11 Thai Companies Make Forbes Asia 'Best Under a Billion' List

E
11 Thai Companies Make Forbes Asia
‘Best Under a Billion’ List
leven Thai companies, including Thai Carbon Black,
Seamico Securities and Minor International,
have been named among Asia’s top 200 companies by
Forbes Asia magazine in its annual Best Under a Billion list.
Criteria for inclusion in the list are strict. Companies must
have revenue of under US$1 billion and five-year returns on
capital of at least 5%. Judgments are based on sustained gains
in sales, return on equity and earnings.
The results are promising for Thailand which last year
secured four winners. Apart from Seamico Securities Plc, which
was also nominated in 2004, none of this year’s Thai winners
appeared on last year’s list, although some like Thai Carbon
Black have previously been selected.
“We have won four times in the last five years,” Thai Carbon
Black’s President S. Srinivasan told Investment Review. “In 2003
we were also voted by Hewitt Associates partnership with Sasin
Graduate Institute of Business Administration and Dow Jones
as Best Employer in Asia and Best Employer in Thailand.”
The company, which celebrated its 25th anniversary this
year, is a member of the multinational Aditya Birla Group
(ABG), the world’s fourth largest producer of carbon black an
essential raw material in the production of paint, printing
ink and a range of rubber products, such as automobile tires.
Thai Carbon Black’s total sales for fiscal 2005 were listed
by Forbes as US$109 million with a net income of US$16
million and a market value of US$143 million. “Our strength is
our leadership and quality management, while also being very
quality conscious,” Srinivasan added.
Seamico Securities, Thailand’s leading independent stock
broker, also won Forbes Global 200 Best Small Companies
award in 2003. “The commendation truly belongs to our staff,
who at every level of our organization, have strived to reach
far beyond our expectations in delivering superior client
services and value to our shareholders in an environment of
strong corporate governance,” said Paron Israsena, chairman
of the board of Seamico.
In 2003/4 Seamico was also ranked by the Thai Institute of
Directors in the top 25% of companies listed on the SET and
MAI for its Good Corporate Governance practices.
Minor International (MINT), Thailand’s largest food
service operator, said the award was due to Forbes’ recognition
of MINT’s “ability to consistently reward shareholders with
strong earnings growth and high returns on equity.”
Over the past five years, MINT’s food service and hotel
business combined to deliver 26% average EPS growth and a
15% average return on equity. In 2004 the company posted a
77% year-on-year increase in sales to US$201 million and a
78% increase in earnings to US$18 million. During the first half
of 2005, MINT’s sales and earnings were up 32% and 78%
year-on-year respectively.
According to Forbes, the Asia-Pacific is alive with small
and medium-size enterprises that reward not only their founders
and other insiders but also public shareholders. “Unlike their
U.S. counterparts on the Forbes 200 Best Small Companies
list, which frequently do not pay out dividends, nearly all of
our best Asian companies offer payouts. The average yields:
Asia-Pacific 2.5%, U.S. 1.1%,” stated Forbes.
“The breakdown among [Asian] countries reflects the
degree to which sustained entrepreneurial climates have existed
in various nations to foster exemplary companies.”
For a complete list of companies visit www.forbes.com
INSIDE
NEWS BITES/BOI APPLICATIONS.................................................2
COMPANY SPOTLIGHT: WESTERN DIGITAL.................................3
WHY THAILAND: GTCC.................................................................5
FOCUS ON: YACHTING..................................................................6
CULTURAL SNAPSHOT: LOY KRATHONG FESTIVAL....................8
GUEST INTERVIEW: OVEC...............................................................9
BOI INVESTMENT MISSIONS........................................................10
INSIDE THE BOI.............................................................................11

Honda to establish Thai-based R&D facility
Honda R&D Co. Ltd.
has announced its
plans to set up an
Asia-Pacific automobile
research and
development facility
in Thailand at a total
cost of $60 million.
Honda R&D Asia
Pacific Co., Ltd., a new Honda subsidiary, will be
established on December 1, 2005 to manage the project.
The R&D center, which is expected to be operational
by 2007, will employ around 120 people and develop
locally-produced parts, as well as undertake product
development that includes product planning, styling
research, and road testing for Asian markets. A test course
is also slated for the second phase.
In December 2004, Honda expanded its Bangkok
operations to handle R&D for motorcycles in Southeast Asian
markets. Total investment for the facility was US$21.2 million.
ABAC to turn students into savvy entrepreneurs
The Business Development Department signed an
agreement this month with Assumption University (ABAC)
to teach students hands-on management skills for running
companies.
