THE AMATA TIMES News from Thailand’s leading industrial estates

FRIDAY, MARCH 31, 2006 INSIDE PAGE 2 Thai economic competitiveness

BOOSTING WORKER HEALTH CARE The new Amata Medical Center ranks high in surveys and FDI helps businesses lower the costs of compliance with occupational health regulations while upgrading care for their employees. The 24-hour clinic and to China by 28%. provides check-ups and emergency Exports, foreign direct economies with populations of over Both countries have services like ambulances. 20 million. In 2002, Thailand ranked investment and expert made "Early Harvest" 11th in the survey, which analyzes trade agreements LOW COSTS FAVOR THAILAND 60 countries’ economic perfor- opinion all reflect the with Thailand. Research shows that the costs of mance, government efficiency, busi- Thailand's rising doing business in Thailand are nation's rising economic ness efficiency and infrastructure. rank in investment among the lowest in Asia. Wages, The rising national ranks and performance. surveys is highlighted rents, utilities and expatriate living figures were reflected in Amata by the 2005 Global In- costs help foreign firms attain prof- Corp.'s record operating perfor- hai competitiveness is coming vestment Assessment its more easily than in other places. mance in 2005 (see below). Ton strong, as new statistics and (GIPA) report, from surveys show. Foreign investment the United Nations BEST BUSINESS LOCATIONS, 2005-2006 applications surged to US$12.5 bil- Conference on Trade INSIDE PAGE 3 Asia & Pacific lion in 2005, up 62% from the year and Development before. Thai exports hit a record, last (UNCTAD). Thailand 16 China 56 Malaysia year, exceeding US$100 billion for the ranked as the third 26 India 66 Indonesia first time. The world's key FDI sur- most attractive busi- 3 Thailand 76 Vietnam vey again ranked Thailand the third ness location in Asia, 46 Republic of Korea 86 Singapore most attractive investment location and ninth in the Source: UNCTAD Global Investment Assessment in Asia, after India and China. world. The GIPA report Investors came from all over the integrates three global WORLD COMPETITIVENESS YEARBOOK world, especially the European surveys of over 300 2005 Rank of 60 key economies HEART FOR ART Union, Switzerland, the U.S., Taiwan, transnational corpo- Underprivileged Bangkok kids got Hong Kong and neighbors like rations, FDI experts Rank Economy 1 USA a boost when Amata Foundation Singapore and Malaysia. Japanese and investment pro- 2 Canada members spent a day helping companies maintained their posi- motion agencies. 3 Australia them paint their own tee-shirts. tion as the largest investors with Thailand's com- 4 Taiwan US$4.4 billion in net applications to petitiveness ranking 5 Zhejiang, China Thai art got a boost from exhibits Thailand’s logistic efficiency will rise with the improved capabilities offered by Suvarnabhumi the Board of Investment. The BOI climbed to ninth in the 6 Japan in the Foundation's annual Airport, at twice the cargo capacity of Don Muang% award competition. aims to build and diversify invest- 2005 issue of the World 7 United Kingdom 8 Germany ment in 2006 with its new incentives Competitiveness Year- 9 Thailand in industries like pharmaceuticals, Record exports showed high New Free Trade Agreements helped book published by the Institute for 10 Malaysia INSIDE PAGE 4 business process outsourcing, alter- growth in automotives and parts, exports expand in new markets. Management Development (IMD). native energy, and the electrical and electronics, processed fruits and Shipments to India leaped by 63% Thailand's rank covered the Source: Survey of 60 countries by Switzerland's Institute for Management Development (IMD) electronics sector. vegetables, jewelry, and chemicals. during the first 11 months of 2005, Institute's Group One category of key

AMATA VIETNAM 2005 OPERATING PERFORMANCE Bien Hoa industrial estate EUROPE TAKES ROYAL TROPHY Captained by Seve Ballesteros, Eu- rope trumped Asia, 9-7 in the inau- epitomizes Vietnam boom Clients held many gural Royal Trophy tournament at Amata Spring Country Club. The Asia festive grand team was boosted by Thailand's openings recently% own Thongchai Jaidee and Thaworn ietnam is among the world's and regulations as a step toward join- been growing at annual rates near 15% At Dutch-affiliated Wiratchant. Vmost dynamic economies these ing the World Trade Organization," over the past five years, creating a big- Tana Netting, a days, growing by 7.5% a year over the said Dr. Huynh Ngoc Phien, president ger domestic market. With all these in maker of mosquito past five years thanks in part to surg- of Amata Vietnam. mind, foreign direct investors have nets, managing ing foreign direct investment. One of The new Enterprise Law, for ex- poured in sums ranging from US$4.3 director Nicolas the epicenters of the boom is Amata ample, has helped create 200,000 new to US$5.8 billion a year during the past Pierson was City, Bien Hoa, the industrial estate private companies over the past five two years, according to Vietnam In- congratulated by near Ho Chi Minh City, whose sales years, while other pro-business mea- vestment Review. Amata’s Viboon grew by 186% in 2005. Amata hosts sures include revisions to the Civil Like Thailand, Vietnam is prov- Kromadit% companies from all over Asia, Europe Code, Commercial Law and other ing to be a good alterative to China and America that are benefiting from laws regulating bankruptcy, compe- for many investors, thanks to lower tition, commercial arbitration, im- Amata sales, profits Vietnam's new strengths. costs and fewer problems with intel- CHONBURI GOES ITALIAN "For the past 10 years, foreign port/export duties, intellectual prop- lectual property rights infringement, Gourmands