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CONSTRUCTION INDUSTRY Thailand expects stronger growth in the construction industry
GTCC business trip on ‘Biogas in Thailand’
GTCC Annual Gala Night 2015
Organized by:
GTCC
Ok t ob erf e s t Night
2015
SAVE THE DATE Friday 30 October 2015 18.30 p.m. to 01.00 a.m., Millennium Hilton Bangkok German Beer * Live Band * Scrumptious Buffet * Lucky Draw * Live DJ
DEAR READERS Following close to three years of leading the German-Thai Chamber of Commerce (GTCC), it is time for me to bid farewell to Thailand, our members and friends as well as my team, and hand over the reins as the GTCC Executive Director to my successor, Dr. Roland Wein, at the beginning of August. It has been a true pleasure and privilege to meet and work with many individuals and partners representing different industries and cultures. Along the way, such exposure has broadened my business and cultural outlook tremendously – a truly invaluable lesson. In particular, it has been an honour to work alongside such an inspiring and insightful Board of Directors who voluntarily and dedicatedly work to uphold GTCC values and strengthen recognition of the Chamber’s position as one of the leading bilateral foreign chambers of commerce in Thailand. I am proud that I have had the opportunity to be part of a number of significant achievements by the GTCC that set a new milestone for the Chamber, including in particular the facelift of its services and offers for members, the introduction of the German-Thai Dual Excellence Education (GTDEE) programme and the record-breaking welcome of the 550th member to the GTCC family. With the direct support of members and partners, I have personally witnessed tremendous development of the Chamber since I joined the GTCC, and I have no doubt that Dr. Wein will continue to inspire the team and develop the Chamber’s value to another level. On that note, I leave you with our second issue of Update magazine, in which the main focus is on the construction industry. In addition, take a look through the “Chamber activities” section where you will find some great photos from our spectacular GTCC Gala Night 2015 – DER SHOWPALAST! Best regards,
Jörg Buck Executive Director
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.
Publisher/Editor-in-Chief: Jörg Buck
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) 02-670-0600. Fax: (+66) 02-670-0601. E-mail address: info@gtcc.org.
Editor & Communications Director: Ratanaporn Bistuer
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.
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GERMAN-THAI CHAMBER OF COMMERCE ANNUAL GALA NIGHT 2015 The German-Thai Chamber of Commerce team wishes to extend its sincere gratitude to all distinguished sponsors and supporters of our GTCC Annual Gala Night 2015 under the theme ‘DER SHOWPALAST’. This spectacular night would not have been possible and successful without you! We look forward to your continued co-operation in the near future.
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Biotechnica 2015
06 CONSTRUCTION INDUSTRY
THAILAND EXPECTS STRONGER GROWTH IN THE CONSTRUCTION INDUSTRY Contributed by Dr. Waldemar Duscha, Germany Trade & Invest The Thai construction industry is expected to pick up again as the national economy improves. The sector will benefit from some flagship projects in housing construction, while the trade chains will continue to expand substantially. An additional boost may come from the national development plan for transport infrastructure with its budget of Euro 68 billion. The concept of "Green Building" is coming stronger into focus and is opening up business opportunities for products and services from German companies.
MARKET DEVELOPMENT AND REQUIREMENTS The construction industry is a cornerstone of the Thai economy, with strong activities in residential, commercial and infrastructure construction. However, the high dependence on the development of the overall economy means that the cyclical swings in the construction business are more pronounced. While the gross domestic product rose by just 0.7 per cent during 2014, due to the political situation, the construction industry suffered a 3.8 per cent decline. In par ticular, the delay of public works contracts is attributable to the fact that the turnover of the construction industry in 2014 was below the previous year's level of US$ 32 billion. The negative trend is likely to reverse in 2015. The National Economic and Social Development Board (NESDB) has forecast that the Thai economy will grow by 3.5 per cent to 4.5 per cent, a trend that is
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expected to continue in 2016 with the same dynamics. The positive expectations are primarily based on an eight-year state infrastructure programme with an investment volume worth approximately US$ 62 billion for roads, railways, BTS Skytrain, seaports, and Suvarnabhumi Airport and Don Mueang Airport. The NESDB expects an increase in public investment by 9.8 per cent in 2015 after a decline of 6.1 per cent in the previous year. A first positive signal was that construction work, after six consecutive negative quarters, recorded an increase of 3.7 per cent in the last quarter of 2014.
CONDOMINIUM MARKET The prospects for the condominium market in Bangkok and the surrounding areas are good. In 2014, a total of 47,500 new condominium units were added to the capital, representing an increase of 14 per cent from the previous year. According to Nexus Research, in the next three to five years supply will stabilise at 50,000-60,000 units per year. Along the same lines, Colliers International also forecasts around 55,000 new units in 2015.
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Thailand's 15 largest project developers have announced a total investment budget of Baht 212 billion for 2015 (approximately Euro 6 billion; Euro 1 = approximately Baht 35.2), one half of which is for land acquisition and the other half for residential buildings. Pruksa Real Estate takes the lead with 75 residential projects worth Baht 61 billion. Sansiri is next, targeting revenue of Baht 31 billion. Land & Houses ranks third in terms of targeted revenue of Baht 22 billion. Moreover, increased revenue comes from Quality Houses, AP, SC Asset, Property Perfect, Supalai, LPN Development and Ananda Development. At the beginning of 2015, the total housing stock in Bangkok’s inner city area amounted to an estimated 450,000 units. More than 60 per cent of all condominiums are located in suburban Bangkok. Investors prefer to buy condominiums near the MRT metro stations and along the existing as well as five planned BTS routes (Orange, Pink, Yellow, Green and Red Lines). Luxury condominium projects launched in the vicinity of the Chao Phraya River achieve the highest prices. These projects are, for example, the Canapaya, the 333 Riverside or the Iconsiam. The Iconsiam, with an investment of US$ 1.5 billion, has set a new benchmark in residential development in terms of luxury, with two residential buildings called the Mandarin Oriental and the Magnolia Waterfront Residences. The project is being developed by a joint-venture partnership between Magnolia Quality Development, Siam Piwat and Charoen Pokphand Group (CP). Another flagship project is the development of a mixed-use complex in another prime location at the intersection of Rama IV and Wireless Roads, awarded by the Crown Property Bureau to the Univentures-TCC Assets consortium. Construction permits in Thailand (1,000 m2) 2012
2013
2014
% Change 2013/2014
Apartments (low-rise)
32,620
30,973
23,391
-24.5
Apartments (high-rise)
8,152
8,829
6,631
-24.9
Commercial construction
9,852
9,272
6,353
-31.5
Industrial construction
7,780
9,124
4,701
-48.5
Hotels
1,237
1,160
926
-20.2
Offices
1,264
669
1,222
82.7
Segment
construction sector in 2015. Thanks to strong impetus at year-end 2014, a total of 3,469 investment projects (+73 per cent compared with 2013) wor th US$ 66.7 billion (+117 per cent) were registered, including 1,573 foreign projects at US$ 31.1 billion. The high growth rate was primarily driven by the new investment policies announced by BOI in 2015, which released a true final spurt for grants from the old concept at year-end. The automotive and metal processing sector, at US$ 8.3 billion, has drawn the biggest number of foreign investments, mainly due to the Eco-Car Programme Phase II, followed by the chemical and paper sector at US$ 7.4 billion.
SPECIAL ECONOMIC ZONES The proposed new Special Economic Zones in border provinces for increasing bilateral trade with the neighbouring countries of Myanmar, Lao People’s Democratic Republic, Cambodia and Malaysia are likely to stimulate some additional growth. Border areas in the provinces of Tak, Trat, Sa Kaeo, Songkhla and Mukdahan have been selected for the first phase. BOI offers potential investors maximum fiscal incentives, such as exemption
Source: Real Estate Information Centre. However, the Super Tower on Rama IX Road – at 615 metres in height with 125 floors – is set to become Bangkok’s and South-East Asia's tallest skyscraper. The US$ 550 million project will be developed by Grand Canal Land, including its major shareholders Charoenkrit Enterprise (37 per cent) and the Channel 7 Group (33 per cent). The project has been designed by Architects 49 and has registered its intent to seek platinum certification in “Leadership in Energy and Environmental Design” (LEED). The Super Tower, with premium offices and a 260-room, six-star, will be developed as part of the Grand Rama IX, the city’s new central business district. For comparison: ASEAN's current tallest building is the Petronas Twin Towers in Kuala Lumpur at 375 metres with 88 floors. According to the remarkable annual balance sheet of the investment projects approved by the Board of Investment (BOI), some new dynamics can be expected in the commercial
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08 CONSTRUCTION INDUSTRY
from corporate income tax for eight years, plus additional deductibility of costs for transportation, electricity and water, and infrastructure installation or construction. There is also massive investment in commercial business. The Bangkok Post has reported the investment plans totalling more than Baht 300 billion during the next five years from the major retail companies Central Group, the Mall Group, Siam Piwat and CP. Some Baht 200 billion will be invested by the Central Group, while The Mall Group has set aside Baht 60 billion to develop five new projects. CP will spend Baht 10 billion on the next phase of the night market "ASIATIQUE - the Riverfront�. Convenience stores are also expanding. Market leader 7-Eleven will increase its number of outlets from 8,200 to 10,000 by 2018, while FamilyMart outlets will number 3,000 in the next two years. In the view of the Thai Shopping Centers Association (TSCA), new investments in shopping centre developments will reach almost US$ 2.5 billion for building 21 shopping complexes
with a total retail space of 1.7 million m2 in the years ahead. This will bring the number of shopping complexes under the TSCA to 65, with a total of almost 13 million m2 of space. Among the market-leading depar tment store chains are Central Pattana (Central Westgate, Malls in Rayong and Nakhon Ratchasima), The Mall Group (Emquartier, Emsphere), IKEA (Megawest), Siam Future Development, Fashion Island, The Platinum Group, Rangsit Plaza (Spell) and KE Retail, the operator of Crystal Park.
Large-scale projects in Thailand Project name
Investment sum
Project status
Traffic and transport
US$ 62 billion
2015 to 2022
BTS Skytrain, railways, roads, airports and seaports
Water
Euro 6.8 billion
2014 to 2014
Large-scale project for flood management and crisis prevention
Suvarnabhumi Airport
Euro 680 million
Call for bids
New passenger terminal
N/A
Start-up phase
Participation of eight, mainly Japanese, car manufacturers
US$ 4.5 billion
2013 bis 2017
Expansion of the polymer capacity
N/A
Award procedure
Installation of 1,000 MW rooftop systems up to 2021 by companies and municipal institutions
Euro 430 million
Award of contract
Contract awarded to the Alstom-Sumitomo consortium by EGAT
Eco Car II PTTGC Solar energy Power plant North Bangkok II (850 MW)
Remarks
Source: Thailand Board of Investment, Bangkok Post and The Nation.
TRANSPORT INFRASTRUCTURE DEVELOPMENT The strategy for transport infrastructure development and the master plan for 2015-2022 are likely to boost the infrastructure sector by around US$ 62 billion. Here, the expansion of dual track railways and the BTS network of Bangkok are to be prioritised. Other investments will be made not only in the expansion of highways and motorway roads, but also in the two seaports of Laem Chabang and Pak Bara Sea and four airports of the country. Under the airport improvement project of more than US$ 3.5 billion, almost half will be spent on Suvarnabhumi, which together with Changi, Chek Lap Kok and Incheon, is a major world airport.
