Thai-Norwegian Business Review, 2-2011 by Thai-Norwegian Chamber of Commerce

Thai-Norwegian Business Review 2011 â&#x20AC;&#x201C; 2

Thai-Norwegian Chamber of Commerce

JĂ¸rn Unneberg, the new Face of Jotun Thailand

Corporate Social Responsibility More than just Philanthropy

Thai-Norwegian Business Review

Contents Jørn Unneberg – From Orkla to Jotun

Felicia Design & ProAware – growing together

Theme: Corporate Social Responsibility

A Matter of Trust

Sustainability as an Ethos: Yara’s Sales Strategy

Zero Tolerance Against Corruption

A Place To Play

The ongoing Map Ta Phut Saga

Safe Drinking Water to those in need

Dtac House – The Feel Goood Factor

Normeca Helping Japan After the Tsunami

My Place – Vibeke Lyssand Leirvåg

Mastering CSR

Consumers Remedies in Thailand

CSR and Communication

Annual Leave in Thailand

A Review of Life at the Chamber

Hurrah! – 17th of May

Thai Economy at a Glance

Members Directory

49 Editor: Kristine Hasle Journalists: Eric Baker, Emma Long, Jørgen Udvang, Colin Jarvis, Nadia Willan Photographer: Jørgen Udvang Design/artwork: Karine Slørdahl Advertising: Elisabeth Bashari

Front page picture: Klong Toey Playground Photograph from Tyin Tegnestue

Elections and Beyond

It is election time in Thailand and the date has been set to 3 July 2011. This also means that the government has moved into a limbo state with few decisions being made. The 33 parties contesting the 480 seats in parliament are all making generous election promises aimed at appeasing the rural population. I shall not try to predict the outcome, but instead remind stakeholders that democracy is more than elections. It’s about good governance and actions of elected officials once they enter their new positions. It’s also about how the newly elected officials level the playing field for the country’s citizens and investors alike. In the wake of the military coup in 2006, the confidence of foreign investors declined drastically. Last year’s mayhem strangely had little effect on the economy which is still pushing forward at full speed. However, Thailand is starting to slip in corruption ratings, and national protectionism is creeping back on the agenda, both worrying signs. Norway is an active player in Thailand’s telecom industry. The lack of a holistic national telecommunication policy by successive governments is currently one of the main obstacles to the liberalisation and development of the sector and lately, the previous state-owned enterprises entering into bi-lateral agreements which are worrying developments for the sector. At the same time, the foreign dominance issue is back on the agenda with certain vested interests trying to curb foreign involvement in the telecom sector in order to benefit from the outcome. The result is that Thailand is starting to fall behind neighbouring countries in business efficiency at the same time as the consumers are not given the best options available. Let us hope that things can be cleared up so that a level playing field can be created benefitting both businesses and private consumers. In the meantime we are looking ahead to autumn when Norway will feature a Polar Exhibition in Bangkok at the end of October. This exhibition will focus on the sensitive polar environment and how global warming is a major threat to these areas. The plan is to link the exhibition to the environment in general, allowing us to demonstrate environmental technology from Norway and thus enable us to showcase how Norway can assist Thailand in moving forward in the environmental sector. It’s also vacation time for many Norwegian expatriates who will soon be heading home to the fjords and mountains of Norway. Let me end by wishing all a well-deserved rest back “home” and we look forward to see everyone back in Thailand after summer.

Sincerely, Axel Blom President Thai-Norwegian Chamber of Commerce

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Jørn Unneberg, from Orkla to Jotun text and photo by Jørgen Udvang

efore Jørn Unneberg left Norway little less than a year ago, he was the managing director of Orkla Food Ingredients (OFI), a part of the Orkla industrial conglomerate. OFI has an annual revenue of NOK 5 billion and consists of more than 30 companies in 20 countries. When moving to Thailand last August he got a job in Orkla with business development in Asia. It was in this capacity he got involved with Jotun in Thailand. Here he worked as an advisor with the task of helping Jotun to grow faster. When Jotun needed a new managing director in Thailand, Mr. Unneberg was the right man for the job. Jørn Unneberg comes from Ullensaker in Norway, where he grew up at Brudalen, directly at the southern end of the runway of Gardermoen Airport, then mostly a military airport but now the main airport of Oslo. Although the son of Bjørn Unneberg, a profiled Norwegian politician, he decided not to pursue a political career himself, but to follow a commercial path. After earning his MBA in USA, he spent one year at Wall Street, learning the ins and outs of finance before returning to Norway. Once back in his home country, Mr. Unneberg accepted a position at Nora Industrier, a major force within the food and beverage sector in Norway. Nora was under the strong leadership of Leif Frode Onarheim, who was one of the most influential industrial leaders in the country at that time. Why Nora and why the food business, we asked Mr. Unneberg. “The corporation was the important choice for me more than the kind of business they were in. Nora was a large, well reputed corporation with a strong, innovative leader.” In 1991, Nora merged with Orkla, which 7 years earlier had merged with Borregaard, forming one of the most powerful entities in Norwegian industry, covering areas as widespread as consumer products, 6

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pulp and paper, minerals and financial investments. 20 years later, Orkla still holds its position as a leading industrial conglomerate in Norway, owning some of the strongest brands in the Nordic market. The obvious question to ask is how a successful industrial leader sees his role here in Thailand. “Jotun in Thailand has had a somewhat weak development the last few years. The problem has been lack of growth. There is a need of growth and growth is the only viable long term solution for any company” is his precise answer to that. He mentions several key factors that he would like to improve to achieve his goals: “We need to develop the organisation to make all pull stronger in unison. We need to be clearer on the value in terms of services, we offer the customers in addition to quality products. Although we have strong competitors with good products, Jotun is leading in certain product areas, such as maritime and protective paints. We already have a strong management team, but we need to have clear priorities and a clear strategy and move resources from control to action.” For those who stay in Thailand for an extended period of time, it’s difficult not to notice the rather “busy” marketing environment in this country. To gain visibility in this market, Mr. Unneberg aims to get more value from what Jotun invests in marketing. “We also have to target our efforts and approach our prospective customers in places and situations where they are likely to be influenced by our message.” Many foreign business leaders see significant differences between working with a Thai staff compared to western employees, something that is mostly written on the account for “cultural differences”. “I believe individual differences are more significant than the cultural ones. There are enough motivated people in Thailand, and we do work within the same cultural context as our competitors, which means we are competing on equal terms”, says Jørn Unneberg and emphasizes the positive experiences he has already had with his new colleagues. This is his first business assignment in Thailand, although Asia is no unknown territory to him. He sees

Jørn Unneberg, the new face of Jotun Thailand

working here as an interesting challenge, but points out that although Thailand in many ways is a modern society it’s important to remember too, that this nation is still tied up in traditional structures that is difficult for a foreigner to understand. Being married to the Norwegian ambassador, your time frame is given at 3-5 years here. Is that enough to make a difference? “It’s enough to create positive change. Normally, it would have been an advantage with more time, but that’s the framework I’m working within”, he says with the expression of a man with an optimistic as well as pragmatic view of what can be achieved. Many see Jotun as a family enterprise, controlled by the Gleditsch family, but as mentioned earlier, Orkla owns a significant part (42%) of the company.

Although Mr. Unneberg agrees that the founding family still has a firm hand on the rudder, he also points out that Jotun and Orkla, and Lilleborg before that, have been working together since the seventies, and have been growing together for forty years. It has been a very fruitful co-operation. Apart from work and family, do you find time for pastime activities? “In my younger days, I was an active football player and skier, but nowadays, it’s mostly tennis.” No golf yet? “Not yet, but I have started taking lessons”, says Jørn Unneberg. He has also been elected to the board of the Thai-Norwegian Chamber of Commerce, and will undoubtedly be an important resource here for the next few years, for Jotun as well as for the Norwegian business community in Thailand. Thai-Norwegian Business Review

Felicia Design & ProAware, growing together in Thailand by Emma Long photo by Kristine Hasle

elicia Design and ProAware are two enterprising Norwegian companies that have been brought together by Innovation Norway to help one another to grow and expand. Business Review takes a look at both companies and how ProAware is helping Felicia Design meet the challenges of the future.

Felicia Design is a Bangkok based, Norwegian owned and managed business that manufactures high-end jewellery for export. You may be wondering why you haven’t seen Felicia Jewellery in the stores? That is because Felicia is the expertise behind some of the leading jewellery brands in Europe with particular focus on Denmark and Germany.

Accuracy is required when working for Felicia

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Established in Bangkok in 1995 by leading jewellery designer and long term Bangkok resident, Vibeke Leirvåg, Felicia Design has grown from a small enterprise focusing on design and product development to a rapidly growing manufacturing business that today employs almost 300 people in Thailand. Vibeke shares with us some of the challenges she has faced running a business in Thailand. “Having been here now for 22 years I now find myself more Thai than Norwegian in the way I do business. You have to adapt, be flexible and respectful to the culture that you have chosen to operate in. Learning the language is an obvious advantage as well as making sure that you understand the business structure here as rules can change unexpectedly. You also need a good Thai Team working with you, you can’t do it yourself.” Employing almost 300 people between head quarter and home

workers, Vibeke says that after all this time she still gets surprises when managing her staff. “You need to learn about your workforce,” she says. “Thais live from day to day, they worry about tomorrow when it comes. They are hardworking and willing to work and if you treat them right. Their workspace is their home away from home. Here at Felicia we have a solid and loyal workforce, some of whom have been with us from the beginning.” It also seems that Vibeke could set up a little matchmaking business on the side as currently she has about 20-30 couples working for her, all of whom met at the company! In the last few years, Felicia Design has enjoyed a rapid period of growth and expansion. Vibeke believes this is due to a choice to focus only on a small and select group of clients and to manufacture only very high

Steinar Høier, CEO of Pro-Aware and the founder and manager of Felicia Design; Vibeke Lyssand Leirvåg.

end pieces. “We have found ourselves in a unique position as we are rapidly growing whilst others are not and I believe it is because we are specialised and only concentrate on tailor made collections. In recent years, China has taken a lot of the mass market production away from Thailand, so consequently many companies operating in that sector have gone out of business. We’ve become much more of a specialised manufacturer. We don’t have a lot of customers, only 5 major ones. It’s a risky strategy but one that has, so far, worked for us.” Fortunately for Felicia Design, the global financial crisis had almost no effect on its business and again, according to Vibeke, it’s because the company specialises. “Everybody will always want jewellery, even in a crisis. For women it makes them feel good. And for those end customers who buy the products, they are in a higher income bracket who will continue to buy nice pieces. However, I believe that had we not focused only on the high end market, we would be out of business by now.”

Jan Fjelddalen, COO of Pro-Aware

Today Felicia is a company that is growing rapidly. “We are currently going through tremendous growth,” says Vibeke. “We could double or even triple our business this year. We are lucky in the fact that we have customers who want to grow with us and so we have a committed production base going forward.”