at Amata Nakorn can and local investors have looked for- erty, and the stock market. according to Phien. "Korean Cham- rejoice in their favorite Medittanean ward to Vietnam fulfilling its high Other investment attractions in- ber of Commerce officials, for ex- reach record levels dishes at Diciotto. This new pre- potential. Now it is really happening, clude Vietnam's low costs, highly ample, tell me that among Korean motivated workforce, strategic loca- companies investing overseas, some mium restaurant is featured at Amata due to many factors, including the ecord sales of both land and ser- increase of 472 rai from the year be- tion, and security. Retail sales have 60% of their projects in Vietnam are Spring Country Club, and is open to government's efforts to reform laws Rvices, together with increased ef- fore, bringing the total of sales from profitable, compared to just 10% in non-members. Ameneties include a ficiency lifted Amata Corp. PCL's op- land to 3,718 million baht, or a 51% China," he said. full wine cellar and cigar lounge. erating performance to its highest increase in value terms from 2004. Vietnam's workforce is young; level ever in 2005. Total net profits Cost controls helped make these some 62% of the populace is below reached 1,078 million baht, the higher sales more profitable as well. the age of 30. company's best ever, on record rev- The year's investors represent a wide Quote of the day "Investors often tell me their train- enues of 4,343 million baht. Net range of industries, led by Japanese- ing costs in Vietnam are lower than profits from ordinary items marked owned automotives firms. Many expected. The reason is that these a 52% increase from the year before. other firms came from Thailand it- young Vietnamese workers are highly "Factory investors are choosing self, as well as from the U.S., Korea, "Factory investors are motivated to learn. Most have com- Thailand because it has become Finland, Italy, China, Malaysia and pleted secondary school or entered choosing Thailand one of the world's best places to the U.K. university, so they have the proper manufacture. And after they choose Beyond land sales, Amata en- because it has become background to study effectively," said Thailand, they choose Amata be- joyed higher sales from sales of wa- Phien, who long served as advisor to one of the world's best cause our full-service approach ter, power, wastewater treatment and the company before becoming its places to manufacture” saves them time and money com- other services to the factories it hosts. president in 2005. Prior to joining pared to other industrial estates," The total income for such services Amata, Phien was a professor of math- said Viboon Kromadit, executive reached 625 million baht in 2005, up ematics and computer science at the Viboon Kromadit vice president of Amata. "These fac- 33% from the year before. Asian Institute of Technology (AIT) in tors will continue in 2006, which I "This 33% increase in recurring Executive Vice President Bangkok, holding the position of expect to be an even better year for revenues shows that we are on track dean for six years. Amata Corp the company." toward our goal of attaining 50% of As growing investment, consumer spending and structural reforms helped Amata sold 1,479 rai (236 hect- revenues from services by 2010," See Factories booming Page 3 Vietnam's economy boom, Amata City Bien Hoa's sales grew by 186% in 2005% ares or 584 acres) of land in 2005, an Viboon said. 2 SPECIAL PUBLICATION FRIDAY MARCH 31, 2006

INDUSTRIAL LOCATION LOGISTICS TECHNOLOGY RFID has not matched its hype, Low costs favor Thailand but big benefits are on the way hile skills, services and infra- experts CB Richard Ellis. By contrast, broadband internet service, for ex- Wstructure keep improving, the Singapore and Ho Chi Minh City have ample, was found to be cheapest, at Monthly Prime Office Rents (as of Q3 2005) ndustrial es- costs of doing business in Thailand the most expensive just US$15 per Itates and the factories in them have stayed low, often ranking prime office space at Office space in month, compared will be heavy us- among the world's lowest. Whether more than US$2.50 to rates above ers of RFID when it's worker wages, office rents, utili- per sq. ft. Rents in Bangkok is US$100 in cities the technology fi- ties, or expatriate living expenses, Indian cities are cheaper than like Shanghai and nally becomes recent surveys show that Thailand growing rapidly, as almost any Kuala Lumpur. widespread. As a gives great value. seen in Mumbai's "Many of our sophisticated re- Labor costs compare well against 40% year-on-year comparable city in global clients tell placement for Logistics expert neighboring countries. Switzerland's price rise. Asia except Kuala us that their fac- bar-code identifi- Greis says RFID UBS investment bank ranked wages Recent studies tories are more cation systems in has high potential in key cities in Asia across 13 differ- by the Japan Exter- Lumpur, according profitable in retailing, manu- in Thai industry% ent professions. Bangkok was found nal Trade Organi- to real estate Thailand than in facturing and lo- to be significantly cheaper than all cit- zation (JETRO) experts CB other countries. gistics, Radio Frequency Identification ies except Mumbai, and 45% cheaper show that Low overall costs Bangkok, promises to help businesses save time than Shanghai. Bangkok's prices Richard Ellis. are one of the key Thailand and money, cut waste, and boost reli- Companies can save on expatri- for electricity, water, reasons why," said ability. Most firms want to know when. ate living costs here as well. In a 2005 internet and telephone calls are all Claudia Bieri, marketing executive In the global race to implement study of global prices for a