Issue 11: 1 Sept 2014
The small rectangle of land connecting Thailand, Myanmar, Laos and China's Yunnan province is now providing business opportunities for the Greater Mekong Sub-region.
Beyond the beautiful landscape and authentic local colour that attracts travellers to the Golden Rectangle, straddled across the region’s main artery are plenty of business opportunities for the first-time entrepreneur. Comprising of the R3A and R3B highways, the R3 road system connects northern Thailand with Myanmar, Laos and Yunan province in China.
Starting in Chiang Rai, Thailand, the eastbound 1,200km-long R3A runs through the Laos provinces of Viangphoukha, Bo Kaew and Long Namtha, as well as China’s Jinghong province before terminating in Kunming. While the westbound R3B runs 1,200km through Myanmar’s Tachilek and Kentung provinces before coming to rest in Jinghong province in China.
The completion of the R3 road system has contributed to the growth of businesses of all shapes and sizes along the route, especially in tourism, hospitality and logistics. However, unique strategies must be used in each country, to achieve business success, explains Dr. Pussadee Polsaram, the director of the Thai Chamber of Commerce’s AEC Strategy Centre.
“It is necessary to understand the nature and background of each area in the Golden Rectangle before making a decision about investment,” she says.
Issue 10: 18 Aug 2014
From coast to coast, Thailand might have just become a paradise for the globe’s animation and computer graphics industry.
Thailand has a natural advantage when it comes to the world of animation and computer graphics. At least, that’s the viewpoint of Nitipat Somsaman, the president of the Thai Animation Computer Graphics Association (TACGA).
By helping connect Thai animators and computer graphic artists with international studios, TACGA has discovered the secret recipe that can take the digital content industry to a world-class level.
“It might be the nature of Thai artists,” says Somsaman. “Artistic skill and a sense of craftsmanship might be programmed into Thai people’s DNA. Switch from a canvas or a side of a temple’s wall to a graphic tablet and you get the same beautiful artwork, digitalised.”
This can be seen in the rising number of Thai animations receiving awards at international festivals. Khan Kluay, a Thai computer-animated feature film about a brave elephant during wartime, has enjoyed great international acclaim since 2006’s Animadrid International Animation Festival. Nine, a Thai short animation about a cat, reaped awards for direction and art direction at the Apollo Awards 2014 and is about to be screened at international film festivals around the world.
A second advantage is the abundant human resources in the digital content industry. “There are over 30 universities teaching computer graphics and associated fields,” says Somsaman. “You can expect a handsome number of graduates every year.” This has made Thai graphic students increasingly attractive on the global marketplace. “Overseas companies snatching young artists out of the campus has even become a normal scene lately,” he adds.
Issue08 : 22 July 2014
As mobile phones become a daily essential and the internet is available everywhere, e-commerce becomes ever more important. Horizon Thailand meets one Thai company that is taking full advantage of this new market opportunity.
Tourists who visit Thailand have long enjoyed shopping along the busy streets of Bangkok. Now the internet provides people with a new way of parting with their money – online shopping. The Thai National Statistical Office (NSO) estimated that the total value of e-commerce in Thailand was some US$12.7 billion in 2013.
“It’s a growing market, [one that] every business must adapt to,” says Songyot Kanthamanon, the CEO and founder of Ready Planet. “[E-commerce] is cheaper and more effective than many traditional media.”
Ready Planet embarked upon its journey as a website developer in 2001. Its extremely user-friendly platform is one that even those with limited computer skills and time can get to grips with quickly.
One challenge Kanthamanon has encountered is that potential clients fail to grasp how easy it can be to use Ready Planet. “The problem was how to educate the customers,” he says. “People usually don’t believe that instant websites exist, but when they learn how to manage their personalised sites, they realise it’s even better than hiring IT companies to do it for them.” Such companies are expensive and sometimes slow to response to client’s request, Kanthamanon claims. “Each update may be delayed for two weeks.”
In an era when people access internet as much via their smartphone as a PC or laptop, Ready Planet’s instant website offers a feature called Multi Screen, an automated programme that makes websites look equally good whether on a PC monitor or mobile phone screen.