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However, growing too fast can have a negative impact if a company isn’t prepared and it is here that ProAware is helping Felicia Design manage that growth and determining the shape and structure of the business going forward. Established in Norway in 2009, ProAware was founded by three business men, Steinar Høier (CEO), Jan Fjelddalen (COO) and Jørn Halonen (CTO), who all have years of background and experience as customers, consultants and suppliers to the Energy and IT industries in Norway. Steinar explained the philosophy of the company. “Our focus is on providing improvement processes in an understandable, structured and longterm way. We do this by providing IT based solutions that help companies prepare for the future and helping them expand in the right way. What we do is to look into the company’s future, using their own internal knowledge by talking to all levels of management, from the top to the bottom. We also include external stakeholders in this process so that they too can express their opinions on what are the most critical factors of the improvement process. We then use all of this gathered knowledge and compare it to the hard business facts.” Steinar goes on to explain what differentiates ProAware from the many other consultants out there. “We believe that our solutions, our competency and consultancy expertise are the next step in business analytics and improvement processes. Some of the areas we focus on are enterprise management, how to become more efficient, CSR, how to succeed with IT and business alignment, HR processes and price risk and emergency management. There is nothing out there that currently offers what we do”.

weak in that area and that we needed strengthen that part of the business.’” says Vibeke. ProAware is also helping Vibeke extract all the critical business information that she has been carrying around in her head. “That takes a long time!” she laughs. “So much of the company is structured around me and ProAware is helping me map out the structure of the business in a much clearer way”. This is being done by identifying business indicators and key knowledge sources and creating usable and interactive operating systems which will enable Felicia Design to move forward, as well as implementing a middle management level. “As the company grows, businesses sometimes don’t think about the need to restructure themselves,” says Vibeke, “but I know that if I hadn’t begun this process with ProAware, we wouldn’t last.” For ProAware, this is their first venture outside of Norway and they hope this will lead to further opportunities in the Asian region. “We currently have contracts with five large national companies in Norway,” says Jan “which include Norwegian State Railways (NSB Group) and University of Tromsoe Student Welfare Organisation. We now feel we are ready to expand our business in Asia and be able to impart our knowledge and experience to companies in this region.” With the partnership of Felicia Design and ProAware we can see how both companies are growing though the experience. Vibeke can now see a clearer vision and future for her company and ProAware is establishing itself as an alternative way to structuring your business.

The relationship between ProAware and Felicia Design was established through Innovation Norway, an enterprise assisting Norwegian businesses through the establishment, growth and internationalisationprocesses. Vibeke explains how the collaboration came about. “We were presented with the opportunity to grow very quickly, but we realised that we could not do this with the existing systems and that I needed someone to help me structure the business and to guide me to where the business could and should go.” Beginning at the start of 2011, ProAware began at Felicia by getting a full overview of the business, both in the short and the long term. In doing so it was clear that a full IT analysis was needed. Right now ProAware is in the process of creating a structured IT strategy for the company. “We knew we were

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Felicia employs almost 300 people in Thailand

Corporate Social Responsibility What is it? Who’s doing it? And why? by Emma Long photo by Tyin Tegnestue

In this edition of Business Review we examine the theme of Corporate Social Responsibility, or, CSR. One definition of CSR states that, “the goal of CSR is to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.” Today the public is demanding more than ever from organisations: demanding proof that what they are producing and delivering is for the greater good of society. The Norwegian Government’s white paper on CSR noted that: yy 54 % of companies state that they have written guidelines for how CSR should be practised yy Responsibility for CSR lies either with senior manager or with no one person in particular yy 44% report on CSR, the majority in their annual reports or in a special report yy issues relating to CSR are discussed frequently in 28% of executive management teams and in 20% of company board meetings In this month’s Business Review we take a slightly different look at how CSR is being approached and managed. We talk to Hilde Tonne, Deputy Regional Head for Asia at Telenor. She talks candidly about

Telenor’s on going challenges with the issues of corruption and non-transparency within Thailand’s telecommunications industry. Employees are a crucial focus of good CSR, how are they treated and what services and opportunities do they have? Social security, pension schemes and healthcare services are all accepted benefits in the West, but what about here in Thailand? We take a look. Better living conditions are also a responsibility of society in general and we meet a Norwegian Architectural firm who are making a difference in the slums of Klong Toey. We also follow up on a previous article on the environmental issues in the Map Tha Put, industrial region of Thailand. We talk to the people behind Malthe Winje, a Norwegian company making and implementing clean drinking water systems to communities in developing countries. We learn about the impact they are having and the difference they are making to people for whom clean water is a rare luxury. In today’s challenging and highly competitive business environment, CSR is more than just philanthropy and window-dressing. In this edition of Thai-Norwegian Business Review, we look at CSR as an opportunity to create value and share that value with society. It’s good for your business.

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The Principles of Corporate Responsibility by Eric Baker photo from NHO

matter of trust; is a pamphlet put together by The Confederation of Norwegian Enterprise (NHO) to explain corporate responsibility and whom it affects. The following is a synopsis of their main points. So what is corporate responsibility and why is it important? Previously, corporate responsibility was understood as something companies did in addition to their core activities, such as donations to charity. Today, corporate responsibility is an integrated part of doing business, meaning companies produce goods and services in a profitable, decent and sustainable manner.

Specifically, the concept seeks to ensure companies respect human rights, maintain decent and secure working conditions, avoid damaging the environment, contribute to sustainable development, combat corruption and pitch in for societal objectives. Each business has to decide for itself what constitutes corporate responsibility. Typically this is based on the core activity of the company and the circumstances surrounding it. For example, HAG decided to use

recycled plastic in its production of office chairs, while China Building Materials International educates its employees on ethics and codes of conduct in addition to promoting anti-corruption campaigns because it feels this is an important local issue. Corporate responsibility has only become fashionable in the past decade or so in Thailand, but that doesn’t mean it is a fad. Companies want societies to develop in a sustainable manner, and corporate responsibility has gained popularity as companies realise it is not only the right thing to do, but it can also be profitable. Values such as empathy, honesty, fairness and respect should underlie business activities, and their practice will lead to proud and loyal employees. Surveys show consumers in Thailand increasingly consider the responsibility campaigns of companies when making purchases. Corporations that gain the trust of stakeholders are likely to be the long-term winners in society. Some advantages of pursuing a corporate responsibility campaign are reduced costs from resource and energy efficiency (such as less energy usage in heating and transportation or waste management and recycling), easier to attract and retain qualified workers and increased motivation and pride among employees

Companies should ask themselves:

Other?

• What are you doing now that can be described as corporate responsibility? • What challenges are most relevant to you? • What can be addressed immediately?

Media

Civil society

How can we know that this is not just talk?

Is the company actually doing what it says it is doing?

Customers

Governments

Are products and services produced without violating human rights and in accordance with acceptable standards for decent work?

What does the company do beyond upholding the regulatory framework – at home and abroad?

Company

• How can we engage employees in these efforts? • Do we face challenges tied to our international value chain and how can we improve corporate responsibility there?

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Suppliers

Employees

What expectations do customers have regarding our corporate responsibility profile?

How can we show our stakeholders that we run a sustainable business?

Owners/ investors How is the company perceived by potential investors? Does it fulfil our investment criteria?

Local Community How does the company add social, economic and environmental value to the local Community?

Examples of typical stakeholders

(which may result in higher productivity and reduced sick leave). In addition, your company will obtain an improved corporate reputation, less risk of negative media coverage, improved relations with customers and better market access. There will be new business opportunities within the ethical and green product range and also be easier to obtain favourable conditions with investors and lenders that value corporate responsibility Titan Industries, an apparel and luxury goods manufacturer in India, felt that access to employment for the disabled was poor. Its initiative paid off as it reports these employees are more loyal and focused on their jobs. Who is concerned with corporate responsibility? Stakeholders are those that influence or are influenced by the company’s activities.Companies would do well to ask these questions with regard to each stakeholder group: • Customers: Are products and services produced without violating human rights and in accordance with acceptable standards for decent work? • Suppliers: Do they follow a different responsibility criteria? • Local Community: How does the company add social, economic and environmental value to the local community? • Owners/investors: How is the company perceived by potential investors? Does it fulfil our investment criteria? • Employees: Are they committed to our responsibility campaigns? • Governments: What does the company do beyond upholding the regulatory framework? • Media: How can we know this is not just talk? • Civil Society: Is the company actually doing what it says it is doing? For example, Global Alumina, an American aluminium producer, develops vast bauxite resources

NHO’s guide to Corporate Responsibility – A matter of trust

in the Republic of Guinea, one of the least developed countries in the world. To ensure a sustainable business model, the company engaged in early discussions with local stakeholders to develop a plan that constructed water wells, schools, health centres and microfinance projects and teamed with local civil society organisations to implement the projects. So how can you get started? Companies may want to develop an ethical guidelines document that covers conflicts of interest, relationships between business partners and employees, and whistle-blowing mechanisms. Corporations should then conduct a self-assessment to prioritise what issues are important, followed by a stakeholder analysis to identify which groups are important to the company and what their concerns might be. After that an action plan lists the measures that need to be taken for a company to address issues in its responsibility programme, and an evaluation baseline needs to be established to check progress. All these documents can be found at the NHO’s website, which also has more information, guidance material and case studies: www.nho.no/samfunnsansvar The United Nations Global Compact is a strategic policy initiative of 10 universally accepted principles on human rights, labour, the environment and anti-corruption. Over 5,500 companies from 130 countries have joined. For more information on how to join, visit www.unglobalcompact.org

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Sustainability as an Ethos: Yara’s Sales Strategy by Eric Baker photo by Eric Baker and Yara

ara is widely known as the world’s leading seller of mineral fertilizers, but many people are less familiar with its sales philosophy which stipulates that the company’s revenue shall be enhanced by corporate social responsibility through delivering knowledge to the farmer.

Yara Thailand has a sales force of 20 people who arrange up to 450 meetings with farmers a year, undertaking numerous demonstration trials and leading 650 in-store clinics. The goal is to demonstrate to and educate farmers on the products best suited for their crops and how much and when the products should be applied so that the farmers can optimise their yield and quality. “We believe that spending resources on knowledge transfer to the farmers will pay off for both the farmers and for Yara in the long run, as improved yields and quality will increase the benefits for the grower and thus secure their loyalty to our products and brand”, says Bent Axelsen, country manager for Thailand.