The project, operated by University Entrepreneurial
Development (U-ED), is aimed at turning students into
model entrepreneurs and reducing the number of Thai
SMEs that end up bankrupt.
Director-General Orajit Singkalavanich said
the project would give students especially senior students
a better understanding of how to deal with real-life
management situations not covered in current business
management training courses.
Students who complete the U-ED project will receive
a certificate from the department guaranteeing that they
are able to establish their own businesses. In addition,
fast-track loans will be provided to students with the highest
grades by the Small and Medium Enterprise Development
Bank to launch their own start-up companies.
Software industry gets government funding boost
The Thai government has announced a special budget of
US$2.5 million for the Software Industry Promotion Agency
(SIPA) in commemoration of the agency’s second
anniversary. SIPA’s 2006 fiscal year budget is US$10 million.
SIPA will use these funds to invest in local software
projects with business potential. The agency actively
promotes software in four key areas: animation and
multimedia, enterprise software, games and mobile
applications, and embedded software.
Each software project will be eligible for up to
US$125,000 in funding, with the investment to be exchanged
for a 5-10% share of the company.
The government hopes its own investment will
encourage additional financing from private firms.
2
1US$ = 40 THB
Number of
Projects
2003 2004 2005 (Jan-Sept)
Value
Number of
Projects
Value
Number of
Projects
Value
Total Foreign 668 6,217 749 7,675 622 7,117
Investment
By Sector
Agricultural Products 57 307 82 563 43 317
Minerals/Ceramics 18 460 18 1,612 21 224
Light Industries/Textiles 56 371 61 207 70 240
Automotive/Metal 213 1,394 223 1,286 178 3,038
Processing
Electrical/Electronics 152 1,579 152 1,985 119 1,692
Chemicals/Paper 95 1,310 107 1,169 98 674
Services 77 796 106 853 93 932
By Country
Japan 316 2,659 340 2,546 273 3,667
United States 43 1,186 39 881 41 185
East Asian NICs
Taiwan 67 198 61 233 42 249
Hong Kong 16 311 18 65 17 256
Korea 48 163 29 73 31 47
Singapore 62 365 81 557 67 386
European Union 74 911 94 802 90 749
United Kingdom 19 508 23 50 16 114
Germany 17 20 21 126 16 82
Switzerland 3 18 8 129 13 365
France 10 19 12 24 13 10
Netherlands 9 241 15 271 21 434
By Zone
Zone 1 163 1,369 194 943 167 1,373
Zone 2 380 3,569 375 5,100 342 3,811
Zone 3 125 1,279 180 1,631 113 933
Source: BOI International Affairs Division
Note: Projects with more than one foreign shareholder are counted twice.
The BOI Investment Review
BOI Working Group
Sudjit Inthaiwong
Jutatip Kriengkraisakul
Bussarakum Sriratana
Dhinapa Apaivongse
Graphic Designer
Kenan Institute Asia Editorial Team
Don Linder, Editor-in-Chief
Paul Wedel
Paul Davies
Renee Santo
Chittrawinee Wichianson
The BOI Investment Review is produced every month by Kenan Institute Asia
(www.kiasia.org) on behalf of the Thailand Board of Investment. Any questions
or comments regarding content may be addressed to the editor at
DonL@kiasia.org.
Previous issues of the Investment Review can be downloaded from:
www.boi.go.th/english/services/boi_investment_review.asp
Unit: US$ Million
Alisa Kukarja
Chrissa La Porte

Western Digital Investing for the Future
In 2002 California-based Western Digital launched its HDD (hard disk drive)
operations in Thailand following the acquisition of Fujitsu’s HDD assembly plant.
Thailand is now the world’s largest HDD exporter.
www.westerndigital.com
E
ven with established operations in Malaysia, the
chance to take over a Thai factory with a readymade
HDD assemblage facility was too good an
opportunity to pass up, according to Joe Bunya, vice president
of Thailand Magnetic Recording Head Operations for Western
Digital (WD).
“We needed additional capacity we needed to diversify
to reduce our risk and the Fujitsu factory was a great
opportunity with a ‘clean room’ facility readily available.
That’s a big cost saver.”
Thailand’s HDD production began in earnest in 1983
when Seagate was given investment privileges by the BOI.
Western Digital’s involvement came after it acquired the
factory from Fujitsu following the Japanese company’s
decision to quit its 3.5-inch hard disk operations and
concentrate on smaller HDDs for laptops.
Since establishing production in Thailand, Western Digital
has diversified its product line to include not only HDDs for
the desktop PC market, but also consumer gear and portable
electronics such as 2.5-inch drives for notebooks.
