Volvo unveils S80 2.5FT in Thailand

Volvo Car Thailand unveiled the country’s first and only locally-produced flexible fuel car, the Volvo S80 2.5FT, capable of running on E85 fuel, to the VIPs at the Bangkok Racing Circuit on November 26.

The new model uses less-polluting and renewable biofuels made from homegrown agricultural products. The announcement came in parallel with the efforts of the Ministry of Energy and Bangchak Petroleum to sell E85 commercially. This is a step from Thailand in its effort to conserve environment.

The two flex-fuel cars, the Volvo S80 2.5 FT and C30 1.8F, officially went on sale following a public debut at the Motor Expo 2008.

“For Volvo, environment has been core value of our brand for decades, and so we have always fully supported the efforts of the Royal Thai Government, and particularly the Ministry of Energy, in advancing renewable biofuels with an aim of energy security for Thailand from the very beginning,” said Paul Stokes, president of Volvo Car Thailand. “Today, Volvo announces yet another milestone in this journey as we will be the first car company to produce E85-compatible FlexiFuel cars locally here in Thailand.”

Thailand economy badly hit due to violence

The Singapore companies with operations in Thailand, majority of them involved in tourism are already feeling the impact of disturbances in Thailand as travellers from Singapore, :China, Britain, France, Japan, the United States, Australia and New Zealand already being warned by their governments to steer clear of Bangkok. Business is badly hit and tourism-related sectors like serviced apartments are already seeing some cancellations.

Frasers Hospitality has put personnel at its three serviced residences in Bangkok on alert. But a spokesman said: “Our serviced apartments operations experienced only a few cancellations and these are from short-term leisure guests. Unless the volatile situation persists, we do not expect our extended-stay market to be affected in the near term.”

Ascott Group spokesperson Joan Tan said that occupancy rates for the group’s Thai properties have not been badly hit so far. Even so, as a result of the airport closure, there were “three to four cancellations per property so far”. :

Companies not directly linked to tourism are concerned too. Mr Kenny Yap, managing director of Qian Hu Corporation, which deals with exports from Thailand, said: “Currently, the operations in Thailand are still going on fine for us. But if this drags on for another two to three months, it will affect our business. As for how deep the impact is, I will not know.”

Property developer Hup Soon Global Corporations has postponed the launch of one development project specifically because of the Thai political developments.

But investors do not appear to have given up hope. Thailand’s :main stock index rose yesterday afternoon, erasing earlier losses, following speculation that a meeting between military and business leaders might end the airport occupation.

Nikon lays off 1,500 sub-contractors in Thailand

Global financial crisis has hit Thailand hard to an extent that Japanese camera-maker Nikon has laid off 1,500 sub-contractors in Thailand owing to a fall in global demand. The news has been confirmed by a government official this Saturday.

Amporn Nitisiri, director general of the Labour ministry’s labour protection and welfare department, said most of those losing jobs at Nikon had worked at its manufacturing plant for less than a year. This plant in Ayutthaya, 76 kilometres (47 miles) from Bangkok, was usually staffed by 8,000 permanent staff and 4,000 sub-contractors.

“I have been informed by Nikon’s personnel department that 1,500 sub-contractors have been laid off and the company had paid them compensation,” she told Thai television.

“It’s increasingly drastic this year as there are now 348 companies who have laid off a total of 28,600 workers and we also think it is likely that a further 123 companies may lay off an estimated 56,000 workers,” she said.

Global recession hits Thailand’s key export sectors

Global recession is taking its toll on Thailand’s exports too. The industry sources have warned that Thailand could lose up to 1 million industrial jobs over the next several quarters. Recession has badly hit the Thailand’s key export sectors such as garments, electric and electrical appliances, ceramics and furniture. According to Thaveekij Jaturajarernkul, chairman of the labour committee and the Federation of Thai Industries, export orders are expected to fall by 30 per cent next year.

“Consequently, 15 to 20 per cent of the workforce is expected to be laid off at the start of 2009,” he told The Nation newspaper.

Industry currently employs about 6 million people in Thailand. Many Thai factories are already operating five days a week instead of the previous six as a result of declining export orders this year, said Thaveekij.

Thailand to propose setting up of an Asian IMF

Thailand currently chairs the Association of South East Asian Nations. The nation is planning to propose setting up a regional financial institution for Asia that would be a cross between the International Monetary Fund and the World Bank.

“The first step would be a kind of Asian IMF, so if we are in trouble we could get some help from this multilateral organisation,” said the finance minister Suchart Thadathamrongvech. “Then if the situation is not in crisis, it would have money in the system and it could act as a kind of development bank, like the World Bank.”