Yara knows that it is also helping the environment by following this strategy. Critics of fertilizer companies point out that nitrogen fertilizers release carbon dioxide emissions, which have a negative impact on the environment. But Mr Axelsen responds that the planet has only little more land or water available. Today some 50% of the world population consumes food produced with the help of mineral fertilizers. According to UN, the global population is set to rise to 9 billion by 2050. Due to the population increase and diet change the world needs to double the food supply. Countries need to either increase their productivity per hectare or cut down more trees to create additional farmland. It has been proven that deforestation to create additional farmland emits much more CO2 than the use of fertilizers. “There is nothing wrong with using organic fertilizers, but there is not enough of it to feed the world.” “Agriculture in general is directly responsible for about 14% of the world’s greenhouse gas emissions. Land use changd to farmland contributes on average an additional 12% to the world’s greenhouse gas emission”, says Mr Axelsen. “Using the right fertilizers in the right way is far better than the alternative, which is to cut down forest to free up more arable land. If you can produce more crops and also use them or their bi-products for biofuel, then you can start to replace some of your carbon sources. ”Despite being a huge net food exporter, growers in Thailand still have much potential to increase yields and improve product quality. Yara’s strategy to deliver knowledge on the field is paying dividends. A recent story of success comes from longan farmers in Sa Kaeo province, who are ecstatic about their yields after switching to the Yara fertilizer program, recommended by the local Yara agronomist. The best way to describe these relationships is a partnership, as farmers start to trust the technical expertise in crop nutrition that the Yara agronomists provide them with.

Bent Axelsen, Yara’s country manager for Thailand

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“We are not only talking to farmers about the products we sell but sustainable agricultural practices,” says Mr Axelsen. “We want to be known as the crop nutrition expert. We are not afraid to tell a farmer if he is using too much fertilizer.”

Yara feels that some of the current government initiatives and policies present a challenge to the contributions which the company can make to Thailand and to its farmers. Amongst others, Thailand instituted price ceilings last year and just extended them for another 2-3 months, with no certainty that such price ceilings will be withdrawn. “We have the ambition to stay long term in Thailand, but these policies are giving us a negative margin of 20% for some of our products. If extended long term, it will reduce our capacity to help farmers improve knowledge,” says Mr Axelsen. “The only consequence is that the Thai industry will To Yara it is important to help farmers import less fertilizer at a time when the practice sustainable agriculture. world demand for fertilizers outstrips its supply, and Thailand should be trying to stimulate importers to bring more “As part of its commitment to sustainable fertilizers into the country. We will stay committed to development, Yara also works on several CSR projects. Thai agriculture, as we have done since 1972, but we In Thailand Yara donates free fertilizers to the Royal do hope that policies are changed so we can focus fully Project. Yara is also doing its part to respond to the on developing our business and our activities on the call to develop a green revolution in sub-Saharan field”. Africa by Kofi Annan. The company has entered into public-private partnerships which focus on strategic Applying the right fertilizer product at the right rate investments into infrastructure. These “Agricultural and the right time is an essential for achieving good Growth Corridors” help to build the agricultural yields. Any disruption in the supply of fertilizers to the economy.” farmer can potentially have major consequences for yield and quality of crops. “We look at what the crop Yara has sold products in Thailand for 40 years and removes from the soil, the existing yield and the farm used to work with a local partner until 2009 when practices,” says Miles Harriman, Head agronomist of the company decided to strike out on its own. Yara Yara Thailand. “We have to make the changes in small became a legal entity in Thailand in 2005 and acquired steps in order for farmers here to be comfortable. This a Finnish fertilizers company in 2007. This allowed it is because most farms in Asia are small, and many to distribute the complete plant nutrition portfolio on farmers are reluctant to change. We fully understand a common platform directly to dealers. The company that even with a small loss in yield, the impact on has a 10% market share in Thailand. The key focus is their livelihood is huge, quite different from farmers in high-value crops such as rubber, oil palm, fruit and Europe.” vegetables, and in these segments Yara Thailand is in the leading position. “It takes a long time to build good relationships with farmers,” says Koen Van Keer, Sales Manager at Thailand is Yara’s number six market in the world, as it Yara. “The longan farmers in Sa Kaeo we had been imports one million tons of fertilizer a year. working with for one and a half years now really trust “We see business and corporate social responsibility as our agronomist. This was one of those cases where the same thing. Our program has to benefit farmers, we could see that our knowledge-transfer approach increase their yield and productivity, otherwise neither really pays off. We strive for partnerships, not just a they nor we get any value out of it,” says Mr Axelsen. customer/seller relationship.”

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Zero Tolerance against Corruption by Emma Long photo by Telenor

he Telenor Group is one of the most recognisable brands in Thailand, through dtac, and across Asia. A global telecommunications company, Telenor has been present in Asia for the past 15 years with its operations based in five key markets in the region, namely Thailand (where it maintains its Regional Headquarters), Malaysia, Bangladesh, Pakistan and most recently, India. Business Review recently sat down with Hilde Tonne, Deputy Head of Asia Region, to discuss the telecommunications industry in the region and in particular the ever present issue of corruption and non-transparency. Telenor is the last Pan-Asian telecommunications company operating in the region and Hilde firmly believes it is because of the approach Telenor takes when conducting business. “The Telenor model has always been one of a local approach. We have always been focusing on local growth, always working to implement the Telenor way, but in a humble way. The Scandinavian way of leadership is not always fit for purpose in Asian countries and we respect that. So I believe that our focus on being local and our attitude has enabled us to last long in Asia where our competitors have not. One of Telenor’s values is to be respectful and whilst we maintain a majority ownership in our Asian brands, it is important to us to have that ‘local-ness’ in our growth. We see and understand that we need to learn from people and through our approach of being industrially focussed we are here for the long term.” The massive market of India is Telenor’s latest addition to its Asian portfolio. “India is in the beginning phase” says Hilde, “and our on-going strategy is to grow through this huge market. It is presenting many challenges, especially in regulatory areas, as we are establishing a new company from scratch, but we have a top team there, including the Head of the Asia Region Sigve Brekke, and we are making good progress.”

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Telenor has been in Thailand for ten years and is represented though dtac, which is an established Thai brand that has been around since 1989. Hilde says dtac is one of the major companies in Telenor’s portfolio, “dtac is a very successful brand” she says. “The company has a strong inner culture and a very strong brand awareness all the way to the customers”. So much so, that dtac’s approach to and success in developing its brand actually influenced the entire Telenor group and how they managed the Telenor brand worldwide. A perfect example of how the major shareholding company is still willing to learn from their local businesses. Currently, Thailand is going through many challenges, both politically and commercially. Hilde explains how Telenor is meeting and reacting to these ever changing times. “We are in the middle of a challenging business environment, regulatory wise, in Thailand. It is a very challenging place to be right now.” The issues of transparency and corruption are high on the agenda for Telenor in Asia and the level of corruption was alarmingly evident in a recent report by Transparency International where Thailand was rated at 79 out of approximately 150 of a Transparency Index of the worst Countries for corruption. Bottom of the list was Russia. “These are hard statistics to deal with” says Hilde, “it is therefore of the upmost importance for partners and stakeholders to deliver on expectations in a transparent way. This can only start within the company. At Telenor we have 40,000 employees worldwide and they must all understand the Telenor Way which is zero tolerance to corruption.” “It is clear that Asia does not fare well on the Transparency Index and currently, we sense that the regulatory environment and framework in several of our markets is worse than ever. What we need in Thailand is clarity, openness, transparency and a level playing field for all competitors and the opportunity to operate in a liberalised set up. Customers in Thailand, for example, are very innovative and savvy to the services that they want, and that is being hampered by the existing regulatory system.” Hilde was recently invited by the Nation Group to participate in a round table discussion on ways to fight corruption in Thailand and to ensure clear and

transparent governance. Along with Telenor, senior management from Shell Oil, Siemens, and Pfizer were also present in addition to representatives from NGO’s and government departments. It was a good learning experience for all involved says Hilde. “The objective of the seminar was to have an open and transparent discussion on the challenges in Thailand and for major international companies to learn from each other as to how they dealt with these issues. What we discovered is that most of us are doing the same things such as, being strict in our approach, being consequential, driving continuous improvement and having a zero tolerance to corruption. It was, however, agreed that we cannot do anything about these issues unless you get the people within the companies to understand the importance of it. The tone from the top level of the organisation is also crucial in driving the message forward. If we want changes in society for more transparency, more openness and less corruption, major companies must be united in their approach. If we continue to say no then things will have to change.” Hilde also believes that the role of business is also crucial to change in society. “It’s not easy to do business in a country that is closed-up and nontransparent. It makes companies think twice about doing business here. The level of foreign investment in a country is directly proportional to how easy or difficult it is to do business in that country, and I believe that when the country’s politicians see that, that’s when things will change.”

September 2010. “I don’t see the 3G issue moving in the right direction.” says Hilde, “the regulatory environment is not in place. At the moment there is no political will to make changes to the concessionary system and no political desire to establish a level playing field. I can say that Telenor is very disappointed in how the Government is driving telecommunications forward. It’s a passive approach with only patchwork solutions to certain segments. That is not serving the wider population of Thailand.” Despite this, Hilde remans optimistic that Telenor and other multi-national companies in Thailand all have the same mandate as to how they want to do business here and there is optimism for the Thai people, “they are people who have the will to drive the country forward and personally I really enjoy being a part of that.” Although the issues of non transparency and corruption will not be gone anytime soon, it is clear that Telenor has the desire to have an open and honest business environment at the very top of their agenda. And with Hilde Tonne, Telenor will not cease to drive home their message of zero tolerance.

As a forward thinking company, Telenor is very clear on it’s zero tolerance approach, “it’s non negotiable” says Hilde, “if we see the need for protecting our rights then we will do that. If we see murky and non transparent deals, we will react. We want professionalism in our surroundings.” The lack of broadband penetration in Thailand is a source of frustration for Telenor, “it stands at just 10-11%” says Hilde, “compare that to 97% in South Korea and you can see how that can’t be good for the customer as the lack of access breeds opportunity for non-transparency.” A major disappointment last year for Telenor and dtac was the halting of the 3G licensing auction in

Hilde Tonne – Deputy Head of Telenor in Thailand

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A Place to Play by Eric Baker photo from Tyin tegnestue

YIN tegnestue Architects and a local architect build a playground in Klong Toey from materials in the area.

Social responsibility is not just a concept for large, faceless corporations. Increasingly smaller organisations are realising the importance of contributing to a sustainable society. But what separates TYIN tegnestue, a group of recent Norwegian architectural graduates, and their work from simple humanitarian charity is their idea of an architecture of necessity, of using the materials already in a community to build what is needed.

community meetings because the people there didn’t understand the concept of public space. They didn’t realise kids need a place to play.” The key to the success of these projects and whether they will be used is local ownership of the structure. Once locals start adding on and tinkering with the project, that means they care about it, said Ploy. “Before we put lights in, this was a dark area where kids would come to sniff glue,” she said. “Now there are so many kids playing here a neighbour lady complains she can’t sleep because of the noise.” Per their philosophy, the playground was partially built using found materials such as pallet wood (the rusty nails were removed) and rolled tin roofing. The locals have already started to add bits of wood to hang clothes and other safety features to prevent small children from falling.

