Thai-Norwegian Business Review 2010 – 1
Thai-Norwegian Chamber of Commerce
Theme
Newcomers in Thailand
Portrait
Sverre Golten
Contents Portrait: Sverre Golten
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Annual general meeting
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Newcomers: Starting up in Thailand
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A guiding hand for new business in Thailand
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The one stop service for doing business
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Making business less taxing
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The only stop to make
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Making the move with Karine Slørdal
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Laying down the law on foreign business
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A beginners guide to business
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JFCCT making a difference
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The right choice for those who qualify
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Same, same but different
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A telecom operator “built around people”
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Seeing disasters differently
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Martin Rosborg
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In conversation with Christine Low
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SAS-networking
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Members Directory
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Editor: Vibeke E. Corneliussen Journalists: Eric Baker, Laurence Civil, Emma Long, Jørgen Udvang, Colin Jarvis, Nadia Willan Photographer: Jørgen Udvang Design/artwork: Kristine Hasle Advertising: Elisabeth Bashari Media Commitee: Eric Mallace, Torpong Thongcharoen, Jan Egil Amundsen
Front page picture: Welder working at ASTW’s factory in Samut Prakan Photo by Jørgen Udvang
On the Democratic Road to Peace and Recovery At the time of printing, the protests have been declared over and the leaders have given themselves up to the police. Street violence and lawlessness is unfortunately continuing in the wake of the rally. We can only hope that this unbearable situation will soon be over so that we can start looking towards peace and recovery. The polarisation of the Thai society has been exploited by a number of self-serving groups and individuals and it has been really sad to see Thais fighting Thais in the streets. The lawlessness that has followed in the wake of the protests has seriously hurt the country’s peaceful image and it also sets a dangerous precedent. The damage to the Thai economy is enormous and ripple effects will be felt for years to come. While the government needs to take note of the call for greater equality in the Thai society, they cannot give in to mobs roaming the streets. It is a very delicate balance. People calling for democracy must also understand that democracy is so much more than restoring elections and constitutions and it carries heavy responsibilities. 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. The true value of democracy must be taught to be truly appreciated and understood. We must now start to look forward to rebuilding Thailand into a modern and democratic society. Foreign businesses is very much part of this process. Foreign businesses employ more than two million people and is estimated to contribute 20% of the country’s GDP. Thailand still has a lot to offer foreign investors. This issue of Business Review focuses on the benefits of starting businesses in Thailand. Several successful businesspeople are sharing their long experience with us and are also giving us practical hands-on advice. Many of the contributors are active in the Joint Foreign Chambers of Thailand (JFCCT), an interest organisation representing an estimated 9,000 business entities in the Kingdom. In this issue you will also learn about JFCCT’s work and how they can help your business succeed. I close on an optimistic note hoping that the protesters will disperse soon and that life returns to normalcy in Bangkok so that we once again can look forward to help building this country into a prosperous and peaceful nation. Sincerely, Axel Blom President Thai-Norwegian Chamber of Commerce
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“Good luck and good Quality” Interview with Sverre Golten by Jørgen Udvang
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he headline is Sverre Goltens own words. Add skill and dedication, and you are looking at a Norwegian success story in Thailand.
He could have been a retired officer of the Royal Norwegian Navy by now, had he followed his first idea about a career. But according to Sverre Golten there are a few important crossroads in life which happens maybe two or three times in life, and are often the results of luck or destiny that can totally change a person’s life towards a new direction. For him, a letter from the ETH University in Zurich, Switzerland did just that, after receiving a positive reply from a half hearted application sent earlier that year, in 1971. The initial plan was after all to become a high-ranking officer in the navy. So he became an engineer instead, a profession that brought him to exotic places around the world. In 1983, after spending three years in Singapore, Sverre was on his way home to Norway when he received a phone call from his former boss at Stord in Bergen. They wanted to open a sales office in Bangkok, aiming to sell their fishmeal machinery in the Asian markets. He reluctantly accepted the challenge and opened Stord Thailand, a low-budget sales office with four employees, and went to work. It took a full 18 months to find out that the Norwegian machinery, which had an excellent reputation in most of the world, wasn’t suitable for the Asian conditions at all. Such discovery confronted him with the hard decision that has been encountered by many western industries trying to establish themselves in Asia “Adapt or go home”. So he tried to adapt. A prototype of a total new process and machine was developed in Norway, shipped to Thailand and installed in Ban Phe, Rayong province. It worked over all expectations, and after three years in Thailand, Stord in Bergen could start to cash in on their technology and knowledge, selling fishmeal plants that made a better quality product at a lower cost, lower maintenance and using considerable less energy. A revolution was in making for the Asian industry and the customers.
The next challenge for Mr. Golten was cost. Manufacturing machinery in Norway to sell in Thailand was not feasible to say the least, with the Norwegian cost level and long freight making each unit prohibitively expensive. The solution was to start manufacturing in Thailand, initially not by establishing a factory, but by outsourcing the production to a local workshop. After six years, 16 installations were completed in Thailand, and the Stord name was well established in the market. Then came negative developments: the resources of fish around Thailand shrunk, locally made cheap copies of the Stord machines appeared, the local subcontractor got into problems and the machines that were built to last forever seemed to do just that. The year was 1992. The solutions came in a multiple package, of which export of machinery and building of a new factory were the most important. -Stord Thailand was still owned by Aker in Norway, Mr. Golten explains, but our head office Stord Norway started to get into financial problems and Aker did not want to invest in Thailand, so I financed a new workshop employing 40 people with money I had earned when working in Singapore. But you say there were more surprises to come. In 1998, I was called back to Norway for a meeting, Golten says. The message was clear: Aker wanted to get rid of all ”small” subsidiaries, and the choice I got was either to close down or take over the Thai company myself. What was your reaction to that? I was scared stiff. The jump from being an employee receiving a salary every month to being responsible for a factory with 40 employees is quite a challenge. It turned out it was a blessing in disguise as I would now have free hands and could do what I wanted instead of always having to ask the board in Norway for decisions for everything. How did you approach the market? We used a “Love Story” approach. We told our customers that making our machines and the business we’re in is almost like a love story. It is not the money that is essential, but the joy to create and build these machines, see them work and see happy customers. Thai-Norwegian Business Review
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Welder working at ASTW’s factory in Samut Prakan
Detail of fishmeal machine ready for delivery
They believed us and it became a mutual relationship with most customers and strong bonds. Money is after all just a tool you need for living and safety. After over 200 installations we still haven’t had a single bad debt, partly due to this attitude and we are proud of it. We are one of the few customers of the Thai K-bank that gets 80% packing credit financing by just showing a signed sales contract without any LC. They trust us, in the same way as our customers trust us. I am often surprised when I hear through close contacts that a high level customer say in private that we can be trusted, and I ask myself “why?”. Are so many other companies and competitors not trustworthy when the going gets tough? Apparently yes. Can you convey this attitude to your employees as well? We adapt to each other. There is a lot of pride, loyalty and enthusiasm in the company, and very few people quit. There have been some funny stories told by former employees who could not stand our fast pace, that “These people at Stord are crazy, they work all the time!!” What’s in it for the employees? We become a family. Our Norwegian inheritance of social equality and responsibility works well in Thailand. They can come to me with their problems, also the financial ones. We have even established a five month, interest free loan for to pay for school fees for each term, since that is an economic challenge for most families, and many have to take up loans from loan sharks. On staff level, if you finance the houses of your key people you tend to get loyalty back. I’m impressed with my Thai employees. I am the only foreigner in the company and doubt that I would have been able to sustain work under all the pressure without them. Building the ecessary competence takes 10
Thai-Norwegian Chamber of Commerce
time, always more than planned. Training is absolutely essential. Thai staff tends to want to remain at an obtained level once you have trained them and some are reluctant to leave this safe level of competence to develop further. The challenge is to find the right level and right pace for each employee and to offer the correct economic compensation. Besides the relation and care, money is a powerful tool in this society, and by using it correctly, one can achieve surprisingly ambitious goals, but you have to be careful not to spoil them as well. That I speak the Thai language also helps. We have also established a routine with four months of work and one week of holiday, something rather unique for a Thai company as the expensive workshop and facilities stay idle for 3 weeks per year. It is feasible, however, employees always have a holiday to look forward to that is maximum four months away, and the holiday gives them the opportunity to come back to work fresh and with enthusiasm. The last day before each holiday we throw a party with barbeque and free beer, and we see this is very much appreciated. Are there other peculiarities working with a Thai staff? There seem to be no secrets in this country. If you tell something to one of your employees in full confidence, the chance is that everybody will know about it pretty soon. The more secret or hot it is, the faster the news will spread, especially if it is of very personal nature. See the gossip and political developments in the newspapers. Still, the three most important reasons for establishing a business and living in Thailand are the people, people and people! In addition, life here is very easy; infrastructure is good and the level of service is often exceptional. Almost anything we order will be delivered by a messenger within a couple of hours.
About ASTW: ASTW, short for A&S Thai Works, manufactures machinery and processing lines for factories in the by-product industry, turning raw materials such as fish, fish waste, meat, bone, guts and blood into animal feed. The workshop, located in Samut Prakan, east of Bangkok at Bangna Trat rd. km 24, employs 170 people and exports and installs processing lines in Asia Pacific, Australia and New Zealand, and increasingly more worldwide.