Olarn Chaipravat, the deputy prime minister, has also suggested that the Asian nations should pool 10 per cent of their foreign exchange holdings into a superfund that could protect the region from the global turmoil fallout. This would amount to about $350bn, (€272bn, £217bn) with the lion’s share being provided by China, which has reserves of about $1,900bn, and Japan, with reserves of $1,000bn.

However, Mr Suchart said that the negotiations are at a very early stage and it is doubtful whether China and Japan would agree to part with their reserves for this plan.

Thailand to be the biggest manufacturing & marketing base for Hino Motors

Hino Motors is bent on making Thailand the most important overseas manufacturing base and biggest marketplace for Japanese truck and bus.

“From now on, capital, equipment, technology and human resources will be pouring into Hino’s Thai unit in line with its international business expansion plan,” said Yoshio Shirai, the new president of Hino Motors Japan. He also said that the company planned to invest up to 200 million baht retooling its production line to make trucks that can run on compressed natural gas (CNG). Additional machinery and technology will be available to support the production of medium-sized trucks for exports throughout the region.

Hino currently runs three factories, two at Samrong and Bang Phli in Samut Prakan and one at Bang Pakong in Chon Buri. The facilities are Hino’s largest production base outside Japan.

Average sales of Hino trucks and buses in the Thai market alone over the past six years accounted for 19% of its total exports worldwide.

Yoshinori Noguchi, president of Hino Motors Sales (Thailand) Ltd, said Hino aimed to sell 7,500 trucks and buses in the Thai market this year, representing 41% of the total market projected at 18,300 units.

Sales are projected to increase to 8,700 units next year, of which 2,700 units would be CNG trucks to be launched early next year and the remaining 6,700 units diesel trucks and buses. Total truck and bus demand in 2009 is expected to reach 21,000 units, a 15% increase from this year driven mainly by CNG-powered vehicles, while demand for diesel vehicles would be steady. Of the total, 3,000 units would be CNG trucks made by Hino and other brands, and the remaining 18,000 units would be diesel-powered.

Mr Shirai said the FM and FG models of Hino tractor trucks with 260 horsepower would be the first CNG models made in Thailand starting next April. Hino also plans to export Thai-made trucks to India.

The new manufacturing plant from Honda Automobile

Honda Automobile (Thailand) Co., Ltd., Thailand’s second largest manufacturer and exporter of passenger cars, has started production at the company’s second newly operational world-class auto plant, built adjacent to its existing plant in Ayutthaya province, Thailand, with an investment of more than Bht. 6.2 billion. Covering an area of about 150,000m2, the new auto plant will employ an additional 2,200 Honda associates and double its annual production capacity to 240,000 units. The plant will manufacture Honda’s current portfolio of best-selling products – the Accord, Civic, CR-V, Jazz and the City.

Fumihiko Ike, President & CEO of Asian Honda Motor Co., Ltd., said, “With this second plant, our Thai operations advance to the next stage.  This means not just providing high quality products to global markets.  Our operations here will enhance their responsibility as the leader plant in Asia to provide technical support to other plants across the region.  With the rapid changes occurring around the world, our operations in Asia will play a greater role than ever,”

Kenji Otaka, HATC’s President, said, “With the start of this new auto plant, Honda Automobile Thailand is now ranked the largest manufacturer of passenger cars in ASEAN.  This plant incorporates the most advanced clean production technologies currently deployed anywhere, making it one of Honda’s cleanest auto manufacturing facilities in the world.”

This new plant at Rojana Industrial Estate, Ayutthaya, is quite modern and advanced with high standards for environment-friendliness, ergonomically-designed manufacturing processes, and safety for the team working on site.  It is equipped with a “complete water-recycling system” to eliminate water wastage. The new plant will also reduce the use of volatile organic compounds by 50%, while the installation of Honda-developed CIGS (copper, indium, gallium and selenium) thin-film solar cells will cut carbon dioxide emissions by 10% compared with 2005 standards.

More automated systems are also featured at the new facility.  The assembly line is equipped with advanced light-weight tools and sophisticated conveyor systems that automatically adjust the position of the car on the assembly line to optimise convenience and comfort for its employees, thereby reducing fatigue.

Honda’s manufacturing facility in Thailand is currently ranked the sixth largest in Honda’s operations around the world after Japan, USA, China, Canada and the United Kingdom.  In Thailand, it employs over 4,200 associates and will increase the number to more than 6,400 employees to manage manufacturing operations at the two auto plants.

Exotissimo Travel opens its Phuket branch

Exotissimo Travel, the leading destination management company in Southeast Asia, has opened its office in Phuket. Besides Phuket, Exotissimo has two other offices in Bangkok and Chiang Mai in Thailand.

General Manager of Exotissimo Travel Thailand, Edwin Briels said, T”he main reason for Exotissimo to open its own office in Phuket is to be able to offer Exotissimo signature tours on a private basis that will showcase the best of what southern Thailand has to offer and present the real character of Phuket.”

