Grand Ballroom 1, Intercontinental Hotel

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2548 ???? Grand Ballroom 1, Intercontinental Hotel
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RATIONALE FOR CHANGE
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Global Dynamics
Changes in Global Competitive Landscape
Geopolitical Landscape
Global Dynamics
Trade and Investment Landscape
Global Financial Landscape
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Policy Initiatives in Response to Globalization
Trade and Investment Policy
Trade and Investment Policy
Agriculture
Market Access
Capability Building
Industry Services

• Skilled
• labor
• ST

Trade Investment Strategy
Global Dynamics
Tourism
Trade Facilitation

• Transports
• ICT
• Physical
• resources

Trade Measures
Enabling Infrastructure
5
The New Internationalization Framework

• IN-OUT
• FOB ? CIF
• Merger Acquisition
• Franchising
• Licensing

• OUT-OUT
• Off-shoring
• Film/Animation
• Talent
• Construction Industry
• Kitchen of the World

• IN-IN
• Regional Hub
• MICE
• Clusters of Production

• OUT-IN
• Inward FDI
• Global Sourcing
• Tourism
• Education
• BPO

Logistics - Fleet - Warehouse - D/C
Technology - Internet - Biotech - Nanotech
Management Tools - VMI - JIT
Financial Supports
6
International Trade Issues

• Product X Market

• Product X Market X Enterprise

• Focus on International Business
• (Export X Global Sourcing e.g.,
• Talent, Technology X Global Network)

• Focus on Export

• Focus on Tangible Products

• Focus on Tangible Intangible
• Products e.g., intensifying in 4 modes of
• Services)

• Functional Based
• (Market Access Market Development
• Trade Measures)

• Agenda Based
• (Market Access X Market Development X
• Trade Measures)

• Polycentric

• Regional-centric

• Low Responsive to Global Dynamics
• (Reactive, Secondary Information
• Based)

• High Responsive to Global Dynamics
• (Proactive, Primary Intelligence Based)

• Multilateral regional bilateral

• Multilateral X Regional X Bilateral

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The New Business Model

• Headquarter

Country
Regional
Policy
Strategy
Executor
ITSA ???? ???. ??
DEP
European Hub
DTN
US Hub
DFT
China Hub
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REGIONAL HUB MODEL
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Regional Hubs
Brussels
DC
Beijing
Tokyo

Bangkok
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Function

• Formulate strategic plan
• Coordinating inbound and outbound
• Advise, monitor, follow-up

Regional Leader
Regional Manager

• Implement strategic plan
• Central networking of region
• Matrix reporting

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KEY RESPONSIBLE PERSONS
CHINA
Europe
N. America
REGIONAL OFFICE
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REGIONAL LEADER
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REGIONAL MANAGER
COUNTRY REP.
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NORTH AMERICA HUB
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Look at US.

• Thai export is just
• around 1 of the US
• import
• There is potential
• possibility of entering
• more into the US
• market

a large market

• Federal vs States
• GSP, SPS, TBT,
• AD/CVD Subsidy,
• Food AIDS
• -IP, security,
• labor envir

complexity of trade rules and regulations
highly influential over World forums

• WTO
• APEC
• Bilateral FTAs
• Other IGOs

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What we want from the US?
Market e.g. rice, fashion,
Auto industry, rubber, etc.
Seeking for Business Opportunities
Technology e.g. IT,
software, Pharmaceutical, Biotech, etc
Eliminating Trade Barriers
Capital e.g. logistic, supporting
industries, etc.
both to broaden and to secure
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North America DC Hub

Seeking Business Opportunities
Market-Technology-Capital
Eliminating Trade Barriers Dispute
Man Power DC 8 10 (Now 45) New TTC Texas,
Houston (23) New DC Miami (to serve Caribbean)
Missouri (to serve Mid-West)
2006 Target Export 20,841Mil US Import 10,540
Mil US
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EUROPEAN HUB
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Trade and Investment Critical Issue
Manpower
EU
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Total Trade value gt 52,000 mil US in
2010 Ranking 24
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Investment Expansion In Out gt Restaurant / Spa
/ Food Manufacturing Out In gt Tourism /
Fashion / Food / Automobile