Songkran Blessing, photo: Supot Changcharoen
Are there any weaknesses? It’s important to be aware of the limited technological level in Thailand. There are limitations in the education system as well as people’s attitudes which make advanced engineering difficult. The education system is the biggest obstacle, and more so the higher you get. It’s simply too easy to obtain a university exam. Too many people study to get the degree, not to obtain knowledge. Face is important, competence and substance not nearly as much. It is also important to remember that this is an agricultural society by nature and origin. The Thai farm tradition was to get up with the sun and to bed when it sets. Thais seldom had to struggle to survive harsh conditions like in Norway and China. Some people prefer a relaxed life style rather than struggle to become rich, and it becomes genetic over thousands of years. This also means that you as the boss have to be present and apply a certain amount of pressure all the time. It’s like a hand driven generator; the moment you stop churning the light goes out. How to you maintain a consistent quality level? It’s of paramount importance to establish relevant control procedures. Each employee must be followed up on an individual level. The pressure from good control routines is absolutely essential to keep the quality high. Experience has shown that this applies even for employees with very long experience. How about ownership and control? You need to be in full control of all your assets with watertight contracts, and using special contracts when your assets such as land have to be in Thai names. It’s impossible to know what the future will bring, and that includes wife, close friends and staff. In principle do never trust anyone absolutely. That means not to
go around and worry every day, but rather to be mentally prepared for the unthinkable situation when your closest staff suddenly leaves you and starts up a company as your competitor. Then just take it cool and say that was fate, and go from there. Things will always change one day, and there is always a chance somebody wants to gain control or seep off money from your business or your assets. If you have not covered yourself, you may lose it. It is important to have a good lawyer. You started by selling in the Thai and Asian markets. What is your experience here? Marketing in Thailand is different, or maybe not so different from other markets. People are used to have sales promotions pushed down their throat on a more or less continuous basis. Just look at the TV, shampoo and drinks and so on. But the marketing experts say that the moment you lower the promotional pressure, the sales drop, and it seems to be true. If you should list some factors that have been important for the success of A&S Thai Works, what would they be? - Good luck and fate perhaps - Good products from the mother company in Norway - A market that needs our products - High level of customer service - Good quality and quality control - Honesty and modesty and not being greedy but generous - Social responsibility and genuine concern for everyone You are 60 now, what is the plan for the future? My kids are not interested in the business, so I will sell the company with myself onboard as an employee, and work as long as I am useful. Thai-Norwegian Business Review
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DNV was established in 1864 as a ship classification society, but has diversified into a multi-faceted certification and consultancy organisation, spanning 130 countries on all continents. DNV is one of the world leaders in all its enterprises and takes great care to earn an image of high-tech, deep competence and uncontested integrity. DNV performs statutory ship surveys on behalf of 130 maritime administrations and is accredited by over twenty national accreditation bodies for management system certification. Classification and statutory certification of ships and other floating installations - 17% (137,2 million GRT.) of world fleet in class as of early 2010. - 19% of ships ordered in 2009 - 70% of maritime fuel testing market Certification of materials components, equipment, systems, machinery, pipelines, process plant etc. Certification of oil & gas offshore installations, pipelines Risk management consultancy and assessment Asset integrity management and risk based inspection programming Certification of management systems to standard like - Quality - ISO9001 - Environment - ISO14001 - Occupational health and safety - OHSAS18001 - Information security – ISO/IEC 27001 - Automotive – ISO/TS 16949 - Food safety – ISO 22000 As of early 2003 DNV has more than 8% of world market for management system certification and more than 80 national accreditations and 70,000 certificates issued worldwide. In the forefront with new and innovative assessment and certification services, such as Risk Based CertificationTM, as exclusive approach to management system certification.
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
Annual General Meeting
Wiik Andreassen, Treasurer of the Chamber, guided the attendees through the financial statement highlighting that this was the Chamber’s first full year in stand-alone operation with new office and dedicated Executive Director and Secretary. After the meeting all attendees were invited to a dinner arranged by the Chamber.
photo by Kristine Hasle
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he Thai-Norwegian Chamber of Commerce held its Annual General Meeting at Sheraton Grande Hotel Sukhumvit on Monday 29 March. The meeting was opened by the President of the Chamber, Mr. Axel Blom. After welcoming all the attendees to the meeting, the Chamber’s accomplishments in 2009 were outlined. Mr. Roar
Major Choakdee Dhamasaroj (Nera), Mrs. Vibeke Lyssand Leirvåg (Felicia), Mr. Gunnar Bertelsen (Telenor) and Dr. Paisan Etitum (Thai Transmission Industry) were re-elected as Governors to the Board. Mr Jon Anders Aas-Haug was elected as new Governor to the Board. The remaining Governors are Mr. Axel Blom, President (Blue Business Solutions), Mr. Jan Egil Amundsen (DNV), Mr. Roar Wiik Andreassen (dtac), Mr. Eric Mallace (Jotun), Mr. Sverre Golten ((A&S Thai Works), Mr. Torpong Tongcharoen (Norske Skog), Mrs. Pianuj Ratprasatporn (Tilleke & Gibbins). Remaining special advisors to the Board are Mr. Tove Bjerkan and Dr. Kristian Bø. All the Governors of the Board were given the AGM’s gratitude’s for their valuable contribution.
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Starting up in Thailand by Eric Baker
Thailand has pleasant weather, reasonably priced labour and brilliant food. Who wouldn’t want to start a business here? Of course many Norwegians and other foreigners do indeed start companies in the kingdom. But anyone considering the move needs to think about the legal environment in Thailand and possible incentives for foreign investment; immigration and work permit requirements, taxation and revenue issues and finally culture shock. In this issue, Business Review interviews business leaders, solicitors, new business owners in the country and those who have made a living here over a number of years to find out what newcomers to Thailand need to know and ask themselves before they make the jump. Free Trade Agreements between ASEAN countries and between ASEAN and China that scrap tariffs on many goods mean that the region is particularly attractive to potential entrepreneurs looking to export from a Thailand base. Also of note is that most incentives the Board of Investment allocates are for manufacturers planning on transferring technology to the kingdom. A factor that can affect foreign business owners is lack of concern for the culture. As our legal expert testified to in her interview, the Thai government can change rules, sometimes without notice and, in the mind of the foreign business owner, without reason. A newcomer to Thailand needs to be able to deal with government officials, and more importantly their own employees, without blowing up and causing a scene when a situation does not end favourably for the foreigner. There are ways to right an injustice, but it needs to be handled in a Thai way. While every entrepreneur has to make his or her own decision, Thailand’s location in the centre of Southeast Asia and its people’s eagerness to learn new skills mean opportunities are there for investors who wish to grab them.
A Guiding Hand by 18%. We have also implemented various policy measures to ensure that Thailand remains an attractive investment location. One of these measures was the Thailand Investment Year 2008/2009. We knew we were facing a global recession and we wanted to attract more direct investments. So if a prospective investment in the designated activities was submitted by the end of 2009 and that investment could be located anywhere in Thailand - with the exception of Bangkok - that investor would be eligible for the top package of investment incentives. The scheme was limited to six key activities such as those related to eco-friendly industries.”
by Emma Long photo Jørgen Udvang
As this scheme expired at the end of 2009, the BOI relaunched a series of new investment incentive packages in March 2010. These include special policies to attract alternative energy projects (such as power plants using alternative fuels) and as a result the interest last year was high because of these policies.
Thailand’s Board of Investment (BOI)
“Still, decentralization has remained the BOI’s mainstream policy. We split the country into three different zones with each zone attracting a certain investment package. So, it was a case of, the further afield you go, the better the investment package.” Added Khun Duangjai.
Assistant Secretary General of BOI, Khun Duangjai Asawachintachit
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hailand’s Board of Investment, or BOI, is an essential partner for prospective, new and existing investors in Thailand. The primary role of the BOI is to facilitate the expansion of existing investors and the entry of new investors and to provide them with the necessary tools and information that they need. It is also the vehicle for promoting the interests of Thailand to prospective investors all over the world. Steering the helm of the BOI is Assistant Secretary General, Khun Duangjai Asawachintachit, who recently sat down with Business Review to talk about the role of the BOI in today’s ever shifting economic climate. We began by discussing how the BOI has navigated the recent economic crisis. “The financial crisis affected almost everyone and Thailand was no exception. However, whilst the GDP growth in 2009 was negative, the value of investments was the highest in 40 years. So, even though the number of foreign investment projects submitted to the BOI were down by about 5%, the value of those projects increased 16
Thai-Norwegian Chamber of Commerce
How does the BOI promote foreign investments, and in particular, those from Norway? “At the BOI we use what we call ‘proactive strategies’. These activities can include road shows, marketing seminars and roundtable meetings. Lately, we have introduced a ‘door knocking’ exercise where we identify our target investor countries and approach them directly. It’s a bit like investor prospecting. We are no longer waiting for investors to come to us. Within the Scandinavian region, there were very little marketing activities up until four-five years ago as we had mainly focused our efforts on our biggest market of Europe and also the US. However, we began to see a greater number of investors from the region, such as retirement investments from Norway, and so we began to step up our efforts. We engaged local consultants to do the initial ground work for us which were essential in countries where we didn’t have a presence. After a period of time, we decided to open an office in Stockholm to look after the interests in the region. This office joined two others already established in Paris and Frankfurt. We have also worked closely with Innovation Norway in promoting Norwegian business presence in Thailand.”
