Eastern seaboard report september 2015

Eastern Seaboard Report September 2015 – Prepared by Mark Bowling, Chairman BCCT Eastern Seaboard 

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The Thailand Property Awards 2015 were recently held at the Plaza Athenee Hotel in Bangkok. Winners from the Eastern Seaboard include Amari Residences by Nova Group as Best Affordable Condominium, Movenpick White Sand Beach and Best Luxury Condominium and Sedona Villas as Best Villa (Eastern Seaboard). Also worth a mention is the Vineyard La Residence, scooping two awards for Best Villa and Best Interior Design, both Highly Commended at the prestigious Gala Dinner.

Domestic automobile sales of as low as 750,000 vehicles are expected this year as the poor economy blunts demand. Many downside risks are hurting Thailand's car market, said Surapong Paisitpatanapong, spokesman for the automotive industry club of the Federation of Thai Industries (FTI). Negative factors include low farm prices, shrinking private investment, stricter approvals for hire-purchase financing and slow budget disbursement by the government. Recently the FTI said domestic sales fell by 9.9% year-on-year last month to 61,988 vehicles, with the eight-month figure sinking 15.1% to 491,960. However more positively car shipments in the January-August period numbered 780,414 vehicles, up by 5.26%, with a value of 367 billion baht, up 4.49%.

SET-listed Eastern Water Resources Development and Management Plc (EASTW), Thailand's largest private water producer, is conducting a feasibility study into increasing its raw water resources by 12% by 2025. Namsak Wannavisute, executive vice-president for finance and accounting, said demand for water along the Eastern Seaboard is expected to rise sharply due largely to the fast-growing petrochemical, electrical and automotive industries. Demand is estimated at 301 million cubic metres this year, rising to 447 million cu m in 2025 for average growth of 4% per year. New water sources being looked at in the study include the Khlong Luang Reservoir in Chon Buri province, which would add 40 million cu m, and the second phase of its water facility development at the Prasae Reservoir in Rayong province for another 20 million cu m. Under its existing 8.42-billionbaht investment plan, annual water supply will rise to 373 million cu m next year and 510 million cu m in 2017.

Dana Holding Corporation, an Ohio-based maker of auto parts, has opened its fourth factory in Thailand at a cost of US$40 million despite the downturn in the country's automotive industry. The company remains confident in Thailand's fundamentals for the next 20 years, said Robert Pyle, president for light-vehicle driveline technologies. "Dana recognises the current bearish car market that is beyond our control," Mr Pyle said at the recent factory launch. "Nonetheless, the country's vehicle exports remain strong." In 2013, Dana announced a new factory in the Eastern Seaboard Industrial Estate that later won Board of Investment privileges. The factory will make 600,000 light-vehicle gear sets a year.

It spans 6,450 square metres and required 100 new hires.

The start of construction for the dual railway from Nong Khai to Rayong was pushed back to December after Beijing's quote for two parts of the project was 30% higher than originally estimated. Transport Minister Arkhom Termpittayapaisith made the disclosure after reports last week said China and Thailand had failed to strike a compromise on the 873km, dualtrack rail project. Transport Minister Arkhom Termpittayapaisith made the disclosure after th

British Chamber of Commerce Thailand, 7 Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 038 427 771 Fax: 038 427 772 Email: mark.bowling@colliers.com www.bccthai.com

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reports last week said China and Thailand had failed to strike a compromise on the 873km, dual-track rail project.

SET-listed Bangchak Petroleum Plc (BCP) has introduced Lemon Green Square at two petrol stations in Chon Buri and Cha-am. The new retail concept will serve as a prototype for 400 Bangchak stations nationwide by 2020, president Chaiwat Kovavisarach said. Under the new retail concept, the full-scale plaza will have three anchors — a Big C Mini supermarket, an Inthanin Garden premium coffee shop and a Homali or Lemon Kitchen restaurant. "For new places we'll use either three retail anchors or just one, depending on location and available space," Mr Chaiwat said. "The oil retail business faces price uncertainty from oil distilling fees at distillation facilities as well as marketing fees at petrol stations," Mr Chaiwat said. "So we're looking for more opportunities from non-oil business, which will draw more people to our stations." Bangchak has 1,040 petrol stations nationwide.