• Proactive Market Intelligence

Logistics
Global Sourcing
Trade Promotion Activity
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• Critical Issues
• Tariffs / GSP
• SPS
• TBT
• AD / CVD
• Environment eg. WEEE, REACH

• Strategy
• ASEAN EU FTA
• Intelligence Network
• Early Warning
• Institution Capacity Building
• Lobbying Policy Level

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Manpower
FRANKFURT BERLIN
COPEN
VIENNA
HAGUE
PARIS
LONDON
BRUSSELS
ROME MILAN
MADRID
BUDAPEST
PRAGUE
WARSAW
Brussels Officials 4 ? 6 Staffs
4 ? 8 Other Offices Officials 1-3 ? 2- 4
Staffs 3 ? 5
Manpower
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CHINA HUB
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CHINA BEIJING

• Central Provincial Level
• Commercial Office, TTC
• Monitoring/ Follow-up

• G to G
• G to B
• JC Thai-China
• GMS

Relationship/ Negotiations
Goal (2010) Trade 50 B.US Investment
6.5 B.US

Closest Strategic Partnership
Business Opportunity

• Distribution Network
• Trade Mission
• Energy, Raw Material
• Joint Venture

• Goods/ Service/ Investment
• Sourcing
• Entrepreneur Development

Promotion/ Development
Market/ Investment/ Sourcing
Target (2006) X3512,494 m.US M2011,726
m.US

• Intelligence Networking
• Mobile Unit
• Fast Lanes

• Gateway
• Logistics
• NTBs Elimination

Facilitation/ Barrier Elimination
Barrier Elimination
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• ??????????
• ????????????????
• ?????? / Lifestyles
• ????????????????
• ????????????
• ????????????????????????
• ???????????
• ?????????

• ??????
• ????????????
• SPA
• ????????
• ???????? (Interior
• design Decoration)

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Key Network in China
Distribution Center (11) Harbin/ Yiwu/ Qingdao/
Wuhan/ Xi-an/ Jiangmen/ Guangzhou/ Nanning/
Kunming/ Sixuanbanna/ Chengdu
Outsource (10) Tianjin/ Harbin/ Qingdao/
Nanjing/ Fuzhou/ Wuhan/ Xi-an/ Nanning/ Chengdu/
Wulumuqi
Honorable Trade Adviser (7) Present (2)
Yiwu/ Guangzhou Proposed (5) Sichuanbanna/
Changsha/ Haikou/ Wuhan/ Zhengzhou
Man Power
Present Beijing (Hub) 25 ? 47
Shanghai 23 ? 35 Guangzhou
23 ? 35 Kunming 22 ? 35 Total 4
offices 813 ? 1322
Proposed Xiemen 3 5 Dalian 3
5 Chengdu 3 5 Total 3 offices 9
15 Grand Total 3 offices, 14 officers, 24 local
staffs
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NEW INITIATIVES
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?????????????????????????? (Office of Business
Economics)
Trade Policy Board
Regional Office(s)
OPS
?????????????????????????? (Office of Business
Economics)
DFT
DBD
Research Unit(s)
DTN
DIP
DOI
DEP
Other Ministries
DIT

• Research/Study/Statistical
• Information
• Knowledge Management
• (Intelligence, public outreach)
• Strategic Planning
• (Warning/ Opportunity)
• Strategic Coordinating
• Monitoring

Private Sectors
Roles
Implementation
Others
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• ????????????????????????????????
• ??????????
• ????????????????????????
• ????????????????????????? FTA
• ???????????????????????
• ????????????????????????
• ?????????????? ??????????????
• ?????????

• ??????????????????????????
• ????????????????????????
• ????????????????????????? FTA
• ???????????????????????
• ?????????????
• ?????????????????????????????
• ???????????? ???. ?????????????
• ??????????????? FTA

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E N D C U S T O M E R
International Trade Network New Initiatives
MNC
Outflow Trade
Offshore
Intermediary
Logistics
LSE
Trade Service
Trading Firm
Air Cargo
DC
Intertrader
Whole sale
Carriers
Retail
Carriers
S U P P L I E R
Liners
Franchise
Liners
Global Sourcing
SME
Inflow Trade
INBOUND
OUTBOUND
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DEP Extended Roles Road Maps for International
Trade
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Capacity Building
(eg. Brand Building, IP, Venture Capital, and RD)
1
3
DEP
Trade Services
Global Sourcing
(eg. Kitchen to the world, SPA, Healthcare,
Hotel, Education, Construction)
(eg. Secure Energy, Brand Acquisition, Raw
Material, Experts, Technology)
4
Trade Logistics
(eg. DC, Trading Firms (Intertraders) , MNC (LSE))