for New Business in Thailand An essential element of the BOI’s mandate is to ensure that Thailand remains a competitive investment location compared to its neighbouring countries. Khun Duangjai explains where she sees Thailand’s strengths, “Thailand enjoys good infrastructure with a competitive and cost effective workforce. We also have a supportive industry and a large supply base. It is also important to have a supportive government which we enjoy here and we constantly monitor what our neighbours are offering to ensure that we are ahead of the game. We also aim to promote Thailand as an attractive place to live. It is important as well that we do not lose focus of our existing investors, and so we actively try to encourage them to expand their businesses within Thailand which in turn can influence the choices of new investors.” As with many industries, the automotive industry in Thailand was badly hit during the economic crisis. How have the BOI helped to get the industry back on track? “Well it was encouraging to see that the industry had already recovered by the end of 2009, you could see the orders coming back with domestic demand and exports increasing into 2010. It is important however to see this trend continue and so the BOI launched new policy measures related to the automotive industry last year apart from the so called the ‘EcoCar Policy’ introduced a couple of years ago. The BOI has approved six eco-car projects, one of which was Nissan who have recently delivered their new ecocar products, which, we understand, have been very successful. We have also attracted new investors such as Tata of India with these supportive measures, we can continue to see the industry recover” Improved incentives for ROH’s (Regional Operating Headquarters) have recently been improved and Khun Duangjai gave an insight as to how these measures will enhance the current process, “whilst new measures were approved at the recent BOI Board Meeting, there are still some measures that need to be approved by the Cabinet. However, the package of improvement measures are the responsibility of the Ministry of Finance, and what I can say about them is that the enhancements will lead toward the attractiveness of Thailand as a location and the improvement of tax measures. In the meantime, the BOI have progressed with our proposals which include reducing the processing time on approving positions and reducing the number of documents needed. One particularly important measure which is directly related to the BOI and the One Stop Visa and Work Permit centre
is the introduction of a two year first time visa - it was originally only valid for one year. This will reduce the current need to revisit the One Stop Visa and Work Permit centre after only one year and make it a more efficient process.” It is interesting to note that the BOI is an organisation that has many women in key leading roles. We asked Khun Duangjai how the BOI could be used as an example to encourage more women into other government agencies, “I believe that the structure of the organisation and corporate culture also help. The ratio between men and women in the BOI is 40:60 fortunately, at the BOI, we seem to be rather open and women are provided with opportunities to prosper in the organization. If we, as women, work hard and deserve to be promoted then we will be. We have the same opportunities available to us.” Finally, we asked Khun Duangjai about her own background and career path and how it led her to the BOI, “well my background is not typical of someone who works at the BOI. My first degree was in French and French Literature and initially I wanted to be a University Professor. However, this was in the mid 80’s and Thailand was facing an economic crisis and I could not find a job that I liked, and so, after I graduated I attended a training course by the Bangkok Bank which opened up a new horizon to me and which ultimately led me to the BOI. Until then I hadn’t really considered a career in Public Service. After a couple of years at the BOI I decided that I needed some more business related skills to help me, so I took a two year study break and gained a Fulbright scholarship to attend Indiana University in the US to do my MBA. Upon my return my first job was with US AID which was a 2.2 million USD project aimed at promoting Thailand to the US. I remember being amazed as the budget was bigger that the entire BOI budget! That was the start of many interesting projects and I have now been here for 25 years” Although Khun Duangjai wouldn’t class herself as very ambitious, she has over the course of those 25 years steadily worked her way to the office of Assistant Secretary General, a position of supreme importance and it is a role she enjoys immensely and takes very seriously. “I have never been bored” she says, “there is so much variation in what we do, every day brings something different, and it is very rewarding to see the tangible results of your efforts to promote Thailand working so successfully.” Thai-Norwegian Business Review
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The One Stop Service for Doing Business in Thailand by Emma Long
OSOS, The One Stop One Start Investment Centre
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hailand has always been an attractive location for investors. However, until recently, it was a protracted and complicated process to obtain the necessary forms and official stamps before opening a business. It soon became clear to the Government and the Board of Investment (BOI) that a greater level of facilitation was necessary to help prospective investors navigate the myriad of Government offices that were, inconveniently, spread all across Bangkok. Thankfully, those days are now over with the launch of the One Stop One Start (OSOS) Investment Centre. Housed in the Chamchuri Square Building on the corner of Rama IV Road and Phyathai Road, it was opened by His Excellency, The Prime Minister of Thailand, Abhisit Vejjajiva, on the 23rd November 2009. The opening of the OSOS investment centre marks the beginning of an integrated and coordinated process which has brought together twenty-one different offices from ten separate government departments. Mr Nandor von der Luehe, Chairman of the Joint Foreign Chambers of Commerce of Thailand (JFTTC), welcomed this new beginning, seeing it as a first step on the way to harmonising the entire process for investors. The ongoing role of the OSOS in the immediate future will be to make sure that the services provided are efficient and user friendly in addition to being cost effective and financially viable. It will also carefully monitor changes in demands and allow flexibility within their systems to respond accordingly. Promoting the services within Thailand and
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internationally will also be of key importance. The principal objectives of OSOS is to first, facilitate new investments within Thailand by making the process easier and secondly by enabling business expansions within the country and to make this system applicable to any size of business. To this end, OSOS provide prospective businesses and individual investors a range of investment related services including comprehensive business consultation advice, registration of new businesses plus applications for investment related permits and licenses for public utilities. For example, when a prospective investor comes to the OSOS, the first task of the OSOS staff is to find out what the investor needs and what their interests are. With that information, the OSOS will identify the relevant agencies that the investor needs to see and work with. To make this process smooth, an account executive is assigned to manage the investor’s case through to conclusion. They will accompany the investor step by step, acting not only as a translator where needed, but as a liaison between all the relevant agencies involved with the investor’s case. It is important, however, to note that OSOS does not replace the services of the BOI but operates within the remit of the BOI. The role of the BOI serves to help prospective investors in three vital ways. Firstly, to reduce the risks associated with investment, secondly, to reduce initial investment costs and to improve the overall rate of return on investment, and finally, to provide support services at all times. It is here that the role of the OSOS comes into its own. The OSOS is governed by an independent committee which is chaired by H.E., The Prime Minister. The BOI act as the account manager of the OSOS and ensure that the liaisons between the various government departments and between the BOI and OSOS are fluid and transparent. To this end, the BOI are working on an agenda for OSOS officials to give presentations and updates to BOI staff on a regular basis as it is critical for the BOI to be aware, up to date and knowledgeable on what is happening within the OSOS. The BOI also promote the OSOS by regularly holding meetings at the OSOS offices as a way of showcasing the facilities that the OSOS has to offer.
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24/7 Assistance
As previously mentioned, OSOS has gathered together multiple departments from all the Government agencies related to investments. The OSOS believe that the services they are offering are worth visiting and also recognise that it will need to constantly evolve as the demands of investors change and grow. However, it is seen by all as a positive first step towards a more streamlined and efficient process for new and existing investors in Thailand.
The agencies represented at OSOS: Ministry of Commerce • Business Development Department, responsible for company registration and the processing of applications for a Foreign Business License. Ministry of Finance • Revenue Department, responsible for the provision of taxpayer ID numbers, VAT and Specific Tax registration. • Customs Department, responsible for providing advice on customs classifications. • Excise Department, responsible for providing advice on excise tax. Ministry of Energy • Energy Business Department, consults on applications for energy and oil trading Ministry of Industry • Board of Investment (BOI), provides advice on establishing operations in Thailand and receives investment promotion applications. • Department of Industrial Works, receives applications for factory operations • Department of Mining & Primary Industries, receives and processes applications for prospecting and mining. • Industry Estate Authority of Thailand, provides consultation and advice on tax and non tax incentives within industrial estates.
Ministry of Interior • Department of Lands • Department of Public Works and Town & Country Planning • Provincial Electricity Authority • Metropolitan Waterworks Authority • Provincial Waterworks Authority Ministry of Labour • Social Security Office, responsible for consultation on laws and workplace compensation. • Labour Welfare and Protection Department Ministry of Natural Resource and Environment • Natural Resource and Environment Planning and Policy Office, provides consultation on the preparation of EIA reports Ministry of Public Health • Food and Drug Administration Ministry of Tourism and Sports • Office of Tourism Development Ministry of Transport • Land Transport Department
Making Business less Taxing by Eric Baker photo Jørgen Udvang
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he political atmosphere in Thailand might not make it seem like a ripe time to establish a business here. And Bayani Lauraya, managing director of tax and consulting services at Baker Tilly Thailand, agrees that foreign investors recoil when they read the updates on the political infighting. But he still believes Thailand is resilient because people still want to come here, whether for the infrastructure or investment opportunity. And because of that, Mr Bayani, a member of the Joint Foreign Chambers of Commerce in Thailand (JFCCT) taxation committee, has established a working group with Thailand’s Department of Revenue (TRD) to understand TRD’s current and future tax policies and to address issues and challenges faced by member firms of JFCCT. The committee has formed a working group with the department to understand what priorities the government is pushing in terms of tax policies and revenue goals for businesses. The JFCCT will offer feedback, concerns and try to act as an advocate for foreign businesses when discussing policy with the department. For example, the committee wants a clear policy on transfer pricing, which is the pricing of contributions within an organisation. A multinational corporation may set different prices on different inputs or aspects of its production to reduce taxable profits in a certain jurisdiction. The committee wants equitable tax rates so companies do not manipulate the system. “We also want Thailand to be competitive as a regional office headquarters (ROH), but there are restrictions preventing companies from opening ROH,” said Mr Bayani. “You increase foreign direct investment through incentives, but the government doesn’t want to give away everything without getting something in return.” Of course, the committee wants to keep Thailand competitive with its Association of Southeast Asian 20
Mr S.S.Loo in front together with his Sales Manager Khun Wallapa Nicrothanot and Sushi Chef Kato Ishibashi
Thai-Norwegian Chamber of Commerce
Nations (Asean) neighbours as well, and that includes reducing the corporate tax rate from 30% to 28% or 25% in the future, said Mr Bayani. Indonesia and Vietnam are both expected to charge 25% this year, and they are two of Thailand’s major competitors. In addition to his duties at Baker Tilly and the JFCCT taxation committee, Mr Bayani also teaches international accounting and tax at Chulalongkorn University and is a father of two daughters. Though he stays busy with his work, he tries to find time to take his family out to dinner during the week. For newcomers considering starting a business in Thailand, his advice is simple. “The best advice I can give is if possible, new foreign business investors should try to qualify for Board of Investment (BOI) privileges in Thailand. These are mainly given to manufacturers whose product can be exported and whose production involves a technology component that can be transferred to the local workers here,” said Mr Bayani. Among the available incentives are full ownership and tax holidays, while a typical foreign business licence offers no tax incentives. “If your company wants to use Thailand as a hub to export to other companies in the kingdom or the region, the BOI looks favourably on that as it prefers companies to use local materials, local manpower with imported technology.” Asean integration has received a lot of lip service lately, and Mr Bayani thinks it can be good for the region if countries can work out their differences, though he acknowledges the process could take a while. “Singapore, Hong Kong and Malaysia all have clear tax policies, while the Philippines, Indonesia and Vietnam are working on it. Singapore and Hong Kong will always have a lower rate than Thailand because its tax base is large and mature and it has low infrastructure costs. “For Thailand, there are many poor people and small and medium-sized enterprises (SME) that don’t generate enough revenues for tax. And for those that do generate enough revenue, the enforcement is not there yet for people that do not want to pay.”