The head of the Phuket office, Operations Manager Christophe Rodriguez said, “Phuket is often deemed by many as a touristy destination, but we beg to differ. On the contrary, this island still has a lot to offer. There are in fact many unexplored pockets in Phuket and the surrounding provinces. We will come up with engaging new tours soon.”

In the coming months, Exotissimo Phuket will develop and operate more Thailand tailor made tours in and around Phuket. The focus will be on individual excursions, either operated by Exotissimo itself or in combination with carefully selected partners to showcase the best of southern Thailand.

Some unique product creations in the pipeline include a sunset cruise on fisherman boat, a comprehensive tour of the local art scene in Phuket, private cooking classes in a beautiful Thai-style bungalow and community-based projects.

TCEB develops World’s 1st Security Standard For Conventions & Exhibitions

Thailand Convention and Exhibition Bureau (TCEB) has developed a comprehensive security management standard for ensuring safety of local and foreign participants partaking in the international meetings, conventions and exhibitions in the country. This system is the first of its kind in the world and is expected to make Thailand safer and more attractive destination for meetings, incentive travel, conventions and exhibitions (Mice) in Asia.

Named the Mice Security Management System (MSMS), the standard provides requirements or guidance to all the beneficiaries of the Mice industry on the tips required for efficient handling and responding to various security-related threats. It is especially tailored for hotels and other convention and exhibition venues to ensure safety of people in case of terrorist attacks or natural disasters like earthquake and tsunami.

“We believe the standard developed by us will heighten the confidence level of international event organisers and also help local companies to see the weaknesses in their system and eliminate them,” Natuwat Amornvivat, president of TCEB said at the function organised to launch the MSMS on Thursday (16 Oct).

Thailand Industrial Standard Institute, Thailand’s apex standards monitoring body, will accredit this MSMS upon verifying that the individual entities have fulfilled all the security requirements. Currently, Thailand’s three largest convention and exhibition venues—Bangkok International Trade and Exhibition Centre, Queen Sirikit National Convention Centre and IMPACT Exhibition and Convention Centre—have implemented the MSMS in their organisations.

“We believe more will follow suit in the days to come,” Natuwat said.

Thailand, Indonesia and Malaysia to meet in December

Thailand, along with Indonesia and Malaysia, will meet in December to coordinate efforts to boost falling prices of rubber. These three Southeast Asian countries happen to be top producers in rubber producing some 80 per cent of the world’s natural rubber output.

Malaysian plantations minister, Peter Chin, says officials at the three-nation talks will discuss issues related to stockpiling and supply of rubber into the market amid a looming global slowdown. Mr. Chin added that the aim of the meeting is to develop proper stock management, supply and export tonnage. He also says that the global financial crisis might reduce the demand for rubber because there will be less demand for new cars.

Falling world stock markets and fears of a global recession forced Asian rubber futures Friday in Tokyo to sink to their lowest levels in nearly two years.

CENTEL keen to buy back stakes from Lehman Brothers

Thailand’s Central Plaza Hotel CENT.BK (CENTEL) has expressed it’s desire to buy back stakes in two hotels on the Thai resort island of Phuket from failed U.S. investment bank Lehman Brothers. Lehman acquired the stakes in the Central hotels on Kata and Karon beaches for 240 million baht ($7 million). CENTEL runs 10 luxury hotels and five food franchises, including KFC and Mister Donut in Thailand. It plans to spend about 3 billion baht to open six new hotels in 2009, including one in the Maldives.

“If they sell, we are interested because we already own 50-51 percent stakes in each hotel,” CENTEL Chief Financial Officer Ronnachit Mahattanapreut told reporters. Despite all the economic and political crisis in Thailand, Ronnachit expected a 15-20 percent rise in third-quarter hotel revenues, with 6-7 percent coming from food services.

“We’re still going to do well in the third quarter. Last year we closed five different hotels, but this year we’ve added the Centara Grand to boost revenues,” Ronnachit said of the company’s new hotel in downtown Bangkok.

“Tourists from the Middle East, China, India and Russia are less affected by the financial turmoil in the United States and they are offsetting European tourist arrivals,” he said adding that the Centara Hotels & Resorts Leasehold property fund CTARAFu.BK is expected to expand to 10 billion baht over the next 2-3 years from 3.2 billion baht today.

Tisco Securities analyst Jitima Aungmanee said in a research note he expected CENTEL to book a 725 million baht gain in the third quarter from its new property fund.

Pattaya wants to be included in DASTA

Pattaya is trying hard to declare eight zones in the city Designated Areas for Sustainable Tourism Administration (DASTA) and the officials from all these eight zones have already sent the proposal to the Thai Cabinet for official approval.

