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HEADLINES [click on headline to view story]:
HRH Princess Maha Chakri Sirindhorn visits Germany and DalmlerChrysler

Foreign Business Act of 1999 (Part 3) Listed Activities

TAT announces half-year tourism figures

Legal course being offered for foreigners in Thailand

Thought for the week

HRH Princess Maha Chakri Sirindhorn visits Germany and DalmlerChrysler

H.R.H. Princess Maha Chakri Sirindhorn, visited the DaimlerChrysler plant in Sindelfingen and the University of Hohenheim during her recent two-week trip to Germany.

H.R.H. Princess Maha Chakri Sirindhorn visited the DaimlerChrysler plant in Sindelfingen.

The Princess was accompanied by a delegation which included the Thai ambassador to Germany, Kasit Piromya. The royal visit followed an invitation from Matthias Kleinert, the "foreign minister" and senior vice president for External Affairs and Public Policy at DaimlerChrysler. Kleinert had previously been in Thailand putting a solar-powered fruit drying facility into operation - one of the social projects which the corporation has been sponsoring in the Southeast Asian country.

Since HRH Princess Maha Chakri Sirindhorn is especially interested in issues related to education and training, she not only toured the Design Center during her visit to DaimlerChrysler’s largest plant but also the training center, where she met with several trainees. Matthias Kleinert took the opportunity to present an accomplished young Thai scientist with a doctoral scholarship worth a total of DM 35,000. Busarakorn Mahayothee from Silpakorn University will be working for her doctorate in food science at the University of Hohenheim. At the conclusion of her visit the Princess took a ride on the Karl Benz’s 1896 vehicle.

Afterwards, the Princess visited the University of Hohenheim, where she was the guest of honor of the state government of Baden-Wuerttemberg at a reception in the Hohenheim Palace. The Princess subsequently visited the Institute for Food Technology, the Institute for Agricultural Engineering in the Tropics and Subtropics and the German Agricultural Museum.

The Princess and the delegation also visited the EXPO 2000 in Hanover, where DaimlerChrysler’s Lab.01 project is an official part of the Children’s and Youth program. The Lab.01 invites children and young people to experience the technology of the future, where they can discover unexpected new interfaces between humans and machines - controlled by hand, voice, eye and body movement.

During her visit to Germany, the two representatives of DaimlerChrysler in Thailand, Karl-Heinz Heckhausen and Gerd-Udo Hauser, accompanied the Princess.

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Foreign Business Act of 1999 (part 3) Listed Activities

Courtesy of eThailand.com

A. List One activities

List One of the Foreign Business Act of 1999 (FBA) contains activities that foreigners are prohibited from engaging in "for special reasons".

In general terms, the activities relate to sensitive areas such as publication and broadcasting of news, domestic agriculture, trading in Thai antiquities and national historic objects, casting of Buddha images and alms bowls and land trading.

B. List Two activities

List Two contains activities that are deemed to affect Thailand’s national security, culture, natural resources or environment.

These activities will be permitted only with the approval of the Thai Cabinet, and generally will require a minimum of 40 percent shareholding by Thais.

It might go without saying that a foreigner’s obtaining approval from the Thai Cabinet to engage in a business will not be easy.

Businesses included in List Two include firearms, domestic transportation, trading in antiques, Thai arts or handicrafts, production of specified handicrafts and similar products, and specified mining, farming and wood fabrication activities.

C. List Three activities

List Three contains activities that are deemed to be areas in which Thai businesses are not yet ready to compete.

These activities will be permitted to foreigners only with the approval of the Director-General of the Commercial Registration Department.

Unlike activities under Lists One and Two, it is thought that a foreigner might have a reasonable opportunity to obtain permission to engage in a List Three activity.

Moreover, List Three specifically identifies some activities that foreigners are permitted to engage in, and provides for the Director-General to issue regulations identifying additional service activities that foreigners will likewise be permitted to engage in (indeed, a draft regulation is being circulated in the Thai government identifying several such service activities (see III(F) below).

D. Annual review of listed activities

The FBA requires that the content of the Lists be reviewed annually, and that appropriate revisions be made. If a foreigner establishes operation of a business that is subsequently placed onto one of the lists, the foreigner’s business will be "grandfathered" and allowed to continue doing business provided it gives timely notice to the Commercial Registration Department.

E. Ability to engage in unlisted activities

If an activity is not included on one of the lists, a foreigner is allowed to engage in such activity without a Foreign Business License.

Essentially, the only requirement is that the foreigner has capital of no less than 2 million baht.

F. Proposed regulation permitting certain service activities

List Three provides that the Commercial Registration Department can issue regulations excepting certain types of service activities from the provisions of List Three.

