Owner, local officials acquitted in appeal court over hotel tragedy case

Rice exporters and exporters of fruits and vegetables to the Middle East have been hit by the US and UK attacks against Iraq as importers in Dubai and Oman have canceled orders in a wait and see situation, a move that damaged Thai fresh products ready for deliveries, said exports sources.

According to sources, exporters were told by trading partners in Dubai, in a telegram on late December 17, that the latter wanted to cancel the day’s consignment of fruits and vegetables to be transported by a Thai Airways International flight reasoning that air transport has become a risk after the US and the UK launched air strikes.

Meanwhile, sources in the Ministry of Commerce said that a sea liner carrying Thai rice could not enter Iraq’s southern port of Ummqasar because of the air raids. Though the port is outside the combat zone in the last offensive, there was no worker available for inspection and stock works, said sources.

Thai rice to Iraq, worth Baht 1.6 billion in the first half of 1998, was under the UN’s oil for foods program; rice exports in jeopardy as UN personnel withdraw from Iraq; fresh products to Muscat, Oman reportedly canceled.

Despite recession, Thailand stands out as leader in auto industry

Companies and individuals have sent applications to join the Commerce Ministry’s ambitious push to create public awareness of Thai brand products in the international market, a project to be commenced world-wide through the next 3 years.

According to the deputy chief of the Department of Exports Promotion Mr. Rachen Pojchanasunthorn, the department has received more than 500 applications. Products are being categorized into groups for promotion plans. The department is also to prepare marketing plans for those products abroad, said Mr. Rachen.

There will be about 6-7 groups of products with local brand names to be promoted by the ministry: furniture, gems and jewelry, leather goods, ready-to-wear garments, electrical appliances, auto parts and spares - to be promoted under the project, said Mr. Rachen.

Thai factories to be full-time producers after serving foreign customers under the hire-produce system for decades; the kingdom has become less competitive in manufacturing by cheaper labor in other countries; embassies, consular offices will be overseas marketing offices under the project.

Foreign banks hit by GHB lowest rate offer

Dealers and service centers nationwide have been told by Honda Cars (Thailand) that bank guarantees or cash are needed as surety for orders of Honda models. The change, to be effective from January 1, will adversely affect the Honda Cars’ 70-80 dealers which are already hit in the economic recession.

Sources said more than one half of dealers and showrooms of Honda Cars will not be able to meet the requirement by the car maker as banks would not consider new lending. Dealers submitted their land deeds or buildings to guarantee car orders but land prices have deeply fallen in the market slump, which made risk managing a burden to Honda Cars.

The new measures have been implemented to the fact that there have been more defaults by car buyers in paying installments and there have been costs in managing stocks of thousands of recalled units, said dealer sources.

Dealers in provinces to meet with Honda Cars chairman in bargaining bids; dealers were surprised by the move as rival Toyota Motor and other car makers were trying their best to assist their dealers to survive.

Charter flights from Russia down 50 percent

The Royal Thai Army has recently offered its 7,000-men strong engineering corps to the government in the next major construction project with high quality in works but low spending in costs, estimated to be between 50-60 percent lower than those of private construction companies.

The Army Engineer Division, with recent success in constructing the Thammasart Sports Complex Center for the Asiad, and building the Pasak Dam project under HM the King’s initiation, said the military force in peace time can be an option in helping the country to save billions each year in construction costs.

The division has been equipped with the best construction machines and tools that could be found in the industry; the military, furthermore, is able to work around the clock, without overtime costs and without tea moneys, said sources in Army engineering forces.

Besides road and bridge constructions, the Army Division is capable in ranges of civil and commercial constructions - from dam and reservoir to air fields and power plants; the Army could help save as much as Baht 5 billion in constructing Nong Ngu Hao international airport.

Export quests make a new race in auto industry

The office of the Board of Investment has approved an investment project of France’s retail giant Carrefour in which the company had asked to own 100 percent in the Thai operation Cencar Co., which operates nearly ten Carrefour hypermarket stores nationwide. However, the approval is limited to the company’s operation in investment promotion zone 1 only.

According to sources, the board gave the green light to Carrefour during a meeting chaired by Prime Minister Chuan Leekpai at the Government House on Thursday. The board has agreed that the resolution will apply to all foreign retailers entering the Thai market before January 1, 1999.

According sources, foreign investors will never be allowed to fully own in retail business in zone 2 and zone 3 where local companies are still too weak to compete. A different situation has been cited in zone 1, which covers Bangkok and vicinity, where local retail giants are strongly competing with foreign rivals, the situation which brought about the resolution on Thursday, said sources.