In WD’s first quarter (ended September 30), the company
reported revenue of US$1.0 billion on shipments of
approximately 17.1 million units, and net income of US$68.8
million. The results represent a strong year-on-year
performance, including 20% unit growth and 23% growth in
revenue verses US$824 million in the same period last year.
Twenty-five percent of WD’s first fiscal quarter earnings
Exports, Market Share and the Value Added of Thailand’s
Hard Disk Drives (HDDs)
2003 2004 2005*
Production quantity (in million units) 54.17 73.01 155
Export quantity (in million units) 52.40 n/a 150
World market share (%) 19.50 19.90 42
Export value of HDDs and related $7 bln $12 bln -
components (US$)
HDDs $4.6 bln $3.2 bln -
Components $3.2 bln $8.9 bln -
HDD export value compared to the n/a 33.9 -
nation’s total exports (%)
Value added to the economy (US$) $1.7 bln $4.5 bln $9 bln
VA= (Export - Import) - net profit
Growth rate of value added in the n/a 157.14 100
HDD industry (%)
GDP (US$)
$132.5 bln $140 bln 147.5 bln
Contribution of the HDD industry to GDP (%) n/a 3.2 6.2**
Source: IDEMA, Thailand
Note: * The HDD production and export quantities in 2005 are estimated figures.
** The growth rate of the value added in the HDD cluster is estimated at
100% whereas the growth rate for GDP is estimated at 5%, therefore, the
contribution of the HDD cluster to the GDP in 2005 is 6.2% of the GDP.
was derived from non-desktop PC sources including notebook
PCs, consumer electronics, enterprise applications, and retail
sales, while 75% of its revenue came from HDDs configured
into desktop PCs, a market that still remains strong for WD.
“Our success in the 2.5-inch mobile hard drive business
is the result of our steady and measured approach to new
market opportunities. We will maintain this approach as we
launch our 1-inch hard drive in the hand-held consumer
electronics market this quarter,” said Arif Shakeel, president
and CEO of Western Digital.
As the company targets more consumer electronics, will
Thailand remain WD’s definitive export base, or is it looking
to other regional markets such as China where growth in
consumer spending is attracting PC and HDD producers?
Although growing competition from China and other
low cost markets like the Philippines is putting pressure on
the cost structure of Thailand’s HDD sector and on the
effectiveness of the overall value-chain, Bunya says the
country’s well-established network of suppliers still gives it
the edge.
“Companies like Seagate, IBM and Fujitsu have been
here for a long time and over the course of 20 years have
developed a large base of suppliers. We have to be competitive
and as long as Thailand offers the most competitive
environment, as far as tax incentives, flexibility, cost the ease
of doing business and so forth, we will be here,” said Bunya.
However, Bunya said Thailand can’t afford to be
Continued on Page 11
Thailand Leads the Field in HDD Exports
MMC Technology, a unit of the U.S.-based Maxtor, is also
planning an US$880 million investment in Thailand over the next
four years to set up a local production facility. The company
plans to relocate the bulk of its global media production to Asia.
Thailand is now the world’s largest hard disk drive
producer, with four out of five of the world’s leading HDD
manufacturers having established production bases in Thailand
(specifically Seagate, Hitachi Global Storage Technology, Western
Digital and Fujitsu). Forecasts indicate that Thailand’s HDD
world market share will hit 42% for 2005, an astounding increase
from 19.9% in 2004.
The global HDD industry projects an annual growth rate of
17%, from 261 million units in 2003 to 500 million in 2010.
Thailand is forecast to produce 155 million HDDs in 2005, up
from 73 million in 2004. In 2004, exports of hard disk drives
grew by 86.5%, accounting for 12.3% of the country’s exports.
Cluster development has facilitated domestic production of many
components, including spindle motors, suspensions and tooling/
heat treatment systems.
3

4
GTCC Promoting German Investment
And Business Development in Asia
P
aul Strunk, executive director
of the German-Thai Chamber of
Commerce (GTCC), believes
that Thailand has distinctive benefits
for German investors.
The GTCC’s mandate is to
impartially promote investment and
business development in Asia. Said
Strunk, “We are a business consultant,
but what makes us different from a
private consultant is our objective
interest in promoting commerce, rather
than making profit.”
According to the GTCC, over
350 German companies have affiliates
in Thailand, and German FDI in
Thailand is on the rise. The value of BOI approved German
investment projects in 2003 surged from US$10.3 million
to US$20.1 million in 2004 and between January and
September this year grew to a staggering US$153.6 million.
Projects cover a broad area of sectors including plastics,
glass, chemicals, hotel development, electronic
components, textiles, machinery, automotive R&D and
food processing.