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With regard to the development of Thailand’s railway system, China seems to be the first country to get a chance, while Japan has also shown strong interest. In mutual co-operation with China, the construction of standard gauge dual-track rail routes totalling 873 km, divided into four sections, is set to begin in 2015. Two sections are to be completed in December 2017 and the other two in March 2018. The construction will start with the Bangkok-Kaeng Khoi (133 km) and Kaeng Khoi-Map Ta Phut (246.5 km) routes, closely followed by Kaeng Khoi-Nakhon Ratchasima (138.5 km) and the extension up to Nong Khai (355 km). The total estimated cost of the projects is Baht 350 billion. The urban passenger transport focus is on the expansion of the BTS Skytrain, with probably a dozen new lines. According to The Nation newspaper, four lines are already under construction, one line is under tender, six lines are expected to have their bidding processes completed in the near-future and the last project is stuck in the preliminary study stage. The entire network expansion will stretch for more than 230 km with the construction costs estimated at the converted figure of more than Euro 8.5 billion. Among the Green, Purple, Pink, Orange, Yellow and Red Lines, the 37.5 km Orange Line (Taling ChanThailand Cultur al Centre-Min Bur i) is probably the longest section.
Water management will also experience reformation with an investment plan worth Baht 240 billion, of which Baht 110 billion is expected to be spent in the current fiscal year (2014/15). The project was scheduled to start in March 2015 within the context of a 10-year plan up to 2024. While in 2015 the focus is on the flood and drought problems in critical zones, a country-wide environmental initiative and the linking of the water basins is expected to be made in 2016.
SUSTAINABLE AND ENERGY-EFFICIENT CONSTRUCTION The pioneer of sustainable and energy-efficient construction is the Thai Green Building Institute (TGBI), which launched its own "TREES" (Thai Rating of Energy and Environmental Sustainability) certification in 2012. Even though interest has noticeably increased over the past few years, only 22 green buildings in total had been certified by TREES or the US standard LEED at the beginning of 2014 (around 30 per cent of the TREES criteria come from LEED). The great breakthrough should come from the granting of a bonus in the form of extra floor space of up to 20 per cent by TGBI, according to certain "green" construction criteria – graded in four levels: certified, silver, gold and platinum. In the long term, a significant market should open up, building on the existing rules for environmental conservation and energy efficiency; however it should also comprise non-regulated aspects such as water conservation, temperature moderation as well as the reduction of emissions and waste. This could be the future priority for German companies that are, up to now, well-established, particularly in the engineering of larger projects. The appropriate platform for related information and knowledge exchange will the fifth" Green Building & Retrofits Expo Asia", to be held in September 2015 at Impact Exhibition and Convention Center, Bangkok.
PRODUCTION/INDUSTRY STRUCTURE In 2014, Thailand's construction revenue dropped by 3.8 per cent, compared with the previous year, to less than US$ 32 billion, representing a share of 7.9 per cent of the gross domestic product of US$ 390 billion. Most of the approximately 80,000 contractors are micro-enterprises, with only about 4,000 having more than 10 employees.
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10 CONSTRUCTION INDUSTRY
The construction sector is dominated by around a dozen large companies such as the Italthai Group, Ch. Karnchang and Sino-Thai Engineering & Construction, which are on an expansion path and will strongly rely on the ASEAN Economic Community from 2016. In 2014, the Italthai Group, with 5,800 employees, generated sales of Baht 12.8 billion from its core businesses of construction and engineering equipment as well as hospitality and lifestyle services. Italthai expects revenue growth of 20 per cent to Baht 15.4 billion in 2015 and Baht 25.8 billion by 2019. This ambitious goal is to be achieved through a five-year investment plan of Baht 11 billion for facilities, services and improvements. For 2014, CH. Karnchang (CK) was likely to maintain its turnover level of around Baht 30 billion in the previous year. In addition, at year-end there were two major contracts for a gas-fired power plant in Ayutthaya (Baht 4.3 billion) and a tap water system (Baht 3.3 billion) operated by the subsidiary companies CK Power and Thai Tap Water. The competitive advantage of CK lies mainly in its broad business base – its current project portfolio includes an expressway, the BTS Blue Line along the Chao Phraya River, the signal system of the BTS Purple Line and the Xayaburi hydropower plant in the Lao People’s Democratic Republic.
In 2014, the import of building machinery and parts also declined significantly by 15.3 per cent to US$ 2.1 billion, because of weakness in construction. The supplying countries, China and Japan, claimed the top positions with import shares of 26 per cent each; however, both had to cope with decreases of around a quarter compared with the previous year. In contrast, Germany registered an enormous 125 per cent leap forward to US$ 380 million, thus enabling it to claim a strong third place with a share in imports of 18 per cent compared with 7 per cent in 2013. In recent years, foreign direct investment in the construction industry has been low in comparison with the overall field of industries. Notwithstanding this, German construction and consulting companies have been quite successful in the Thai market for several years. German engineering companies have relatively good business opportunities, although strong competition from the Asian region has grown in the case of large contracts. German suppliers also have plenty of good opportunities to sell various types of equipment, such as elevators, security systems and interior fittings.
BUSINESS PRACTICES The legal basis for public procurement in Thailand is the regulation of the Office of the Prime Minister on procurement (ROPMP) from 1992. The form of the procedure significantly depends on the type and the value of the subject matter of the contract. In general, public projects under a contract worth more than Baht 2 million (approximately Euro 57,000; Euro 1 = Baht 35.2) have had to go through an e-procurement procedure since 2004. Government agencies are obliged to publish their tenders on the central website at www.gprocurement.go.th.
Contact addresses Name
Internet address
Remarks
AHK Thailand
http://thailand.ahk.de
Point of contact for German businesses
Ministry of Industry
www.industry.go.th
Industry Ministry
Board of Investment
www.boi.go.th
National promotion agency for direct investments
Thai Chamber of Commerce
www.thaichamber.org
Association of Chambers of Commerce
Board of Trade
www.thaichamber.org
Umbrella organisation for the Property Business Group Association
Federation of Thai Industries
www.fti.or.th
Umbrella organisation for the industries
Industrial Estate Authority of Thailand
www.ieat.go.th
State regulatory authority for industrial parks
Thai Appraisal Foundation
www.thaiappraisal.org
Foundation for the estimation and evaluation of real estate
Agency for Real Estate Affairs
www.area.co.th
Agency for evaluation, studies and information
Real Estate Information Centre
www.reic.or.th
Information centre for real estate
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12 CONSTRUCTION INDUSTRY
TREES SYSTEM EXPECTED TO HELP MAKE URBAN BANGKOK GREENER Contributed by Dr. Atch Sreshthaputra DGNB
Decades ago, building “green” meant incorporating green scenery into our environment. Major building projects were required by law to have sufficient open space and a reserved vegetated area. Housing schemes displayed the idea of having more-than-stipulated green space as a main selling point. As land prices in Bangkok are rising quickly, many developers have located their residential projects outside the city in order to acquire cheaper and bigger plots of land to support the green concept. Clean air and a quiet environment on the outskirts of the nation's capital is something that Bangkokians who cannot tolerate downtown congestion are looking for. The word "commuter" is used to describe middle-class people who can afford cars and petrol but cannot afford a stand-alone house in the city. It is now obvious that wherever there are expressways, real estate development will also be found in those areas, and the developers' customers will commute if the cost of transportation is offset by clean air and large, open green spaces. This phenomenon has taken hold in other countries, too. It is called "urban sprawl". The dilemma is that when some people try very hard to go for green living, they have no idea that they are also destroying the greenness of other people at the same time. How many trees have been cut down to pave the way for the spreading suburbs or for highways? How much "natural" greenery has been destroyed and replaced by "artificial" nice-looking trees? Today, with erratically soaring energy prices and the disastrous flooding in the outskirts of Bangkok in 2011, many commuters feel that they need to come back to live in town. The
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question is will the city be ready for increasing numbers of residents? For Bangkok, a sur vey by the Economist Intelligence Unit – sponsored by Siemens in 2011 – revealed that the city was in serious need of more green areas, otherwise the urban heat “island effect” will get worse and
CONSTRUCTION INDUSTRY 13
the air quality will be in trouble. Compared with Singapore, which has 66 m2 of green area per capita, Bangkok has long mismanaged the city’s development and now only has 3 m2 of green area per capita. This is second only to Jakarta, which has 2 m2 per capita. A minimum of 10 m2 per capita has been suggested by the World Health Organization (WHO) for a city to be healthy and livable. The Bangkok Metropolitan Administration (BMA) responded to the survey results quite quickly. Based on the green building rating tool called TREES (Thai Rating for Energy and Environmental Sustainability) introduced in 2010 by the Thai Green Building Institute (TGBI), the latest Bangkok zoning code requires that each new building provide more green area for a portion of available open space. Fifty per cent of open ground space must be kept green so that plants can grow and rainwater can seep through. Of course, real estate developers are upset with the new regulation as they have already acquired many land plots for construction projects only to find that they will now have to “cut out” some portions of their expensive land for green spaces.
rising while people will still have limited amounts from their income to pay for mor tgages. If the same piece of land can offer more living units, it can be anticipated that more people will be able to afford living in town and less people will need to commute. At the same time, the city will be greener. This is big win-win solution for all of us.
Contact details: Africus Co., Ltd. Email: atch@africvs.com Website: www.africvs.com
However, it does not mean that the investors are being pushed into a corner. We need to accept the fact that the main driving force behind constructing good buildings around the world are incentives – mostly financial at the cost of taxpayers’. Would it not be better to incentivise an environmentally-friendly building without using taxpayers’ money “directly”? The new law has introduced a ‘bonus’ system for developers who build a project with good environmental quality. If a building project demonstrates that it can pass the requirements for green buildings, based on the TGBI TREES system, it can increase the gross floor area (GFA) by 5-20 per cent. In this way, the Government does not need to spend taxpayers’ money for this type of incentive. TREES is the sole system to be used to assess the environmental quality of building design for GFA bonus applications. This is actually not a new idea. Thinkers around the world have come up with schemes to assess the environmental quality of a building for the purpose of giving incentives. Most of the schemes contain a set of design and constr uction guidelines related to alter native transportation, green area, rainwater management, energy efficiency, water conservation, indoor environmental quality and green materials. A similar approach was introduced in Thailand in 2009 by a group of Thai architects, engineers and academics with full-time professional positions elsewhere – but are willing to work on a voluntary basis – who worked together to establish TGBI. Their objective was to develop national green building standards and a certification system like LEED in the United States of America, DGNB in Germany and BREEAM in the United Kingdom. The team took just one year to formulate the TREES system. TREES will undoubtedly gain greater popularity among land developers soon, as land prices in Bangkok are projected to keep
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14 CONSTRUCTION INDUSTRY
Xayaburi Hydropower Project, Mekong River, Lao People’s Democratic Republic.