DASTA was created by the government in 2003 to ensure balanced tourism development in special areas that were considered valuable and potentially under threat. The group’s duties include conserving natural resources and cultural values in existing communities where tourism is an economic mainstay. DASTA is also designed to manage the impact of tourism as sites expand in the future.

So, this move from the officials of Pattaya will not only help as a step towards maintaining the environment, social traditions and cultural values, but will also act as a vehicle for getting government funding for pipedreams and self-serving mega projects.

New master conservation projects are planned for Rayong’s Koh Samet islands, Krabi’s Koh Lanta islands, and the Nongteng-Chakkarat forest in Nakhon Ratchasima. Pattaya’s mayor is trying to get Pattaya City included as one of DASTA’s new areas to ensure sustainable tourism development. One obvious issue would be how to classify the cultural value of Pattaya’s rampant sex industry.

Thailand concerned about Chinese imported milk products

Milk contaminated with melamine has been blamed for killing four Chinese babies and sickening more than 50,000 others arousing questions about the standard of Chinese-made food products made with milk or milk powder. After traces of melamine contamination in milk powder imported from China, Thailand is now testing nearly 100 imports from China for possible melamine contamination.

Manit Arunakoon, deputy secretary-general of Thailand’s Food and Drug Administration, revealed that tests on two different samples of Shuangwa Full Cream Milk Powder found levels of melamine legally acceptable for human consumption. The melamine levels were 0.38 milligrams per kilogram and 0.55 milligrams per kilogram in the powdered milk from Shuangwa Dairy Co. — both below Thailand’s legal limit of 1 milligram per kilogram, the FDA said in a statement.

It has cleared the product for sale in Thailand along with 32 other Chinese-made products that were tested and showed no trace of melamine, including M&Ms, Snickers bars, Oreo wafer sticks and Dove Milk Chocolate Bars, the FDA said.

Thailand has also impounded 80 tons of milk powder from China that is being kept at ports and warehouses around the country, FDA secretary-general Pipat Yingseri said.

“This doesn’t mean that the items are contaminated,” Pipat said. “We just want to make sure that there will not be contamination before releasing it for sale to the public.”

Thailand’s Health Minister Chalerm Yoobamrung warned Wednesday that Thai officials should be careful about what they say concerning possible contaminated products from China, because they could affect trade ties with the Asian giant.

I did not mean that I am afraid of China, but we have to be concerned about our trade ties because Thailand does a lot of business with China,” Chalerm said later in the day.

Japan becomes Thailand’s largest export destination

Japan-Thailand Economic Partnership Agreement (JTEPA) has paid off as the tariff cuts under this agreement has made Japan Thailand’s largest export destination.

The bilateral trade between Thailand and Japan totalled US$28.96 billion in the seven months to July this year, up 18% over the same period in 2007. This has surpassed the US-bound shipments. Among all the shipments, natural rubber, shrimp and prawns, animal feed, and lenses were the major items recording higher trade values. Shipments of lenses, prisms and mirrors from Thailand to Japan rose 53% year-on-year over the period.

Japan, on the other hand, still ranks the top as the biggest exporter to Thailand. While bilateral trade has accelerated, investments from Japan to Thailand have shrunk, according to the Japanese Chamber of Commerce (JCC) in Bangkok.

JCC president Fukujiro Yamabe said Thailand should step up promotional privileges and ease regulations to lure Japanese investors to set up regional operating headquarters (ROH) in Thailand.

Thailand to develop road & railway links with NE India

To improve the bilateral trade with India, Deputy Permanent Secretary of Thailand Government Norachit Sinhaseni has favored road and railway links with the North East India. Sinhaseni said that a railway link connecting Thailand-Myanmar and the North East India would definitely boost the volume of trade in three countries. “If we want to increase our present volume of trade, we must develop road and transportation linkages,” he said.

Thai Government seems enthusiastic towards good projects for the link. The senior official under the Ministry of Foreign Affairs said, “We are ready for any fruitful project. Trans-Asian Highway project is already underway and we can undertake similar kind of railway projects with active support from the Indian Government.”

Sinhaseni is in Guwahati at present to participate in the 4th North East Business Summit. He said that Thailand is also keen to explore avenues in agro-based industry in the North East. “Agro-based products are available in the region and therefore we are in favour of initiating joint venture projects with the traders of the North East,” he informed.

Sinhaseni also revealed that Thailand is interested in investing in infrastructure and telecom sectors in the region. “This region is a high-potential area. Moreover, we have close historic ties with the North East. So we are really looking forward to establishing investment links,” he observed.

On Indo-Thai trade, he said that the bilateral trade between the countries has been picking up gradually. “Last year we had a target of $4 billion, but we surpassed the target and the existing trade is likely to go up to 38% this year. We want to increase our trade with India,” he added.