Such service activities specified in a regulation will be treated as an unlisted activity and no Foreign Business License will be required. Under a draft regulation not yet in force, the following service activities would be excepted from List Three:

i. Rental of property;
ii. "Leasing business" as defined under the Thai Revenue Code;
iii. Commercial banking;
iv. Lending of money;
v. Insurance business;
vi. Pawn shops;
vii. Taking of property on deposit;
viii. Warehousing;
ix. Operation of schools;
x. Operation of entertainment halls;
xi. Hair cutting, styling and operating beauty salons;
xii. Photography and operating photo shops;
xiii. Operating laundries;
xiv. Tailoring and dressmaking

Next week: Licensing criteria and procedures

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TAT announces half-year tourism figures

Tourism Authority of Thailand assistant director of Region 3, Ms. Panjit Karawanan announced that 1.8 million tourists visited Pattaya from January to July this year. The number represents a 5% increase over last year.

An optimistic estimate puts the increase of tourism at 6% by the end of the year when the tourist high season gets underway. The number of tourists from Europe and America starts to increase during this period and according to a number of hotels in Pattaya, reservations are exceeding last year’s bookings by nearly 50%.

Hotel industry figures show that more than 390,000 of the visitors were from Thailand, and 1.4 million were from foreign countries, with the majority of foreign visitors coming from China, Germany and Taiwan.

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Legal course being offered for foreigners in Thailand

Expats in Thailand can sigh with relief, for there’s finally a seminar in English coming up that’s practical and covers living, working, and investing in Thailand. The two-day seminar - “Legal Guidance for Foreigners: Investing and Living in Thailand” - will be sponsored by the Dhurakijpundit University Faculty of Law.

The venue is the deluxe Regent Hotel, Bangkok, on November 25-26, 2000. Top legal experts, some from the government, others leading lawyers and academics, will discuss topics including: Thai law involving land ownership; family law; laws relating to foreign investment; alien business law; work permits; taxation; liability of corporate officers; and intellectual property issues. Questions from participants will be welcomed. Registration (early) for the course is only US$190 or Bt7,600 and includes 2 luncheons and 4 coffee breaks at the Regent Hotel, plus written documents and certificates of attendance.

To register, or for more information, contact the Faculty of Law, Dhurakijpundit University at tel. 954-7300 ext. 326, 280, mobile 01-860-3932, fax 954-7353 (24 hour fax), or e-mail [email protected] 

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Thought for the week: Why businesses fail - 3

by Richard Townsend, Corporate Learning Consultant
http://www.orglearn.org

Poor sales performance leading to a lousy cash flow!

Analysis of the reasons why businesses fail will point us to the fact that poor sales performance is a major contributor to the demise of many. Obvious on the surface but what’s the problem? Changes in the market place, technological advances, disruption of key relationships and poor sales planning are all major contributors to sales failure. Over dependence on one customer (who suddenly disappears), or key product/s that can rapidly become outdated, can, and often will, lead to our downfall. If it is in fact a major paradigm shift in our business (and for many at the moment I believe it is), everyone goes back to zero.

So when the sales plan is done who is involved? It should be the entire executive team supported by all the sales staff and any outside consultants that contribute to the sales and marketing efforts. Advertising agents, marketing and PR consultants and yes even the financial advisors, economists and political scientists. All departments must get on board with the concept that ‘the only reason a company has to exist is to serve a customer’ and that ‘nothing happens until somebody sells something’ (for a profit). Some ‘dot coms’ and their hapless, over optimistic (foolish?) investors are starting to find this out; investors can’t fund the party forever, even at the current levels of stupidity.

The almost sickening pace of ever changing market conditions means annual sales budgets are a thing of the past. Living plans, or at least quarterly targeting are needed in the current environment. How quickly do motor vehicle models change, telephone systems evolve and computers become outdated? How quickly does a fickle customer base move to a new brand or a make substitute buying decision? OK, take an old economy business: hotels. Economic troubles in the Asian region (not to mention civil unrest and smoke haze) are not doing much for the tourist industry. Even business travellers have fallen away due to the lousy (some say corrupt) business practices in some countries and the even more (some say) corrupt governments that allow them to flourish. Sure you can argue that the existing hotel properties were powerless to do anything about it, but which smart international CEO decided to build even more hotels and create an even bigger supply of rooms in what is an already over serviced market? Sales potentials need to influence ALL spending decisions.

Some hotels demonstrate the dangers in needing to rely heavily on one market segment (and the old way of doing things). Many don’t train their staff in modern anything, let alone selling. A recent tourism publication says that Thailand (a great holiday destination) is going to lose major market share because it can’t find trained managers to run its tourism related businesses. I mean the entire country may well suffer because a few key industry operators are too shortsighted to invest in the ‘soft skills’ needed for the future. Then again look at the market itself. Say we decide to cater to the government sector, which through budget restraints suddenly decides meetings and conferences are out. How about if we rely on the Japanese tour markets and the economy collapses and oops no customers and a lot of highly paid Japanese speaking staff who are doing little more than eating up the payroll budget.

Final sales thoughts next issue

To contact Ric mail to: [email protected] 

Printing diaries for the staff or customers for 2001? Why not add some business “Thoughts for the Week” to the back of each weekly page, just a few tips may help business along! Price US$0.02 (only two cents) per article per diary for print runs up to 4999, or US$0.01 (yes one cent) per article per diary for print runs 5000 and above. Learning... the only way forward! Contact Ric ( [email protected]  )

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