‘THAI CONSTRUCTION INDUSTRY WILL BENEFIT FROM ASEAN ECONOMIC COMMUNITY’ Contributed by Juergen Supik, Chief Executive Officer, Dorsch Consult Asia Co., Ltd. The construction business is very cyclic in nature as it depends strongly on economic growth, financial markets and government policies. The Thai construction industr y suffered strong setbacks during the first Asian economic crisis in 1998, the global economic crisis in 2008 and the recent Thai political crisis.
planned AEC is expected to facilitate the free flow of goods, services, labour and investment in the ASEAN region. The Government of Thailand will kick-start the regional growth of the Thai construction industry through measures aimed at developing the industry as the regional hub of AEC. In the second half of 2015 the Government will award several infrastructure projects totalling
However, in 2016 the Thai construction industry will benefit tremendously from the launch of the ASEAN Economic Community (AEC). Thai contractors are not only among the biggest construction companies in the ASEAN region, some of them already have extensive experience from working abroad as well as from local mega projects such as the MRT, hydropower dams and airports; this experience will give them a good competitive edge. Even though Thailand is no longer regarded as a low-cost manufacturing hub, labour is still cheaper than in Singapore, Malaysia and Brunei Darussalam, and not far above that in Viet Nam, Indonesia, Cambodia and Myanmar, which have a lack of skilled labour. The
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MRTA Tunnel-boring machine breaks through at MRTA Sanam Chai Station
Baht 247 billion (Euros 6.7 billion). The projects include: The Bang Pa-in to Nakhon Ratchasima motorway (Baht 85 billion); The Bang Yai-Bang Pong-Kanchanaburi motorway (Baht 55 billion); Suvarnabhumi Airport, Phase 2 (Baht 60 billion); Three Track-Doubling Metre Gauge Projects (Baht 40 billion); The third Green Line Morchit-Khu Khot contract (Baht 7 billion). Those amounts do not include the continuing construction on the Blue Line, Purple Line and Red Line extensions or any privately-financed commercial, housing or industry projects. In addition to the above domestically-financed projects the Government is negotiating government-to-government agreements with China, Japan and other countries for the following projects: The Nong Kai-Map Ta Put standard gauge freight rail line; The Bangkok-Chiang Mai high-speed rail line; The Tak-Mukdahan rail line. In total, the Government has approved a budget of more than Baht 1.9 trillion (Euros 51 billon) for the next eight years for the construction of infrastructure projects. It is a huge investment for a country like Thailand, despite current low interest rates. In any case, it is of the utmost importance that these projects are carefully planned and integrated, as they will form the critical future infrastructure backbone of the country in terms of transportation, logistics, flood protection and energy supply. Emphasis should be given to compatibility of the systems in terms of operation, maintenance and life-cycle costs. Dorsch Consult Asia is currently involved in the following projects : MRTA Blue Line Extension Project, Bangkok, Xayaburi Hydropower Project, Lao People’s Democratic Republic; SRT Dual-Track Project, Hua Hin-Prachuap Kiri Khan; KSB AG office and workshop buildings, Bangkok; Bank Negara Malaysia Cash Centre automation, Kuala Lumpur.
Contact details: Dorsch Consult Asia Co. Ltd. Tel: +66 2 679-8900 Email: supik@dorsch.co.th Website: http://dc-asia.dorsch.de/
16 CONSTRUCTION INDUSTRY
ELDERLY RESIDENCES THE FUTURE IN THAILAND’S REAL ESTATE BUSINESS Contributed by Helmut Buchberger, Managing Director, ABC Asian Business Consulting Co., Ltd For many years, real estate developers in Thailand have focused on building villages (housing projects) and condominiums – especially in areas such as Bangkok, Phuket, Koh Samui and Pattaya – resulting in an oversupply in general with many houses or condominiums remaining unsold. The usual buyers have mostly come from Western countries and, more recently, from countries such as the Russian Federation. However, such buyers are fading away, and the decline in sales is noticeable. Meanwhile, a recovery is not in sight, at least in the nearfuture. Instead of holding on to the “old” concept, hoping that the good old days will come back soon, developers might have to change their attitude and look for new markets or concepts.
NEW SITUATION The world is changing; the global population is ageing. People are living much longer than in the past, thus building up a huge retirement base. The younger generation is finding it harder and harder to take care of the old folks (particularly their parents) and successive Governments now have to struggle with the burden of taking care of more and more retirees.
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Germany, for example, has around 7.4 million retirees and many of them need a place to stay but not too many residences are available. This is not about charity or government retirement homes; this is about people who have money and could afford to stay in a nice place where someone will take good care of them; however, such places are few and ridiculous expensive.
OLD PEOPLE ARE THE NEW BUSINESS After focusing on retirement homes in various countries and talking to people involved in this type of business, Asian Business Consulting Co., Ltd. believes the solution is to build Elderly Residences, not in Europe but in other countries. Years ago, elderly people from countries such as Germany, Austria and Switzerland went to other European countries; however, prices are now as high and weather conditions similar to that in their home countries. Retirees are now looking for countries where the weather is pleasant and prices affordable. Governments and the private sector are supporting this idea as they can save much money too.
MAKING A DIFFERENCE Different from most retirement homes in western countries, the idea is to offer living in a traffic-free, village-style environment, located in a landscaped park with many trees, fish ponds, waterfalls, vegetable gardens and so on.
CONSTRUCTION INDUSTRY 17
WHY THE EASTERN SEABOARD? The Eastern Seaboard offers excellent infrastructure. Its proximity to the capital, Bangkok, with the international airport only 120 km away, and its many sandy beaches of the offshore islands are an advantage, as are the various opportunities in the vicinity.’ The area is also known as a golfers’ paradise with more than 20 international golf links that have affordable green fees starting with the equivalent of Euro 20.
The buildings would be low-rise, compromising apartments of different sizes as well as villas, with a wide range of facilities including mini-marts, swimming pools, gyms, a craft room, restaurants, cafes, bars and pubs, a library, massage and spa facilities, hair dressing salons, and a stateof-the-ar t clinic with integrated pharmacy and inpatient facilities suitable for handicapped residents.
IT‘S ALL ABOUT SERVICE There will be new examples of achievement for quality standards in living during the “third phase” of life. The highest possible level of service for private residences needs to be provided in an ambiance similar to that of a five-star hotel resort in a warm and friendly atmosphere where care and attention are the main priorities. All residents will be members of the “Difference Club” and can chose between different membership levels according to their needs, starting from a basic service to VIP treatment including health checks, cocktail receptions, free golf, and nurses and doctors on 24-hour standby.
Several big supermarkets are already serving the foreign community in that area, and offer a wide selection of everything Westerners are used to buying. Big shopping centres, specialised “Western” bakers and butchers as well as numerous restaurants with a variety of dishes from around the world are available in and around the city of Pattaya. There are hospitals of international standard, numerous sports facilities and, of course, plenty of daytime attractions and an extensive nightlife available in Pattaya. Elderly Residences definitely appear to be the future trend for Thailand’s real estate sector!
Contact details: Helmut Buchberger ABC Asian Business Consulting Co., Ltd Tel: +66 (0)81-862-7936; +66 (0)38-252-531 E-mail: helmut@abc-global.com Website: www.abc-global.com
WHY THAILAND The Kingdom of Thailand has, for quite a long time, been well-known as a good investment location and travel destination, and generally a safe country. The cost of living is increasing constantly in the Western world, while isolation, a rather unpleasant weather situation and, above all, older people not being very well treated; that is a different situation to Thailand where older people are respected. Due the deteriorating care situation in Europe, many people are being forced to find a new living environment. Furthermore, typical age-related illnesses such as gout, rheumatism, arthritis etc. contribute to the fact that older people are leaving Europe to live in warmer countries. This is leading to an ever-increasing demand – especially among people from Western countries – to make a suitable and cost-effective place such as Thailand their new home.
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ETHICAL ISSUES IN CONSTRUCTION IN SIAM:
How the mindset of urban real estate developers and home owners will affect the city’s construction future Contributed by Jayut Jayanandana (Chaiyanan), Director-Operation at PCMC Engineering Co., Ltd.
Noam Chomsky once wrote: “There are very few people who are going to look into the mirror and say ‘that person I see is a savage monster’; instead, they make up some construction that justifies what they do“. You will read why this quote is relevant to this article on missing ethical value in the construction business While clubbing on one Saturday night the issue of modern architecture in this land of Siam – and especially in the city of
Krungthep – came up. An idea was floated: name one modern building in Krungthep where we can take photos and claim we are in Siam from the view in the background. We all started working hard at visualising and finally came up with EUREKA spirit – National Museum, Thammasat University (Sanam Luang campus) and the Grand Palace. However, they are all government buildings that were constructed nearly a century ago!
Just have a look at the buildings in these three photos and imagine how it would look if the entire city of Krungthep looked like it. Another Paris of the East?
While reading this you must be working on this idea too, and scratching your head and cracking your fingers – but you will find nothing but a bunch of matchbox buildings with lots of glass that reflects heat. Have a look at the next three photos – can you explain how they take us back to the fabled land of Siam?
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I do not discuss technical issues here, but rather I talk about creating awareness among community dwellers on how to fight shoddy construction in the city, how to raise their voices on construction pollution, pollution management and environmental management. The mindset of an owner or real estate developer matters a great deal in preserving the locality – that is, its beauty, which will show their foresightedness and love for their country. The designer creates designs based on the owner’s concept, which is the core issue in the whole ball game. With that concept in mind, I am bringing ideas and designs which will translate into actual construction.
OUT-OF-THE-BOX DESIGNS THAT FIT LOCAL HISTORIC SITES The city office (i.e., the BMA) must create design guidelines for developers and individual home owners to follow in such a way that fits the local historical sites, if any. It would therefore be an excellent idea to encourage local young designers and architects to come up with soothing designs and new technology for construction materials that can be sourced or made here, instead of importing en masse from China or elsewhere. This would bring down the cost of construction.
LAND PROPERTY DEVELOPMENT ON LOW-LYING LAND AND CREATING MAN-MADE FLOODS Low-lying land is cheap since it is flood prone due to the flow of the city’s rainwater into these areas. Many of the developers love to buy such land for the construction of cheap housing for lower middle- and middle-class urban dwellers. Our city municipality office keeps silent and shuts its eyes and ears to this fact. Therefore we need to create a community board in each area and bring city officials to the board to hear the community’s complaints in order to stop he construction of houses on low land.
HIGH-RISE BUILDINGS AND THE USE OF GLASS THAT REFLECTS HEAT
Krungthep attractive, environmentally-friendly, rather than just a slogan for “green building”. They must stop developers from using heat-reflective glass in buildings..
DIRECTION FACES BY HIGH-RISE OR MEDIUM-HEIGHT BUILDINGS Such buildings are mostly not built on based on the south-nor th ventilation concept. In a tropical country such as Thailand the wind blows from south to nor th during the summer, which results in excessive heat and the necessity for using air-conditioning in every room in order to create “liveable conditions”. Here is an example of this problem. In many cases, there is a silent understanding between the designers/architects and air-conditioning companies in order to sell more air-conditioners – which does nothing good for saving the ozone layer even though they have started using R134 A refrigerant. Since developers want to build as many rooms as they can, using minimum space while making more money without thinking of protecting the fresh air and sky, it is high time they start constructing buildings that face in the correct direction before it is too late in terms of the environment. If a building’s construction is based on the north-south air ventilation concept, its dwellers often prefer not to turn on their air-conditioners but enjoy the fresh flow of air through their units. We, the consumers, should refuse to buy buildings that do not allow such conditions! Buyers have to be united in their approach – after all, lower electricity costs equals more savings in their bank accounts and a more positive investment for their future.