basket of among the lowest in Asia. Unlimited at Amata Corp. RFID, Thailand is hardly ahead. But 115 goods and services, UBS it's not necessarily behind, either, said found that Bangkok's costs Dr. Noel Greis, director of the Center were comparable to those in for Logistics and Digital Strategy at the Mercer HR Cost of Living (COL) Survey UBS Wage Comparison Kuala Lumpur. Prices in Shang- Kenan Institute of Private Enterprise hai and Singapore were over at University of North Carolina. The 50% higher than in Bangkok. challenges in using RFID are still be- ing worked out all around the world. Another study, Mercer Human The technology will be rolled out here Resource's 2005 Cost of Living as the problems are solved, Greis said. Survey, compared costs of 200 The three main problems are re- items including housing, trans- liability, cost and scalability, accord- port, food, clothing, household ing to Greis. These issues have been goods and entertainment in pinpointed by some of the largest 144 cities. Bangkok's rank in RFID trials so far, conducted by two the survey fell from 119 to 125, huge American organizations having showing that costs here are many thousands of suppliers: retail- growing less quickly than else- K O K ing giant Wal-Mart Corp. and the U.S. where. Very few cities in Asia G N A Department of Defense. Their trials cost less. B since the beginning of 2005 show, for Office space in Bangkok is example, that the reliability of tag read- cheaper than almost any com- ings is well below the accuracy ex- parable city in Asia except Kuala Bangkok pected. "The rates have ranged from Lumpur, according to real estate 60 to 90% because the tags are very sensitive to the environment, particu- larly due to interference from mois- ture and metal. British retailers have AMATA MEDICAL discovered that the tags can't be used with metal shopping carts, for ex- ample" Greis said. Occupational health center The challenge of "scalability" means how to expand RFID from a pi- lot application to a large network of sys- will focus on prevention tems and users without multiplying problems. As for costs, tags are now priced too high, at around US$0.25, but and emergency services will come down as wider adoption lets producers achieve economies of scale. reventing illness is better than will be linked with nearby Chonburi Unit costs need to drop below US$0.05 Pcuring it. That's why the Health Hospital, a 1,000-bed regional facil- to allow wide use, according to Greis. Ministry and Labor Ministry have been ity, for treatment, as well as with "Manufacturing tags in volumes of 10 focusing their joint occupational Nopparat Hospital on Bangkok's million units or more would bring the health initiatives on preventative care, Minburi Road, a specialist center cost down to US$0.07, so US$0.05 is a not just treatment. Their new effort equipped to handle all types of oc- realistic goal," Greis said. has increased some occupational cupational health problems. One public-sector issue is stan- dards, especially radio frequency al- health requirements for employers. It "Amata Medical Center is an ex- locations, which need to be harmo- has also created a network of occupa- ample of how companies and work- nized across national borders. Other- tional health centers in major hospi- ers can benefit from the shared facili- wise, most RFID challenges are busi- tals to provide specialized medical care ties at a full-service industrial estate. ness and technology issues that com- for workers. Private clinics will feed The center will help our clients pro- panies and researchers need to ad- into this network. vide better health care for their people dress. It's not simply a question of With this in mind, Amata has es- while reducing costs," said Somhatai harnessing technology involving tablished a medical center at its Panichewa, vice president, business RFID tags and readers, but software, Chonburi estate focusing on preven- development. Amata Medical Center and the complex problems of linking tion and emergency service. The new is located within convenient reach of Brahmin priests officiated the November groundbreaking for a factory hosting many small Japanese tool-and-die makers% multiple systems. As happened dur- Amata Medical Center is designed to factories at Kromadit Park Building, ing the internet's early days, software help businesses lower the costs of 1st Floor, near the Free Zone of Amata vendors are creating off-the-shelf and compliance with occupational health Nakorn. For information, please con- customized solutions, easing the task regulations while also helping them tact Dr. Charubongse Brohmwitak, for end-users Amata Nakorn hosts Japan SMEs improve care for their employees. [email protected], (038) 468-900. Cost issues go beyond the price The Center provides the annual em- of tags. Companies need to think s more and more big Japanese Now Amata Nakorn will host firms have only about 10 employees, ployee health checkups required by more creatively about how to use Acompanies shift new invest- these small enterprises at a new so the "community" approach is a law as well as workplace health risk RFID, Greis said. Suppliers tend to ments away from China and toward rental facility called Ota Techno Park assessments and other key functions. view RFID as a crude "slap and ship" significant benefit. Thailand, their secondary and ter- Companies subscribing to AMC's process, a requirement addressing (OTP), a joint project between Ota By building space that meets the tiary suppliers are following. Many service will not have to hire their own only the needs of their customers. City Industrial Promotion Organiza- special needs of these firms, the doctors and ambulances, since the Instead, they should explore how of the smallest firms are relocating