Mr. Bayani Lauraya
Making Business less Taxing With that in mind, Mr Bayani said the most common tax pitfall for new foreign businesses in Thailand is assuming all systems are created equal. “Newcomers don’t realise the complexity of the tax system in Thailand. They try to apply what they learned from their home country, but the laws are not the same here. Enforcement is not as advanced either. Because one or two companies do it a certain way, they assume that is the way. Make sure you consult with an advisor, whether it be legal or tax, because it is not worth it to take a shortcut.”
Summary of Tax Measures the JFCCT Suggested to the Government: • Reduce the capital gains tax to encourage transactions • Tax exemption for debt restructuring for financial institution loans of companies that do not need to file for bankruptcy • Extension of loss carried forward utilisation • Reduction of corporate tax rates to 25% • Utilisation of affiliated-company losses • Reducing the requirements for Regional Office Headquarters
Thailand offers a different tax rate for SMEs with certain conditions.
• Widening of personal income tax brackets
“Tax rates for SMEs are progressive rates ranging from 10% to 30%. This mean, if the company’s net profit is less than 1 million baht, the tax rate is 15% while net profit over 3 million baht has a tax rate set at 30%. To qualify for SME status, the company must not have more than 5 million baht of registered capital. It does not matter if total revenue is more than 1 billion baht.”
• Reduction of withholding tax on dividends and interest • Tax incentives for the tourism industry • Reduction of the House and Land tax • Waiver of stock option and stock grant taxes
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The Only Stop to Make by Emma Long
The One Stop Service Centre for Visas and Work Permits Established in July 1997, the One Stop Service Centre for Visas and Work Permits was created to facilitate in the provision of visas and work permits. The Centre was the amalgamation of three Government Agencies, namely the Board of Investment (BOI), the Immigration Bureau and the Department of Employment. Having recently relocated to Chamchuri Square, the One Stop Service Centre is now in the same location as the newly established One Stop One Start Investment Centre. So, for the first time, all the relevant Government Agencies responsible for investments in Thailand and the employment of Foreign Nationals are located in one convenient place. However, it is important to note that The One Stop Service Centre for Visas and Work Permits is not the same as the One Start One Stop Investment Centre (OSOS) which has just opened. The OSOS Investment Centre provides a comprehensive range of services except those related to visas and work permits. However, having the two Centres side by side aims to provide a seamless and convenient process for prospective investors and businesses. Also located within the One Stop Service Centre is the Foreign Expert Services Division. The Division was created as a non-tax incentive for BOI promoted investment projects and is in charge of approving positions that are to be filled by Foreign Nationals who are employed by businesses that are promoted under the Investment Promotion Act B.E. 2520. Once the positions are approved, the division facilitates the visas and work permits for the employees and their families with the Immigration and Department of Employment, both of whom have representatives at the One Stop Centre.
The One Stop Centre also offers renewals of visas and work permits within one convenient location. People will no longer have to travel between three different locations, i.e. the Immigration Department, the BOI and the Department of Employment. Moreover, the One Stop Centre guarantees that the renewals are done within 3 hours. At this point, it is worth noting that currently only BOI promoted companies and certain types of nonBOI promoted companies can use the services at the One Stop Centre. For example, companies that are non-BOI promoted can use the services of the One Stop Centre as long as the fully paid up capital is no less than 30 million baht. At a recent presentation to representatives from the Foreign Chambers of Commerce by the Assistant Secretary General of the BOI, Ms Duangjai Asawachintachit, there were a number of issues raised by members of the Chambers of Commerce, such as the need for an all inclusive Business Visa. It was noted that to have an all inclusive business visa process including work permits would be of enormous benefit, with the Chairman of the Joint Foreign Chambers of Commerce (JFCCT), Mr Nandor von der Luehe, highlighting this as a very important issue for the Foreign Chambers of Commerce. Certainly, the One Stop Centre and the OSOS Investment Centre will continue to evolve to ensure that they are meeting the demands of its customers and, as issues arise that may affect or improve the current processes; they will review and consider them. The One Stop Service Centre is now a comfortable environment to bring families to when applying for visas and work permits. There is a Mother and Child Room available to those who have babies and small children accompanying them. Chamchuri Square itself also has many amenities within its main lobby including coffee shops and convenience stores. So, whilst the One Stop Centre for Visas and Work Permits is a positive step in the right direction, there is still a way to go. Opening the services of the One Stop Centre to all businesses, including those non BOI-promoted businesses with capital less than the current minimum of 30 million baht will expand this important service to a greater number of investors.
Thai-Norwegian Business Review
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Making the Move w So, yes, we were really pleased, but, as expected, the first few months were tough.”
by Emma Long photo from Karine Slørdal
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hese days the global workforce is such transient one, it’s likely that, depending on the career of you or your partner, you will experience working and living in a different country at least once in your life, and one that is often very far away and very different from your own. However, such an experience inevitably means moving your whole family with you and that is an enormous and stressful challenge for everyone involved. To get a firsthand experience of someone who has gone through this, we had the pleasure of talking with the former editor of Business Review, Karine Slørdahl, who shared with us her memories of moving with her family from the cool beauty of Norway to the steaming heat of Thailand almost three years ago when her husband, Roar, was transferred to work with the telecom company Telenor in Bangkok. When she got the news that their new home was to be Bangkok, Karine admits to some initial mixed feelings, “I was really pleased,” she says, “but before we moved I was under the impression that Bangkok was totally different to what it actually was. When we moved here I was pleasantly surprised to see how good everything was. I thought the Skytrain was great, and I felt very comfortable bringing my children here. However, we really liked where we lived in Norway, we had a great community with lots of friends, and it was tough to leave that behind. In addition I was concerned about our children not speaking English.
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After the initial settling in, one of the first major challenges for many new expats is finding the right school for your children. For Karine and her family, it was important they knew what they wanted, “We moved them to a smaller school which was really good and not too big for them. Also, for us, coming from Norway, it was a bit different than other countries because children in Norway don’t start school until they are six years old. In the beginning we had a tough time with the homework and we had to work hard to get the kids up to a certain level. In the beginning, I think the schools expected too much. But now, when we do return to Norway they will be able to slip back into the Norwegian education system easily because although they will be more advanced in English and other subjects from their time here, they will still need to learn about Norwegian history and geography. So that won’t set them too far apart from their classmates” Having sorted out her children’s schooling needs, next on Karine’s agenda was accommodation. How did they go about it? “Before we moved here permanently, we came for a week’s visit to get an idea about what was available. We were assisted by a relocation consultant who was provided by the company. I had always assumed that we would live in an apartment as I guess I was worried about living in a house, but, all the apartments we saw were just not suitable for our needs. My children were used to having a garden
17th of May, the whole familiy celebrating Norway’s Constitution Day
with Karine Slørdahl and room to run around in, so they would have gone mad in an apartment. We were then shown a house in the compound that we now live in and really liked it. It was safe, with lots of little parks and a nice view as we overlooked fields. It was ideal as my kids could go outside and play! It was also close to the school we had chosen. As a bonus, the neighbours invited us for dinner, and that pretty much clinched it!” Many spouses who have to move overseas with their partner have their own career at home. Leaving it behind can be difficult, but for Karine, who worked as a legal adviser within the immigration system, the move came at the right time, “when we moved to Thailand I was already on maternity leave with my third child, so for the first year here I just enjoyed being a Mum. But, after a while, I knew I needed to do something as I was not the type of person who enjoyed lots of coffee mornings and I hate massages! I had also shopped for everything I needed!” she says laughing, “So I began an online degree in graphic design which was great as I could do it at my own pace. Then, I came in contact with Axel Blom, President of the Thai-Norwegian Chamber of Commerce, who asked me to become involved with the Chamber’s new magazine, Business Review.” For
Karine, it was the beginning of a new passion, “I loved it” she says, “it was an absolutely amazing experience as I had to start it from scratch. You just wouldn’t be able to get that kind of experience in Norway. It was a lot of work, our first issue took six months to put together, but, I learnt so much from it, both with the graphic design experience and also in terms of writing and organisation skills. Now I feel I that I have much more to offer in the future as I can see myself continuing in this line of work back in Norway.” After three years in Bangkok, Karine and her family will return to Norway at the end of 2010. “We have really loved our time here in Thailand and we have made some amazing friends and have had some great experiences, but, I do miss our house and our life back in Norway, so we are all looking forward to going home.” And with that the life cycle of expatriate living goes on. As one family returns home, another arrives, full of the same expectations and a little bit of trepidation, ready to begin their new life in the Land of Smiles. Left: Marthe and Jonas celebrationg Songkran in their school uniforms Right: Vacation to Vietnam
Laying Down the Law on Foreign by Eric Baker photo from Tilleke & Gibbins International Ltd.