CONSTRUCTION GOES HAND-IN-HAND WITH LOCAL GOVERMENT AGENCY CORRUPTION Most local residents dare not protest or complain to the local government agencies – especially in Thailand – as they fear intimidation by the invisible mafias who have a good relationship with the agencies’ staff.
This is something designers and architects need to specify before they hand over each project to the construction company.
Since nationwide reform is currently underway, this is the perfect time to ask for the prime minister’s help in creating a system in the community with the helping hand of officials for using the law effectively out of love for this country.
All designers and architects must unite to create designs without such glass and they need to use material that should be energy-saving or, alternatively, colourful stone-looking material in order to make
Developers find loopholes to enable them to build hotels in residential areas where the law says if the road is used by two-way traffic, the minimum width of the road should be six metres. So what
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do the developers do? They register the building as a serviced apartment or something similar – but in most cases it is operated like a hotel! The entire peaceful residential area becomes a place of crime due to the tourist inflow! The local police station, BMA and other related agencies act as though they are blind! “We always look at the 'Fortune 500,' and we say, men in power, but we don't look at the glass cellar as opposed to the glass ceiling and say, men also are the homeless, men are also the ones that are the garbage collectors. Men are also the ones dying in construction sites that aren't properly supervised for safety hazards.” – Warren Farrell (read more at www.brainyquote.com/ quotes/quotes/w/warrenfarr604466.html#e3C7uJ4HBFZcPv8d. 99).
INVOLVEMENT OF EDUCATION INSTITUTIONS AND MULTI-NATIONAL THAI FIRMS The top universities that are specialised in construction engineering an d c o n s tr u c tio n m a t e r i a l e n g i n e e r i n g s h o u l d e nc o ur-
Putrajaya government
Putrajaya holiday resort
students to create new sustainable materials for construction that can be locally made and therefore provide cost efficiency. The top Thai corporate entities should also come up with big funding to encourage the universities to support research and development as well as create awards and more competition. Thailand’s Ministr y of Industr y should give more attention and encourage Thai corporations to generate funds and, in return, the ministry should create benefits for those companies. The Ministr y should ask those countries that are much more advanced in research – e.g., Germany, Sweden, Israel, India, China and Japan – to provide the assistance of their top professionals and scientists help the Thai engineering universities.
KUALA LUMPUR’S PUTRAJAYA A GOOD EXAMPLE Kuala Lumpur’s Putrajaya design gives the city its identity – it tells the religious background of the country. Why can’t our developers, owners or government agencies do the same for Thailand?
Thai look building in Bangkok
I would like to end with this quote by Russell Brand: “It’s difficult to believe in yourself, because the idea of self is an artificial construction. You are, in fact, part of the glorious oneness of the universe. Everything beautiful in the world is within you.” Contact details: PCMC Engineering Co., Ltd. Mobile: 083-556 6262 Email: jayut@pcmc.co.th Website: www.pcmc.co.th
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22 BUSINESS BRIEFS
‘THAILAND IS A COUNTRY WITH GREAT POTENTIAL’ Germany’s current Ambassador to Thailand, H.E. Mr. Rolf Schulze, will be ending his assignment to this country at the end of July 2015. The German-Thai Chamber therefore is delighted to have had the opportunity and privilege of meeting with him to discuss his thoughts and ideas about Thailand – its culture, economic, educational development – and its future.
GTCC: According to your curriculum vitae, you have been stationed in various Asian countries such as Japan, China, Vietnam and then Thailand. As an expert on Asia, what do you like the most in Asia? Ambassador Schulze: From the first time I set foot to Asia, I was fascinated by this continent, its people, its culture, its languages and its dynamic development. Of course, each country in Asia has its own history and characteristics. In all countries, however, I discovered a quest for success, a search for visions to improve living conditions and economic conditions for the people. The key to this development is education. Japan, China and the ASEAN region are well-known for a truly breathtaking course of development. What I also like in Asia are its fascinating landscapes with rainforests, rice paddies and beautiful beaches on the one hand, and thriving modern cities with truly amazing architecture on the other. Also, of course, I appreciate the welcoming hospitality and care that Asian people offer to visitors and guests. This holds true especially for Thailand, the Land of Smiles, where I immediately felt at home. Thailand and its people have received me and my family with open arms. GTCC: As you have been in Thailand for quite some time, how do you now see Thailand’s future? Ambassador Schulze: Thailand has got what it takes to be successful. Therefore I see a bright future for the country. The investment in infrastructure and education will bring the country and its population to a new level of economic success. So far, more than 600 German companies have contributed to shaping Thailand’s development; they have created tens of thousands of jobs for Thai
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people and shared their know-how. I am confident that the implementation of the ASEAN Economic Community at the end of this year will bring about new impetus and dynamic growth in the region. One key to success is thewillingness of Thai people to embr ace new technology and digital engineering in many fields, not only in education and, car manufacturing but also in medical science, to name but a few examples. There is also a great energy potential to be tapped provided that the programmes for s u s t a i n a ble urb an d e ve lo p me nt are strengthened. Sustainable building with insulated double-glazing windows, for example , could help to reduce ener gy consumption considerably in cities. In addition, the growth of the middle class will have a positive effect on economic, social and cultural development. Of course, there are also some key issues to be addressed to make success sustainable. One key aspect for investment is a stable, legal and political environment based on democratic values. For many years, Thailand has been at the forefront of democratic development in the region, which has laid a sound foundation for economic activities. An open and welcoming society attracts foreign expertise and investment, leading to the release of creative potential in science, design and industry, which helps to boost society to a higher income level. I am convinced that economic dynamism will resume substantially once Thailand has consolidated its cour se to an elected Government and the return of democracy. GTCC: Vocational Education Training (VET) has made it on to the national agenda in Thailand. What should be done to strengthen the existing vocational education system
and what role will German-Thai Dual Excellence Education (GTDEE) programme play in this regard? Ambassador Schulze: According to the assessment of the World Bank, Thailand is an upper-middle income country and we can only congratulate the country on this success. It has taken years of hard work as well as a clear political vision and determination to accomplish this achievement. Now the challenge that lies ahead for Thailand is leaving the “middle income trap”, i.e., moving up national production on the value chain. In my opinion, there is one key aspect to achieving this objective – education. On the one hand, Thailand needs to free its creative potential to generate new solutions and products. On the other hand, it is about enhancing productivity and developing the skills in workers who are needed to reach this goal. Excellent university graduates are not enough. Highly-skilled labour with a clear orientation towards practical knowledge as well as a strong understanding of what is specifically required by their respective companies is also a critical element. In Germany we have developed, over a very long period, a system called Dual Education. In addition to theoretical knowledge taught at colleges, this system comprises hands-on training in industry. In order to ensure that the knowledge is developed with the needs of the companies in mind, substantial effort and sophisticated adaption are required – every curriculum is adjusted to the specific needs of the respective company. I am very happy that, together with our Thai partners and friends, we have been able to develop a dual studies programme that is tailor-made for Thailand. The programme is
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called German Thai Dual Excellence Education (GTDEE), and it is co-ordinated by the German-Thai Chamber of Commerce. We started the programme three years ago with a few companies such as BMW, Bosch and B.Grimm, who know the system and the advantages of dual education well. The first students will graduate this year, not only by passing a Thai examination, but also with certification according to German standards. The word is spreading and this year we are running the programme with close to 300 Thai students who are also working with major Thai companies such as Singha and Mitrphol. I am convinced that Thai companies, students and parents can discover the great benefits the Dual Education system can provide, not only for the professional development of the students themselves, but also for the workforce and economic development of Thailand as a whole. GTCC: In your view, what is Thailand’s competitive advantage when compared to other ASEAN countries? What are the areas that could be strengthened to enhance German-Thai relations further? Ambassador Schulze: Thailand is the ASEAN country with the highest number of direct neighbours, giving it key importance as a logistical hub. The modernisation and extension of the rail and road network, with fast-track corridors from Cambodia to Myanmar and from Malaysia to the Lao People’s Democratic Republic will help Thailand to enhance that potential. Germany has stood by the side of Thailand from the beginning of bilateral relations more than 150 years ago when it comes to modernising the country. Of course, today Germany is happy to contribute to the development and management of high-speed mobility networks and their maintenance and will continue this commitment in the future. Currently, a team of engineers from Mahidol University is visiting Germany to consolidate co-operation programmes in the field of railway engineering. Thailand provides an attractive setting for experts and their families; high-quality housing and international schooling are available, and health care is up to the highest international standards. The cordial relationship between Germany and the Kingdom of Thailand has remained strong and sustainable on all levels and at all times for many decades until today, strengthening economic exchanges, political dialogue and people-to-people exchanges in many fields. Thailand is one of the most popular travel destinations for Germans, with more than 700,000 German tourists visiting Thailand every year. Education and scientific co-operation are central elements of our collaboration. I am happy to say that Thailand is number one when it comes to German academic co-operation programmes in South-East Asia. More than 170 co-operation progr ammes are being implemented here – that is more than with any other ASEAN member. The GTDEE programme is a big success story, a win-win scenario for both sides. It has been jointly developed by the GTCC, the German Embassy in Bangkok, German and Thai companies, and the Thai education authorities.
Ambassador Rolf Schulze and HRH Princess Sirindhorn during the opening of the first Children’s University in Thailand, October 2012
GTCC: It took the European countries almost half a century to establish the European Union. Are there any lessons to be learnt from the European Union with regard to the integration of the ASEAN countries? Ambassador Schulze: Every region has its own characteristics, and needs to find its own way. Europe is a relatively compact continent where countries share a great number of land borders. The history of trade in Europe extends many centuries back to the Hanseatic League, whose members – cities and states – enhanced their prosperity and well-being by intensifying trade via the Northern and the Baltic Seas. The signs of prosperity acquired in those days can still be seen today, for example, in Lübeck where Chancellor Angela Merkel recently opened the new Hansa Museum. She pointed out that the European Union is relatively young compared with the Hanseatic League, which successfully existed for more than 500 years and which had established a judiciary to settle trade disputes. The European Union brings co-operation to a completely new level. Never before in their history have European countries experienced such a long period of peace and prosperity. I would like to quote former ASEAN Secretary-General Dr. Surin Pitsuwan. He pointed out: “The European Union is no blueprint for ASEAN, but [is] a source of inspiration.” Indeed, each region has to develop tailor-made integration programmes. We, in Germany, are happy to share our thoughts and experiences about regional integration with our friends and partners in Thailand. The issues at stake are, for example, food security, environmental protection and sustainable development. Also, when it comes to educational co-operation simplified and harmonised on a regional level, Germany is happy to share its experience. GTCC: As a final question, how would you describe Germany in 3 words? Ambassador Schulze: Land of Ideas!
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The German-Thai Chamber of Commerce (GTCC) hosted an “Exclusive GTCC Business Highlight Cambodia” on 27 March, 2015 in the GTCC office. During this event, various entrepreneurs had the opportunity to discuss business oppor tunities in Cambodia with Ms. Ratana Phurik-Callebaut (Executive Director, European Chamber of Commerce in Cambodia) in order to learn first-hand about how to do business in this emerging market as well as gain an insight through industry-specific topics.