tion and Amata Summit Ready Built, project will help strengthen the sup- center is within the critical distance RFID can help solve problems within from Tokyo's Ota City district, known a subsidiary that develops turnkey plier base for companies at Amata their own operations. "The technol- around the world for the high skills factories. It provides rental spaces as estates and elsewhere in the Eastern to factories as prescribed by law. It ogy will generate lots of data. Com- of its hundreds of die-mould shops small as 320 m2, and shared services Seaboard development region. The will have its own occupational health panies can use that data to compete and parts makers for industries like and facilities like canteens, secre- eight units available in Phase 1 of physicians, with 24-hour service and better. Each of them has to review its electricals, automotives, machinery tarial support, meeting rooms, a busi- the facility have already been emergency transportation, fulfilling business processes to see how RFID and plastics. These companies often ness center, display space and admin- booked ahead of their scheduled all legal requirements. The center can lower inventories and reduce the work closely with the research & de- istration, all under one roof. It thus completion in June. The project's cost of waste. It's not a ‘one-size-fits- velopment departments of large cor- will serve as a kind of "factory apart- Phase 2 will begin construction soon. all’ kind of technology." porations, helping them innovate ment building" where multiple Japa- For information please contact: Ms. RFID promises to yield special new products, build prototypes and nese firms can work side by side with Janjira Yamyim, General Manager, benefits for a food-exporting nation improve production results. convenient features. Most of these [email protected], (038) 213-007. like Thailand, Greis said. "Studies show that 20 to 40% of all perishable products shipped from Asia spoil be- fore arriving in European and Ameri- Chinese group buys nearly 400 rai in Rayong can markets. RFID tags can reduce that waste. Eventually tags might include hailand's competitive strengths ucts as electricity meters, power sensors that can trace the ambient infrastructure and services. Tvis-a-vis China are highlighted conditions of fresh goods. A product's equipment and biopharmaceuticals. Chinese companies are increasing perishability date would be dynami- by a large new investment earlier this In addition, Holley will this year their investments in Thailand to tap cally determined, to give it longer shelf month at Amata City, Rayong. Holley establish two joint ventures with lower costs and other export advan- life and save money." Group of Zhejiang Province, China, Amata. One will set up factories for tages here. Last year the value of in- Greis, who is setting up a Kenan- a major privately-owned company, rent to Chinese-affiliated companies vestment applications from China rose affiliated logistics institute and RFID lab acquired 378 rai (60.5 hectares) to es- at Amata City, Rayong. The other to 121 billion baht, a hefty increase in Beijing, said that whatever the chal- tablish a new factory compound. project is a commercial facility that from the 3 billion baht registered by lenges, RFID will eventually deliver on The 2 billion baht project will be will provide accommodation and the Board of Investment in 2004. Even hopes. "Wal-Mart is expanding its pi- constructed in several phases over shopping for Chinese workers there. without a pending steel plant proposal lot program. The RFID movement is in three years, to set up production for Both projects aim to establish a Chi- worth 100 billion baht, the trend shows Clinic at Amata Nakorn helps companies comply with regulations, reduce costs forward motion, and is here to stay." Holley divisions making such prod- nese industrial zone with specialized robust growth of 600%. and improve occupational health services for workers% FRIDAY MARCH 31, 2006 SPECIAL PUBLICATION 3 Factories are COMPANY PROFILE Amata services booming in About Amata Amata-related service providers include: Vietnam Amata Water Industrial water supplies and waste water management. We go beyond the basics, with services and Contact: Mr. Chuchat Saitin, General Manager, FROM Page 1 infrastructure that help our industrial estate clients [email protected], (038) 213-213 The new factories being built in save money and time. Amata Facility Service Vietnam are increasingly sophisticated. Security, gardening, cleaning and maintenance services. At Amata's park, the tech-related inves- Contact: Mr. Thanapat Sornkul, Managing Director, tors include companies like Ritek of [email protected], (038) 215-007 Taiwan, a world-leading maker of op- tical disks, and Japan's NOK, a leading Amata Mansion auto parts maker. Serviced apartments for short or long stays at Amata Nakorn. Tech inves- Contact: Mr. Kongdeasthe Sanguansataya, General Manager, tors choose Amata City, (038) 213-138 Bien Hoa for Amata Natural Gas Distribution strengths like Natural gas supplier at Amata estates. infrastructure. Contact: Mr. Smattachai Penroaj, Sales Engineering, "Our power, wa- ter and waste [email protected], (038) 458-601 treatment ser- Amata Summit Ready Built vices are the Dr% Phien of Turnkey mini-factories for rent in Free Zone and General best of any in- Amata Vietnam dustrial estate in Industrial Zone of Amata Nakorn. Vietnam. Amata's roads are as solid as Contact: Ms. Janjira Yamyim, General Manager, the runway of Ho Chi Minh City's in- [email protected], (038) 213-007 ternational airport," Phien said. Inves- VIA Logistics and VIA Trans tors purchased some 45 hectares of fac- tory land at Amata Vietnam last year, Warehouse, logistics and transport services at Amata Nakorn. and