TYIN has built houses, a bath, a library, a market and a playground via the same method: meeting with community leaders to decide what they want and deciding how they can adapt existing materials to build it. Kasama Yamtree, aka Ploy, is a Thai architect and partner with TYIN on some projects, including the recent playground they built in the Klong Toey slums. She describes what the working process is like. “I met some of the architects from TYIN in 2008, when they came to Mae Sot to build structures for Karen villagers in the jungle,” said Ploy. “They said they wanted to build something people were actually going to use, because in Europe people had enough structures. “Everyone knows about the Klong Toey slums, and TYIN just wanted to see what the community needs. But at that time, there were no community leaders. No one thought it was worth the effort. “Typically these projects have to be designed in part by the community that is going to use it, and you can never tell if a project is going to be a success ahead of time. “Work on the Klong Toey playground started a year before construction got underway. Proposals for what to build varied widely and we had to have numerous

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Ploy’s previous project with TYIN was to renovate a century-old market building in Minburi as a library. The renovation took two months as the roof and walls were in poor condition, and the 3 by 9 meter library has a small courtyard facing a canal. It was built using recycled and locally sourced products. “The reaction to the Minburi library was really positive right from the start, which was a little different than my experience in Klong Toey. The locals continue to upgrade that project as well,” said Ploy. TYIN projects in Tak province pioneered new building principles such as the bracing of timber structures and casting concrete in reused tyres. Bamboo facades and ironwood framework were also used for these structures. TYIN is run by Andreas Gjertsen and Yashar Hanstad from its headquarters in Trondheim, Norway. In addition to Thailand, it also has new projects in Haiti and Sumatra. Funding for these projects comes from two architecture firms in Norway: Link Arkitektur and Ratio Arkitektur. Ploy now works with Open Space, a collective of architects and documentary filmmakers, and teaches at Thammasat University where she requires students to take part in community construction projects for three weeks. She hopes to work with TYIN on future projects.

The ongoing Map Ta Phut Saga by Eric Baker

10,000 rai. The goal of the proposal is to ensure only clean industrial activities are allowed.

In addition, the National Health Commission called on the cabinet to upgrade Map Ta Phut from a pollution control zone to an environmental protection zone because current regulations were inadequate in stopping chemical leakage and volatile organic compounds (VOCs) such as arsenic, mercury and zinc from contaminating the area, said Paranee Sawasdirak, a city planning analyst and chair of the environmental protection working group for Map Ta Phut.

s operations continue to trickle back online in Map Ta Phut, the country´s largest industrial estate, industry worries that if firm guidelines are not set, the country will lose out on foreign investment to other countries.

Map Ta Phut is in Rayong, and in June 2009, 42 villagers from the area and the non-governmental organisation (NGO) Stop Global Warming Association filed administrative charges against state agencies and officials for failing to follow the 2007 Constitution’s Section 67. This section requires projects seen as harmful to the environment and people’s health to hold public hearings and conduct environmental and health impact assessments endorsed by the National Environment Board. The plaintiffs asked the court to revoke the operating permits and suspend operations of 76 industrial projects for failing to comply with the Constitution. The Central Administrative Court ruled on 29 September, 2009 to suspend the 76 projects pending its decision at a later date. Over the last year, 11 projects have been allowed to restart operations after operators proved they did not violate any of the section’s requirements. The court ruled in September of last year that only two of the 76 projects were granted operating licences illegally, clearing the way for projects to restart in the industrial estate if they passed their health and environmental impact assessments. The majority of the projects were considered legal because they did not fall on the National Environment Board´s list of 11 industrial activities that are harmful to the environment or public health. In the meantime, while some companies are planning to increase their investment in Map Ta Phut, such as PTT Tank Terminal Co, wholly owned by the energy giant PTT, which has scheduled a five-billion-baht investment to double its capacity, other news is more ominous. A new city plan for Map Ta Phut was proposed earlier this year that halves the industrial zone and increases the buffer zone between industry and communities to

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As a backdrop to this turmoil, Burma is promoting a new industrial estate in the southeastern city of Dawei that could dwarf any port in Thailand. Unlike many grand schemes promoted in the region that never amount to much, the construction of Dawei has the support of the Chinese, making it a likely reality. The Thai government has already started construction on larger transportation links through Kanchanaburi province, and SET-listed Italian Thai Development signed a 10-year contract worth an estimated US$8 billion. Thailand´s economic think-tank, the National Economic and Social Development Board, noted heavy industry´s embrace of a Burmese port is likely because of the Map Ta Phut dispute over environmental protections and called on all parties to reach a compromise. But PTT, Siam Cement Group and Amata Corp are all planning to invest in Dawei while the Chinese are keen on a rail link from southern China to Dawei, as shippers around the region are eager to avoid shipping costs and risks associated with the Malacca Strait. Still, no one is giving up on Map Ta Phut, with the Board of Investment (BoI) approving an eight-year exemption from corporate income tax for existing expansion projects at the site that upgrade their technology to reduce air pollution. The move replaces the existing three-year tax holiday. A similar privilege is also being offered to new investment projects that apply modern technology to contain air pollution levels and ensure a low impact on the environment. And to show it is serious about environmental protection, the Industry Ministry invited the US

Environmental Protection Agency to Map Ta Phut to set up a model calculating its carrying capacity. The government is trying to limit the emission of benzene,dichloroethane and butadiene, which are typically released with the production of petrochemicals. The EPA´s assistance will help determine standards of significant leakage, with a time frame for fixing the damage and penalties if factories fail to comply. Over the past decade, 634 projects with combined investment of 1.2 trillion baht have set up at Map Ta Phut. On the bright side, the Science and Technology Ministry plans to form a one-billion-baht joint venture with PTT Chemical, Siam Cement Group and Mitr Phol Group to build Thailand’s first polylactic acid pilot plant to supply materials to make biodegradable plastic.

The government has been pushing for a biodegradable plastic project since 2008 to add value to the country’s cassava and sugar industries, but bioplastics cost five to six times more than petroleum-based plastics. Only time will tell whether foreign investors feel comfortable with Thailand´s incentives and investment climate, but some prognosticators are predicting an uptick in activity in Japan as that country seeks to reduce risk from keeping too much of its industry domestic. But Japanese investors are likely to be wary of the report of Silpakorn University professor Renu Vejaratpimol that at least 35 of the 76 suspended plants use hazardous chemicals that can cause several ailments from respiratory diseases to cancer, while 21 use carcinogenic substances.

Safe Drinking Water for those in Need by Emma Long photo by Malthe Winje

he motto of Malthe Winje DWS perfectly sums up the values of this highly respected Norwegian company, “Clean drinking water is a human right. It’s a just and fair demand, which we help solving with small and reliable cleaning systems. We assist our partners in supplying clean and safe water at minimal cost. Just Water is for everybody!” Business Review talks with Anoop Nambiar, Regional Business Consultant based in South East Asia for Malthe Winje DWS. He tells us about the company and their drive and passion to provide the basic human right of safe, reliable and clean drinking water.

Clean drinking water – a human right

we could help to provide with our small and reliable cleaning systems. We began supplying technology which can produce safe water at nominal cost.

What is the history of Malthe Winje? And how did the Drinking Water System (DWS) operations begin and why? “Malthe Winje AS was established in Norway in 1922 and is a reputed and successful diverse business group with operations in Sweden, Finland, Estonia, Latvia and China. We specialise in the fields of Automation, High Voltage Power sector, Real Estate, Traffic management and IP telephony.

We started out by supplying five drinking water units, with a purification capacity of 1000 litres pr. hour to an Indian NGO based in Hyderabad called the Naandi Foundation. They found our equipment to be successful in their community safe drinking water project. This lead to a further order of 40 units which we supplied in 2010 and its implementation is ongoing today.

In 2008 we began our operations in the field of drinking water purification. The motive behind this was that Malthe Winje believed that access to safe drinking water was a basic human right and one which

We continued with our development into China where we have supplied ten water purification units to facilities such as sports stadiums, high tech development zones, medical factories and residential apartment buildings.

The testimony that we have received from Naandi Foundation, Professor Halvard Odegaard of the University of Science and Technology in Norway and the Institute of Water and Hydraulic Research (IWHR) in China shows the socio-technical acceptance of our product. What are the current projects of Malthe Winje DWS? Where are they and what is the strategy behind your areas of operation? â&#x20AC;&#x153;In addition to the 40 units that we implemented for the Naandi Foundation in Hyderabad, we have also secured an initial order for 25 units from a well reputed NGO working in the western part of India called SKDRDP (Sri Kshtra Dharmasthala Rural Development Project) for their safe drinking water project. Our approach is to look into areas where water quality is poor for drinking purposes as well as looking for a viable partner in the region to work with us in implementing the project successfully. There are many advantages to establishing these projects in rural communities, in particular, improved gender equality and savings on water purification by other means. A lot of domestic water purifiers are now available in the market, but the maintenance costs for these units are very high compared to the cost of buying water from a community drinking water unit. In addition, the lack of timely repair and maintenance of domestic water purification units causes the decrease in quality of output water. Other advantages of the projects are the employment opportunity for locals, increased school attendance, reduced spending on medical expenses and reduced debts which lead to better savings.

to build water purification units up to 20 sqm/hr. capacity even though we are not aggressive in pushing our product at high cost. We took a nominal margin out of this business, because we feel it is the right of everyone to have access to safe and pure drinking water. We also use all of our experiences with our existing NGO partners in assisting our new partners in implementing the projects in other areas. This helps the operating agency in running the unit more efficiently and makes them self-sustainable. What is the status of your entry plans into the Thai market and what opportunities do you see here? â&#x20AC;&#x153;We are currently at the preliminary stage in the Thai market. We know that in certain parts of Thailand the quality of water is poor. We believe that the model that we have found to be successful in the Indian rural sector can also be implemented in Thailand. To help us in reaching this goal, we are now looking for a suitable agency with technical competency who can be a successful partner/product dealer in future projects. The office of Innovation Norway in Thailand is assisting us in this search using their detailed knowledge of the Thai market. The model that we are proposing in the community sector is a self-sustainable model which requires a socio-economic survey to assess the public acceptance for the project, this is because the supply from

How does corporate social responsibility (CSR) factor into your operations? â&#x20AC;&#x153;In addition to the social advantages outlined in the previous question, we know that the estimated global water purification market is worth more than USD 20 billion. We have capability Portable Drinking Water System Thai-Norwegian Business Review

the plant would not be free. The operational and maintenance expenditure for this drinking water project should normally come from the project itself, however, here the operation costs will also include the cost of manpower, electricity charges, replacement charges for the filter cartridges as well as the cost of chemicals which is required to protects the membranes from getting chocked. So in order to go forward, public acceptance is important. The cost of water distribution can be decided by assessing the expected regular customers and also calculating the operational cost. In India, for example, the selling cost of 1000 litres of water from a project of 1000 litre pr. hour would be around USD 2 to 3, providing there is a regular customer base of 300 people. What are the plans for Malthe Winje DWS going forward? What regions do you plan to expand into? â&#x20AC;&#x153;We are planning a regional office in India to look after the business opportunities in Sri Lanka,

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Bangladesh, Nepal, Myanmar, and Thailand. Our current priority areas, apart from India, are in Thailand, Sri Lanka and Bangladesh. At the moment we are focusing on safe drinking water projects for rural communities as well as educational institutions, but, in the near future we would like to expand and supply our equipment to the commercial sector such as pharmaceutical industry, hotels and residential apartments. In India the estimated business growth in the water purification market is currently around USD 45,000 million which is growing at a rate of 15-20 per cent annually. From a social perspective, there cannot be too many commercially based activities that can be more gratifying than providing safe and clean drinking water to those most in need. With Malthe Winje DWS leading the way, more rural communities in Asia will soon have what most of us take for granted â&#x20AC;&#x201C; clean water. This is Corporate Social Responsibility at its best.