Now Ready Planet has become a recognised IT company in Southeast Asia, with 12,000 active members using its instant website service. For larger companies, it offers an Enterprise Service that covers websites, e-store and customer service.
Issue 9: 4 Aug 2014
With the political turmoil over, Thailand’s automotive industry has high ambitions to become the hub of ASEAN in 2015. What do industry experts say about the country’s prospects?
Thailand’s automobile industry stands at the heart of the country’s industrial development. Last year, exports amounted to some 1.12 million cars, and the goal for 2014 is to top 1.2 million. According to Vichai Jirathiyut, the president of the Thailand Automotive Institute, there are no signs of the pace slackening off, with the government signing off on measures to encourage further foreign investment.
“The Board of Investment of Thailand (BOI) has approved 122.8 billion baht (US$3.85 billion) in investment incentives for 18 projects,” says Jirathiyut. “Toyota which plans to expand its auto parts and pick-up truck production in Thailand and China’s SAIC Motor which plans to build a new plant are the first of the incentives recipients.”
More international automotive companies are set to follow, adopting an eco-friendly blueprint for the kingdom’s automotive industry, which includes the prerequisite of Euro IV standard and the UNECE vehicle safety regulation, adds Jirathiyut.
Support for the automotive industry is coming from all directions. “Institutions such as SMRJ[Organisation for Small & Medium Enterprises and Regional Innovation, JAPAN], JETRO [Japan External Trade Organisation], and Thailand’s BOI will be the major facilitators for business deals such as collaboration and joint venture,” says Suttisak Wilanan, project director of ASEAN’s leading event organiser Reed Tradex.
Wilanan adds that Thailand’s economy is recovering fast since the cessation of the political turmoil in May. He is optimistic that an increase in the average wage for Thais can only be good news for the domestic car industry. “We might get to see a better situation for the car demand in Thailand,” he says.
Setsuo Iuchi, JETRO president and chief representative of ASEAN and South Asia also sees Thailand as agood place for automotive investment. “Japanese companies choose Thailand because the Kingdom sits in the centre of the circle,” he says. “The investment, the technology and know-how can expand to the countries around Thailand easily, especially those along the Mekong region.”
Iuchi believes there are many advantages for making Thailand the region’s hub. “The country itself has abundant resources, which is suitable for being the ideal production base,” he says. “Making Thailand a mother factory and other neighbouring countries satellite factories …helps entrepreneurs lower the production cost outside Thailand, and get unit value-add when products get the final wrap up in Thailand.”
Issue07 : 07 July 2014
One of the fastest growing industries in the country, Thailand’s digital content sector is looking to spread its expertise across ASEAN.
The world is changing at an ever increasing pace. Nowhere is this truer than in the digital content industry. Technology that nowadays appears ground-breaking will become obsolete within a decade.
“In the future, the longest movie will be 15 minutes – [people will watch] very short movies on their mobile phones,” says Trairat Chatkaew, the president of the Software Industry Promotion Agency (SIPA), the Ministry of Information and Communication Technology.
As part of promoting Thailand’s 100 billion baht (US$3 billion) software industry, SIPA is responsible for marketing its digital content industry – animation, games, e-learning and new media. It is a dynamic sector with annual growth of 40% to 50%, according to Chatkaew.
Currently SIPA is focussing its attention on the Asian market, specifically Japan, South Korea and China. “Animation and digital content business in Japan … is fast growing and they really need support and skilled work force in design and innovation,” says Chatkaew. “And of course they realise that Thai people have this skill.”
Japanese companies currently outsource digital content jobs to companies such as Silicon Studio and Twin Synergy Trading in the north of Thailand, but Chatkaew believes there is much room for expansion. “We still have a lack of exchange [for business],” he says. “But now we are working with the DITP to do that for digital content in Japan.”
One project he cites as an example is Northern Digital Craft, a collaboration between SIPA and the Thai Game Software Industry Association in Chiang Mai to train people in digital art and programming specifically targeted for the Japanese market.
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