Currently, the GTCC serves around 500 members from
various industrial sectors including the service industry,
manufacturing and trade.
Similar to the German embassy, the GTCC provides
German investors with an overview of investment
opportunities. However, the GTCC can also offer specific
advisory services as well as one-on-one guidance for
individual investors. Its areas of specialization include
BOI Approved German Investments
from Jan 2000 to Sept 2005 (million US$)
Chemical, paper
and plastics,
311.8, 41%
Services and
public utilities,
86.4, 12%
Agriculture and
agricultural
products,
23.0, 3%
Electronic
industry and
electrical
appliances,
69.0, 9%
market entry, distribution channels,
legal rights and obligations, as well
as cross-cultural dilemmas.
German companies seeking
Thai suppliers can also use the
GTCC’s services to organize presentations
and promotions. Conferences,
exhibitions and business
match-making workshops are an
important component of the GTCC’s
activities assisting in the smooth
transfer of technology and creating
new synergies between Thai and
German companies. “When business
is successful economic relations
improve, so in this respect, we offer
an important and valuable service,” said Strunk.
The GTCC also facilitates the development of business
opportunities for Thai companies in Germany. Under its
International Fairs Division it assists Thai companies in
the launching and staging of exhibition projects as well as
organizing visits to German trade fairs. Thai companies
and businesspeople have recently visited the Hannover Fair,
CeBIT, Drup, Ambiente, Automechanika, ANUGA,
interpack, inhorgenta, igedo and the Berlin Audio and
Video Fair.
Thailand’s own growing exhibitions business serves
an increasing number of German fair organizers selecting
Bangkok to showcase their products. This, said Strunk,
provides German companies with opportunities to access
the Thai market and to attract local buyers.
Currently, the GTCC is promoting participation by
Thai companies in the upcoming Cologne International
Furniture Fair in January 2006. “Thailand has the supply
of wood and manufacturing skills, but it may still need
design and technological assistance from Germany.
German companies, on the other hand, might try to seek
Thai partners to produce merchandise at lower cost,”
explained Strunk.
“German firms are here because they see that the
country is politically stable and the government has taken
effective measures to get out of the 1997 crisis,” said
Strunk. “German businesses also like the dynamism of
the Thai government in getting things done. They feel that
Thailand is a safe place to do business and Thai partners
are trustworthy.” — By Alisa Kukarja
For more information about GTCC, visit www.gtcc.org
Dr. Paul Strunk, executive director, GTCC
Mining,
ceramics and
basic metals,
159.8, 22%
Light
Industries/
Textiles,
50.4, 7%
Metal projects
machinery and
transport
equipment,
42.8, 6%

Augsburg AG
Supporting environmental protection and sustainable resources
by assisting companies to make alternative energy investments.
Deputy Prime Minister Phinij Jarusombat (left), H.E. Alexander Wolf,
federal deputy minister of Consumer Protection, Food and
Agriculture (center) and Gerhard Leypoldt, CEO of Augsburg AG,
toast the first Bavarian fuel cell bus at the 2004 Renexpo Fair.
C
onscious that developed and developing countries
alike are staking their futures on oil-alternatives,
Thailand’s Ministry of Energy has stipulated that
by 2011 eight percent of all the country’s energy must come
from renewable energy sources.
To help reach Thailand’s renewable energy target,
the BOI last year signed a memorandum of
understanding (MOU) with Augsburg AG, a one-stop center
for establishing alternative energy companies. The MOU is
designed to assist German investors seeking investment
opportunities in Thailand’s environmental sector.
Since October 2003 Augsburg AG has been working
with the BOI and advising German investors approximately
100 in 2004. Augsburg also works closely with the
German Chamber of Commerce.
“Biofuels, biomass, and solar energies are some of the
key areas receiving increased attention from foreign
investors,” stated Gerhard Leypoldt, CEO of Augsburg AG.
“With government support and financial mechanisms to help
consumers deal with the initial high investment costs, the
alternative energy industry could really take off in Thailand.”
Augsburg AG offers a range of services to potential
investors from Germany especially those from Augsburg-
Swabia including providing information on doing business
in Thailand, publicizing potential investment projects,
organizing investment and fact finding missions, and
arranging roundtable and individual meetings with the
BOI.
As one of the organizers of the largest alternative
energy exhibitions in Western Europe, Augsburg AG has
strong links with companies working in the sector. From
September 22-25, approximately 11,900 people visited
IHE WoodEnergy 2005, RENEXPO 2005 and
reCONSTRUCT 2005 at Fairground Augsburg, an 11%
increase from the previous year.