EXCLUSIVE BUSINESS HIGHLIGHT CAMBODIA
SITE VISITS TO SINGHA BEVERAGE BREWERY AND BANGKOK GLASS With the generous support of Singha Beverage Brewery and Bangkok Glass, GTCC organised a member-exclusive site visit that allowed 50 members to enjoy an insightful visit around the operational facilities of the two companies on 31 March 2015.
Brewery Group and is principally engaged in the production and distribution of beer (including Singha and Leo), soda water and bottled drinking water under the brand name of the company, which are among the Group’s range of products.
The participants first visited Singha Beverage Brewery, located on the western side of Bangkok. The company is a part of the Boon Rawd
In the afternoon, following a lunch provided by Singha Beverage Brewery, the par ticipants visited Bangkok Glass, Thailand’s largest provider of total packaging solutions. Fully equipped w i t h s a f e t y g e a r, t h e par ticipants enjoyed an up-close and “hot” look into the wor king process of how bottles and glasses are produced by a German expert.
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THAI BIOGAS STUDY AND BUSINESS DELEGATION VISITS BERLIN Within the framework of the export initiative, “renewables – Made in Germany”, the German-Thai Chamber of Commerce (GTCC) organised a business and study trip to Germany on the topic of bio-energy during 27-29 April 2015. The kick-off event was opened by Mr. Jan Immel, GTCC Deputy Executive Director and co-organiser eclareon GmbH, who welcomed the Thai delegation and provided an informative insight into the export initiative “renewables – Made in Germany” that is supported by the Federal Ministry for Economic Affairs and Energy (BMWi). The German Biogas Association then gave an introductory presentation about the German biogas market, after which Dr. Jan Adolph, managing director of DABEC Consulting, focused on the role of biogas from a technical perspective. After the initial briefing on the topic of biogas in Germany, the Thai company representatives were introduced, followed by a networking session with the German participants. Interesting presentations and fruitful discussions made this kick-off event a success.
NSTDA-GTCC BUSINESS DELEGATION VISITS GERMANY AND THE NETHERLANDS Within the framework of the iTAP and GTCC Technical Study Trip to Interzum/PUM/ Ligna in Germany and the Netherlands from 4 to 14 May 2015, plus a site visit to Westerwälder GmbH, one of the German pioneers in the field of wood pellet production and distribution, turned out to be an insightful star t for the other highlights of the trip. Following the trip to Westerwälder GmbH, the delegation visited two of the world’s most important trade fairs in this field, Interzum in Cologne and Ligna in Hannover. While Interzum exhibits the newest innovations in furniture production and interiors, Ligna provides a comprehensive overview of wood as a renewable material. Furthermore, the trip offered exclusive opportunities to get in touch with senior experts both from the Netherlands, through the suppor t of PUM (Programma Uitzending Managers) and from Germany (Fraunhofer Institute for Wood Research).
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BUSINESS AND STUDY TRIP TO STUTTGART, BERLIN ON ENERGY EFFICIENCY AND RENEWABLE ENERGY IN BUILDINGS The GTCC and bw-i/OAV organised an exclusive business and study trip to Germany on the topic of energy efficiency and renewable energy in buildings from 17 to 22 May 2015. The business trip was part of the “Energy Efficiency – Made in Germany” and “renewables – Made in Germany” export initiative supported by the German Federal Ministry for Economic Affairs and Energy (BMWi).
The business trip provided an excellent opportunity to gain first-hand knowledge of energy efficiency and renewable energy in buildings in Germany as well as learn about leading technologies. It also provided insights into the latest innovations. The visit was aimed at promoting business partnerships and sector-specific networking as well as the strengthening of co-operation between Thailand and Germany.
‘ROLLFORMING THE FUTURE®’ TECHNICALSEMINAR WITH DATA M SHEET METAL SOLUTIONS GmbH GTCC suppor ted the world-renowned German rollforming expert, data M Sheet Solutions GmbH, in the organisation of an exclusive two-day technical seminar on the topic of “Rollforming the Future ®”. The seminar, which took place at the Crowne Plaza Bangkok Lumpini Park Hotel on 21 and 22 May 2015, attracted more than 40 participants.
M experts gave presentations on innovative methods and processes for winning market share and for remaining competitive in today’s economic environment. On the second day, following the theoretical session, par ticipants were given a unique opportunity to gain practical experience in a hands-on session with software that included interactive unfolding, axes creation, roll design and automatic assembly among other related subjects.
The seminar was aimed at providing an ideal opportunity to find out more about future trends in rollforming as well as acting as a platform for the exchange of ideas with industrial colleagues. The participants included not just representatives from the steel and automotive industr y, but also university professorsand several members of the National Metal and Materials Technology Centre (MTEC). During the seminar, data
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LEADING GERMAN FIRMS IN KEY INDUSTRIAL SECTORS EXPECT THAI ECONOMY TO GROW IN 2016 On 3 June 2015, the German-Thai Chamber of Commerce (GTCC) hosted an exclusive joint chambers luncheon on 3 June 2015 on the topic “The economic outlook 2016” at the Grand Hyatt Erawan Hotel, Bangkok. The event featured a high-ranking keynote speaker from Deutsche Bank AG Thailand and panelists from leading German companies with a presence in Thailand, who shared their perspectives on Thailand’s economic trends toward 2016. The event was attended by almost 150 guests, mainly from the GermanThai business community. The event highlighted insights from some of the key economic sectors including those of finance, automotive, chemical, agriculture and locomotive. Frank Krings, Chief Country Officer, Thailand and General Manager of Deutsche Bank, pointed out in his keynote address that despite the current political situation, Thailand's business environment remained in robust working order and markets were still functioning, he said, adding that gross domestic product development should not be confused with the actual commercial outlook of companies operating in Thailand. The Kingdom’s history of business resilience, despite political uncertainty, points to a sound future. Boonchai Opas-iam-likhit, BASF (Thai) Group Managing Director, Thailand, Viet Nam, Cambodia, the Lao People’s Democratic
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Republic and Myanmar,, expressed his concern over the political instability and the impact from the current world economy as it would limit business opportunities. He noted that there was a need for industrial players to develop themselves to the competitive level. Furthermore, according to Keerin Chutumstid, Cluster Head, Linde Thailand, the shortage of the supply for shrimps due to disease, was a major concern for Thailand, which is one of the largest shrimp exporters. Encouraging further expenditure on resolving the issue would ease the problem, he pointed out. Michael Grewe, President and Chief Executive Officer, Mercedes-Benz (Thailand), explained that the percentage of consumers of luxury goods had been declining in recent months due to low consumer confidence, However, Thailand still had a competitive advantage over other ASEAN members, he said, adding that there was a need for Thailand to defend its position as a future production hub in order to sustain long-term competitiveness. Liher Urbizu, Managing Director of SAP Indochina, believed that in case of Thailand, public spending would stimulate the economy. Public projects needed to be implemented in order to bring back economic stability.
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Markus Lorenzini, President and Chief Executive Officer, Siemens Ltd., Thailand, agreed with Mr. Urbizu regarding increased public projects. He pointed out that Siemens has had the privilege and opportunity to support Thailand in such infrastructure growth in the past decades, especially in the case of Bangkok’s mass transit rail system. The company had committed to remaining in Thailand to contribute its expertise and innovations to help the country position itself as an economic leader within the ASEAN region and beyond, he said. However, he added, the long process of decision-making hindered the economic growth and infrastructure development. Moreover, a questionnaire conducted during the event revealed that nearly 60 per cent of the participating companies are operating at plan or better. Serious concern was voiced by 61 per cent of the participants regarding the possibility of disruption in domestic market development. Yet, surprisingly, the outlook of most of the companies represented at the luncheon was relatively positive for 2016. Forty-seven per cent expected considerable growth between 2 per cent and 10 per cent, while 25 per cent foresaw more than 10 per cent growth for next year. Fifty-one per cent expected that the baht-US dollar exchange rate would weaken further. Taking into account the relevant views expressed during the discussions, it can be summarized that the Thai economy is still expected to continue growing despite the political and economic conditions.
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GTCC BUSINESS TRIP ON ‘BIOGAS IN THAILAND’ To foster and accelerate co-operation between Thai and German companies in the field of biogas, and within the framework of the “renewables – Made in Germany” initiative that is supported by the German Federal Ministry for Economic Affairs and Energy (BMWi), GTCC in co-operation with eclareon GmbH organised a business trip to Thailand from 8 to 12 June 2015 on the topic of “Biogas in Thailand”. The delegates also participated in a related German-Thai technology conference that took place on 8 June 2015 in Bangkok. The event featured presentations by high-level representatives of Thailand’s Depar tment of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy, and key utility and energy stakeholders in Thailand on the latest developments and future plans on the topic of “Biogas in Thailand”. The highlights of the conference included a discussion on state-of-the-ar t technology solutions for biogas production in Thailand, with Thai and German exper ts giving presentations on how technologies are driving biogas development as well as renewable energy plans in Thailand. German exper ts from the following companies presented their latest product and technology solutions: Armatec FTS GmbH & Co. KG, EnviTec Biogas AG, FARMATIC Anlagenbau GmbH, NORTHTEC Maschinenbau GmbH, Planungsbüro Rossow Gesellschaft as well as Streisal GmbH and SUMA Rührtechnik GmbH.
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GTCC SERIES OF CLUSTER MEETINGS In the second quarter of this year, GTCC hosted Cluster Meetings that focused on Human Resource Development (23 April) and Eastern Seaboard Industry (5 June). Serving as a platform for a sector-specific exchange of exper ience , each cluster meeting drew an average of 15 executives and experts from member companies, who voiced ideas and discussed challenges pertaining to the topic under consideration. Check out the GTCC online event calendar for the focus of forthcoming Cluster Meetings in 2015.
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Front row, from left to right: Helmut Beste, Thaivivat Insurance Public Co., Ltd.; Matthis Hoffrichter, Property Care Services (Thailand) Ltd. Matthias Pflaz, BMW Group Thailand; Smud Robbanjerd, Thai Yarnyon Co., Ltd.; Dirk Grossman, Lufthansa German Airlines; Phongsakdi Chakshuvej, B.Grimm & Co.,Ltd; Jörg Buck, German-Thai Chamber of Commerce; Michael Grewe, Mercedes-Benz (Thailand); Joerg Laatsch, Continental Automotive (Thailand) Co., Ltd.; Rainer Mehrer, FiPA Ltd.; Somchai Akkarawittayapoom, Arkitektura Co., Ltd. Back row, from left to right: Marcus Magiar, Carl Zeiss (Thailand); Dirk Prellberg, Decanter Club; Martin Klose, Rödl&Partner, Ltd.; Frank Krings, Deutsche Bank AG, Bangkok Branch.; Jürgen Kohnen, Hansa Meyer Global Transport Co., Ltd; Bernard Condrau, Dürr (Thailand) Co.,Ltd; Keerin Chutumstid, Linde Thailand Co., Ltd.; Liher Urbizu, SAP Indochina; Walter Whitty, Flow Inter Co., Ltd.; Dominique Lo, Cargo Partner Co., Ltd.; Maximilian Wechsler, Big Chilli; and Francois Oosthuizen, Burda Thailand Co., Ltd.