also leased many ready-built fac- Contact: Mr. Yoshimi Suzuki, Managing Director, tories, increasing the year's sales to [email protected], (038) 210-228 US$13.86 million. Amata Power The Bien Hoa location, too, is ad- Independent power producer. vantageous, near Ho Chi Minh City in Dong Nai province, the leading desti- Contact: Mr. Pote Jinphiphadhana, President, nation for foreign factories. Amata Viet- [email protected], (02) 710-3400 nam has the only industrial park near Amata Condotown Bien Hoa City with an ample supply of land. "Factories find it is easier to re- mata Corp. PCL is Thailand's (13,600 rai or 5,440 acres), where Amata City, Bien Hoa, established in Apartments and condominiums for production workers cruit employees there. Many young A leading developer and manager some 396 manufacturing projects will 1994, has 78 factories and more than at Amata City, Rayong. workers migrate from rural or semi-ru- of factory estates. Both our Thai es- soon be operating, including 332 al- 700 hectares (4,375 rai or 1,750 Contact: Mr. Nutnapa Wongcharoensin, Managing Director, ral areas in the northern or central prov- tates are situated in the nation's ready online or under construction. acres) of land in Dong Nai province (038) 650-130 inces, so Bien Hoa's urban lifestyle ap- Eastern Seaboard region, now Located in Chonburi province, in near Ho Chi Minh City. The project's Amata Spring Country Club peals to them. The city has good trans- Southeast Asia's preferred location Board of Investment (BOI) Zone 2, new phase will add villas, apart- World-class golf course, international restaurants and special portation and other services," Phien for manufacturing. We also operate the estate is just 57 km from Bangkok, ments and lifestyle facilities in great event space at Amata Nakorn. said. in dynamic Vietnam. and 42 km from the Suvarnabhumi demand there. Another Dong Nai Amata Vietnam has been able to Contact: Ms. Yuwaree Manmalai, Manager, Sales & Membership, Amata is known for its full-service International Airport. Besides ample industrial estate is being planned lower its costs while raising standards [email protected], (038) 468-691 infrastructure and facilities, Amata for facilities and services beyond other approach to hosting industry. We help near the major airport expected to industrial parks in Vietnam, Phien said. factories succeed by providing ser- Nakorn hosts Amata Spring Country open after 2010. Amata Health Service Excellent local connections and long ex- vices and facilities that save them time Club, a leading golf course. Amata was established in 1989 Providing routine check-ups, treatment for injury or illness, perience help Amata source goods and and money. More than 15 Amata sub- Amata City, Rayong has 1,072 and listed on the Stock Exchange of consultation and training in occupational health and safety for services at the most competitive rates. sidiaries and dozens of joint ventures hectares (6,700 rai or 2,680 acres), Thailand in 1997. Our global clients production workers and officers at Amata Nakorn. "For construction work installing rental offer quality products like Ready-Built with 102 manufacturing projects include such names as Sumitomo Contact: Dr. Charubongse Brohmwitak, [email protected], factories and infrastructure like roads, Factories, power, water, waste water soon in operation, including 83 al- Rubber, Yokohama Tire Manufac- (038) 468-900 we call for tenders, so we get a very good treatment, broadband internet, vehicle ready operating or under construc- turing, Canadoil, Triumph Motor- price. We know who is out there, so we leasing, housing, shopping, health tion. Its location in Rayong province cycles, BMW, Daikin, Sony Mobile, Other services from Amata joint ventures are able to choose the right contractor, clinic, schools, restaurants and more. is just 27 km from the expanding Pepsi-Cola, Bridgestone, Toyota, and affiliates: and that helps save money." Amata's This is our vision of developing "The deep-sea port at Laem Chabang and Colgate Palmolive, Kao, Mitsubishi The Amata Business Development Unit is working with partner strong reputation has helped it reduce 99 km from Suvarnabhumi Interna- businesses on several residential, commercial and education spending on marketing. "We already Perfect City" – an industrial estate that Electric, Mitsubishi Elevator, Hino projects that will add value to Amata's estates and their have a good image, so we don't have to functions as a complete town, where tional Airport. It offers BOI Zone 3 Motors and many more. We also invest in promotion." people can earn a living and live con- investment privileges. host dozens of the most dynamic communities. Phien has worked to improve cus- veniently too. In Vietnam, Amata has one ma- Thai manufacturers. For partnership information, please contact: Ms. Somhatai tomer satisfaction and sales by offer- Amata Nakorn, Chonburi is our jor project serving investors at the For contact information, please see Panichewa, [email protected]. ing more flexible payment terms. "Giv- biggest estate, with 2,176 hectares most advanced standards there. page 4. ing people several options is better. Potential customers feel they have something to gain by talking to us, so VOCATIONAL TRAINING they don't walk away." To increase cash flow, Amata began offering better prices in return for faster payment, an ar- New Chonburi rangement that is appreciated by such The young at art clients as Japanese companies, which center to upgrade often allocate all needed funds from the beginning of a project. worker’s skills Meeting the needs of existing cus- wards for young artists, and art tomers is a priority for Phien and his he export-oriented manufacturers team. "We have always helped clients A activities for youngsters are two