The Feel Goood Factor by Nadia Willan photo by Kristine Hasle/dtac

‘Happyeeee!’ We have all heard the rising tone sung out on adverts. So much so it is repeated in conversations, making it almost impossible to say the word in a normal way. The unforgettable catchphrase of dtac seems like a stroke of marketing genius. And it is of course brilliant branding but being happy is not just a suggestion at this telecommunications company but a way of life, an attitude to work, a corporate ethos and a company policy. Business Review thinks that when looking at CSR, it is also important to look at employees and their rights, their health, their opportunities and their security. From this article, it looks like the dtac-employees are doing quite well. A home-grown company which started life some 22 years ago, dtac has been part of the the Norwegian Telenor group since 2000. With 6000 employees in total, around 3200 are based at the corporate headquarter in the centre of Bangkok. The company’s philosophy is simple; happy employees treated well in

Slide down…

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their work community, love their job and flourish. This leads to a good work attitude where customers are well looked after. The corporate Cupid’s target is ultimately to woo the customers. Wassana Pongsirisart, the Assistant VP of the People Group, who looks after the employees, explains. “We really believe in living a feel good culture. It is not an emotion it’s a philosophy. In this industry technology is continuously developing and what differentiate us is our people. We believe in developing people and offering a unique working environment so that we can compete.” Not one aspect of the dtac philosophy has been left to chance. The interior design is simply stunning. It is chic, trendy, functional, comfortable and relaxing. New employees might think they had checked into a five star hotel rather than the office on a Monday morning. An auditorium has the best views in the city, with black chiffon curtains, curved wooden tiered rows and big circular floor cushions. The breakout areas feature swirling, designer-esque, bright red chairs. Outside decking has built in lights and wooden seats and a lawn. There are fun elements to the designs too with different meeting rooms matched up with the names of different regions around Thailand. The Khao Yai area has tiered seating with big leather cushions, to reflect the mountains in this national park. Locally made furniture is ergonomic and from the floor to the windows, the focus is on being environmentally friendly. There is a pride for Thailand in the surroundings which flows through to the staff. Paul Potivongsajarn, who works in Internal Communications, appreciates the effort. “The people are friendly and we are really like a family. I take people on the tour of the building and I feel proud to work here. The design team have thought about the staff and how to create something good for us.” Looking good is one thing but dtac does not lack substance over style. The benefits are dished out in good helpings and a lack of hierarchy further loosens the already smart-casual, work-play employees. Maternity leave is extended to three months, offering a far better payout than the usual company and government split payments. The building caters working mums after the maternity leave with breast feeding rooms and a playroom offers flexibility for parents to look after their kids. The same amount of mobile airtime is allocated to everybody every month.

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Medical benefits are the same for all, with health checks and good cover which includes dental and optical insurance. Annual leave is not based on seniority either and starts as soon as the work starts. With 51 interns last year dtac is making a concerted effort to take bright, young people into the fold. Their Long D with dtac program, which translates as give it a try, sums up their open arms, flexible approach. Wannabe employees know that part of their initiation is to show their energy, enthusiasm and spirit by whizzing down a big wooden slide next to the stairs, in the interview area. However, it is not all fun and games and an education centre or dtac school keeps employees on their toes and up-to-date with an emphasis on technology, product launches and lifelong learning programs. After work, a kind of entertainment zone opens which continues to cajole staff into feeling happy and that they are part of a community. The facilities are outstanding and with pre-work activities too every dtac employee must sometimes wonder when they can find a valid excuse to leave. The lines of community, work and play are fuzzy but this is part of dtac’s unwavering charm. This trendy after-work area includes a running track, pool tables, table tennis, karaoke rooms, yoga, meditation, a gym, body combat and even a live band. Love, like charity, is a sentiment which starts at home in the company’s high-rise offices but dtac spreads the love out to the community with many corporate social responsibility (CSR) projects. Little booths line the corridors on one floor and these are where employees can nip in and record themselves reading a book for the blind offering audio lifelines to this community. When employees are not lounging in the uber-chic communal areas some are found knitting. A thousand hand-knitted blankest were recently sent to Tsunami-hit Japan, and people affected by the floods in the south of Thailand have also been helped. CSR projects with children include taking kids to the beach and on cycling breaks. Being responsible and responsive as an employee is all about reaching out to customers and the wider community. 30

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Run a few laps…

or relax in the library

Social Media has had a great impact on company attitudes to their workforce, as well as how they are perceived in the wider world. Whereas some companies put strict bans on what they view as employee skiving on Facebook and Hi5, dtac dispenses with the school ma’am attitude. The floodgates of Social Media are open and rather than try and build a dam to stem the flow, dtac attempts to harness the power by encouraging employees to use this communication as a work-life tool. Dtac is a unique, progressive and caring work community. Whilst great effort has been put into designing the stage it is the happy employees who have to ultimately deliver the winning performances.

Normeca Helping Japan after the Tsunami by Kristine Hasle photo by Normeca

ormeca AS has received a contract on two smaller hospitals/clinics for the tsunamiaffected areas in Japan. The first clinic was opened in June.

Normeca has opened a day clinic and it is located only 500 meters from where the tsunami struck in March this year. The clinic has a capability to treat about 150 patients every day, and has a staff on 50 nurses and doctors. For this project the company brought three employees to Japan and hired seven local staff to work with them. A clinic of this category is set up in between two and three weeks. The hospitals/clinics are being set up from flat packed containers which are connected together with a corridor between them and a roof on top. The result looks more like a prefabricated building than a collection of containers. The system is very flexible and quick to set up wherever it may be. The delivery contains water and sewer system with toilets, showers, including power supplies with their own generators.

Normeca expects two more contracts in Japan during the next weeks for the same type of clinics/hospitals. Both the Ministry of Health and MSF (Médecins Sans Frontières) Japan are now considering one or more major hospitals, including in Fukoshima. In addition, the Japanese Red Cross is considering using the same system for construction of temporary housing. Last year Normeca AS put up a 120 bed mother/ child hospital in Haiti for Doctors Without Borders (MSF). The company also recently won a UN contract to set up offices in Haiti. This system has now been used after various disasters in the recent years with great success. Normeca AS used the same system when they built an identification center in Thailand after the tsunami and also in the Philippines after the big shipwreck a few years ago. The company has in addition set up hospitals and units in Southern Sudan and Pakistan following the same concept. Normeca was founded and established in 1983 by President and CEO Jan Karlsen, who started the company. Normeca became a member of ThaiNorwegian Chamber of Commerce in 2010.

Hospital in Japan – from flat packed containers; IKEA-style

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My Place – Vibeke Lyssand Leirvåg

My Place, it is not a province, it is not a town, and it is not a street… Thailand is known for its beautiful scenery, white beaches, people, and the smile. My place is none of the above, it is in Thailand, but could be anywhere in the world. Traffic, our every -day life in Bangkok. Rush hour, you can’t even exit your parking lot. Crowded streets, pollution, notice and

the smell of Moo Yang and Somtam. You would like to go home, but it will take forever. Should you work another hour, maybe two… or go to My Place. We look at each other, the choice is easy, and My Place it is. The fastest way is to walk. We arrive, welcomed as like always, soft and comfortable. We take a long breath, ready to enjoy a small break after a long day at work. A Spritz arrive, perfectly made with 3 ice cubes, 1 olive, campari , prosecco, a touch of soda and of course, one slice of orange. One foot long grissini, enough to tease the tummy, and if not, followed by a small selection of cheese and cold cuts. Our favorite day to stop is Thursday, where we spoil ourselves with a delicious burrata, made the day before at a small farm in Italy – don’t you just love how small the world has become! The friendly staff asks how our day has been, ask how our twin daughters are, we feel at home… ah, our song, please turn the volume up. We do not hear the traffic, the noise from the street, only the powerful voice of John Mayer’s song Gravity, and in the distance, the 3 ice cubes touching in our glass. There are many ways to have a favorite place Some prefer people and noise, some prefer peace and a hidden heaven like ours. A beautiful beach in Krabi, the mountains and open space of Kaoi Yai, the busy streets of China Town.. My Place for us is none of the above. My place is hidden in a beautiful little alley in one of Bangkok’s busiest streets, a welcoming place where we can get some precious time together after a long day at the office. It could be anywhere in the city, anywhere in the country, anywhere in the world. My Place is a white leather sofa.