Commerce Ministry has found in a recent survey that 90 percent of local retailers are against the move by Carrefour; similar requests expected from Royal Ahold of the Netherlands, France’s Ocion group, a Belgian retail group, all of which have presence in the Kingdom.

Pizza Hut, Sizzler, Svenson and Dairy Queen sustained growth despite recession

Computech Microsystems, with a Baht 2.2-billion combined sales this year, has anticipated 20-30 percent growth in 1999 despite the recession. The group has also planned to open up more service centers for its local brand computers in the provinces.

According to Computech’s executive chairman Vatchara Monkolsunthornkul, with the 5-point marketing strategy implemented last year - flexibility/adaptability, tight control on costs, long-time guarantee on products, close work with dealers and improvement in service - the group would continue to grow.

The flagship Computech Microsystem has brought in Baht 800 million in sales this year while the group’s IT mall chain Data IT has brought in a similar amount and Belta computer and another subsidiary, DCPT, made Baht 400 million and Baht 200 million respectively, said Mr Vatchara.

Belta computer is ranked fifth this year while its elder sister Laser computer has maintained on fourth place from last year, after Acer, Compaq and IBM in the local market; the government tax cut on computer imports to 5 percent, from 33 percent, an important factor for sales increase; the local brand Laser offers a 5-year guarantee period while Belta offers 3 years of free service - a strong selling point.

Compaq to launch price cut to gain more shares in notebook market

It is now certain that Twentieth Century Fox has left Thailand behind and chosen locations in Malaysia to shoot the controversial film Anna and the King (of Siam) after months of hold back by Thailand’s National Film Board, whose members insisted that Fox make the film script correspond to historical reality.

According to industry sources, Fox will stay away from submitting a ‘letter of intention’ by the deadline set by the NFB as production crews have been removed from Thailand to the new locations. Fox has said the company had 5 times submitted amended versions of Anna and the King to the NFB which coldly responded to the work.

Fox management, though deeply in passion with the Grand Palace and the Temple of the Emerald Buddha where the original events took place more than a century ago, the company was much discouraged by the work of the NFB and there has been costs in delaying the shooting, said sources.

Fox in vain after filing letters to both PM Chuan Leekpai and Khun Ying Supatra Masdit, the minister in charge of foreign film affairs, for assistance; the company had several times asked to meet to directly explain the script to the NFB but with no response.

Debtors unite against GE Capital - Goldman Sachs, damage suit planned

After waves of hoaxes, there is a real taxi hero in Bangkok who earlier in November drove to a local hotel and returned baggage of valuables left in his cab to the owners, one of whom is no less a VIP in the international tourism industry. There had been at least two similar heroic stories this year, both later proven hoaxes.

Now that the Ministry of Foreign Affairs is chasing after the cabby, identified as Charlie Asaisong, of the Northeastern Yasothon Province, asking him to turn to the ministry for an honorary award as requested by one of his Belgian passengers, Mr George Ker Verman, chairman of a local tourism body in Belgium.

Mr Verman, who was on a trip to Thailand with a friend between November 8-9, sent a letter to the Royal Thai Embassy in Brussels thanking the Thai taxi driver and praises him for his honesty. Mr Verman said Mr Charlie had chased him to the Marriot Hotel where all 5 of his bags, including cash, credit cards and passports, among other valuable items, were returned.

The letter asks that the minister in charged of tourism be informed of the incident; the cabby will be certified, rewarded as a good citizen in the Amazing Thailand Years.

Fourteen million Thais to log on the Net in next 10 years

The Royal Irrigation Department has warned that the country is likely to face a serious problem in water supply next year as water in 4 major reservoirs has hit the lowest level since 1993. Farmers have been warned to prepare for other options as rice growing in central plains and other prominent areas will be banned in the next dry season.

Water shortage, predicted to be at a critical point, will add difficulties to the country’s agricultural sector which has already been hit by falling prices of agricultural products in the world market, said the department’s deputy chief Mr Chaiwat Preechavit in an exclusive interview.

The department is preparing a water allocation plan in the greater Chao Phraya River basin which covers the areas from Pitsanulok Province in the north down to the lower central plain surrounding Bangkok. Under the plan, water will be appropriated for irrigation, waterworks and other uses.

Off-season rice growing in the greater central plain will cover only 1.9 million rai next year; farmers in the northeast told to stay away from their farm land as water in 10 reservoirs in the region in critical situation; draught predicted to deepen the social crisis too.

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Created by Andy Gombaz, assisted by Chinnaporn Sangwanlek.