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aying Down the Law on Foreign Businesses For foreigners considering starting a business in another country, any advisor worth their salt would recommend the entrepreneur find a decent lawyer. Fair advice, but for one experienced counsellor in Thailand, it is actually culture that most often trips up foreign business ventures. “The biggest mistake I see foreign business newcomers make is business mismanagement because they don’t know how to deal with Thais,” said Piyanuj Ratprasatporn, partner and group director in the corporate and commercial department with Tilleke & Gibbins International law firm. “They need to take time to learn the culture because Western management is often used to dressing down someone if there is a conflict, but you can’t do that here because employees will lose face. “A business over here might have to deal with government agencies that change the rules without notice, which might make the business angry and prone to complain. But they need to learn how to deal with these agencies without blowing up.” But of course, anyone seeking to start a business in Thailand still needs proper legal advice, and that is why Ms Piyanuj always asks what type of business the prospective entrepreneur wants to set up. “If a company is just going to outsource, they don’t need to set up a full business and they won’t be subject to Thai tax. Businesspeople sometimes don’t pay attention to these details. “As well, the common knowledge is that a business has to be 51%-owned by a Thai and 49%-owned by a foreigner, but for certain businesses you don’t need that split.” This is mostly in manufacturing sectors, and the Board of Investment (BOI) often offers incentives for this as well including tax holidays, but these industries need to transfer technology and use local resources and manpower. Some clients can even buy land for their business if they receive approval from the Industrial Estate Authority of Thailand (IEAT). It is difficult to
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apply for this licence, but it can be done if a foreign business has full ownership, qualifies for tax benefits and plans to keep its business in Thailand for an extended period, she added. Companies that are approved by the BOI or IEAT can also qualify for customs exemption, said Ms Piyanuj. Other concerns apply to companies that want to establish facilities in Thailand and import foreign workers. These companies need to be cognizant of work regulations, work permits, and non-immigrant visas. For example, you can only get a work permit after you have acquired a non-B visa for your employee, said Ms Piyanuj. For certain businesses, a joint venture works best and her firm recommends potential partners based on what might be a good fit. These types of ventures typically require a termination clause. These are conditions for doing business in the kingdom, but by no means does she believe this makes Thailand a difficult environment. On the contrary, Thailand allows foreign businesses to take dividends outside of the country along with the previously mentioned BOI incentives, depending on the location and investment in Thailand. “Vietnam has cheaper labour, but the government owns any land used, so that is not as appealing. It is easy to set up a business in China, but when you want to repatriate the profits, they want you to add to your business. Thai labour skills are also relatively advanced compared to their neighbours,” said Ms Piyanuj. Tilleke & Gibbins consults with the government to review the Foreign Business Act to make sure it is complete regarding the several free trade agreements Thailand has entered into as well as helping to draft an Environmental Act. The firm also has a sizable intellectual property practice that provides training for police and customs officials on how to identify and deter brand imitators, as well as assisting on raids at times, she said. When she is not concerned with legal matters, Ms Piyanuj likes golf and scuba diving. While she has been hitting the links for 25 years, diving is a new
Businesses hobby for her. She also enjoys visiting temples and meditation to provide relaxation. And Ms Piyanuj has a few personal beliefs that relate to her legal advice as well. “I don’t believe in cutting a few hundred baht to find a shortcut. There are many different law firms out there, but not all of them can give you the answers you need in English. Part of this is being able to ask the client the right questions. “I also believe that foreign investors, once successful, should return something to Thailand. There are many areas that need subsidies or where companies can engage in corporate social responsibility. My own firm tries to help in rural areas, and when the tsunami came, we went to the affected areas and helped rebuild temples and mosques.”
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A Beginner’s Guide to Business Ban by Stephen Bell photo from Bangkok Bank
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tarting a business in Thailand can be challenging. While government bodies such as Thailand’s Board of Investment (www.BOI. go.th) are good sources of information on the legal and regulatory requirements, choosing a good local bank to help meet your financial needs is one of the most important decisions you’ll make as an entrepreneur or small business manager. After several years living and working in Thailand, Bangkok Bank Executive Vice President Karen Campbell understands the challenges foreigners face when starting up a business in the Kingdom – here she offers some key tips to help get your banking started on the right track. Don’t expect banking in Thailand to be the same as it is back home While the core business banking services offered in Thailand are similar to those in Europe, foreigners are often surprised at the amount of paperwork required. So be patient and take your time in making sure you have all your documents in order. Choose your Thai bank carefully When setting up banking services for your business, choose a bank with strong liquidity, a large branch and ATM network, full-English language service integration, and good online and mobile banking services. The Thai banking sector is well-capitalised and robust, having come through the recent financial crisis in excellent shape. Concentrate your banking Banks can develop a better appreciation for (and trust in) the overall performance of your business if you are able to concentrate your banking with them. For example, corporate credit cards are usually made available only to established businesses with a reasonable track record (usually more than two years operating in Thailand). You should also be active in developing a good relationship with your bank manager or banking specialist – Bangkok Bank has a number of business centers that offer a range of assistance and advisory services.
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Bangkok Bank Executive Vice President Karen Campell
Get online Online banking is becoming increasingly popular with SMEs, and especially those set up by foreigners wishing to keep an eye on their business both in Thailand and while travelling. Using services like Bangkok Bank’s BIZ iBanking, businesses can access their Baht-based bank accounts online at any time of the day or night to transfer funds between their accounts, manage payroll, pay bills and view account balances. Enjoy the business benefits of a multi-currency account A multi-currency account can help businesses manage foreign exchange fluctuations and cash flows both here and at home. Bangkok Bank offers a Foreign Currency Deposit account to companies registered in Thailand and abroad – 13 different currencies are available, including Norwegian Krone. Consider credit and debit Credit and debit card transactions in Thailand total in the hundreds of billions of Baht each year, and are rapidly increasing as people become more familiar with the new technologies. Look for a banking partner with well-established merchant services to help your business’ customer point-of-sale, mail order, internet or recurring credit card payments.
king in Thailand Take advantage of trade services If your business exports or imports goods, partnering a bank with solid trade services and an extensive global banking network is a smart choice. For example, Bangkok Bank is able to assist with import procedures, short-term credit, document preparation and delivery, raw material and service payments, and shipping guarantees. We also help exporters arrange payments for raw materials, bridging finance, insurance and foreign bank creditauthentication services. Double up on your business and personal needs You’ll find that most banks that are strong in business banking are also strong in personal services, and it makes a lot of sense to combine the two. For your personal banking needs, you may wish to apply for a basic savings or current account, get access to internet banking, apply for a debit card for your daily in-store and online purchases, or invest locally in mutual funds or insurance protection products.
About Bangkok Bank Established in 1944, Bangkok Bank is the largest commercial bank in Thailand, leading the market in corporate and SME banking. The Bank also has the country's largest retail customer base with over 17 million accounts and more than 950 branches, as well as 20 international branches in 12 countries, including wholly-owned subsidiaries in China and Malaysia. The bank offers a wide range of commercial banking services including deposit taking, business and consumer loans, trade finance, project finance, loan syndication, treasury service, investment services, foreign exchange remittances, debt securities underwriting, custodial services, capital market, specialist SME support and advisory services. Call Bualuang Phone 1333 to find your nearest branch and/or business centre.
JFCCT Making a Difference by Eric Baker photo from JFCCT
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or new foreign business investors to Thailand, a key resource is the Joint Foreign Chambers of Commerce in Thailand. Chaired by Nandor von der Luehe, this organisation’s goal is to promote trade and foreign investment in the kingdom as well as skill and technology development and transfer. Rather than make demands, the JFCCT encourages opening up the Thai economy and harmonising policies across various government ministries, as well as opposing threats to economic development. It represents over 9,000 businesses in the kingdom in a non-political manner by co-operating with government agencies such as the Thailand Trade Representative, the Board of Investment, the Immigration bureau,
the National Anti-Corruption Commission, the Bank of Thailand and the Federation of Thai Industries. The various Chambers meet regularly to discuss issues concerning the group, and the JFCCT has committees on customs, employment, taxation, property, information and communication technologies, tourism and law. The magazine talked recently with Mr. von der Luehe about the organisation’s role, Thai prospects for foreign direct investment and ways to make the kingdom more competitive in attracting that investment. What do you see as the single most important factor in facilitating foreign investments in Thailand? Thailand has been very successful in attracting foreign direct investments by opening up the manufacturing sector. The efforts and success of the Board of Investment (BOI) to invite foreign investment in the manufacturing sector benefited not only that sector but the economy as a whole. Thailand took big steps forward that resulted in full employment in that sector and much wealth creation. Unfortunately, the service sector is struggling to keep up with all these developments and is underperforming. Thailand needs to take another big step forward by making the service sector competitive and opening it up for foreign participation by relaxing the Foreign Business Act. What is the size of foreign business community in Thailand and how do foreign businesses contribute to the Thai economy? The Joint Foreign Chambers of Commerce in Thailand is the umbrella organisation for 30 Foreign Chambers of Commerce and Business Associations in Thailand. Through these 30 members more than 9,000 member companies are officially represented by the JFCCT. Under the new Chamber of Commerce Act companies operating outside of Bangkok can also be members of the various Chambers and Business Associations. In fact, the number of members is now more likely around 15,000 companies based on old membership regulations before the new act was passed. Through the 9,000 official member companies we estimate that more than 2 million people are employed. The foreign business community is one of the biggest taxpayers in the country and strongly contributes to Thailand’s economic success.