The triad of exhibitions serves as a marketplace and a
forum to educate consumers and businesses about new
technologies in wood biomass, constructing “green”
homes, and about other technologies in alternative energy,
energy efficiency and environmental protection.
Leypoldt said many German companies were interested
in expanding their overseas operations in emerging markets
with low production costs. This year approximately 80
CEOs, senior managers and company owners attended
RENEXPO’S annual presentation on investment
opportunities in Thailand.
At the session, Senior Executive Advisor Atchaka
Brimble presented the range of BOI incentives to producers
of biofuels, solar cells, and other forms of alternative
energy. BOI incentives include an 8-year corporate income
tax exemption on duty free machinery and raw materials
for these and other activities in the environmental sector,
which includes, for example, energy consulting companies
(ESCOs).
Atchaka stated that as a world leader in environmental
technologies, German investors would do well in Thailand.
“I believe that Thailand has much to learn from the
European Union, and from Germany in particular, about
renewable energy. An early liberalizer of electric power,
Germany is well on the way to meeting its national target
within the EU of producing 12% of electricity from
renewable sources by 2010.”
Augsburg AG is planning to establish a Bangkok-based
liaison office in spring 2006 to support German enterprises
and organizations from the Augsburg-Swabia-Bavaria
region. An important focus for the office will be the
environmental area, specifically renewable energy
technologies. The liaison office aims to offer prospective
investors from Germany services such as assistance
forging links, market research, and theoretical and
practical support in specific investment projects. The
office will also serve as point of contact for Thai
enterprises and organizations interested in cooperating
with German parties. — By Renee Santo
5

Thailand’s Yachting Industry
Charting New Waters
Following the Asian tsunami, the marine industry has recovered quickly, boosted by a
change in import taxes on boats and the government’s willingness to promote Thailand
as a yachting haven.
T
hailand looks set to become one of the world’s
prime yachting holiday destinations following the
government’s decision to push ahead with a
revision of marine regulations.
In May, the Tourism Authority of Thailand announced
its intentions to promote the yachting industry and address
the remaining obstacles impeding its growth. This follows
the abolition last year of import taxes (reduced from 245%
to 45% before falling to zero in March 2004) on boats
coming into the country, substantially easing the financial
burden on chartered yachts and the growing number of
privately owned boats.
At a recent government sponsored workshop to
discuss the future of marinas in Phuket, the government
also agreed to invest in and oversee the operations of
marinas, including issues of immigration and safety. Initial
focus will be on a planned marina at Ao Chalong, which
has been allocated a budget of US$1.75 million and will
have 200 berths able to accommodate boats of up to 20
meters.
With the marine industry generating significant
revenue in key tourism sectors especially hotels and
marinas the government will focus its revisions in three
areas dealing with commercial and chartered boats.
Classification for yachts: Privately owned yachts
are currently governed by regulations that were written
for commercial vessels.
Manning requirements: Current rules state that Thai
registered yachts must have a licensed captain and engineer
on board when sailing.
The Bare Boat classification: Changes in the current
regulation would allow
a boat to be chartered
without a captain
or crew.
A revision of regulations governing bare boat chartering
is considered to be a crucial step in opening up the charter
business. In yachting havens such as the Mediterranean,
Caribbean, and South Pacific more liberal regulations are
fundamental to the industry’s success.
According to Vincent Tabuteau, managing director of
Thai Marine Leisure, regulation changes are imminent. “The
Marine Department is working on the definition of small
sailing vessels used commercially. In these regulations the
‘manning’ of vessels will be addressed so that it is no longer
essential to have a licensed Thai captain and engineer on
board,” Tabuteau said.
The timely legislative changes are due, in part, to the
lobbying efforts of the marine industry through its
representative body, the
Marine Alliance of
Thailand (MAT). At a recent
meeting in Phuket, MAT’s
Chairman Grenville Fordham reported
that 30 companies nationwide had
6

pledged their commitment to joining MAT once its application
for official status currently under consideration by the
Thai government is granted.
Fordham said Thailand was becoming increasingly
popular with yachting enthusiasts from nearby markets like
Singapore, Hong Kong, Australia and New Zealand, but was
not yet considered a major yachting holiday destination
because of tax and legislative obstacles.
Thailand’s growing yacht construction business ensures
it has a ready source of skilled shipwrights, engineers, and
electronics specialists. Boatyards are also well equipped to
repair, refit and build new crafts, while the number of Asiabased
industry suppliers producing sails, spars and teak
fitting is growing fast.
Although Phuket is a more popular destination for
yachting, through the efforts of the Ocean Marina Yacht
Club based in Pattaya, the Gulf of Thailand is also quickly
gaining popularity. From Pattaya more and more yacht
enthusiasts are booking charters to islands Koh Samet, Koh
Chang, Koh Samui and beyond.