SET-listed Hemaraj Land and Development Plc (HEMRAJ) is likely to miss this year's industrial land sales target due largely to the economic slowdown. The company now expects land sales of 1,100 rai, down from the previous target of 1,400, chief executive Krailuck Asawachatroj said. Hemaraj sold only 370 rai in the first half. Mr Krailuck expects 2015 revenue will be slightly higher than last year's 8.23 billion baht, with revenue due from other businesses such as power, utilities, warehouses and logistics. Hemaraj recently signed an agreement to sell 120 rai to Fabrinet Co in Chon Buri's Hemaraj Eastern Seaboard Industrial Estate 2. Fabrinet is a global provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to originalequipment manufacturers of optical communication components, modules and subsystems, industrial lasers and sensors. The Chon Buri factory will enhance Fabrinet’s production capacity thanks to its strategic location, he said.

The luxury car market is enjoying strong double-digit growth, with sales of 20,000 vehicles this year. Local sales of luxury cars grew by 13% to 11,200 vehicles in the first seven months, indicating this segment has not been hurt by the lacklustre economy, according to data from Germany-based BMW Group Thailand. "Sales of luxury cars are outpacing overall industry growth," president Matthias Pfalz said. Their Rayong factory started exporting motorcycles to China this year after shipping BMW cars to Malaysia since 2006, the only two international destinations to date. The 2.6-billion-baht facility started operations in 2000. Today it makes eight BMW models, one Mini and eight types of BMW Motorrad motorcycles including the S 1000 R and S 1000 RR models, both of which recently started production. The German luxury car maker has bucked the sluggish market trend by spending another 1.1 billion baht to raise production of its passenger cars and motorcycles at its facility in Rayong's Amata City Industrial Estate.

17 September 2015 – The Ministry of the Interior has imposed flood emergency regulations in the beach resort town of Pattaya in Chon Buri province as the area has been lashed by continuous rains. Interior Minister Gen Anupong Paochinda held a press conference on Thursday to declare Pattaya Municipality a flood disaster area. He explained that the announcement is intended to allow for the disbursement of an aid budget and to mobilize relief efforts for the city. The minister said the relevant authorities have already been dispatched to the troubled area to help residents and he expected the situation to return to normal in the near term. The flooding is a consequence of a low-pressure system, which th

British Chamber of Commerce Thailand, 7 Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 038 427 771 Fax: 038 427 772 Email: mark.bowling@colliers.com www.bccthai.com

was formerly Tropical Depression Vamco. The system brought heavy rains to the lower part of the Northeast, the Central Plains and the East of Thailand. Floods were reported in eight districts of five provinces, namely Tak, Chanthaburi, Si Sa Ket, Surin and Chon Buri. East Pattaya Sois became streaming rivers, including Khao Talo, Khao Noi, Nernplubwan, Nong Yai, Siam Country Club, Local Road and Sukhumvit. Motorbikes and low vehicles were completely disabled as the water level in each soi ranged from 50-100 centimeters deep.

Very heavily flooded areas included Wat Nong Yai area, Highway Police Department area, the entire stretch along Pattaya Beach Road, Jomtien Beach Road, Pattaya 3rd Road near Moom Aroi, South Pattaya Road and North Pattaya Road as well as sois in those vicinities. 

Russian tourism is down more than 50 percent so far this year, but has been offset by a 112 percent increase in Chinese tourists, plus healthy gains in Indian and Vietnamese visitors, Pattaya business leaders were told. TAT Pattaya office Director Suladda Sarutilavan told the Sept. 9 meeting of the Pattaya Business & Tourism Association that, in the first seven months of 2015, 800,000 Russians arrived in Thailand, down from 1.7 million during the same period in 2014. At the same time, 4.7 million Chinese tourists came to the kingdom and 600,000 Indians, a 20 percent increase year-on-year.

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British Chamber of Commerce Thailand, 7 Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 038 427 771 Fax: 038 427 772 Email: mark.bowling@colliers.com www.bccthai.com