Nandor von der Luehe
In your view, what are Thailand’s strengths versus its neighbours in Southeast Asia and why should foreign investors choose Thailand rather than other countries in the region? Thailand’s central location within Southeast Asia gives it an advantage over neighbouring countries. Furthermore, Thailand offers quality infrastructure. And even though we have had political infighting, every recent government save one has supported a pro-business attitude and nurtured economic development in Thailand. At the same time, Thailand has to realise that attracting foreign direct investments is like a beauty contest -- the money goes to the most attractive location, so Thailand has to keep up with the competition to stay attractive. You have been in Thailand many years. What progress have you seen during that time in facilitating foreign investment? I have had the privilege to live in Thailand for more than 21 years and witness its rapid development. There have been a few setbacks, but overall Thailand is moving forward. The key has been the BOI, one of the crown jewels of Thailand, and whenever an investor can invest through the BOI, I highly recommend that path. What advice would you give the Thai government in order to boost foreign investment in the Kingdom? Since the Thaksin Shinawatra family sold their shares in Shin Corp in January 2006, Thailand has plunged into a state of uncertainty and political division. To foster foreign direct investment, the utmost goal must be to bring back political stability. Without it there is no predictability, and predictability is essential for foreign investors because it is needed to calculate whether an investment is worth making. What is the biggest complaint of foreign investors and how can this issue can be resolved? It is interesting to note it is not the bigger strategic issues of the day that receive the most complaints but rather the more mundane visa and work permit regulations. Through the years, instead of opening up the administrative process, it has become more cumbersome to obtain the crucial documents needed for work in Thailand. It is hard to understand why bigger piles of documents are needed today than in the past as we live in a more paper-less, digital environment with new technologies that should make this process easier.
Issues JFCCT has raised with the government The Joint Foreign Chambers of Commerce are in dialogue with the Thai government relating to a number of areas of concern and sub-committees have been established to cover each of these areas. The main items cover liberalisation of the service sector restricted in Thailand’s Foreign Business Act. In addition there are labour and immigration issues, e.g. the creation of a business visa allowing foreigners to come in and work for shorter periods of time without obtaining a work permit. The list also contains important measures of reforming the telecom sector, specifically a reform of the Telecom State Owned Enterprises (SOEs). Finally there are issues on customs and taxation as well as property related issues. The areas covered can be grouped as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Liberalisation of the service sector One Start Service Centre Labour and Immigration issues Telecommunications reform Creative Economy issues Property Sector issues Support for SME Banking Services liberalisation Customs issues Taxation issues Infrastructure enhancement Tourism Sector issues Consultation/Process transparency Protecting investment in Map Tha Phut Energy Sector issues
The Right Choice for those who Qualify by Kobkit Thienpreecha An earlier version of this article was first published in the Bangkok Post on 4 December, 2009. Please send comments or questions to Andrew Stoutley at andrew.s@tillekeandgibbins.com.***
Representative offices
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s Thai imports and exports continue to grow, more and more foreign corporations wish to open an office in Thailand to support their trading needs. Often, foreign corporations wish to have a small office established in Thailand without generating any income, with the head office bearing all the costs and expenses. In this situation, a representative office or liaison office seems to be the suitable solution. This article will provide an overview of the key issues facing representative offices, including requirements, restrictions, benefits, and conditions. Requirements Corporations establishing a representative office in Thailand may feel that the process is relatively complicated compared with other countries. A representative office is considered a branch office of a foreign corporation and therefore is an alien under the Foreign Business Act. If the representative office wishes to engage in one or more of the permitted activities, they will be deemed as providing servicing, and the foreign corporation shall apply for an Alien Business License (ABL) from the Ministry of Commerce (MOC) in order to set up its representative office. All relevant information (company profile, product description, trading summary, business to be conducted in Thailand, etc.) must be elaborated in the application. Notarized corporate documents of the head office abroad must be provided. Normally, it will take about eight to ten weeks to learn the outcome of an ABL application. Restrictions A representative office will be allowed to carry out only five activities as prescribed under the Regulations, and each activity must be approved by the MOC. Two activities are designed for foreign buyers: (a) sourcing of goods or services and (b) quantity and quality control.
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Two others are dedicated to foreign sellers: (c) advising on product information and (d) introducing new products. The final activity is (e) reporting business movement. A representative office shall adhere to the permitted activity(ies) as indicated in the ABL. The representative office is not allowed to do procurement orders, conduct price negotiations, or provide maintenance and repair services in Thailand. Violations will result in revocation of the ABL and penalties, as well as potential tax consequences. Since a representative office cannot generate income, the head office offshore shall finance all its costs and expenses or its operating expenses. The head office shall remit cash in the form of foreign currency from abroad to the representative office’s bank account. There is a minimum requirement of such funding, which is calculated based on the estimated expenditures of operations in Thailand for the first three years or THB 3 million, whichever is greater. The amount increases to THB 5 million if the representative office hires a foreign employee. The representative office will be required to bring in the funds for its operation per a schedule fixed by the MOC until the funds have been remitted in full. Evidence of the minimum capital brought or remitted into Thailand shall be presented together with a calculation in Thai currency using the reference exchange rate on such date. This must be submitted to the MOC within 15 days from the date of bringing or remitting the capital into Thailand. Benefits The key benefits of a representative office are that its income received from the head office is not subject to Thai tax, it need not earn any income, and it can maintain a small office with a limited number of local employees. Even though its income is nil, a representative office still has the duties to obtain a tax ID card and file audited financial statements with the MOC and the Revenue Department. In terms of hiring foreign employees, representative office is quite attractive. With the mandatory funding of THB 5 million, a representative office could hire up to five expatriates. Work permit and extension of stay of expatriates as well as their families can be carried out at the One-Stop Service Center, which can process applications within three hours.
Conditions After receiving the ABL and establishment, all representative offices are constantly monitored by a team at the MOC. Besides random visits by officials or call-ins for discussions, the representative office should not ignore the two major annual reporting duties: (1) report of business results and (2) report of transfer of technology. These reports are simply questionnaires designed to check whether the representative office has been properly operating in the past year and has made contributions to Thai industry, such as organizing seminars or training programs. In recent years, the MOC team has taken the transfer of technology duty to another step by matching each representative office with a chosen Thai academic institute. Through the cooperation, the representative office is expected to offer some types of academic activities, such as guest lectures
or field trips as a means of transfer of technology to Thai students. Closing a representative office is short and simple. It merely involves notifying the MOC and surrendering the ABL. The closing is unlikely to be subject to a tax audit. This is convenient when the head office decides to close the representative office and establish a full business activity through a limited company. In reality, a representative office is still a preferable and popular choice for many foreign corporations that need to test the water before they decide whether or not to set up a full facility in Thailand, notwithstanding the restrictions and challenging legal compliance responsibilities of a representative office.
Same, Same but Different by Colin Jarvis photo Kristine Hasle
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he western manager, arriving in Thailand for the first time, is immediately struck by the amazing differences between his country and Thailand. Hundreds of the most spectacular temples, five people and a dog riding one motorcycle, food stalls everywhere and it is hot!
After a short while, the expatriate begins to believe that the differences are not so many after all. The advertising billboards are the same, often in English rather than Thai, stores and brands that were familiar at home seem to be everywhere and there is airconditioning! The feeling that things are not so different after all is strongly reinforced in the office. People wear their shoes all day long, English tends to be spoken by most of the employees, the machines, furniture and equipment are exactly the same as the ones left behind. It is not surprising that many expatriates import their management techniques and communication habits undiluted from home. It is easy to do, but dangerous and often counter productive. To communicate well we need more than just a language, though the language alone can cause many problems. We need to understand the culture, the customs and the body language. Using incorrect vocabulary or grammar is the most common cause of miscommunication in language. We all do it, sometimes even in our own language, and it can cause serious problems though often it can be quite funny. I was recently asked by a nurse, during any medical examination, to open my bottom. Expecting the normal examination for prostate cancer I started to remove my trousers. The nurse immediately panicked and shrieked ”shirt bottom, shirt bottom”. She wanted me to undo my shirt buttons in order to attach an electrocardiogram. Grammatical problems can often be hard to identify and can cause major difficulties. Asking an employee ”You don’t need extra assistance for this do you?” may well elicit the answer ”No”. In English grammar the ”No” is short for ”No, I do not need any extra assistance”. In Thai grammar the ”No” is short for ”No, I do not agree with the statement you
have just made, I do need assistance”. On the surface, the language can flow freely and such grammatical differences may remain unnoticed except that, in this case, the employee would wonder why assistance is offered but never forthcoming. It is a source of potentially serious friction and bewilderment. A situation that is faced by every expatriate manager is the one where an employee is asked to complete a task by a specific time. When that time arrives the manager discovers that a task has not been completed and asks why? It is then explained that there was never any possibility of that task being completed as the employee had been totally overloaded. It is very frustrating for Westerners to discover that many Thai people wish to avoid potential conflict at almost any cost. For some reason they cannot seem to anticipate that the problems can be worse in the future if they do not tackle the problem in the present. The solution is fairly simple. Instead of giving an order, just ask a question. ”How many copies are you able to print by tomorrow morning”? This question is likely to be more effective than ”Please print me 20 copies of this document by tomorrow morning”. Anger, or feigned anger, is a technique often used by Western managers to make a point more forcibly or to emphasise the fact that they are not happy. The use of anger in Thailand is totally against the culture and customs of the country. To use anger simply reduces one’s own status within the group. The effect of shouting on a group of Thai people can be quite spectacular. I was recently in a McDonald’s when a Western customer returned to the counter, slammed down his burger and shouted at the staff, ”Why can’t you people learn to take an order properly, I ordered a cheeseburger, not a Big Mac”. Suddenly I noticed that all the Thai people in the restaurant, including all the staff, were looking well away from this customer and were totally absorbed in some activity, other than trying to solve his problem. The customer left. The Thai way of resolving a dispute is to smile, and keep on smiling, and to try to resolve the problem without loss of temper. It is easy for the Westerner to
mistake this smile as a signal that the Thai does not care or feels immensely superior to the other person. Some people say that there are 28 different types of smiles each of which signals a specific emotion or state of mind. Sadly, we do not have the space to cover more aspects of the difficulties of communicating between Westerner and Thai. The subject is fascinating and we never cease to learn. The general point of this article is to show recently arrived Westerners that however familiar everything seems, it is in fact entirely different. Be aware and be sensitive and you should survive and enjoy the experience.