of the recent cultural activities spon- Tcoming to Thailand need more with repairs, permits, construction workers with skills in foreign lan- sored by Amata Foundation. On work and introductions to suppliers guages, management and technology- and officials. Now we work even March 1, the winners of the second based production. To help meet these harder at that, and do more to com- annual Amata Art Award were an- needs, Amata is assisting in develop- municate effectively about our follow- nounced in celebration featuring ment of a new training center at up, rather than simply taking care of a music by three groups. Sculptures Chonburi's Panthong Vocational problem quietly, which is the usual ap- were exhibited outside at the event School, which is situated between proach in Vietnam," Phien said. He site, The Offices at CentralWorld, as Phase 6 and Phase 7 of Amata Nakorn added that while there is still room for industrial estate. improvement, Amata's responsive- well as in Lumpini Park, while paint- ings where shown at the National Amata is partnering with ness has helped turn more and more Chulalongkorn University and the clients into "ambassadors" for the firm, Gallery. The exhibition will appear at Khon Kaen University from June Ministry of Education to develop a leading to new business. "Our custom- program focusing on foreign lan- 6 to 30. ers' recommendations speak much guages, computer skills, business and more persuasively than our own sales In February, Foundation mem- other new priorities. Companies at pitch ever can, so we do everything bers visited a Bangkok hospice for Amata Nakorn will be invited to accept needed to win their esteem." underprivileged children run by the students for on-site training, which can Within the firm itself, Phien has tried Foundation for A Better Life For help factories get to know young to build teamwork and commitment. Children, established by Wallop people for recruitment. It will also help This year the firm will implement a "Suc- Tangkananurak, or "Khru Yui." The students by preparing them for the real cess Fee" system that will reward staff challenges they'll face on the job. In performance with profit-sharing. He group brought donations and helped kids paint their own tee-shirt addition, the new center will assist guarantees staff that all their ideas for companies to upgrade skills of their projects and improvements will be care- designs. A Thai classical orchestra joined to provide music. existing staff. fully considered. "It's an open system, "We have interviewed dozens of and they can contribute whatever they our clients to shape the program to think is good for the company. If their their actual needs. This will be the first proposal is not adopted, we owe them program of its type, which the an explanation. Our team is coming up government's Vocational Education with some initiatives that I believe will Commission intends to expand to help our shareholders and clients." other schools in the future," said Amata Vietnam looks toward two Panichewa Somhatai, Amata's vice- new sources of growth in the future. president of business development. Amata City, Bien Hoa will develop a The new project will be devel- 21-hectares commercial plaza with a oped according to a memorandum hotel, serviced apartments, golf course, of understanding signed by the health club, cinema, restaurants and Education Ministry, Amata, and medical center. The Vietnamese gov- Chulalongkorn University in January. ernment has promised Amata land to This initiative adds to other education develop a major new industrial estate. programs at Amata's estates, which To be called Amata Express City, it will host the Thai-German Institute for tech- be the company's second estate in nical training and two elite public Dong Nai province, with 3,000 hectares schools: Sathit Kaset school and Suan close to the new airport planned for Kularb. For more information on intern- completion after 2010. Phien expects ship and training programs, please the airport will attract factories there contact Mr. Satha Walabpantthana, as seen in Thailand around 01-173-2007, [email protected]. Suvarnabhumi Airport. 4 SPECIAL PUBLICATION FRIDAY MARCH 31, 2006 Chonburi GOLF TOURNAMENT turns Italian Europe team conquered inaugural Royal Trophy

t was a hotly contested two days Iof play, but in the end Europe held their own against Asia, 9-7 in a series of 16 matches in early January. The inaugural Royal Trophy tournament pitted 8-man teams from Asia and Europe in a Ryder Cup-format event involving singles, foursomes and four-ball play. The star-studded event took place at Amata Spring Country Club at Amata Nakorn, Chonburi. The Asia team, led by its non-playing captain, Masahiro Kuramoto, included two

ourmet Mediterranean fare is Gcoming to Chonburi, thanks to Diciotto, the new premium restaurant at Amata Spring Country Club. One signature dish is the cod filet with po- tatoes, olives and pine nuts, better known as Filetto di merluzzo alla Ligure, patate, olive Taggiasche, pinoli. Other dishes include pizza, pasta, ri- sotto, veal, lamb and salads. There's a walk-in wine cellar and cigar bar. The terrace allows dining al fresco with great views of the 18th green, which lends the restaurant its name, meaning 18 in Italian.

players with a home-course advan- tage: Thongchai Jaidee and Thaworn Wiratchant. Their teammates in- cluded Arjun Atwal and Jyoti Randhawa of India, Korea's Hur Suk- ho, Keiichiro Fukabori and Yasuharu Imano from Japan, and Zhang Lian- wei of China. Europe's non-playing captain was Seve Ballesteros, lead- ing England's David Howell, Ken- neth Ferrie and Nick Faldo, with Paul McGinley of Ireland, Graeme McDowell from Northern Ireland, Ian Woosnam of Wales, Thomas Bjorn from Denmark and Sweden's Henrik Stenson.

