Issue 22

The Thai-Italian Chamber of Commerce helps to develop business and trade between Thailand and Italy. Horizon Thailand speaks with its President Giacomo Mauri about opportunities for Italian investment in Thailand.

What benefits does the Thai-Italian Chamber of Commerce (TICC) offer its members?
The main benefit is simply the ability to work together and exchange ideas and do things together that would benefit many companies. For example, if there’s an issue with restrictions on imports or taxation that affects all companies in Italy or here in Thailand then it’s possible to discuss and take action on it. Sometimes members of companies that are interested in working together might meet through one of our functions. We also offer assistance such as business to business contacts for companies who are interested in trade with companies in Italy or vice versa. Our members are not a majority Italian, but they include Thais and other nationalities that run companies here such as French, Germans, etc.

How does the TICC promote trade between Italy and Thailand?
We help by offering information, advice and assistance. We supplement [the Italian Embassy and the Italian Trade Agency] because we are not a government agency. We do whatever is of interest to our members. We organize things for Thai companies such as introducing them to Expo, a big event in Milan. We help them to learn about it and book spaces there for their products. We help them map their adventure in Italy and make some business connections there. When there are big fairs in Thailand we also help companies from Italy to participate.

How many Italian companies are there in Thailand?
There probably are about 400 to 500 companies operating in Thailand. Most of them are small- or medium-sized enterprises. Some of them we don’t know about. They could be small companies that are tightly controlled. We have about 90 companies that are our members and maybe another 100 Italian companies that we are in touch with.

How can Thai-Italian economic relations be strengthened?
There are specific efforts that are on-going, such as negotiations between Thailand and the European Union. One very important thing for Italy and other European countries is wine which is heavily taxed at 500% so I’m sure this will come up in the negotiations. Thailand is getting to be an important player in the world and to continue growing it needs to liberalise and open up to more investment. The government is planning to allow a larger percentage of ownership for insurance companies here rather than forcing a large majority of Thai interest. It will help foreign investment which will in turn help Thailand.

How attractive is Thailand’s economy for Italian businesses?
One of our members that does very high end motorcycles, Ducati … was planning to use Bangkok as a manufacturing base but it found out that there’s a market in Thailand and last year they did very well. Its motorcycles appeal to the wealthier Thai people. It did much better than expected so there are some niche markets that do very well. This year the economy is doing very well and things are moving. Even getting things like permits and visas are easier now than last year.

What investment opportunities are there for Italian companies in Thailand?
There’s already a presence here selling and manufacturing Italian goods. There are others opportunities also but they tend to be in things that are high end, high design or high tech. Good Italian design in fashion and furniture is recognised, as well as technology. It has to be high end. For instance, lighting equipment or fixtures that are nicely designed by B-TICIO and are just slightly more expensive are well received. There are some very good Italian companies that have been selling and developing insurance products. Machinery is also imported from Italy, such as agriculture equipment, which is a business that is growing rapidly in Thailand.