Bangkok Office: 10th Floor Vibulthani Tower 1, 3195/15 Rama 4 Road, Klongton, Klongtoey, Bangkok 10110 Thailand Tel: +66 2 661 3486 Fax: +66 2 661 4385
torpong-t@papcothai.com www.norskeskog.com
Mill Location: 64/3 Moo 3, Asian Highway, Phokruam Amphur Muang, Singburi 16000 Thailand Tel: + 66 3 653 111 Fax: +66 3 653 1100
by Jørgen Udvang
T
elenor’s focus on Asia in first corporate branding campaign shows the growing importance of this region.
With 75 million subscribers in Asia, the Norwegian telecommunication group Telenor is the second largest multi-market operator in the region. Currently the group is represented with mobile phone companies in Bangladesh, India, Malaysia, Pakistan and Thailand, with the regional headquarter centrally positioned in Bangkok.
The “Built around people” campaign is meant to reflect upon one of the core values of Telenor, the fact that the telecommunication business is indeed centered around people, and that Telenor as a major player in this field, need to understand local people in each market, local business, local needs, local culture and be part of the societies they are participating in. “Telenor Group is the worlds 6th largest mobile operator. That the group’s first ever corporate branding campaign is launched in Asia, reflects the growing importance of this region”, said Sigve Brekke, Exceutive Vice President of Telenor Group, and head of Asian Operations.
“We have made significant acheivements since we entered into Asia in 1996. Now it is time for Telenor Group to highten our visibility and provide a better understanding of our contribution to Asia”, Brekke continues. “This campaign is the celebration of our business philosophy and what Telenor Group has come to represent today. Our success is built on a commitment to putting people and their needs first.” Employees in the heart of the campaign The models used in the campaign are all Hilde Tonne, Executive Vice President at Telenor Group attended the launch event. In April Telenor announced employees of Telenor that Ms. Tonne is appointed Deputy Head of Asia Region, and will be based in Bangkok from August 1st. companies around Asia, selected amongst the 20 000 employees working for their needs. Telenor Group companies in Asia. The employees Hilde Tonne appointed deputy Head of Telenor Asia were asked to submit audition films talking about what “built around people” meant for them and their In April Telenor announced that Ms. Hilde Tonne was company. Based on the input, 26 people where invited appointed Deputy Head of Asia Region. Hilde Tonne to Kuala Lumpur to attend the final photoshoots. will move to Bangkok where she will work at the Telenor Group head office Asia. “By using our own employees as brand ambassadors we are reflecting our own beliefs and living our values” “I look forward to being part of our regional team in said Hilde Tonne, Excecutive Vice President and Head Asia. This fast growing region represents a substantial of Communication and Corporate Responsibility in part of the future of the company, and Telenor is Telenor Group. positioned as a major player in the industry”, said Hilde Tonne upon her appointment. To create the campaign, which is visible in printed Hilde Tonne joined Telenor for her current position as well as electronic media all over Asia, Telenor in 2007. She came from Norsk Hydro, where she hired Malcolm Green, creative director of Naked in her last position was the Head of Technology & Communications in the United Kingdom, who has Research in Hydro Oil & Energy. Ms. Tonne serves managed to make a campaign that indeed gives a on the Board of Directors in Det Norske Veritas AS feeling of a telecom corporation that thinks beyond and Statkraft AS. She has a Master of Science from the electronics and interacts with its customers and the Norwegian Institute of Technology in Trondheim, Norway and RWTH Aachen in Germany.
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Thai-Norwegian Chamber of Commerce
Thailand, one of the countries where Flavor was born
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Seeing Disasters Differently by Nadia Willan
W
hen the UN was responding to the immediate devastation in Haiti they used some of the latest technology in what is an under-developed country with poor infrastructure. One type of cutting edge equipment adopted was the ASIGN system, which stands for Adaptive System for Image Communication in Global Networks. In layman’s language that means images and video that can be viewed live from a central command post that is not at the scene of the action, via a camera which communicates with a computer connected to a satellite antenna. The advantages of the ability of organisations and the military in being able to see data immediately
is obvious. It means they can react faster and that they have a streamlined system, whether reacting to a disaster, crowd control or even surveying power lines and inspecting oil rigs. Rather than getting an image or footage an hour later, served up on a large file sending program, they can see images instantly, giving them more opportunity to react and deal with what is happening from the data delivered directly to them. One Norwegian company is attempting to navigate the bureaucratic and procedural waters of the Thai military, Government departments and individual Ministries to bring Thailand into the twenty first Century when it comes to image communication. Jesper Døpping is a calm, affable type which surely must belie the inevitable stress of not just trying to penetrate the higher echelons of Thai politics but to
Three Steps for Disaster Management
Illustration from Ansur
Thai-Norwegian Chamber of Commerce
also work out who is able to dip into the pockets and how in order to update and take advantage of this technology. The company, AnsuR, comes from a long history of satellite communications with Dr. Harald Skinnemoen at the helm, a name well known by most in the industry and in the many countries which have adopted the system, such as Brazil, South America, Europe and in Asia, Malaysia. The next stop, it is hoped, will be Thailand. AnsuR says the recent rallys in Bangkok demonstrate how valuable the system would be in dealing with situations where there are many protesters, in many areas with a certain element of unpredictability. “The point about it is that there have been so many soldiers out there but without live image communication there is less information about what is happening. With ASIGN, there can be a command system, meaning less security forces on the streets which in some situations might be necessary in order that the conflict does not escalate.” Of course there is CCTV in most big cities like Bangkok but what AnsuR is quick to point out, is that CCTV is not a centralised system. The images are dependent on the length of the line and tend to be transmitted back to several different posts, making the picture less clear with big scale protests or crowd scenarios. The conflict over the system and the struggle for the company’s new presence in Thailand is not so much about selling the idea behind the technology confesses Jesper but the minefield of the Thai political system, as well as a deep-seated tradition in the class system of status that is still evident here. “The challenge is the ability to get a rational decision which goes across different Ministries. There are so many different people in power and it is sometimes hard to get them to talk. Of course there is a proper procedure but it is getting them to communicate and agree that is difficult. Generally the under 35s in these circles are well-educated, well-travelled and perhaps more eager to push opportunities through. The older generation work in a different way. They are just as open to new technology but have a different system, a protocol which is much more complicated.” Jesper has found that there are advantages and disadvantages to being Western in this area of business.
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Thai-Norwegian Chamber of Commerce
Whilst a top class European education might be impressive to the well-bred Government officials he has also found that it is not about who he is or where he has come from but about his understanding of Thailand or at least his willingness to fit in with the Thai business and political world that has been important. Speaking in Thai at meetings is often required and is more about showing respect rather than being a necessity of communication, with many of the high ranking officials speaking virtually perfect English. AnsuR has been climbing the Government ranks and negotiating at every level for just over a year and has also turned its attention on smaller areas than central Government such as Phuket where a certain level and type of budget decisions might be made locally. After Thailand’s own personal tragedies such as the 2004 Indian Ocean Tsunami, which struck the country so hard, there is an obvious interest in any disaster relief technology. “Thailand is open and enthusiastic about new business ideas. People see instant transmissions of images and date on films at the cinema and think that it is already a reality everywhere but it isn’t. As far as bandwidth is concerned and sending big files this way, the reality is that the capacity is not that big and certainly not big enough to cope with what we want to do now, let alone in the future. This is very very new technology,” Jesper reveals, “and because the infrastructure or lack of it in Thailand compared to some countries is not important in adopting this technology, it means Thailand can jump quickly forwards.” AnsuR may have come at a time when there is perhaps an emergence of a new breed of business savvy political officials who want foreign countries to follow and understand the way that business works in Thailand but also want to welcome new innovations too. For AnsuR there is hope that it is the technology promoted by this successful Norwegian company, which is attempting to emerge in this Asian market that is plugged into the system.
Martin Rosborg Asia & Overseas Travel Partners by Laurence Civil photo from Martin Rosborg
“For more than 30 years I had a dream to winter in a warm country,” says Martin Rosborg, managing director for Asia and Overseas Travel Partners. “My initial thoughts were Spain but that changed due to a Tsunami experience. I came to Thailand for a holiday on Christmas Eve 2004, and was staying in Kamala when the tragedy struck. I was lucky and so impressed by the help, the warmth and kindness from the Thai people that I realized Thailand was where I wanted to be.”