Vibekes white leather sofa is at Wine bar & restaurant Opus in Silom, but as she says – It could have been anywhere making you feel good… www.wbopus.com

Mastering CSR by Nadia Willan

orporate Social Responsibility (CSR) is fastbecoming a factor of business that cannot be ignored by CEOs. And the good news is that rather than see CSR as an altruistic way of merely offsetting negatives, many businesses are accepting the strategic business advantages which stem from knowing how to adopt CSR in the right way. From big, brand-name companies to smaller regional corporate firms, CSR affords companies a way of not just giving back to communities but accessing and communicating with their potential customers. An innovative Master’s Degree Program in CSR is just being launched by the Asian Institute of Technology (AIT) in connection with CSR Asia. The content and structure is catching the eye of many company executives in Thailand and beyond. What is perhaps quite unique about the course is that it is divided into eight separate modules which participants can take in any order. Not only that, but managers can choose to take one or more standalone options or complete all to gain the Master’s qualification. Richard Welford the Chairman of CSR Asia, who is one of the course organizers and tutors, explains the beauty of this modern, flexible approach. “We are calling it a fly in and fly out approach, aimed at anyone within a three and a half hour flight of Bangkok. Each module consists of a 4 day intensive course, meaning participants can fly over for each module and then fly back to continue with their work. They can decide to take all the modules in a year or stretch them over a longer period.” Since the course will greatly appeal to middle-management level executives, fitting in with the demands and constraints of a busy working life is part of the appeal. Sukich Udindu, VP Corporate Social Responsibility at Minor International PCL, one of the largest hospitality and leisure companies in the Asia Pacific region, who attended a seminar on the course, believes it will greatly benefit businesses operating in Asia. “It will add value to business in Asia – not only for making short term profit, but paving the way to future sustainable business development. Most businesses see CSR at the philanthropy level or as just ad hoc community programs or even volunteer activities, but real CSR 34

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can blend into all business decisions and day to day activities, which most corporations are not yet aware of. The Master’s program will help embed CSR into corporate culture and employee DNA.” Leena Wokeck from CSR Asia Center at AIT explains how there is a growing expectation and pressure on businesses to adopt CSR. “There is more of a push for companies to report and be transparent. Guidelines have been set out across a lot of Asia in recent years and there is an expectation of this amongst the corporate and consumer markets too. Richard Welford clearly emphasizes that the Master’s at AIT has incorporated the multi-faceted business advantages of CSR into the course. “CSR is not just about offsetting negatives. It is about business strategy, staying competitive, gaining trust and respect in the market and protecting and building up brand image.” The launch of Asia’s first independent environment and social governance (ESG) benchmarking tool was seen in 2009 and the Stock Exchange of Thailand has clear governance on setting and disclosing environmental and social issue policies. The reporting seems to indicate strong national policies on sustainable development and more pressure on local companies to reveal sustainability efforts. However, there is a definite lack of skills in the region coupled by a growing demand as Leena Wokeck explains. “We are being approached not just by businesses but by development agencies and NGOs. We have had interest from people who have been involved in some partial way of doing this type of work but realize they need to formalize, expand and develop their skills now.” Certainly, the mix of corporate and international organizations, from all over Asia will undoubtedly add a unique and positive community of information sharing amongst participants. The CSR Master’s takes a modern approach to teaching with a hands-on approach. The style of the course is not simply a sit-down, listen and learn. Participants will have to look at case studies, learn practical skills related to their work and implement and complete a project within their own business environments. It is not about taking an exam as Richard Welford explains. “The objectives of the degree are to meet the demand from companies in the Asia Pacific region for qualified CSR professionals, build capacity for managing global sustainability

challenges responsibly and provide participants with professional competencies and skills in the fields of sustainable development and CSR.” The course subjects and structure are aimed at being both practical and dynamic. CSR in many companies has been slotted into either the PR/Marketing departments or even in HR. However, more and more companies are creating their own CSR units and need employees who are qualified to take Asian companies into the field with confidence. Sukich Udindu explains how Minor is developing. “My CSR colleagues need education in this field. We set up the department five years ago and were one of the first in Thailand. We have a CSR Committee and a CSR Club which co-ordinates employee volunteering, but we need more initiatives and developments such as a sustainable mission and reporting.” Asia has a long way to go compared with Europe and North America but there is such a growing realization

the importance of CSR in Asia Pacific regions that courses such as the CSR Master’s at AIT could help savvy companies leapfrog forward. Richard Welford highlights this point “Once Asian businesses truly adopt something they soon reach global standards and become market leaders. There are 10 companies right now locally looking for CSR managers” The Master’s Degree in Corporate Social Responsibility is a reflection of the corporate zeitgeist in Asia and the rest of the world. With its program set firmly in the realm of business reality rather than an exercise in intellectual exertion. Plans to expand the modules to more than one a year, as well as in many different locations around Asia is a sign that CSR is firmly on the agenda of corporate strategy and accountability and many businesses will not want to bunk off learning its real merits, skills and potential both to individual companies, the market and the community at large.

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Skanem Bangkok Co. Ltd. Amata Nakorn Industrial Estate 700/247 Moo 1 Bankao, Panthong Chonburi 20160 Thailand Tel.: +66 (0) 38 465 315-19 Fax.: +66 (0) 38 465 320-21 www.skanem.com

Melvær&Lien The Idea Entrepreneur Photo: Tom Haga

SMARTER LABELLING SOLUTIONS

Consumer Remedies in Thailand by Eric Baker photo by Karine Slørdahl

onsumers can often feel they have nowhere to turn if they´ve been taken advantage of during a transaction in Thailand. Foreigners and Thais alike had little recourse until a few decades ago. But new laws and consumer protection organisations at least provide the building blocks of attempting to find compensation if you believe you´ve been wronged. To start with, consumers do have rights in Thailand. Whether they are buying a car, condo or smartphone, Article 61 of the Thai Constitution guarantees consumer rights should be protected and they should have an independent agency. A translated version of Article 61 reads: A consumer has the right to receive complete information about the product he or she is buying, and the consumer can make a complaint for remedy of damage, and can join a class-action suit with others.

It continues: There shall be an independent, nongovernmental agency for consumer protection consisting of consumer representatives to advise state agencies on the enactment and issuance of laws, and regulations, and on the determination of various measures for consumer protection, and for examining and making a report on any act or omission related to consumer protection. The State shall provide financial support for this independent agency. In addition, Thai consumers have five rights according to the Consumers Protection Law BE 2522: right to information, right to choose, right to safety, right to fair contact, and right to redress. But in reality, enforcement of these rights can be a little vague. For any large purchase, in Thailand or elsewhere, it is best to seek advice from specialists or consumer advocates before making the purchase. If you buy a product that is not working properly, your first step is to try and return or change the product with the vendor. If that strategy does not work, consumers can issue a complaint with the government´s Office of the Consumer Protection Board or a consumer organisation like Foundation for Consumers, or directly to the court depending on the situation. Thailand has a special procedure in court for dealing with consumer issues, said Saree Aongsomwang, a director with Foundation for Consumers.

Shopping in Thailand – be aware?

Thai-Norwegian Chamber of Commerce

The first pseudo-consumer group in Thailand was the Coordinating Committee for Primary Health Care of Thai NGOs (CCPN) a nongovernmental and non-profit organisation, founded in 1983 to campaign for better health care policies. This group worked to promote compulsory licensing for pharmaceuticals to keep them affordable, champion anti-smoking campaigns, keep

generic names on labeling and advertising of pharmaceuticals, ban caffeine in analgesic drugs, support the rights of people with HIV/AIDS, and regulate a “dirty dozen” of chemicals that were used on consumer products. But budget constraints and a small number of NGOs working directly on consumer issues led CCPN to start incorporating consumer protection into all its campaigns in 1990. In 1994, CCPN set up Foundation for Consumers and it is now the leading consumer organization in Thailand. The foundation´s first Consumer Assembly brought about ”Show Your Bad Products and Services”, which introduced consumers to the notion of using social action through bringing their own substandard products or bad experiences with services to the event in exchange for a pack of brown rice. More than 600 consumers joined this twoday event. The foundation has also worked to establish an independent consumer protection agency that was mandated in the Constitution. The Confederation for Consumer Organisations, Thailand (CCOT) is a network of 17 consumer organizations around the country working on issues related to health, women, farmers, labour and civil society groups. The Foundation for Consumers publishes a bimonthly magazine called ”Smart Buyer” that covers consumer rights, protection, and tips, as well as misleading products and product testing. It collects membership fees and does not carry ads, helping it remain independent with over 12,000 subscribers. The foundation also runs a complaints and legal assistance center and airs a weekly live television programme every Friday called “Assembly of Consumers”. Issues presented on the TV programme comprise: Are weight-loss product ads reliable? Are food supplements ads truthful? Tips on avoiding direct selling and marketing, and UBC´s monopoly of cable TV in Thailand.

The Foundation for Consumers is also working on including a campaign for universal health care coverage for the country, as 30% of Thais do not have access to health insurance. As well, it set up an Anti-Corruption Network in 1998 after a government drug scandal that cost 1.4 billion baht. The network collected 50,000 signatures and several public health ministers resigned as a result. Finally, the foundation has continued to campaign for affordable medications as Thailand had to amend its patent law following the World Trade Organization’s Trade-Related Aspects on Intellectual Property Rights Agreements, as well as the US pressuring Thailand for amendments and threatening trade sanctions. It has been very hard for Thailand to enforce compulsory licensing to allow access live-saving medicines, such as those for HIV and AIDS. For more information about the Foundation for Consumers, call 02-248-3737.

Thai-Norwegian Business Review

CSR and Communication by Colin Jarvis

had built up over a period of perhaps 100 years. My Father and his colleagues would never have allowed it to happen.

Another example of where short-term expediency can destroy an image of good corporate social responsibility is that of BP. This company had changed its name from British Petroleum to Beyond Petroleum. They intimated that the company was about energy not just about oil products. They put solar panels on the roofs of their petrol stations and backed them up with windmills to provide ecologically sound energy. They really gave the impression of being truly socially responsible.

don’t like “Spin”. I firmly believe that, by providing every member of your organisation with a clear understanding of the organisation’s vision and values, good communication will follow quite naturally. “Spin” is putting the most positive emphasis on what you say rather than necessarily telling the truth. “Spin” might solve a problem in the short term, but not in the long. Sadly, so many organisations today only think of the short term. This is understandable but not desirable. I remember, very early in my career, I produced a paper for my Chairman that kept emphasising the long-term. He told me, very forcibly, “Listen Jarvis, in the short term there might not be a long-term”. Whilst this is no doubt true, simply looking at the short-term may destroy any long-term future. The periods over which success are judged are becoming shorter and shorter. Very few organisations think more than one or two years ahead as they are concerned about the next quarter’s results rather than what the state of the organisation will be in ten years. When this happens I find that Corporate Social Responsibility is often disregarded except where, in the short term, it might create the opportunity for “spin” and some short term benefit. CSR must be a long-term commitment. Let me give you an example. My father worked for Shell International throughout his working life. His colleagues were always visiting the house and in the early days, indeed throughout most of his career, I found these people to be highly intelligent, very motivated and incredibly ethical. Shell had a great reputation and because of this had its pick of graduates and other employees. Over the years I’ve found the time span at which these people were naturally thinking became shorter and shorter. Later, as a consultant, I worked with the company and found that the short term was about as far as most people were thinking. You may remember that a few years ago, the company was discovered to have exaggerated its oil reserves in order to manipulate the share price. This short-term expedient had the effect of destroying much of the excellent reputation that Shell 38