In July the start of the official yacht racing season
both Phuket and Pattaya become very active, hosting
local racing events and week-long international regattas. The
meets are attended by hundreds of competitors and
spectators from Australia, Malaysia, Singapore, Hong Kong
and even Europe.
MAT will stage the third Phuket International Marine
Expo (Pimex 2005) from December 8-11 aimed at
promoting marine tourism. Image Asia, the organizer,
expects 150 companies (sellers) to take part this year with
6,000 visitors generating about US$20 million in sales.
— By Bianca Hein
Bianca Hein is managing editor of SEA Yachting
magazine. A USCG licensed sea captain since 1980,
she also has an extensive business background and is
the recipient of the U.S. Small Business Administration’s
Business Journalist of the Year Award.
For more information you can contact Bianca by email:
marine@aapress.net
New Super-Marina for Phuket
In a bold move that took the marine industry by
surprise, telecoms multi-millionaire Gulu Lalvani
announced earlier this year that he would create one of
Asia’s biggest and best equipped marinas. The Royal
Phuket Marina will open for business in early December
this year. When completed it will accommodate megayachts
and offer 24 hour access.
Covering over 30 hectares on the east coast of
Phuket, near Phang Nga Bay, it will have capacity for up
to 350 yachts (up to 35 meters in length); a 250-meter
waterfront promenade; 16,000 sq. meters of retail and
entertainment facilities; and 10,000 sq. meters of spa
facilities.
The development also includes: 2-, 3- and 4-bedroom
(167 to 511 sq. meters) waterfront condominiums;
penthouses with rooftop terraces; and villas of up to 1,100
sq. meters. The final phase of the project is scheduled
for completion in 2007.
7

Loy Krathong Festival of Lights
With a history dating back more than 700 years, Loy Krathong remains one of
Thailand’s best loved festivals
A
lso known as the “festival of lights”, Loy
Krathong, is one of Thailand’s most enduring
festivals a colorful celebration of lotus blossoms,
heady incense and candlelight that pays
homage to the river Goddess Mae Khong Ka and the surplus
waters of the season’s rejuvenating rains.
Celebrated on a full moon in mid-November, families
leave their homes in the cool of the evening to visit local
waterways, ponds and lakes, where homemade krathongs
or those purchased from entrepreneurial street vendors
are set afloat like so many tiny boats.
Loy means “to float” while krathong means a “banana
leaf vessel” that resembles an open lotus bloom. These
beautifully candle-lit krathongs are believed to carry away
all the bad luck and misfortunes of the year gone by.
Traditionally krathongs are made from the trunk of a
banana tree and then decorated with banana leaves and
intricate floral designs. Popular blooms considered to bring
fortune and good luck include lotus buds (bua), yellow
chrysanthemum (dao ruang), roses (dok kulab) and globe
amaranths (baan mai rue roy).
Today Loy Kratong remains ever popular, despite the
fact that many other traditions have fallen by the wayside.
Thailand’s rivers, canals and other waterways are
still important sources of food and income for many
poor and rural communities, and so Loy Krathong has
endured as a celebration of this communal life.
At night,
families, children
and adoring couples
carry their
krathongs containing
candles,
incense sticks,
locks of hair and
coins down to
their preferred
water ways and
launch them with a
wish.
C Tourism Authority of Thailand
In Bangkok,
C
Tourism Authority of Thailand
the Chaophraya River is brought to life by thousands of
flickering candles as krathongs bob around the piers
and riverbanks. Traditional Thai dress can also be seen
as many Loy Krathong revelers get into the festive spirit
and don the costumes of their ancestors. The evening’s
highlights include a flotilla of colorfully decorated
barges.
Beauty queen contests are also held all over the
country to commemorate the legendary Lady Noppamas,
the chief royal consort of King Ramkamhaeng who reigned
in Sukhothai in the 13th century. She is believed to have
introduced the king to the practice of creating a krathong,
and the story goes that the king was so impressed, he
proclaimed Loy Krathong an annual celebration.
This year’s festivities in Bangkok (Nov 13-16) will
include an illuminated flotilla of barges passing along the
Chaophraya River from Rama VIII bridge to Taksin bridge.
Visitors to Bangkok can also watch events unfurl from
river hotels and restaurants which traditionally provide
Loy Krathong evenings to customers and guests wishing
to take part in the festival.
This year Loy Kratong falls on November 16.