“Two years later I bought a condominium in Phuket thinking that it would be the place to settle down in Thailand later on. In 2007 I met Kent Wallstedt who had been working for a long time in the travel and tourism industry, now the owner and Managing Director for Jambo Tours, a tour operator and a travel agency with offices both in Stockholm, Sweden, and Oslo, Norway. His company was bringing Scandinavian tourists to Thailand and what he felt was missing was a way to connect them with the Thais.” Martin is marketing and business economics graduated and with more than 20 years experience in the Scandinavian travel and tourism sector; first as CEO in Siljan Tourism AB, Sweden; then Marketing and Sales Director for Next Stop Sweden, Managing Director of PLR, a Swedish business development consulting company; CEO for Visit Denmark in Sweden and Finland and; finally CEO for Stockholm Visitors Board based in Sweden. Kent Wallstedt felt this was what was needed to make the missing connection so Asia & Overseas Travel Partners was founded in 2007 and Martin moved to Thailand 2008 to be based, not in Phuket as he first thought, but in Bangkok to run the business as Managing Director. “We are an inbound destination management company,” he says, “catering to the Scandinavian tourist industry as well as being a domestic travel agency catering to tourists already here. The areas we focus on are accommodation, tours, sightseeing, golf, transportation and meetings for both sectors.” “My move to Thailand was possible by being given the opportunity to run this company. My experience of the Scandinavian travel market makes a good combination with my team’s experience of the local Thai travel industry.” “On a personal level, living here is
Mr. Martin Rosborg Thai-Norwegian Business Review
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easy and I like the Thai lifestyle, culture, climate and food. Doing business is not as easy but it’s exciting; I have the opportunity to meet new people, business partners and to discover new destinations in Thailand. I have learnt I will never get the best price the first time and that I need to try and try again and make sure of everything is documented. I am a visitor to this country and it’s vitally important for me to respect the local culture if I am to fit in.”
customers is the booking system and the support we offer. Agents can log onto our business to business website and use our Citybreak technology solution, well known for Scandinavian travel agents. We are the only company using it in Thailand and the agents can complete the whole booking transaction in real time online.” “Membership of the Chamber offers us not only the opportunity to networking with members but also families; a good way for us to develop our business and to serve the community.”
“Thailand remains the most popular long haul destination for Scandinavian tourists,” he says. “The problems of 2009 didn’t deter them from travelling here, they are experienced travellers looking for value for money which Thailand continues to offer. “Being six hours ahead of Scandinavia I often don’t switch my laptop of until after midnight, the end of their working day. What makes the difference for our
(Wireles s)
- Nana it Soi 3 Sukhumv
Suk
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Rudi
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Plaza Athéné e
Sukhumvit Soi 4 - Nana
(Wirele ss)
Lang Sua
Ploenchit
Mahatun Plaza
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Ploench
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British Embassy
Central
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norwegian business centre
Nana
All Season s Place
14th Floor, Mahatun Plaza, 888/142 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Tel: +66 2650 8444 (TNCC), +66 2627 3040 (IN) Fax: +66 2627 3042
In Conversation with Christine Low by Laurence Civil photo from SAS “I have worked with SAS for 26 years,” says Christine. I joined in 1984 at the time when SAS split from the joint SAS/THAI office in Singapore. My move to Bangkok was a combination of opportunity as well as the chance to broaden my horizons, accept new challenges plus it was a positive step in my self-development”
Singapore, I have to adjust my pace of speech and simplify my sentences to ensure they understand what I am saying. I tend to clarify and confirm my messages more often for effective communication. I learn patience and adopt a softer approach. In general I learnt that Thai people are less expressive and vocal which is very much different from the Scandinavian culture that I am used to, even in Singapore. Sitting in Bangkok and looking after five countries is pretty stressful for me as I am also adjusting to working and living here. I need time to settle in.” “With regards to my management style,” she says, “leadership is about learning from each other, listening to both sides, setting realistic goals and directions, delegating, humility, integrity, appreciation and respect. I have to earn my respect. I am passionate about my work and with this in mind; I don’t need to make much adjustment in my management style. My strategy is to just adopt different degrees of each aspect, to do whatever it takes to be effective. Each organisation has its own strength and weakness. I enhance their strong points and find ways to improve on their weak areas. I believe in team spirit and continue to build on this.”
“I have been to Bangkok many times before my transfer,” she says. “I used to travel here 6-10 times as year, so I am not new to the city. My previous experiences were as a regular tourist; I know how to get around to regular shopping places and the bargaining, familiar with tourist eating joints and massage salons. I speak a little of the Thai language, enough to get by as a tourist. From a tourist point of view, I am happy with colourful and creative Bangkok. The Thais are very friendly and willingly to help. “Now I am here to work and the main difference is that of Language,” she says. “Most of our customers are travel agents and they are a lot more comfortable to communicate in Thai, therefore our marketing materials and presentations need to be translated to Thai. Coming from an English language based
“I really didn’t learn much Thai before I moved here, just nid noi,” she admits, “my Thai conversation skills are still at basic tourist level. Now that I live here, I need a lot more; the basic words or phrases used at supermarkets, with the building maintenance, with the cleaners, at the bank, with the local eating outlet. For now my lack of Thai conversation is a handicap but I plan to take up conversational Thai lessons once I am more settled in.” Since moving here there has been a lot of adjustments to my life in term of my frequent travels , the new apartment, the new workplace and workflow and most of all, the heavy traffic that takes up a lot of time away from work. Nevertheless, this is a new experience for me and I do look forward to my life here. I am enjoying learning of the authentic culture and traditions in relations to work. I am not sure if being a woman means I am treated equally in Bangkok,” she concluded. “One thing I have learnt is that as a lady, traditionally in Thailand, I am not expected to entertain travel agents especially the male businessmen in the evenings, but then it’s part of my job. This is an issue for further thought.” Thai-Norwegian Business Review
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SAS-networking photo from SAS
“Nettverk or Network as you say in English” On Thursday evening 4th of March the members of the four Nordic Chambers, their spouses and business associates were invited to the first Nordic networking evening in 2010, sponsored by SAS . More than 100 attendants took the opportunity to meet new and old friends in the relaxing and cosy atmosphere of the Minibar Royale at the Citadine Hotel on Sukhumvit. Plenty of tasty and delicious finger food and cool drinks were served, so nobody left this event hungry or thirsty. During the evening everyone was welcome to have a talk with the SAS personnel and learn more about the Eurobonus program and various promotional offers available. SAS traditionally host several networking events throughout the year for the customers to get to know their products, services and to meet the smiling faces behind the telephones, counters and e-mails. The Chamber values the good relationship with SAS, a company which has always been one of the main pillars of the Nordic community in Thailand. What might be unknown to many is the fact that SAS was a pioneer in building up international aviation in Thailand. SAS co-founded Thai Airways International in 1960 with much of the company’s management and technical staff seconded from Scandinavian Airlines. Fifty years have passed and SAS has long relinquished its shareholding in THAI. However, both companies are founding members of the world’s leading airline alliance, Star Alliance.
Skanem is a leading producer of self adhesive labels with 12 labelling plants in 8 countries in Europe and Asia. Skanem Bangkok opened June 2007 and is Skanem’s first establishment in South-East Asia.
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
Thailand’sEconomy EconomyatataaGlance Glance Thailand’s
6
40
4
20
2
0
0
8.0 6.0 4.0 2.0 Q1/10
Q4/09
Q3/09
Q2/09
2011p
2009
-6.0
2
4
Exchange Rates
1,000
7.00
900
6.50
800
THB/NOK
6.00
700
5.50
600
5.00
2000=100 250 225 200 175 150 125 100
1004
1001
0910
0907
0904
0901
0810
1001
0907
0901
0807
0801
0707
0701
0607
0601
0507
0501
Manufacturing Index
0807
4.50
400
Bilateral trade 2009 Import 847 (1,348) MNOK Export 1,950 (2,112) MNOK
600 400 200
Thai-Norwegian Chamber Commerce Thai-Norwegian Chamber ofof Commerce
Clothing
Computers
Cars
Electronics
Food
Org. chem
Paper
Engineering
Fish
0
Oct09 Nov09 Dec09 Jan10 Feb10 Mar10
6.19 13.09 12.80 40.00
6 5 4 3 2 1 0 -1 -2
Stock Exchange Index (SET)
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 3 May 2010
14 62
2010p
0.0
2005 2006 2007 2008 2009
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
0
2005 2006 2007 2008 2009 2010p
10.0
500
67.0 mill 4.9 mill 9,100,000 586,860 71/75 78/82
-2
Thai Consumer Price Index
Thai GDP Growth (%)
-2.0
-4
0804
2
Mill
Male Female
Fertilisers
2
MY TH CN ID PH VN IN LA KH MM
60
Thai Population 2008
80+ 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0- 4
0801
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:
8
-4.0
Some comparisons
Demographics Population TH: Population NO: Population Bangkok: Population Oslo: Life expectancy M/F TH: Life expectancy M/F NO:
80
2008
Top 10 Exports 2009 %/value USD bill. EDP equipment 10.5%/16.0 Cars and automotive 7.3%/11.1 Precious stones/jewellery 6.4%/9.8 Electronic integrated circuits 4.2%/6.4 Refined fuels 3.6%/5.4 Rice 3.3%/5.0 Iron, steel etc. 3.3%/5.0 Rubber products 2.9%/4.5 Chemical products 2.9%/4.5 Polymers etc. 2.9%/4.5
10
2007
10-30% 10-15% 7% 0-37%
100
US NO SG KE TW
Corporate income Tax Withholding Tax Value Added Tax Personal income Tax
GDP/Capita (TUSD)
2006
Export Growth 2009 y-o-y -13.9% Export Growth 2010 projected 15.5% Trade Balance USD 19.4 bill Current Account Balance USD 20.3 bill International Reserves USD 138.4 bill Minimum wage (Bangkok) Baht 206/day
Oct09 Nov09 Dec09 Jan10 Feb10 Mar10
Basic Figures Thailand (2009)
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.
Telenor Group Asia: