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   BUSINESS NEWS

HEADLINES [click on headline to view story]:
Environmental protection: Oil refineries among ten plants blacklisted
 
Notebook computer: Competition heats up in second half
  
Xenophobia: Groups target FM Tarrin for plans to sell Bangkok to foreigners
 
Frozen food: ‘Colonel Narong’ to go to America next month
 
Excise tax: Duty structure on pickup trucks will be changed
 
Dusit group demands Baht 50 million in compensation

Garbage pails can be a highly effective media
 
Internet boom: Number of users likely to jump to 1 million this year

Environmental protection: Oil refineries among ten plants blacklisted

Ten industrial plants and factories inside the Mab Ta Phut Industrial Estate have been blacklisted after they have found to have been emitting chemical fumes or releasing toxic wastes hazardous to the environment. The tough measure was taken, and was reported to the Ministry of Industry, after a working committee on environmental protection met last week, said industry sources.

The oil refining plants of Star Petroleum Plc and Rayong Refining Co; chemical plants of Tuntex (Thailand) and TOA Chemical Co; power producers Thai Co., Generation Co. and the Co-Generation Co.; have all been blacklisted. Under Thailand’s industrial and environmental protection laws, blacklisted plants will be put on the watch list by the national committee on environmental protection, and could face closure.

PM Chuan Leekpai, chairperson of the national commission on environment, will be informed of the blacklist in a meeting later this month.

Though improved measures for environmental protection by the 10 plants have been approved by the Ministry of Science, Technology and Energy, they will still be watched closely under the code of industrial works.

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Notebook computer: Competition heats up in second half

Competition in the notebook computer market will heat up in the second half of this year as major players vow to race for bigger stakes in the market and introduce more products. Market leader Chevalier OA will launch 14 more models as Acer Computer said it will contest for the champion’s seat in the second half, in a market which is expected to sell over 24,600 units this year.

According to Chevalier marketing manager Veera Ratchatavarothai, the company will soon start its launch of 14 Toshiba models in three families - Satellite, Tecra and Protege - to customers in all market segments. Chevalier sold a total of 4,000 units of Toshiba notebooks in the first 6 months, controlling about 40% of the domestic market, while the whole-year target is 9,000 units.

Acer Computer said it sold 1,100 units in the first quarter, and 1,400 more units in the second quarter, controlling 20% of the market.

Acer will launch a new model to the consumer market, while aiming for more share of the corporate computing market, under its plan to be the market leader in the first quarter next year.

Compaq is offering 1% interest rate in installment purchasing program.

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Xenophobia: Groups target FM Tarrin for plans to sell Bangkok to foreigners

Several pressure groups, led by Thai senior citizen and social activist Dr Praves Vasee, have launched a new round of xenophobic campaigns to protest a plan to sell parts of the government-owned Bangchak Petroleum Plc to foreign investors. The groups, under the ‘We Love Bangchak’ club, are to launch a nationwide campaign which may oust Finance Minister Tarrin Nimmanahaeminda, who they blame for the sell off plan.

Leaders in the new campaigns include outgoing Bangchak president Sopon Supapong, Narong Chokwattana of Pan Group and several other leading business figures, former commerce minister and former president of GF Bank Dr Narongchai Akkrasenee, and generals of the Royal Thai Armed Forces, said sources.

The groups will produce evidence to support the allegation that Dr Tarrin is selling Thailand’s oldest oil refinery in a conspiracy with foreigners.

Former prime minister Dr. Anand Panyarachun is reportedly to join forums to be organized by protesters in a nationwide campaign. The group said the government privatization plan has been designed to benefit only a handful of private investors. Associations of employees of state enterprises will join the campaign.

Note: Sources report that Governor of the Electricity Generating Authority of Thailand, Virawat Chalayont, will resign from his post, following the example set by the president of Bangchak Petroleum, if shares of the Ratchaburi power plant are sold to foreign investors.

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Frozen food: ‘Colonel Narong’ to go to America next month

Frozen Thai food products under the brand name ‘Thai Thai’ will be sent to the US market for the first time next month. The products, with an imprint of the face of producer Narong Jiwangkura on the packaging, which is similar to that of Colonel Sanders of Kentucky Fried Chicken, will later go to Europe, aiming to attract Thais working overseas.

According to Narong, a marketing veteran and former managing director of Kodak (Thailand), he but his face on the products because he was so very proud of them, which are now available in Tom Yam, Tom Kha and Kaeng Keo Wan (green curry) with rice. Narong also hopes that the products will some day become popular like KFC. Thai Thai food products are produced by Sky International Co., chaired by Narong.

Only vegetarian Thai Thai products are available in the US market in order to comply with restrictions on chicken and beef imports to the US.

While Thai food has been popular in international market, it is hoped the face of ‘Colonel Narong’ will help customers recognize his products.

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Excise tax: Duty structure on pickup trucks will be changed

The Department of Excise is set to change the tax structure on trucks and utility cars adapted from pickups in order to reduce a huge difference in rates collected from the sales of those vehicles. The department’s director-general, Dr. Somchai Ruechupan said taxes on double-cab, four-door pickups will be brought down from the current rate of 50%.

The department has organized meetings with local car makers in the past several weeks and a conclusion could be made within the next 2 months at the latest, he said. The department had also met with the US ‘Big Three’ who earlier said their four-door vehicles could not compete with the Toyota Sport Rider, which is adapted from Toyota Tiger pickup, because of the difference in tax rates.

A fairer tax structure should be adopted as Thailand is the second largest maker of pickup trucks, only after the USA. Currently, the department collects only 5% excise tax from every pickup unit.

Some local car makers have suggested that present rates be maintained, to make room for them in competing with stronger foreign car makers.

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Dusit group demands Baht 50 million in compensation

Dusit Thani Plc, which owns and operates a number of hotels worldwide, has asked for a Baht 50-million compensation package after the management agreement over Rayawadee Hotel in Krabi Province was revoked by the owner, Premier Resort Krabi. Chairwoman of Dusit Thani, Khunying Chanat Piyauy demanded the compensation in a letter to Premier Resort management on July 1, said industry sources.

Dusit Thani group signed an agreement with Premier Resort to manage the Rayawadee for 10 years. The group has brought the hotel to the forefront during 6 years under its management, with a record of success. Dusit Thani sources said the only reason behind the Premier Resort move is that the group does not want to pay their management fee, which amounted to a good deal last year, due to a huge increase in income.

Premier Resort management, however, said the Dusit group did not meet their expectations, while internal changes inside the group sent Rayawadee into an uncertain future.

Premier Resort, in accordance with terms of the agreement, has a legitimate right to scrap the deal with Dusit Thani. The company officially told Dusit group last November their intention to terminate the management agreement.

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Garbage pails can be a highly effective media

Thousands of new garbage pails along the two sides of main Bangkok roads will not only keep the waste but will also carry advertisements. PJ Group, a leader in outdoor advertising services, has been in discussions with Bangkok Metropolitan Administration with a plan to put advertising on garbage bins. The company will invest about Baht 100 million in the garbage pail project, said its chairman, Prachuab Sajjafuengkitchakarn.

4,000 pails carrying advertisements will be placed at bus stops on 3 main roads, Prachuab said. PJ Group has been negotiating for 6-year rights with BMA over managing the project, which will be invested one-sidedly by the company, he said. Trash bin ad buyers range from small businesses to political parties running in the general elections next year, Prachuab said.

PJ group will also introduce a few other new media to advertising industry, including huge billboards carrying advertisements on top of Bangkok’s skyscrapers, as well as sides of buses and trucks carrying advertisements.

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Internet boom: Number of users likely to jump to 1 million this year

Internet services have expanded at an unexpectedly fast pace this year. The industry has attracted a huge number of local Web surfers, surpassing 668,723, the figure estimated earlier this year. The number of Internet users in Thailand could reach 1 million at the end of the year, said Thai ISP Club president Rear Admiral Prasart Sriphadung.

Surfing fees are likely to fall further to between Baht 15 and Baht 20 per hour, from the current Baht 30 to Baht 35 per hour, when the four major Internet service providers achieve the break event point, Prasart said. The club also sees a huge increase in connecting capability to the World Wide Web, from 60.3 megabits estimated earlier this year to more than 100 megabits at the end of the year. The connectivity has already been increased to 65 megabits in the first 6 months, Prasart said.

The club says the main reason behind the rise in using the Net is the economy, which has started to pick up. Internet surfing is no longer an extravagance and the club has seen a huge increase in number of individual users.

The four largest providers - Internet Thailand, KSC, Loxinfo and A Net - have earned much more this year, while smaller ISPs have also started to make a little profit.

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Updated by Chinnaporn Sangwanlek.