AMATA Carbon-fibre yachts Amata Golf GROUP OF COMPANIES Corporate Office Invitational 2126 Kromadit Building are soon to set sail New Petchburi Road, Huaykwang Bangkok 10320 mata recently hosted customers Tel (02) 792-0000 windsurf and surf boards. Cobra is A at its annual Golf Invitational igh-end yachts are being made Fax (02) 318-1096 Hin Thailand thanks to a new also a huge producer of composite event, this year held at Amata Spring joint venture called Composite Ma- components, from car and motor- Country Club for the first time. Over rine International (CMI). Based at cycle parts to carbon fibre windmill two days in January, some 200 execu- Sales Amata Nakorn, Chonburi, the com- blades, propellers and sporting tives from client companies joined Mr. Viboon Kromadit pany is a partnership with Cobra In- equipment. Amata counterparts for a half day of Senior Vice President ternational, the composite materials The new joint venture is led by play on this outstanding course. A Marketing and Sales specialist that ranks as the world's Pom Green, scion of a family well- dinner party was held at the Amata Tel (038) 213-007 ext. 200 largest manufacturer of quality known in the elite world of racing Spring clubhouse, and a charity auc- Fax (038) 213-700 yachts for tion raised funds for underprivileged [email protected] their firm children at a group home in Bangkok. Green Marine, the UK's lead- Investor Relations ing high-tech AMATA LEAGUES Mrs. Varaporn Vatcharanukroh boat maker. Vice President Treasurer He has [email protected] worked on Factory workers play hard some of the Amata Nakorn Industrial world's best- mata's corporate leagues Estate, Chonburi known com- Akicked off a sixth annual sea- Tel (038) 213-007 petition son of play between company Fax (038) 213-700 yachts. Now teams on February 11. Celebra- CMI is build- tions included a performance by ing three all- folk singer Ad Carabao. For sev- Amata City Industrial carbon IRC 46 eral months each year more than Estate, Rayong vessels for 100 company teams compete in Tel (038) 346-007 Rogers Yacht football (soccer) to win the Amata Fax (038) 345-771 Design, as Cup. Other sports popular at the well as a vari- estates are volleyball, badminton Amata Vietnam Co. ety of series and sepak takraw. "Workers love Tel (84-8) 845-0007 sail and power to play, and the games promote health, friendships, commu- boats for ex- nity spirit and better teamwork on the job. You can't beat that." Fax (84-8) 845-1462 isting brands. said Viboon Kromadit, executive vice-president of Amata. [email protected]

Editor Simon Kind Project Manager Grimm Kanokvechayant Text Supplied Editorial Design Sirintira Asairad Photographs Boonlong Phan-Udom/Visit Onsomboon Group Supplements Sales Mgr Manee Traiwatanapong Tel +66 (0) 2240 3700 Fax +66 (0) 2672 9970 Email Production Allied Printers

The Bangkok Post is edited by Kowit Sanandang for The Post Publishing Plc, Printer, Publisher and Owner Office Bangkok Post Building, 136 Na Ranong Rd0, Klong Toey, Bangkok 10110 http://www!bangkokpost!com 0306 Thailand’s economic performance will rise further with the improved logistics capabilities offered by the new As growing investment, consumer spending and structural reforms helped Vietnam's economy boom, Amata City Bien Suvarnabhumi Airport, at twice the cargo capacity of the existing facility at Don Muang% Hoa's sales grew by 186% in 2005% The company expects another strong year in 2006%

Clients have recently held many festive grand openings% Page 2: New clinic at Amata Nakorn, Chonburi helps Page 3: Amata Foundation members helped Page 4: Star folk singer Ad Carabao helped kick off this At Dutch-affiliated Tana Netting, a maker of mosquito nets% companies comply with regulations, reduce costs and underprivileged Bangkok kids enjoy a day of painting year’s season of corporate sport competitions at Amata Managing Director Nicolas Pierson was congratulated by improve occupational health services for workers% their own tee-shirts and listening to live music% Nakorn, Chonburi% Amata’s Viboon Kromadit% Bien Hoa industrial Thai economic competitiveness estate epitomizes boom in Vietnam

ranks high in surveys and FDI ietnam is among the world's rect investors have poured in Vmost dynamic economies sums ranging from US$4.3 to Exports, foreign direct investment and expert opinion all reflect the nation's rising economic performance. these days, growing by 7.5% a year US$5.8 billion a year during the over the past five years thanks in past two years, according to hai competitiveness is com with US$4.4 billion in net applications with Thailand. countries’ economic performance, part to surging foreign direct in- Vietnam Investment Review. Ting on strong, as new statistics to the Board of Investment. The BOI Thailand's rising rank in invest- government efficiency, business ef- vestment. One of the epicenters of Like Thailand, Vietnam is and surveys show. Foreign invest- aims to build and diversify investment ment surveys is highlighted by the 2005 ficiency and infrastructure. the boom is Amata City, Bien Hoa, proving to be a good alterative ment applications surged to in 2006 with its new incentives in in- Global Investment Assessment (GIPA) The rising national ranks and the industrial estate near Ho Chi to China for many investors, US$12.5 billion in 2005, up 62% dustries like pharmaceuticals, busi- report, from the United Nations Con- figures were reflected in Amata Minh City, whose sales grew by thanks to lower costs and from the year before. Thai exports ness process outsourcing, alternative ference on Trade and Development Corp.'s record operating perfor- 186% in 