— By Alisa Kukarja
8

www.vec.go.th
OVEC Launches New Approach
To Vocational Education
Veerasak Wongsombut, secretary general of the Office
of Vocational Education Commission (OVEC), told Investment
Review Thai vocational graduates are ready to serve private
sector investors. By adopting a new strategic approach to
vocational education, Veerasak is confident that Thai skilled
labor will be able to support the country’s national economic
agenda.
IR: Can you explain the different types and levels of
vocational programs available in Thailand?
Veerasak: Our vocational programs range from subjectspecific
technical education and training for skilled and
semi-skilled workers to management training for
supervisory-level technicians. We also conduct R&D training
for technologically-advanced students. Since 2004, Thai
students have produced over 2,000 inventions. There are
currently over 800 public and private vocational schools in
Thailand covering a wide range of subjects. More than half
of our students are enrolled in the industrial program, which
is divided into areas including machinery, automotives,
metals, electronics, mechatronics, printing, ship building,
petrochemicals and telecommunications.
(Other educational programs include arts, business and
commerce, home economics, tourism, ICT, textile; agriculture
and fisheries).
IR: What changes are afoot in Thai vocational education?
Veerasak: To increase our students’ employability, we are
adding more non-technical subjects into our curriculum
including foreign languages, communications, management
and information technology. In conjunction with the Kenan
Institute Asia, we have also initiated an ‘Incubation’ project
to provide our students with entrepreneurial skills and
experience. Students will be trained on how to develop their
business plans and set up their own businesses under the
close guidance of consultant teams free of charge. These
business management skills are vital to help them better
understand and meet the needs of their potential employers.
IR: What is being done to bridge the gap between workforce
supply and economic and industrial demands?
Veerasak: OVEC works closely with the Federation of Thai
Industries (FTI), the National Economic and Social
Development Board (NESDB) and the Ministry of Industry
to identify priority industrial sectors and estimate the human
resource demands in each sector over the next four years.
Our curricula are then developed and adjusted in line with
needs of the sectors.
We are also working in conjunction with the private
sector. For example, Honda and Toyota have collaborated
with our technical schools in Ayuthaya and Samutprakarn
to design training programs as well as provide internship
opportunities for students in the automotive field. Platinum,
a motorcycle parts and components manufacturer, works
with OVEC to research and develop new components for
its motorcycle assembly. Our students are now able to
research, develop and manufacture components to supply
directly to Platinum.
We have already signed MOUs with nearly 10,000
private companies in various sectors to share information
and collaborate in vocational training. From October 20-27,
OVEC held a seminar that brought together over 2,000
business and vocational institutions to brainstorm strategies
and frameworks for vocational education in the 13 target
industrial sectors.
IR: What is the standard of Thai vocational education
compared with international curricula?
Veerasak: Thai vocational education is adopting the VQ
(Vocational Qualification) system, which is used by many
developed countries such as the UK, Australia, and France.
VQ is our guideline for curriculum development, examination
and evaluation for all programs relating to the target sectors.
With this system in place, along close links to the demand
side, I believe that the Thai workforce will be fully capable
to serve current and future investments across sectors. Thai
vocational students are persistent and dedicated learners.
The skills they acquire now are practical and relevant to the
needs of the industry, so foreign companies can be confident
that they will find the right skills in Thailand, thus adding
value to their products and services.
Arts,
10,387
1.7%
Commerce and
Business,
213,783
35.2%
Enrollment in OVEC Programs (2005)
Textile,
Tourism, 666
12,041 0.5%
2%
Agriculture,
28,456
4.7%
Fisheries,
2,796
0.5% ICT, Home
Economics,
2,691 19,942
0.4% 3.3%
Industry,
316,428
52.0%
Source: OVEC, 2005
9

Destination: Hong Kong
BOI Deputy Secretary General Thamrong
Mahajchariyawong led a mission to Hong Kong
on September 28-30 to take part in a seminar
promoting industry sectors including agricultural,
logistics, fashion and financial services. The BOI
delegation later met with representatives from
two Hong Kong trade and investment agencies
Hong Kong Economic & Trade Office and
Invest Hong Kong to discuss future cooperation.
The BOI team also visited Hong Kong International
Terminals, the world’s largest port facilities.
Destination: Italy
As part of its mission to promote Thai fashion as
a world class product, BOI representatives visited
Italy in September to attract high-end fashion
Deputy Secretary General Sudjit Inthaiwong (right)
during the Piave Maitex factory visit in Milan on
September 28.
Destination: Germany
A delegation of Thai SMEs accompanied by BOI
representatives visited Germany recently to seek
business partnerships with European auto
component producers at two auto parts
networking events held in Hanau and Lindau from
September 21-28.
