NTCC Newsletter January 2009
Prime Minister meets Investors
Prime Minister Abhisit adressed investors in Thailand on January 19th. Some 500 people representing Thai as well as foreign investors heard from the PM how Thailand would rise about the challenge. PM Abhisit said that the government had only been in office 12 working days, but had not wasted one minute trying to address the challenges of the nation. The short term stimulus package, well documented in the local press, is designed for quick and targeted spending. The measures are enough without breaching fiscal discipline; Plan B is in the make for the 3rd and 4th quarter if the current measures prove to be insufficient. A mid and long term plan is being prepared as part of the coming budget. This includes megaprojects all or most of which will go ahead. Training for those who are at risk of losing their job, for those who have lost their jobs, and for those who just graduated will be supported to make them better equipped for when the economy really takes off again. With its diversified economy (agriculture, industry, service) and its diversified export base (geographically, and in terms of products), Thailand is ideally placed for a very strong rebound as soon as the global economy picks up. Please feel free to download the full text of the PM’s address from our site: http://www.ntcc.nl/news
Thailand in the Top 30 Countries for Offshore Services
Gartner puts Thailand in the Top 30 Countries for Offshore Services in 2008. Gartner has assessed the suitability of 72 countries as offshore locations, and has announced its ‘Top 30'. The analysis showed that the dynamic nature of the market has seen a number of countries position themselves as credible alternatives to the BRIC countries (Brazil, Russia, India and China). Full report: http://www.netherlandsembassy.in.th/economie_en_handel/economische_0#259860 New Director BOI Paris
BOI consults with JFCCT
On 12 December 2008, the Board of Investment (BOI) met with the Joint Foreign Chambers of Commerce in Thailand (JFCCT) to review a variety of issues of concern to foreign investors and the progress made to date in resolving issues raised at previous meetings. As a great many of the issues raised required the attention of several government agencies, representatives from the Ministry of Labor, Ministry of Commerce, Immigration Bureau, and Thailand Elite Card were invited to participate in the meeting. The minutes of the meeting are available at: http://www.ntcc.nl/news
NTCC New Year Cocktail
On January 22nd NTCC hosted a well attended cocktailparty at restaurant Phuket in Scheveningen. Han ten Brummelhuis gave an interesting and concise overview of the current political developments in Thailand. Keep your eye on the ‘Events’ chapter of our website, where we will soon publish pictures.
Unilever Thai investing more
The company plans to upgrade by investing 1.6 billion baht in production capacity andnewequipment. It has a sales growth target of4%this year. A good example is Unilever Thai Trading Co, the country's largest consumer product manufacturer, which yesterday announced it would increase its investment budget 7% to 1.6 billion baht to increase its production capacity and upgrade new equipment and technology. "We remain totally committed to our business operation here and very optimistic about Thailand's long-term potential," said Loic Tardy, the company's chairman. http://www.bangkokpost.com/business/economics/9488/unilever-thai-investing-more
Opportunities in the petrochemical industry
The Royal Netherlands Embassy Bangkok continuously updates their site with reports on potentially profitable investment or trade opportunities. In December a report on the petrochemical market in Thailand was completed and made available. Since the discovery of natural gas in the Gulf of Thailand in the seventies the petrochemical market has seen a strong developmental growth. With a total turnover of over 12 billion US$ in 2007 and an annual growth between 8 – 12 % it is one of the largest players in the region. You can download the full report (in Dutch) at: http://www.netherlandsembassy.in.th/economie_en_handel/kansrijke_sectoren
Atradius report on South East Asian perspectives
Atradius has completed a survey on South East Asia (with the exclusion of China) to assess the increasing importance of ASEAN besides China for foreign investors and traders. Growth potential is the most important drive to 56 % of the respondents. Despite their established business relations in China, traders and investors focus on ‘second-tier’ emerging markets. In healthcare, IT, financial services and construction the business volume has doubled. Despite the situation in the US most ASEAN countries rely on a rise in economic activity in 2009. As a matter of fact Atradius found that China and India have to be wary of the other ASEAN countries as serious competitors. The report (in Dutch) is available at: http://www.atradius.nl/creditmanagementkennis/publicaties/atradius-laatste-publicaties-de-meest-recente-rapporten-en-onderzoeken.html (under July 2008)
Trends in export survey
The new Asian Hemisphere
In his book The New Asian Hemisphere, Kishore Mahbubani gives account of the world as seen through Asian eyes. He describes how the economic power is rapidly moving towards Asia and as a result Western politics are under more pressure. In an interview with EVD magazine Foreign Markets Mahbubani said Asian entrepreneurs like to work with Dutch counterparts, because they respect our strong values and qualities in innovation, openness and as smart traders. He feels that the current economic situation is an opportunity for the Netherlands to show off their strongest traits. For more information or to order the book go to: http://www.mahbubani.net/
Watch out for the Dutch
The Netherlands has risen to the 8th position on the world ranking of most competitive countries in the world. In 2007 the Netherlands was listed 10th in the World Economic Forum (WEF) listing. The rise is owed to increased efficiency in the labour and commodity markets as well as innovative technological solutions. The report is available in English at: http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm
Dutch develop Som Tam tomato
The opening of the most modern R&D headquarters of Simon Groot’s East West Seed in Chiang Mai was presided over by HRH Maha Chakri Sirindhorn. East West Seed has developed amongst others a special anti-virus hybrid tomato that is excellent for making the famous spicy Thai salad Som Tam. Full article in the Nation: http://www.nationmultimedia.com/2009/01/22/business/business_30093909.php
Makro keeps investment in Thailand up
President of Makro Thailand, Khun Suchada, told the Nation that they will keep up their investment and see great opportunities to benefit from cheap steel, construction and oil costs to prepare well and be ready for any positive challenge once the economy heads back up. Interview in the Nation can be found at: http://www.nationmultimedia.com/2009/01/21/business/business_30093784.php
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