GTCC ANNUAL GALA NIGHT 2015 Following several months of planning and preparation, the GTCC proudly unveiled its Gala Night 2015 – “DER SHOWPALAST” – with the Roaring Twenties theme on 29 May at the Shangri-La Hotel, Bangkok. The hotel’s ballroom was transformed into a vintage luxurious gourmet theatre where as many as 400 German and Thai executives were welcomed together with their guests. On this occasion, GTCC also had the pleasure of enjoying the presence of H.E. Mr. Rolf Schulze, German Ambassador to Thailand, and his spouse, who took the oppor tunity to bid farewell to the German-Thai business community. Following tradition, cer tificates were presented at this third Gala Night to companies that had reached their twenty-fifth anniversary of GTCC membership. The official ceremony was followed by a series of exclusively selected dinner shows to ensure a memorable gourmet theatre experience for the guests. In addition, a charity raffle raised 100,000 baht for the Dr. Rober t Dyckerhoff Foundation, which suppor ts the education and lives of hill tribe children from the north-western region of Thailand. The success of this year’s GTCC Gala Night was made possible by the suppor t of our sponsor s and par tner s, including Mercedes-Benz, Lufthansa German Airlines, and Thai Yarnyon. Special appreciation also goes to Flow Inter Co., Ltd., Decanter Club, Cargo Partner, and the German Embassy in Thailand, whose generosity enabled the guests to enjoy authentic German beer and wine throughout the evening.
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From left to right: Helmut Beste, Thaivivat Insurance Public Co., Ltd.; Pattanapong Tansomboon, Kasikorn Bank Public Co., Ltd; Dr. Peer Gebauer, German Embassy; Jรถrg Buck, German-Thai Chamber of Commerce; Phongsakdi Chakshuvej, B.Grimms & Co.,Ltd; H.E. Mr. Rolf Schulze, German Embassy; Martin Klose, Rรถdl & Partner Ltd.; Keerin Chutumstid, Linde (Thailand) Public Co., Ltd; Michael Grewe, Mercedes-Benz (Thailand) Ltd.; Dirk Grossman, Lufthansa German Airline; Marcus Magiar, Carl Zeiss Co., Ltd.
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CHAMBER ACTIVITIES 35
COMPANIES CELEBRATING 25th ANNIVERSARY OF GTCC MEMBERSHIP Commerzbank AG, Representative Office Bangkok Ferrostaal (Thailand) Co., Ltd. German-Thai Boiler Engineering Cooperation Ltd. (GETABEC) Holiday Inn Bangkok Silom Reed Tradex Company Ltd. Rodenstock (Thailand) Co., Ltd. TUÜV NORD (Thailand) Ltd. Siemens Ltd. Staedtler (Thailand) Ltd.
http://thailand.ahk.de
36 GTDEE INSIGHT
AHK PHILIPPINES DELEGATION From 20 to 22 April 2015, German-Thai Dual Excellence Education (GTDEE) hosted a visit by AHK Philippines and their partners. The delegation comprised company partners, a representative from the governmental agency responsible for dual vocational education, a representative from the high-tech training centre as well as equipment and learning tools providers. The objectives of the visit were to learn how GTDEE works with its partners and how the project was set up in Thailand, as AHK Philippines would like to develop a Philippine version. The GTDEE project director provided the visitors with an over view of the current GTDEE work. The group was then informed by GIZ about the development of trainers and their desired qualifications. Later, the delegation visited the Thai-German Institute , Amata B.Grimm Power Plant, Chonburi Technical College and Boonrawd Brewery before leaving Thailand. Dual vocational education in the Philippines is gaining momentum because in the near future, there will be a change
UPDATE 2/2015
in the required number of years of compulsory education, due to the for thcoming launch of the ASEAN Economic Community. Philippines schools will have to provide two additional years to the current 10-year period of compulsory education. That is why dual vocational education might be a good option for the transition. The visit was an eye-opener for both sides, as they learnt much from each other. It also created another great connection within AHK ASEAN.
GTDEE INSIGHT 37
SECOND TRAINER AND TEACHER WORKSHOPS Skilled Labour Development, Ministry of Labour, gave an overview presentation of how the depar tment’s scheme works with regard to the Revenue Depar tment requirements. A representative from Premium Equipment and Engineering showed the documents required in applying for reimbursement while representatives from the Office of the Vocational Education Commission and Baankaai Technical College answered questions from the participants, who subsequently said the workshop had been a very useful event.
In the second quarter of 2015, the GermanThai Dual Excellence Education (GTDEE) project organised two successful workshops – the second trainer workshop and the second teacher workshop – on 28 May and 2 June 2015, respectively. The objective of the trainer workshop, “Obtaining Tax Benefits for Developing Curricula for Dual Vocational Education”, was to inform the 23 participating trainers, human resources managers and accountancy personnel of GTDEE’s partner companies about the tax benefits for which they could apply.
The objective of the teacher workshop, “Developing Curricula in Dual Vocational Education and How to Supervise Apprentices Effectively”, was to inform the 15 participating teachers and dual programme officers on the college side how to prepare themselves for working together to ensure that the learning experience of apprentices was according to plan, and to ensure that their courses met the comparable German standards. The representative from the Office of the Vocational Education Commission provided an overview of the rules and regulations of the Ministry of Education on how to conduct a dual programme. The representative from Amata B.Grimm Power Plant shared his experiences on how the company communicated their needs to their college partner and on how to develop a training plan. The speaker from Chonburi Technical College explained how to draft a lesson plan for achieving the required competencies of the apprentices. In addition, teachers from GTDEE college partners discussed common problems arising from conducting a dual programme, and shared best practices. They pointed out that the workshop had revealed there was definitely room for improvement which they would solve together.
According to Thai Royal Decree, Article 437, companies will be granted tax exemption for expenditure on training their employees or preparing potential employees to start work in their organisation, as long as the training benefits the companies. For companies joining GTDEE this information ser ves as a good basis for requesting reimbursement by the Revenue Department of their expenses incurred in providing training for apprentices. All the speakers were enthusiastic about developing their apprenticeship programmes. A representative from the Depar tment of
http://thailand.ahk.de
38 GTDEE INSIGHT
FINAL EXAMINATION FOR BMW AND AMATA B.GRIMM POWER PLANT APPRENTICES Following the recent completion of their two-year training course with BMW and Kanchanapisek Mahanakorn Technical College, 18 automotive mechatronics students from the BMW Service Apprentice Programme 2013 and GTDEE project took the final examination on 29 May 2015. The standard German exam papers were translated into the Thai language. After passing the examination, the apprentices will become qualified technicians working for BMW dealers in and around Bangkok, so BMW car owners can be confident that their vehicles are in good hands. Amata B.Grimm Power is also one of the founders of the GTDEE programme. After their study period at Chonburi Technical College and apprenticeship at Amata B.Grimm, three pioneer students also took the examination from Germany in electronics (electric power). The three students have different backgrounds in their vocational education but they are now experienced in power plant operations and maintenance. They have all the knowledge required for operating gas and steam turbines as well as mechanical, electrical and control systems, and distribution lines involved in the power plant business. All three are now employees of Amata B.Grimm Power Plant 1 and 2.
UPDATE 2/2015
http://thailand.ahk.de
40 MEMBERS’ CORNER
NEW GTCC MEMBERS up to 30 June 2015
German-Thai Chamber of Commerce warmly welcomes 19 new members!
Actatek (Thailand) Co., Ltd.
Burda (Thailand) Co., Ltd.
2 Soi Ladphrao 101, Yaek 30, Ladphrao Road, Bangkapi, Klong Jan, Bangkok 10240 Thailand Tel: +66 (0)2-370-1351 Fax: +66 (0)2-370-1352 E-mail: sales@actatekthai.co.th Website: www.actatekthai.co.th
3 Rajanakarn Building, 16th Floor Zone A, South Sathorn Road, Yannawa, Sathorn, Bangkok 10330 Thailand Tel: +66 (0)2-676-8999 Fax: +66 (0)2-676-8991 E-mail: friedrich.scanzoni@burda.asia Website: www.burdathailand.com
Activities Security, access control & time attendance solution provider. Distributor for KABA & ACTAtek brands.
Activities The publisher of Lisa magazine, Hello magazine, Prestige magazine and Wedding magazine in Thailand.
Chamber Representatives Aloysius Loy and Niwat Phonlasen
Chamber Representative Friedrich von Scanzoni
BCD Consulting in Development Co., Ltd.
Chewathai Public Company Limited
895/4 Soi Sukhumvit 101, Sukhumvit Road, Bangchak, Bangkok 10260 Thailand Tel: +66 (0)91-004-4074 E-mail: office@facilitation.international Website: www.facilitation.international Activities We support organizations and people in intercultural environments to achieve their goals. We do this through • Professional coaching, • facilitation of strategy-, team-, or multi stakeholder workshops, and • we are partners in organizational development processes. Chamber Representative Stefan Bannach
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1168/80 Lumpini Tower, 27th Floor, Unit D, Rama IV Road, Tungmahamek, Sathorn, Bangkok 10120 Thailand Tel: +66 (0)2-679-8870 to 3 Fax: +66 (0)2-679-8874 E-mail: jirathar@chewathai.com, rapeepong@chewathai.com Website: www.chewathai.com Activities CHEWATHAI has Ready Built Factories for Rent which cater to various needs and requirements. CHEWATHAI also provides build-to-suit factories for tenants with specific technical or location requirements. Chamber Representatives Jirathar Woraprangkul and Rapeepong Arsirapornpong
MEMBERS’ CORNER 41
DACHSER (Thailand) Co., Ltd.
Industrie- und Handelskammer Ostwürttemberg
44 Rungrojthanakul Building, 6th Floor, Ratchadapisek Road, Huaykwang, Huaykwang, Bangkok 10320 Thailand Tel: +66 (0)2- 643-2070 Fax: +66 (0)2- 643-2077 E-mail: info@dachser.co.th Website: www.dachser.com
Ludwig Erhard Straße 1, Heidenheim 89520 Germany Tel: +49 7321 324-0 Fax: +49 7321 324-169 E-mail: zentrale@ostwuerttemberg.ihk.de Website: www.ostwuerttemberg.ihk.de
Activities Air freight, Sea freight, 3 PL Logistics, Domestic Transport and Warehousing.
Activities German Chamber of Commerce and Industry.
Chamber Representative Jan-Michael Beyer
Chamber Representative Klaus Moser
FPT Food Process Technology Co., Ltd. 64 Moo 2, Soi Wat Nam Daeng, Srinakarin Road, Bangkaew, Bangplee, Samutprakan 10540 Thailand Tel: +66 (0)2-753-7794 to 6 Fax: +66 (0)2-753-7791 E-mail: sales@fpt-asia.com Website: www.fpt-asia.com Activities Provide solutions, machines, service and technology in the food industry. Chamber Representative Axel Arras
Grant Thornton 18th Floor, Capital Tower, All Seasons Place, 87/1 Wireless Road, Bangkok 10330 Thailand Tel: +66 (0)2-205-8222 Fax: +66 (0)2-654-3339 E-mail: marketing@th.gt.com Website: www.grantthornton.co.th Activities One of the world’s leading organizations of independent audit, tax and advisory firms (including executive recruitment, M&A, management consulting, outsourcing).