The SMEs presented their products to seven
potential customers, and Assistant Secretary
General Vibulphan Juntarashote introduced
Thailand’s automotive industry outlining the
government’s efforts to make Thailand Asia’s top
auto production base. Delegates also visited I.G.
Bauerhin, an auto parts producer based in Hanau.
At the Bayern Innovative International
One-on-One Cooperation Forum in Lindau, Thai
SMEs met with over 30 European companies to
discuss product specifications and technical
requirements for supplying European companies.
John Rutherford,
OBE, Associate
Director-General
of Invest Hong
Kong (right) and
Deputy Secretary
General
Thamrong
Mahajchariyawong
at Invest Hong
Kong on
September 30.
labels with advanced production capabilities. Other target sectors
also being promoted included agro-processing, industrial
machinery, electronics, packaging and automotive design.
In Rome, Venice and Bologna, BOI Deputy Secretary General
Sudjit Inthaiwong presented Thailand as an alternative production
base for the fashion industry with a skilled, low-cost labor force.
Sudjit also emphasized Thailand’s geographical location and
regional free trade agreements that make it the ultimate gateway
to ASEAN markets.
At the seminar in Rome, H.E. Vara-poj Snidvongs, the Thai
ambassador in Rome, spoke about business opportunities for
Italian investors in Thailand. A representative from SIMEST a
financial institution dedicated to supporting and promoting the
activities of Italian companies also briefed Italian investors
about overseas investment incentives. SIMEST is one of the BOI’s
long-standing partners in cross-border investment promotion.
In Milan, BOI delegates visited Piave Maitex, a producer
of high-end stretch fabrics, ribbons, embroidery and lace. The
delegates also formed a partnership with Assolombarda, the
largest Italian chamber of commerce in Milan with around 6,000
members. The partnership will promote joint investment activities
in Thailand.
The Italian mission was from September 24 to October 1.
BOI delegates also talked to individual European companies about
investment opportunities in the Thai automotive industry.
BOI and Thai SME delegates visited I.G. Bauerhin, an auto parts producer,
on September 23.
By Jinchana Osottanakorn, Fern Saridratyothin, Kritawit Madhyamankura and Alisa Kukarja
10

Thai-China Joint
Committee Meeting
Madam Wu Yi, Vice
Premier of the State
Council of the People’s
Republic of China and
Thai Deputy Prime
Minister Somkid
Jatusripitak chaired the
2nd Meeting of the
Thai-China Joint
Committee on Trade,
Investment and
Economic Cooperation
from September 21-23.
At the meeting held in
Chiang Mai, Thai and
Chinese representatives
from public and private sectors set targets for bilateral trade and
investment over the next five years. MOUs were also signed by
private sector representatives and the two countries with regards
to key industrial sectors, including logistics, automotives and
energy.
China-ASEAN
Expo
BOI Secretary
General Satit
Sirirangkamamont
presented investment
opportunities in
Thailand at the
China-ASEAN Expo
held in Guangxi,
China from October
19-21. The event
showcased
investment and trade
policies and
initiatives from
China and ASEAN
nations.
Thai-Cambodian
Investment
BOI Senior Executive
Advisor Suchart
Phisitvanich gave his
opening speech at the
‘Business and Investment
Opportunities in
Cambodia’ seminar on
September 30. The
seminar was organized by
the Thai Embassy in
Cambodia and the BOI.
Among the presenters
was H.E. Hing Thoraxy,
the Cambodian cabinet
advisor in charge of trade
and investment.
Inside BOI M-TECH
The BOI Unit for Industrial Linkage Development, led by
Chanin Khaochan (third front right), brought Thai component
suppliers to present their products at M-Tech 2005 (8th
Mechanical Components & Materials Technology Expo 2005),
in Osaka, Japan from October 12-14.
Western Digital, from page 3
complacent and needs to continue to work hard to fend
off HDD competition emerging within the region. Like
its rival Seagate, Western Digital (WD) has played a pivotal
role in negotiating with the government to secure tax
breaks and incentives for the industry.
In June, HDD manufacturers, in cooperation with
NECTEC, drafted a five-year roadmap asking the
government for US$20 million to develop human
resources and invest in research and development.
Western Digital is also awaiting approval from the
Thai government to build new HDD production facilities
in Bangpa-in, Ayuthaya, close to its existing operations.
The US$800 million project is part of a three-phase
expansion strategy to be implemented over the next 10
years.
“Although we are expanding, we are looking for
even more flexibility from the government. Right now
there are still zoning limitations it’s still a project-based
system. That’s not to say current policy isn’t good, but
there’s always room for improvement,” said Bunya.
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