 9 a.m. to 5 p.m. The excursion fee is 80 euros per person, which includes a midday snack and free entrance to the trade fair on Friday, 31 March 2017.

More details about Wasser Berlin International 2017 are available at www.wasser-berlin.de/en/.

For exhibitor/visitor inquiries, please contact GTCC’s official representative for Messe Berlin GmbH in Thailand, Ms. Patamaporn Wasuwat, at tel: +66 2 670 0600, ext. 4010, or by e-mail at berlin@gtcc.org.

www.thailand.ahk.de

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EUROPEAN COATINGS SHOW: THE GATHERING OF THE COATINGS AND PAINT INDUSTRY 4-6 April 2017, Nuremberg

The next biennial European Coatings Show is the leading platform for presenting trends and technologies covering all aspects of the production of paints, varnishes, sealants, building chemicals and adhesives. The next event will be held from 4 to 6 April 2017 in Nuremberg.

Aesthetic, sustainable, functional, process-proof – the demands placed on paint and coatings for use in the automotive industry, construction chemicals, mechanical engineering, aerospace or shipbuilding are constantly growing. Decision-makers and leaders in the coatings industry face great challenges and the European Coatings Show gives them the opportunity to meet innovation leaders and discuss the latest developments in nanoparticles, pigments, additives, production equipment and application equipment.

The products and services will find application in paints, coatings, adhesives and sealants for the following industries: automotive, shipbuilding, aviation, processing, electrical industry, industrial machinery, construction, furniture, printing, oil, gas and petrochemicals, wind power and other types of renewable energy production, plastics and packaging, among others.

For more information and exhibitor/visitor inquiries please contact GTCC’s official representative for NürnbergMesse, Mr. Nupat Khusribanchong at tel: +66 2 670 0600, ext. 3003, or by e-mail at nuernberg@gtcc.org.

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HANNOVER MESSE 2017: ‘GET NEW TECHNOLOGY FIRST’ 24-28 April 2017, Hannover The world’s leading annual trade fair for industrial technology, HANNOVER MESSE, will next be staged from 24 to 28 April 2017 in Hannover, Germany, during which the benefits of “Industry 4.0” will be highlighted under the theme of “Integrated industry – creating value”.

which to choose. However, they often find it difficult to predict what value these forms of solutions might add. Many understandably balk at committing themselves to major capital investments without clear and specific prospects of measurable benefits. This is where Hannover Messe 2017 comes in.

Hot topics such as integr ated ener gy, Industry 4.0 and the Industrial Internet of Things (IoT), energy efficiency, next-generation robotics, predictive maintenance, and smart materials and components will be discussed by top industry professionals at the show’s numerous forums and conference events.

More details about HANNOVER MESSE 2017 are available at www.hannovermesse.de/home.

With Industry 4.0, integrated energy, digital twins, predictive maintenance, digital energy, and networked and collaborative robots (cobots) provide companies of all sizes today with a multitude of high-tech solutions from

In 2017, continuing on from a very successful business and study trip to HANNOVER MESSE 2016, the German Thai Chamber of C o m m e rce (GT CC) as the o ffic ial representative of Deutsche Messe AG, cordially invites you to join its business and study trip to HANNOVER MESSE 2017 on “Integrated industry/industrial automation/ smart factory” together with exclusive site visits, from 22 to 30 April 2017.

To register for the delegation or to request additional information, please contact GTCC’s official representative for Deutsche Messe in T hailand , Ms . Kamo lc hanok a t t el: +66 2 670 0600, ext. 4004, or by e-mail at kamolchanok@gtcc.org, by Friday, 10 March 2017.

www.thailand.ahk.de

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DRINKTEC 2017: PREMIER BEVERAGE AND LIQUID FOOD INDUSTRY EVENT 11-15 SEPTEMBER 2017

Since its launch in 1951 drinktec has been held in Munich and has long been the most important trade fair for the beverage and liquid food sector. In 1985 a four-year event cycle was introduced.

Manufacturers and suppliers from all over the world – global companies and SMEs alike —meet at drinktec with all sizes of producer and retailing firms dealing in beverages and liquid food products.

The future of the industry is set at drinktec. Within the industry, the fair is considered to be the premier platform for related global innovations. At drinktec, manufacturers present the latest technology for processing, filling and packaging all kinds of beverages and liquid food plus raw materials, logistics solutions, and beverage marketing and packaging design.

Approximately 1,600 exhibitors and 70,000 visitors are expected at drinktec 2017, which will take place in 14 exhibition halls covering 150,000 m2 on the grounds of Messe München from September 11 to 15 September 2017. About two-thirds of the visitors come from other countries.

GTCC will organize a drinktec press conference in Bangkok on 27 February 2017 at The St. Regis Bangkok hotel as well as a visit by an exclusive business delegation to drinktec 2017 and leading German beverage factories.

More details about drinktec are available at www.drinktec.com. For more information, please contact GTCC’s official representative for Messe Muenchen in Thailand, Ms. Kamolchanok Nantaburom at tel: +66 2 670 0600, ext. 4004 or by e-mail at muenchen@gtcc.org.

UPDATE 1/2017

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