Thai-Norwegian Chamber of Commerce

Then the oil spill in the Gulf of Mexico happened and their actions in attempting to avoid responsibility and to minimise the public relations damage showed them to be full of “spin” rather than true upholders of CSR. I find it difficult to put figures on it but I firmly believe that corporations that are truly socially responsible attract better employees than those that are not. People like to work for organisations for which they feel proud. It is noticeable that at cocktail parties, when you ask someone what they do, if they state their occupation they are not truly proud; if they tell you that they work for a specific organisation then they are proud to be associated with it. I have been told by employment consultants that socially responsible organisations not only attract better candidates, they pay no more than their competitors and often a little less. It would seem therefore that CSR has at least some economic benefits. If this article and the others in this magazine encourage you to improve the corporate social responsibility of your organisation then you may think it is difficult to implement. It is not! Corporate social responsibility can be very simple to implement. The concept has been around for many years, all that is needed is that you and your fellow members of the organisation must make it part of the vision and values of your organisation. Some organisations attempt to write huge manuals indicating all the dos and don’ts that they hope will lead to a corporation that is socially responsible. This is doing it the hard way. A little over 2,000 years ago one man came up with a simple statement which can be paraphrased as “Do unto others as you would have them do unto you”. Many other philosophers and religious figureheads have made similar statements and that really is the secret to corporate social responsibility. Does your organisation and the people in it, behave as they

would wish others would behave to them? Would your employees like their children to be employed in poor conditions and at low wages? If you lived next to a large industrial plant would you be happy about pollution being emitted from the plant? Would you be happy if your customers took three months to pay you? Most questions can be put in these terms when it is simple to recognize where good social responsibility lies and where it does not. CSR is not the latest topic for “spin” to make your organisation more acceptable to your stakeholders. It is a philosophy of life. It may initially seem to cost money but in the long term it will make your organisation stronger, more sustainable, and more likely to ride out the vagaries of the markets we see today. Most of us would agree that we are more impressed by what people do than what they say. So it is with corporate social responsibility. Do it but don’t shout about it. It should not be something we are proud of, it should what we naturally do just as being a decent honest person is the basis of a being a useful member of society.

How do you communicate to the people in your organisation in such a way that they will follow this philosophy? Again it is simple. If you find someone or a group of people are not being socially responsible then they should be criticised and perhaps even punished. If they are being socially responsible they should be complemented and encouraged to repeat these actions. Above all lead by example! When we all lived in small villages we had to exhibit social responsibility for the simple reason that if we did not we would be found out and punished by our neighbours. The bakers who gave short weight, the brewer who gave short measure, the farmer who overworked his workers were always found out in the end and they suffered. Today is no different as we all now live in one single global village. We are all being watched both as individuals and as organisations. Bad deeds will be found out and will come back to haunt us at some time in the future. It is better to be socially responsible and relaxed rather than be irresponsible and wait for the metaphorical knock on the door. Corporate social responsibility is not about opportunities to “spin” it is about having pride in what we do.

In our world there are no amateurs.

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Spica Co., Ltd.

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Annual Leave in Thailand By Chitchai Punsan, Attorney-at-Law Tilleke & Gibbins

nnual leave, or employee vacation provisions, can often be a contentious issue in employer-employee relations. This is certainly the case in Thailand, where both employers and employees may have certain perceptions about entitlements and obligations—perceptions that do not always align with the legal reality. This article addresses common mistakes concerning annual leave.

Annual Leave Must Be Fixed by the Employer in Advance. Under Section 30 of the Labor Protection Act (LPA), an employee who has worked continuously for one full year shall be entitled to annual leave of not less than six working days. The term “annual leave” refers only to personal vacation. The employer must fix the employee’s annual leave in advance. The law does not require the employee’s consent for the employer to do so. However, for the employee’s convenience, annual leave can be taken on certain dates, as agreed by both parties. If the employer does not fix annual leave for the employee, the employer is subject to a maximum criminal fine of THB 20,000 (LPA Section 146). In addition, the employer is liable to pay holiday wages to the employee (LPA Section 64). Therefore, even if the employee neglects to take personal vacation, the employer must still pay wages for any unused days of annual leave. For instance, Somboon was entitled to 20 days of annual leave in 2010, but he used only 5 days that year. As of January 1, 2011, Somboon has the right to claim wages for the 15 days of unutilized vacation time in 2010. Employees Must Be Allowed to Carry Forward Annual Leave Section 30 of the LPA provides that the employer and

Thai-Norwegian Chamber of Commerce

the employee may agree in advance that the annual leave will be postponed, accumulated, and taken together with leave accrued in subsequent years. The Supreme Court of Thailand has ruled that the employer is in violation of Section 30 if the employer indicates in its work rules that annual leave cannot be carried forward to following years. Thus, despite any work rules to the contrary, the employee has the right to claim holiday wages for unused annual leave carried forward from previous years. In addition, the employer has no right to deduct or reduce such entitlement for any reason whatsoever. Per Section 193/34 (9) of the Civil and Commercial Code, the employee must exercise his or her right to claim wages for unused annual leave within two years following his or her entitlement to such amounts. From the above example, Somboon must file his claim for holiday wages with the court on or before January 1, 2013. Annual Leave Is Calculated Based on the Length of Employment Under Section 30 of the LPA, annual leave entitlement must be calculated in accordance with the length of employment. For example, XYZ Corporation’s work rules indicate that employees are entitled to 10 days of annual leave after completion of the first year of employment. Warunee started working on January 1, 2009. According to the company’s work rules, she cannot take annual leave in 2009, but she can do so in 2010. During the period of two years of employment, Warunee did not take any annual leave. She decided to quit her job, effective December 31, 2010. In this case, XYZ Corporation must pay holiday wages to Warunee in an amount equivalent to her prorated salary for 20 days—10 days for each year of employment. Personal Business Leave Is Not Annual Leave If the employee’s child is sick and the employee must take leave to stay with the child, this is clearly not a vacation and cannot be classified as “annual leave.” Section 34 of the LPA stipulates that an employee is entitled to take personal business leave as necessary in accordance with work regulations. Personal business leave is different from annual leave and must be addressed separately in the work rules.

The LPA, however, does not provide much guidance on personal business leave. This means that the employer can freely stipulate the requirements for personal business leave in its work rules. The employer should set the criteria, the number of days per year, the procedures for approval, and whether the employee is entitled to wages when taking personal business leave. After granting personal business leave, the employer cannot deduct such leave days from annual leave. Conclusion Annual leave is a common area of disagreement between employers and employees. If both sides

correctly understand their rights and obligations, disputes on annual leave can be easily resolved through discussions between the parties, without having to go to court.

An earlier version of this article was first published in the Bangkok Post on April 8, 2011. Please send comments or questions to Andrew Stoutley at andrew.s@tillekeandgibbins.com.

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IMG of Norway’s headquarter is located in the Sunnmøre area of Norway – famous for its steep mountains and deep fjords as well as the production and development center for Scandinavian comfort recliners. IMG have manufacturing facilities in both Vietnam and Thailand. IMG AS Postboks 163 N-6249 Orskog Norway Tel: + 47 70 27 10 40 Fax:+ 47 70 27 10 41 E-mail: ofﬁce@imgcomfort.com www.imgcomfort.com

Thai-Norwegian Business Review

A Review of Life at the Chamber by Nadia Willan photo by Karine Slørdahl

Vibeke Eidsaae Corneliussen is the former Executive Director of the Thai-Norwegian Chamber of Commerce. Her role involved providing the members with a forum for corporate networking for improving business conditions and opportunities as well as overseeing and editing the Thai Norwegian Business Review. Arriving in Thailand two years ago, she has learnt a lot about the business culture, society, people and life in the country. She values the opportunity of being part of the interesting work of the Chamber in Thailand and before jetting back to Norway, TNBR has a quick chat: Why are you leaving? My husband is ready to start a job back home and I came out here because of his job. My work at the Chamber was an unexpected adventure. What was your impression of how businesses from Thailand, Norway and other countries engaged with each other here? A lot of the work we do involved getting businesses communicating and networking. It would be great to see more members of the Chamber getting involved and participating at more events. I think creating a business community where people can learn from each other and hear different points of view is of great value to everybody. Our breakfast meetings are for example a great networking venue. What were the challenges of life and work in Thailand? It goes without saying that there are many positives of living and working in Thailand. However, I sometimes found the cultural differences a challenge both in work and out. The lack of directness can be a bit frustrating at times. It often means that you don’t get a clear answer which can be confusing and not always great in a work environment. Although many tourists love the ‘go with the flow’ attitude in Thailand it isn’t always great when you are dealing with deadlines.

Thai-Norwegian Chamber of Commerce

Vibeke Eidsaae Corneliussen – taking home a piece of Thailand

Does Thailand offer a positive business environment? There are many positives in terms of business in Thailand! The country has large industrial estates which perform well and there is good communication between them and the government offices. Thailand’s Board of Investment (BOI) are also working to promote investments in Thailand and offers a range of tax incentives, support services and import duty exemptions or reductions to a list of promoted activities. However, looking at the way the 3G license has been handled is not positive for potential investors. Thailand has a buoyant economy and it has to be pointed out that the country has recovered well from the riots in Bangkok last year. What advice would you give foreign businesses looking to Thailand? Being aware of what rules and regulations apply for your business should be the first project of any foreign business person looking to invest or set-up in Thailand. It is easy to get confused or miss out important aspects which can have repercussions.

What do you think Thailand could do to help foreign businesses? Thailand could benefit from looking at its neighboring countries that possibly make it easier for foreigners to set up businesses and are doing more to attract foreign investment. Thailand is still a new country and has lots of positives though which it can build on. What’s been a highlight? On a personal level I would say the travelling! While staying here we’ve been lucky enough to travel through South East Asia, to Burma, Cambodia, Vietnam, Singapore, Hong Kong, Beijing, Shanghai, Indonesia, as well as all around Thailand. Professionally, completing my first issue as an editor of the Business Review felt good! I was new and Kristine, who was responsible for the graphical layout was new and so were most of the journalists. And of course attending luncheons and briefings with the Prime Minister and

Minister of Foreign Affairs wasn’t something I expected when we first moved to Thailand! What will you miss? I live just on the outskirts of Bangkok and my two seven year old twin boys have good friends here and we are part of a great community of people from all over the world that we are going to miss. But my children are looking forward to taking up skiing and ice skating again. We will all miss Thailand but are excited about the next chapter. Little things to be missed are of course the food and especially the fresh mango, waving palm trees and the contrast in every aspect of Thailand – the contradictions I suppose. I know when I have visited home and found myself not walking but just standing on the escalator, which is very non-Norwegian, that some of the Thai ways of doing things have rubbed off on me. I don’t think that’s a bad thing though! I’ll take a little piece of Thailand and Thai culture back with me.

The Firm provides legal services in general commercial practice and renders advice in the wide area of legal environment, i.e. corporate related matter, commercial contracts, merger and acquisition, financial transaction, banking, real estate, foreign investment, project finance, intellectual property, customs, taxation, entertainment, environment, labour law, dispute resolution, litigation, company secretarial service, work permit, immigration, translation of legal related document. The Firm represents multinational companies as well as their executives, and individuals doing business in Thailand from Scandinavia, the Netherlands, England, Germany, etc. and Asia.