Mrs.Kristina Sergijenko GTCC MEMBER 2015
Krungthep Thani Tower, Unit 2302, 56 Sukhumvit 24 Road, Klongtoey, Bangkok 10110 Thailand Tel: +66 (0)84-387-0184 E-mail: Kristina.Sergijenko@gdfsuezasia.com Activities • Energy markets, Electricity generation, Renewable energy and Energy efficiency. • Special interest in developing or newly industrialized countries (Thailand, Myanmar, Laos, Indonesia, Nepal, Russia). • Finance/ business control, Budgeting; Business quality, risk and internal control.
Ninive Games Co., Ltd. 254/14 Nakornchai Villa, Muang, Chaiyaphum 36000 Thailand Tel: +66 (0)84-763-1980 E-mail: fabian@ninivegames.com Website: www.ninivegames.com Activities Producing Thai language versions of famous board games in Germany. Distribution, license and exclusive rights for distribution in Thailand. Chamber Representatives Fabian Weiner and Petch Muanpan
Chamber Representative Tom Sorensen
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42 MEMBERS’ CORNER
Links Enterprises Co., Ltd.
Respondek & Fan Ltd.
48/10 Sukhumvit 26, Klongton, Klongtoey, Bangkok 10110 Thailand Tel: +66 (0)2-204-0657 Fax: +66 (0)2-204-0657 E-mail: linksenterprises01@gmail.com Website: www.linksenterprises.co.th
323 Silom Road, United center, 39th Floor, Suite 3904 B, Bangrak, Bangkok 10500 Thailand Tel: +66 (0)2-635-5498 Fax: +66 (0)2-634-5499 E-mail: respondek@rflegal.com Website: www.rflegal.com
Activities Specialist Consulting and Training - in the fields of Tax and Accounting; Business Management and Communication; and Staff Recruitment. Chamber Representatives Chadaporn Wee and Kaewta Kuprasertkul
Chamber Representative Dr.Andreas Respondek
Oscar Biz Co., Ltd.
Royal Paragon Hall
202/129 Moo 1 Pimonraj, Bangbauthong, Nonthaburi 11110 Thailand Tel: +66 (0)81-684-4554 Fax: +66 (0)2-571-4842 E-mail: phanna@oscarbiz.com Website: www.oscarbiz.com
991 Siam Paragon Shopping Center, Rama 1, Pathumwan, Bangkok 10330 Thailand Tel: +66 (0)2-610-8038 Fax: +66 (0)2-610-8040 Email: info@royalparagonhall.com Website: www.royalparagonhall.com
Activities Project Coordinator, Trade Show Services, Promotor of New Trade, Business Consulting and Negotiation or Other Support i.e. government’s sector contactor (FDA, BOI, TISI).
Activities A stunning 12,000 square meter venue with the most advanced technology located on the 5th floor Siam Paragon, the “Shopping Paradise” of Asia. Its facility offers multipurpose space that attracts and pleasurably serves the needs of all organizers for all arrays of all conferences, exhibition, entertainment and special events.
Chamber Representative Phanna Likhitwiwat
Real Estate Prasat Co., Ltd. GTCC MEMBER 2015
157 Moo 16, Kang-Aen, Prasat, Surin 32140 Thailand Tel: +66 (0)90-114-2007 (German & English), +66 (0)86 120 0938 (Thai) Fax: +66 (0)44-532-234 E-mail: realestateprasat@gmail.com, m_breuninger@web.de Website: www.villavillageskangaen.com Activities Real Estate and Construction: properties, houses, shopping malls, land, shops for rent, restaurants, finance service loan, commission agreements for selling restaurants, shops, etc. Chamber Representatives Suwan Sakharet and Matthias Breuninger
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Activities Attorneys at Law - Arbitration, Commercial & Corporate, International Contracts and Health Care.
Chamber Representatives Talun Theng and Kritsana Janyasakulwong
ShaSa Resort & Residences, Koh Samui 116/1 Moo 2, Mared, Koh Samui, Suratthani 84310 Thailand Tel: +66 (0)77-913-888 Fax: +66 (0)77-913-899 E-mail: info@aqestate.com Website: www.shasahotels.com Activities Hotel and Resort. Chamber Representative Chanwit Modsompong
MEMBERS’ CORNER 43
Surapon Foods Public Co., Ltd.
SB (Thailand) Co., Ltd.
247 Moo 1, Theparak Road, Theparak, Muang, Samut Prakarn 10270 Thailand Tel: +66 (0)2-385-3038 to 40 Fax: +66 (0)2-385-3179 E-mail: info@surapon.com Website: www.surapon.com
Bangna Tower - A, 16th Floor Unit A, 2/3 Moo 14, Bangna-Trad Road, KM 6.5, Bangkaew, Bangplee, Samutprakarn 10540 Thailand Tel: +66 (0)2-797-0727 Fax: +66 (0)2-797- 0701 E-mail: attawit.ar@statec-binder.in.th Website: www.statec-binder.in.th
Activities Manufacturer and Distributor of Frozen Foods. Chamber Representatives Thomas Ung and Sorapon Vongvadhanaroj
VNU Exhibitions Asia Pacific Co., Ltd. 1 Empire Tower, 23rd Floor, Room no. 2307 South Sathorn Road, Sathorn Yannawa, Bangkok 10120 Thailand Tel: +66 (0)2-670-0900 Fax: +66 (0)2-670-0908 E-mail: info@vnuexhibitionsap.com Website: www.vnuexhibitionsap.com
Activities We are the local service office of STATEC BINDER GmbH (from AUSTRIA) that has specialized in bagging & palletizing technology to support our customers in rice, sugar, chemical, fertilizer, animal feed, and pet food industries. Chamber Representative Attawit Armincen
Activities The company organizes & manages trade show and exhibition in Thailand & Asia Pacific countries. Chamber Representatives Nino Gruettke and Ladda Mongkolchaivivat
MEMBER REFERRAL PROGRAMME is a development from 2014 survey. Turn your contacts into a referral and get B 8,000 event vouchers. Between 1 April and 30 September 2015
90%
WIL
L RE
CO
GTC MMEND C Download referral form here!
http://thailand.ahk.de
44 MEMBERS’ CORNER
BECOME OUR MEMBER! The German-Thai Chamber of Commerce (GTCC) is one of the biggest bilateral Chambers in Thailand with the most extensive service por tfolio for members. More than 550 members have continued their role as strong suppor ters and active par tners for the community. Our membership
offers a variety of benefits, which allow you to contact and network with close to 3,000 prestigious and reputable contacts in the German-Thai business community. Your main benefits include:
Regular networking with German – Thai community and Executives
Member-exclusive site visits at reputable member companies
Professional business advisory on market entry both in Germany and Thailand
Be informed on market and economic trend at our regular business luncheon and breakfast talk at special rate
Publish your profile in our annual handbook and online directory
Enhance visibility through article contribution or promote your member to member benefit in our publications and website
Want to know more about our membership and privileges? E-mail us at membership@gtcc.org for more details. We look forward to welcoming you in the near future as a new GTCC member! UPDATE 2/2015
MEMBERS’ CORNER 45
From left: Chewathai PLC; Dachser (Thailand) Co., Ltd.; Klingspor Bangkok Ltd.; Links Enterprises Co., Ltd.; Oscar Biz Co., Ltd.; Royal Paragon Hall Exhibition and Convention Centre; SB (Thailand) Co., Ltd.; Surapon Foods PLC; ACTAtek (Thailand) Co., Ltd.; BCD Consulting in Development Co., Ltd.; Respondek & Fan Ltd.; DB International GmbH; and Ninive Games Co., Ltd.
NEW MEMBER ORIENTATION PROGRAMME MEETING NO.4 On 3 June 2015, GTCC organised the fourth meeting in its New Member Orientation Programme at the Grand Hyatt Erawan Hotel, Bangkok, at which it welcomed 15 representatives from new German and Thai member companies in various industries. The programme provides the unique oppor tunity for new GTCC members to learn about the Chamber’s services as well as introduce themselves to other new members and, most importantly, share their expectations from being part of GTCC.
“It was a privilege to be able to attend the GTCC New Member Orientation Programme meeting and share information with other new members from diverse sectors. Apart from sharing company information, it was a very useful opportunity to exchange information in bilateral discussions about the challenges that new established companies in par ticular face as well as to get to know how other companies can solve these problems. Thanks also to the motivated Chamber staff who provided us with a good overview of GTCC’s wide range of services.” Oliver Schröder, Regional Director Southeast Asia & Pacific, DB International GmbH. “It was great for me to have a chance to participate in this event, which was very well organised. It was good to learn from the orientation meeting about all the functions and activities that the GTCC is undertaking.” Thongchai Kaewchaicharoenkit, Senior Sales Manager, Surapon Foods Public Co., Ltd. “I enjoyed the New Member Orientation meeting. It was a good opportunity to hear what GTCC can do for us as well as meet the faces behind GTCC . I liked seeing the variety of members, from small entrepreneurs to big companies, as that is a true mirror of business in Thailand. I would like to thank you and your colleagues for providing the opportunity for many personalised conversations, which made the meeting worthwhile for me.” Stefan Bannach, Director, BCD Consulting in Development Co., Ltd.
http://thailand.ahk.de
46 MEMBERS’ CORNER
MEMBERS ONLY
Sponsored by
Name Last Name Company Name
Valid Thru
31 December 2016
As a GTCC member, we offer you the GTCC Membership Card to enjoy special discounts at GTCC’s events and consultancy services as well as a number of special discounts from participating GTCC members. Whether it is for your lunch/dinner business meeting or other services, we want to assure you, as our valuable member, enjoy special treatment from fellow GTCC members to strengthen
Show or refer to your GTCC membership card to enjoy these special discounts!
your business network and relations. The list of participating outlets and services is available on our webpage, thailand.ahk.de, together with corresponding benefits and discounts for members to explore! For more information or submission of your offer/discount, please e-mail us at membership@gtcc.org
FINNAIR
HÄFELE (THAILAND) LIMITED
Tel: +66 (0)81-929-2777
Tel: +66 (0)2-266-3260
Tel: +66 (0)2-741-7171
10% Discount for Rental Fee
6-10% Discount for GTCC members on Business (C/D and I) and Economy (Y/B/H/K/M/P/T) from Bangkok to any European destinations (Finnair Flight only)
15% Discount for standard items, excluding special clearance items with special net prices.
CHEWATHAI PCL
1 Month Free! for Fitting Period
Call our Finnair Contact Center for Booking
Only at Häfele showrooms in Sukhumvit 64, Mega Bangna, Ratchapruek, Hua-Hin, Pattaya & Phuket.
Validity: now - July 2015
Validity: now - October 2015
Validity: now - December 2015
www.chewathai.com
www.finnair.com
www.hafele.co.th
KONZEPT WORX LTD.
NINIVE GAMES CO., LTD.
Tel: +66 (0)2-630-3151
Tel: +66 (0)84-763-1980
PACIFIC LEISURE (THAILAND) LTD.