2005. Amata hosts com- fewer problems with intellec- hit a record, last year, exceeding energy, and the electrical and electron- (UNCTAD). Thailand ranked as the mance in 2005 (see below). panies from all over Asia, Europe tual property rights infringe- US$100 billion for the first time. ics sector. third most attractive business location and America that are benefiting The world's key FDI survey again Record exports showed high in Asia, and ninth in the world. The ment, according to Phien. "Ko- WORLD COMPETITIVENESS YEARBOOK from Vietnam's new strengths. rean Chamber of Commerce ranked Thailand the third most at- growth in automotives and parts, elec- GIPA report integrates three global sur- 2005 Rank of 60 key economies tractive investment location in tronics, processed fruits and veg- veys of over 300 transnational corpo- "For the past 10 years, foreign officials, for example, tell me Rank Economy and local investors have looked Asia, after India and China. etables, jewelry, and chemicals. New rations, FDI experts and investment 1 USA that among Korean companies Investors came from all over Free Trade Agreements helped exports promotion agencies. 2 Canada forward to Vietnam fulfilling its investing overseas, some 60% the world, especially the European expand in new markets. Shipments to Thailand's competitiveness rank- 3 Australia high potential. Now it is really of their projects in Vietnam are Union, Switzerland, the U.S., Tai- India leaped by 63% during the first ing climbed to ninth in the 2005 is- 4 Taiwan happening, due to many factors, profitable, compared to just wan, Hong Kong 11 months of sue of the World Competitiveness 5 Zhejiang, China BEST BUSINESS LOCATIONS, 2005-2006 including the government's ef- 10% in China," he said. and neighbors 2005, and to Yearbook published by the Institute 6 Japan Asia & Pacific 7 United Kingdom forts to reform laws and regula- like Singapore and China by 28%. for Management Development Vietnam's workforce is 16 China 56 Malaysia 8 Germany Malaysia. Japa- Both countries (IMD). Thailand's rank covered the tions as a step toward joining the young; some 62% of the popu- 26 India 66 Indonesia 9 Thailand nese companies have made Institute's Group One category of key World Trade Organization," said lace is below the age of 30. 3 Thailand 76 Vietnam 10 Malaysia maintained their "Early Har- economies with populations of over Dr. Huynh Ngoc Phien, president "Investors often tell me 46 Republic of Korea 86 Singapore Source: Survey of 60 countries by Switzerland's position as the vest" trade 20 million. In 2002, Thailand ranked of Amata Vietnam. their training costs in Vietnam Source: UNCTAD Global Investment Assessment Institute for Management Development (IMD) largest investors agreements 11th in the survey, which analyzes 60 The new Enterprise Law, for are lower than expected. The example, has helped create reason is that these young 200,000 new private companies Vietnamese workers are over the past five years, while highly motivated to learn. Amata sales, profits reach record levels other pro-business measures in- Most have completed second- clude revisions to the Civil Code, ary school or entered univer- Commercial Law and other laws sity, so they have the proper regulating bankruptcy, competi- ecord sales of both land ing Thailand because it has become ares or 584 acres) of land in 2005, an the U.K. background to study effec- R and services, together with one of the world's best places to increase of 472 rai from the year be- Beyond land sales, Amata en- tion, commercial arbitration, im- tively," said Phien, who long increased efficiency lifted Amata manufacture. And after they choose fore, bringing the total of sales from joyed higher sales from sales of wa- port/export duties, intellectual served as advisor to the com- Corp. PCL's operating perfor- Thailand, they choose Amata be- land to 3,718 million baht, or a 51% ter, power, wastewater treatment and property, and the stock market. pany before becoming its mance to its highest level ever in cause our full-service approach increase in value terms from 2004. other services to the factories it hosts. Other investment attractions president in 2005. Prior to 2005. Total net profits reached saves them time and money com- Cost controls helped make these The total income for such services include Vietnam's low costs, highly joining Amata, Phien was a 1,078 million baht, the pared to other industrial estates," higher sales more profitable as well. reached 625 million baht in 2005, up motivated workforce, strategic lo- professor of mathematics and company's best ever, on record said Viboon Kromadit, executive vice The year's investors represent a wide 33% from the year before. cation, and security. Retail sales computer science at the Asian revenues of 4,343 million baht. president of Amata. "These factors range of industries, led by Japanese- "This 33% increase in recurring Net profits from ordinary items will continue in 2006, which I expect owned automotives firms. Many revenues shows that we are on track have been growing at annual rates Institute of Technology (AIT) marked a 52% increase from the to be an even better year for other firms came from Thailand it- toward our goal of attaining 50% of near 15% over the past five years, in Bangkok, holding the posi- year before. the company." self, as well as from the U.S., Korea, revenues from services by 2010," creating a bigger domestic market. tion of dean for six years. "Factory investors are choos- Amata sold 1,479 rai (236 hect- Finland, Italy, China, Malaysia and Viboon said. With all these in mind, foreign di- See Factories booming Page 3