Level 8, Suite 3801, BB Building 54 Sukhumvit 21 (Asoke), Klongtoey Nua, Wattana, Bangkok 10110 Tel: +66 2 259-2627 thru 9 Fax: +66 2 259-2630 Email: wissen@csloxinfo.com Website: www.wissenandco.com

Hurrah – 17th of May by Kristine Hasle photo by Jørgen Udvang

More than 250 people celebrated the Norwegian Constitution Day, 17 May in the Norwegian Ambassador’s garden. It was the first time Ambassador Katja Nordgaard opened her garden on the Constitution Day. It was a celebration very much like we would have had it in Norway. The beautiful surroundings, with blue sky and no rain, made a perfect frame for the day. It was a very traditional 17 May arrangement. The Royal Army

Band was playing the Norwegian national anthem and Norwegian marches. There was a nice parade with happy children and Norwegian flags in Sukhumvit soi 38. There were a lot of national costumes (bunader) despite the fact that the temperature was above 30 degrees. A big group of traditionally dressed up Thai women from Chiang Mai was also present. This group is normally sewing Norwegian national costumes in Chiang Mai, accompanying a producer of Norwegian national costumes. An abundant supply of sausages, ice cream and soft drinks was available for everyone. And even Norwegian salmon and waffles. All in all, it was the Norwegian way to celebrate our national day. Speeches were held by the counsellor Birgit Brantenberg and the Ambassador Katja Nordgaard. The children’s speech was delivered by Gina and Erle Tonne. The kids, both big and small, got to play sack races, egg on the spoon-races, sponge throwing and hammering nails. Children who joined in the activities received a medal embossed with the words “Bangkok, 17 May”. In the evening, a party was arranged at Millenium Grande. Here, around 120 participants decided to join the party to meet other Norwegians and have a nice dinner. Naturally, salmon was on the menu. Beautiful pictures from the celebration earlier that day were projected on the big screen. Nissa Nyberget and his band played and people were dancing. 17 May was a very special day for us Norwegians in Bangkok.

Thai-Norwegian Chamber of Commerce

Thailand’sEconomy EconomyatataaGlance Glance Thailand’s Basic Figures Thailand (2010)

8.0

6.0

1 -1 -2

Stock Exchange Index (SET)

Dec10 Jan11 Feb11 Mar11 Apr11 May11

0 2006 2007 2008 2009 2010 2011p

Q1/11

Q4/10

Q3/10

Q2/10

-4.0

2011p

2010

2009

2008

2007

0.0

Exchange Rates 7.00

1,200 1,100 1,000 900 800 700 600 500 400

6.50

THB/NOK

6.00 5.50 5.00 0801 0804 0807 0810 0901 0904 0907 0910 1001 1004 1007 1010 1101 1104

4.50

Manufacturing Index

Bilateral trade 2010

2000=100

Import 1,175 (847) MNOK Export 2,284 (1,950) MNOK

600

220 400

200

180

Thai-Norwegian Chamber of Commerce

Thai-Norwegian Business Review

Computers

Clothing

Cars

Electronics

Food

Paper

Misc. mauf

Fish

Engineering

Apr11

Mar11

Feb11

2006

140 Basic Figures: BOI. Comparisons: Wikipedia. GDP/Capita and Thai Population: Wikipedia. Thai GDP and CPI: Bank of Thailand. Quarterly GDP: NESDB. SET: Stock Exchange of Thailand. Exchange Rate THB/NOK: x-rates.com. Manufacturing Production Index: Thailand’s Ministry of Commerce. Bilateral Trade: Statistics Norway. Petrol and BigMac prices as of 16 June 2011

Chemicals

160 Jan11

6.95 14.42 12.78 40.00

2.0

Dec10

Other bits and pieces Petrol/litre (95 E10) NOK: TH Petrol/litre (95 Octane) NOK: NO McDonald BigMac price NOK: TH McDonald BigMac price NOK: NO

-2

4.0

Nov10

67.0 mill 4.9 mill 9,100,000 586,860 71/75 78/82

Female

Thai Consumer Price Index

10.0

2010

Male

-4

Mill

Thai GDP Growth (%)

2009

MY TH CN ID PH VN IN LA KH MM

80+ 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0-4

0501 0507 0601 0607 0701 0707 0801 0807 0901 0907 1001 1007 1101

Geography Geographic Area: TH 514,000 sq. km Geographic Area NO: 385,199 sq. km Highest peak TH: Doi Inthanon 2,565 m Highest peak NO: Galdhøpiggen 2,469 m Inland water areas TH: 2,230 km Inland water areas NO: 16,360 km Coastline TH: 3,219 km Coastline NO: 25,148 km

Sources:

-2.0

Some comparisons

Demographics Population TH: Population NO: Population Bangkok: Population Oslo: Life expectancy M/F TH: Life expectancy M/F NO:

2008

Top 10 Exports Jan-Mar %/value USD bill. Cars and automotive 8.9%/5.0 EDP equipment 7.9%/4.5 Rubber 6.3%/3.6 Precious stones/jewellery 6.3%/3.6 Polymers etc. 3.8%/2.1 Electronic integrated circuits 3.6%/2.0 Rubber products 3.5%/2.0 Chemical products 3.3%/1.9 Printed matters 2.9%/1.7 Rice 2.7%/1.6

US NO SG KE TW

10-30% 10-15% 7% 0-37%

Thai Population 2010

100

2006

Corporate income Tax Withholding Tax Value Added Tax Personal income Tax

GDP/Capita (TUSD)

2007

Export Growth 2010 28.5% Export Growth 2011 projected 12.5% USD 14.0 bill Trade Balance (2010) Current Account Bal. (2010) USD 14.8 bill International Reserves (2010) USD 172.1 bill Minimum wage (Bangkok) Baht 215/day

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Fact & Figures

Year Established: Norway 1864, Thailand 1988 Number of Employees : Worldwide 8,700

Det Norske Veritas (Thailand) Co., Ltd.:

No. 1, MD Tower, 9th Floor, Room A, Soi Bangna-Trad 25, Bangna, Bangkok 10260 Tel : +66 2 3618288-90 Fax: +66 2 3618291

DNV Corporate Address:

Det Norske Veritas AS, NO-1322 Hovik, Norway Tel. : +47 67 57 99 00 Fax : +47 67 57 99 11 www.dnv.com

Honorary member H.E. Mrs Katja Nordgaard New Ambassador Royal Norwegian Embassy Tel: +66 (0) 2204 6500 Fax: +66 (0) 2262 0218 Email: emb.bangkok@mfa.no

Honorary member and Senior Advisor to the Board Tove Bjerkan House 101/20 Na Jomtien Soi 38, Ban Amphoe, Sattahip, Chonburi 20250 Tel: +66 (0) 3823 7683 Fax: +66 (0) 3823 7683 Email: bjerkan@loxinfo.co.th

Senior Advisor to the Board Dr. Kristian Bø 234/237 Discovery Place, Soi 23 Khlong 7, Pathun Thani, 12110 Thanyaburi Tel: +66 (0) 2957 0111 Fax: +66 (0) 2957 0222 Mob:+66 (0) 8 9129 9993 E-mail: kristbo@truemail.co.th

Board of Governors President Mr. Axel Blom Blue Business Solutions Ltd. Tel: +66 (0) 2627 3040 Fax: +66 (0) 2627 3042 Email: axel.blom @blue.in.th

Vice President Major Choakdee Dhamasaroj Nera (Thailand) Ltd. Tel: +66 (0) 2664 1464 Fax: +66 (0) 2664 4002 Email: choakdee@neratel.com.sg

Mr. Gunnar Bertelsen Telenor Asia (ROH) Ltd. Tel: +66 (0) 2637 4700 Fax: +66 (0) 2637 4726 Email:gunnar.bertelsen@telenor.com

Ms. Piyanuj Ratpratsatporn Tilleke & Gibbins International Ltd. Tel: +66 (0) 2653 5555 Fax: +66 (0) 2653 5678 Email: lui@tillekeandgibbins.com

Dr. Paisan Etitum, Ph.D Thai Transmission Industry Co., Ltd. Tel: +66 (0) 2678 6640 Fax: +66 (0) 2678 6649 Email: paisan@tti-mail.com

Mr. Sverre Golten A&S Thai Works Co., Ltd. Tel: +66 (0) 2313 1540-1 Fax: +66 (0) 2313 1550 Email: sgolten@ksc.th.com

Bent Axelsen Yara Thailand Tel.: +66 (0) 2664 9498 Fax: +66 (0) 2664 7488 Email: jan.egil.amundsen@yara.com

Jørn Unneberg Jotun Thailand Ltd. Tel: +66 (0) 2664 1464 Fax: +66 (0) 2664 4002 Email: jorn.unneberg@jotun.com

Mr. Torpong Thongcharoen Norske Skog (Thailand) Company Limited Tel.: +66 (0) 2661 3486 Fax: +66 (0) 2661 3485 Email: torpong-t@papcothai.com

Vice President Ms. Vibeke Lyssand Leirvåg Felicia (Thailand) Ltd. Tel: +66 (0) 2637 6998 Fax: +66 (0) 2637 6997 Email: sales@felicia.co.th

Mr. Niels Henrik Hansen Scandinavian Airlines Tel.: +66 (0) 2645 8210 ext. 8830 Fax: +66 (0) 3665 2900 Email: niels-henrik.hansem@sas.dk

Vice President,

Mr. Jon Anders Aas-Haug WebOn Tel.: +66 (0) 2207 2414 Fax: +66 (0) 2207 2525 Email: post@webon.no

Mr. Petter Børre Furberg Total Access Communications PLC Tel: +66 (0) 2202 8000 Fax: +66 (0) 2202 8828 Email:petterf@dtac.co.th

Thai-Norwegian Business Review

An employer of thousands. Built around equality, opportunity and people like us. At Telenor Group, we believe that being at the forefront of telecommunications isn’t just about technology. It’s about people. And whether those people are customers or employees, we always ask ourselves this simple question; ‘does this fulfill the needs of people?’ That’s why we have invested resources and time in developing new ways of working, creating new structures that dismantle the barriers and hierarchies of the past and replace them with freedom, openness and opportunity. We know that as we have grown internationally, our employees remain our most precious asset and we aim to help them realize and fulfill their ambitions and potential as individuals and as groups. Wherever they are based. To find out more about how the Telenor Group works hard at being ‘built around people,’ please visit www.telenor.com

This advertisement features Telenor Group employees

Telenor Group is a global provider of high quality telecom services with operations in 13 markets around the world. To find out more about how we put people at the heart of our business, visit www.telenor.com Telenor Group has telecom operations in these countries: Norway, Denmark, Sweden, Hungary, Montenegro, Serbia, Ukraine, Russia, Pakistan, Bangladesh, Thailand, Malaysia, India.

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