790 THB/m2 for dust-free sanding and
Up to 50% Discount
oiling of wood floors with German wood oil for a natural look and healthy living.
on the Thai Language Version of the 'Board Game of our Time' (Washington Post)
Suitable for commercial floors! (in BKK, area > 60 sqm.)
The perfect gift for your Thai Business Partners!
Validity: now - September 2015
Validity: now - December 2015
www.konzeptworx.com
www.ninivegames.com
UPDATE 2/2015
Tel: +66 (0)2-670-1000 ext. 103
Gift Voucher 500-1,000 Baht Celebrity X Cruises
All the World Routes Sailing through the year 2015
Validity: now - September 2015 PacificLeisureThailand
MEMBERS’ CORNER 47
PRESTIGE
RICOH (THAILAND) LIMITED
ROYAL CLIFF HOTELS GROUP
Tel: +66 (0)2-676-8999 ext. 212
Tel: +66 (0)2-762-4661
Tel: +66 (0)38-250-421
Special complimentary 1 year subscription to PRESTIGE magazine
Special rate for
Reference Code: GTCC2015
Validity: now - September 2015
Unified Communication System at 55,000 THB and Interactive Whiteboard at 180,000 THB
30% Discount
for all room types from full rate
15% Discount
on spa treatments at Cliff Spa
10% Discount
at 11 award-winning restaurants (food only)
Validity: now - December 2015
Validity: now - September 2015
www.ricoh.co.th
www.royalcliff.com
ROYAL PARAGON HALL EXHIBITION & CONVENTION CENTER
SHASA RESORT & RESIDENCES, KOH SAMUI
STIEBEL ELTRON ASIA LTD.
Tel: +66 (0)2-610-8027
10% Discount of room rate from
for GTCC members on selected products*
15% Discount of food & beverage
Call on Stiebel Eltron Asia Contact Center for purchasing!
Prestige Thailand
Join us as exhibitor
Special rate for 3 x 3 cm. booth at HAPPY EATING FESTIVAL 2015
on 6-8 November 2015 at Royal Paragon Hall, Siam Paragon
Validity: now - 15 October 2015 www.royalparagonhall.com
Tel: +66 (0)77-913-888 hotel’s website Best Available Rates (non-alcoholic items)
15% Discount of Spa Treatment
Tel: +66 (0)35-220-088
10% Discount
* terms and conditions are in accordance with the notifications and rules issued by the company
Validity: now - 20 December 2015
Validity: now - September 2015
www.shasahotels.com
www.stiebeleltronasia.com
http://thailand.ahk.de
48 TRADE FAIRS
IFA 2015: WORLD’S LEADING SHOW FOR LATEST IN CONSUMER ELECTRONICS, HOME APPLIANCES 4-9 September 2015, Berlin IFA 2015, the world’s leading trade show for consumer electronics and home appliances, will present the entire spectrum of new products from this innovative industry at the Berlin Exhibition Grounds (Expo Center City) from 4 to 9 September 2015, in time for the most important sales season of the year. Ultra-HD screens with even more impressive colours and spectacular contrast, home cinema sound in three dimensions, innovative software platforms for intelligent interconnection, sensors for fitness and health, confectionery or fashion from the 3D printer, music from wireless networks – IFA 2015 is presenting all these trends and more from all sectors of the industry. The latest products and innovations from the leading manufacturers of large and small home appliances will again be in the spotlight at IFA. The trends will be defined by connectivity and the smart home, sustainability, energy efficiency and the conservation of resources, preparing healthy meals, easy-to-use controls, time-saving and, of course, outstanding design. In 2014, IFA’s unique blend of product innovations, stars and entertainment making that trade fair larger than any previous event in IFA’s history. IFA 2014 attracted more than 240,000 visitors, including 140,000 trade visitors of whom 48,000 came from abroad. A total of 5,900 journalists covered IFA including more than 2,600 media members from around the world. Articles and reports on IFA were published in 120 countries. In the run-up to the Christmas season, the most important trading period of the year, the six-day IFA 2014 alone generated orders totalling US$ 5.3 billion. This applied equally both to the consumer electronics and the home appliances industries.
UPDATE 2/2015
Since 2014, following more product debuts than in any other year, the drive to manufacture innovative products has continued. This is further proof of IFA’s standing as the industry’s leading meeting place and the venue for launching world firsts. “IFA is the most important meeting place for preparing the ground for the busiest sales period of the year. Once again, this year it will set major trends and provide an important boost for every branch of the industry involved, for the international retail trade, consumers and the media. All the signs are that IFA 2015 will be an outstanding success“, said Mr. Hans-Joachim Kamp, Chairman of the supervisory board of gfu (Gesellschaft für Unterhaltungs-und Kommunikationsel ektronik). Commenting on market developments, Mr. Jürgen Boyny, global director, Consumer Electronics, GfK Retail and Technology, said: “Worldwide, we expect the positive trend to continue in 2015 and anticipate 1.5 per cent growth in the consumer electronics sector. The market for large and small electrical appliances is set to expand even more and will grow by 3 per cent to 4 per cent. This trend will also continue in 2016. Innovation is driving the markets. That means good prospects for IFA 2015, because IFA stands for innovation.” According to Chief Executive Officer of Messe Berlin, Dr. Christian Göke, “the innovation drive within the industry is generating further growth. As a reflection of the markets this also has a positive impact on the global importance, growth and success of IFA.” For further information, please contact GTCC’s official representative for Messe Berlin GmbH for Thailand, Ms. Patamaporn Wasuwat at tel: +66 (0)2-670-0600, ext. 4010. More details about IFA are also available online at http://b2b.ifa-berlin.com/.
50 TRADE FAIRS
BIOTECHNICA 2015: SPECIAL FOCUS ON BIOECONOMY AND PERSONALISED MEDICINE TECHNOLOGIES 6-8 October 2015, Hannover
and demonstrates the innovative power in play in science and industrial applications. Here is how BIOTECHNICA stands out from the would-be competition – it is the only trade show addressing the entire biotech value chain end-to-end, i.e., from basic research through to market-ready products. BIOTECHNICA is a key event where all the major players can exhibit and connect in an international setting. This applies to research and industry equally, as both these areas stimulate the use of BIOTECHNICA platform as a community meeting place and a business platform. As a result, leading universities and research institutes also take part in BIOTECHNICA alongside biotech companies. Preparations for BIOTECHNICA 2015, Europe’s number one meeting place for biotechnology, the life sciences and lab technology, are already in full swing. To be staged from 6 to 8 October 2015, this year’s BIOTECHNICA will feature two special marketplaces dedicated to the topics of “bioeconomy” and “personalised medicine technologies”. Another major emphasis at BIOTECHNICA will again be on helping the biotech industry get dow n to bu s in e s s , w i t h t a i l o re d matchmaking offerings designed to maximise th e nu m be r o f pr o m i s i n g l e a d s a n d partnerships generated at the show. In this context, the bioeconomy is highlighted as a particular focus, and biotechnology as a key technology. BIOTECHNICA 2015 holds a mirror to today’s cutting-edge solutions
UPDATE 2/2015
Partnering tools that create successful business matches prior to the opening of the fair provide valuable support with lead generation, while BIOTECHNICA’s numerous special events offer plenty of scope for knowledge-sharing and networking. These include the Innovation Forum that highlights new products, the Life Science Spotlight with scientific presentations on key topics from the life science industry as well as other flanking conferences. For exhibitor/visitor inquiries or related information, please contact GTCC’s official representative for Deutsche Messe in Thailand, Ms. Kamolchanok Nantaburom at tel. (0)2-670-0600, ext. 4004, or by e-mail at hannover@gtcc.org. More details of the fair are also available at www.biotechnica.de.
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SPIELWARENMESSE: ‘THE UNIQUE SPIRIT OF PLAY IN NUREMBERG’ 27 January-1 February 2016, Nuremberg Spielwarenmesse is the most important event in the toy industry. As the world’s leading trade fair in this industry it is the place where business contacts are made. It is where international toy markets come together – renowned brands, toy novelties, trendy start-ups, buyers of large chains, independent re t a i l e r s and a p le tho r a o f me d ia representatives. Spielwarenmesse also means infants’ articles, lifestyle and trend products, school articles and stationery, outdoor products, fireworks or carnival ar ticles and much more. In fact, the Nuremberg toy fair is the sole venue that offers this unique selection of sources and suppliers. In 2016, Spielwarenmesse will be taking place for the sixty-seventh time, from 27 January to 1 February, in Nuremberg during which exhibitor s will be able to mingle with wholesalers, retailers and chain store buyers.
Spielwarenmesse 2015 presented the huge diver sity of the toy industr y in an unprecedented way and welcomed visitors from 126 countries. More than 70,000 visitors were able to draw on the unlimited resources of 2,857 toy manufacturers and, for the first time ever, on a separate range of fashionable and trendy products. If you would like more general information about Spielwarenmesse, entrance tickets, fair catalogues, travel facilities and local accommodation, visitor brochures or infor mation about the exhibition city Nuremberg, please contact GTCC’s official Spielwarenmesse representative in Thailand, Ms. Chonlagorn Loypetch either by telephone at (0)2-670-0600, ext. 4006 or by e-mail at chonlagorn@gtcc.org. Additional details are also available at www.spielwarenmesse.de.
http://thailand.ahk.de
52 TRADE FAIRS
bauma 2016: CELEBRATING 31st SUCCESSFUL SHOW FOR THE CONSTRUCTION INDUSTRY 11-17 April 2016, Munich Next year’s bauma trade fair will mark the thirty-first presentation of the world's leading trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment. The first bauma event was held 1954. As the world’s leading international trade fair for the construction industry, bauma presents a completely comprehensive range of exhibits to its visitors. Each individual product group is represented – clearly structured in the four theme-orientated sectors that ser ve as bauma's foundation. In 2013, an impressive total of 535,065 visitors from more than 200 countries attended bauma. With more than 200,000 visitors from outside Germany, the number of international participants was higher than ever before. In total, 3,421 exhibitors from
57 countries presented their latest products and innovations in construction and mining machinery on a record exhibition space of 575,000 m2. With those numbers, bauma broke all previous records for exhibitors, visitors and exhibition space. Apar t from a high level of exhibitor and visitor participation, bauma 2016 will again be an unforgettable event. This show is, without doubt, the most important trade fair worldwide for the construction machinery industry. Moreover, the bauma atmosphere is unique: bauma is huge, it is overwhelming, enormously busy and international – it is simply the world’s biggest construction industry show and always a success. In addition to bauma, Messe München International has extensive exper tise and experience in the organisation of a range of international trade shows for the construction machinery sector. Alongside the brand events, bauma China in Shanghai, bauma Africa in Johannesburg and bC India in Mumbai – the latter in co-operation with the Association of Equipment Manufacturers (AEM) – Messe München is also active as a co-operation partner in other regional events for the sector outside Germany, through its subsidiary, IMAG. More details about bauma 2016 are available at www.bauma.de. GTCC is organising a business delegation to bauma 2016. Those members who are interested in participating can contact the Chamber’s official representative for Messe Muenchen in Thailand, Ms. Kamolchanok Nantaburom at (0)2-670-0600, ext. 4004, or by e-mail at muenchen@gtcc.org.
UPDATE 2/2015