• Expand export from SMEs by Intermediary Trading
  Firm
• THAINESS go GLOBAL Kitchen to the World,
  Health SPA
• Change from Wait and See to Facilitate Lead
  Logistics
• Move up the Value Chain and Value Creation
  Global Sourcing

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DIFFERENT REGIONS/COUNTRIES VS. SERVICES HAVE
DIFFERENT REQUIREMENTS
Strategic Road Map of Kitchen to the World
Customers
Channel
Competitor
Strategic Issues
Market

• Maintain Share
• Competitive services
• and prices
• High quality dishes,
• Fresh Hygiene
• Exotic Cuisines
• Ingredient
• Supply Chain

• Franchising
• Brand Restaurant

• Italian
• French
• Japanese

Richy Wishy

• Regular customer basis
• Come to have services
• on regular basis
• Live in major city
• Care much about
• -Conscious Health
• Premium Quality

US CAN
JAPAN KOREA
WEST EUROPE

• Grow Services
• Mix with selected
• Thai SPA

Macho

• French
• Indian
• Indonesian
• Italian

• Live in Capital or
• Business Town
• -Come to have services
• once a month
• -Seek for unique services
• distinctive touch Elegance

• Brand Restaurant

CHINA

• Differentiate
• Thai Herbs
• Sophisticated Services
• Hospitality

EAST EUROPE

• Potential Market
• Expand to major cities.
• Expand service to
• cover Deliveryservice
• or Ready-to-East
• Go with Thai SPA.

Luxurious

• Local Foods
• Chinese

-Brand Restaurant -Hotel Chains Resorts

• Live in Tourist Town
• -Come to have an
• exotic services just a few
• time
• -Seek for Real THAINESS

SOUTH AMERICA
SOUTH ASIA
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DIFFERENT REGIONS/COUNTRIES VS. PRODUCTS/SERVICES
HAVE DIFFERENT REQUIREMENTS BUT CAN BE CLUSTERED
Strategic Road Map of Thailand Intertraders for
Trading Firms
Product Cluster
Market Situation Channel
Competitor
Strategic Issues
Market
Start-Up

• Market Situation
• Suitable for Local consumption
• High Opportunity to export
• Small number of players
• Growing demands
• Large market size
• Channel retailers/subcontracts

Local Manufactures, China, Taiwan, Korea, USA,
EU countries

• Maintain Share
• Competitive prices
• High quality products
• Clusters of Product
• packages
• Branding as THAI
• Products

Food
AFRICA
Fashion Lifestyle
MIDDLE EAST
SOUTH ASIA
Construction

• Grow Product Cat
• Combine with
• other products
• Expand production
• bases
• Benefits from FTA

CHINA
Health SPA

• Differentiate
• Specialty in specific
• product category
• One-stop shopping

• Market Situation
• Suitable for Local consumption
• High Opportunity to export
• Small number of players
• Growing demands
• Large market size
• Channel retailers/subcontracts

Local Manufactures, China, Taiwan, Korea, USA, EU
countries
Food
Pot ential
ASEAN

• Grow Market
• Expand to Untapped
• countries.
• Expansion into new
• product categories
• Venture Capitals

Fashion Lifestyle
Health SPA
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DIFFERENT REGIONS/COUNTRIES HAVE DIFFERENT
RESOURCES
Strategic Road Map of Global Sourcing
Sourcing Target
Channel
Targeted Industry
Strategic Issues
Source of Distinction Creativity Mgmt Tech.
Region

• Secure Sources
• Balance sources of
• origins
• Joint Ventures with
• local partners

• Cooperation Acquisition
• Enterprises
• Universities
• Research Development
• Institute
• Design School Institute
• Brand and IP Owner

• Post-Harvesting Industries
• Food Processing
• Fashion Lifestyles
• SMEs Manufacturing Firms
• Logistics Management

• Creativity
• Designers
• Brand Design
• Technology
• Manufacturing Process
• and Machinery
• Bio Nanotechnology
• Green Clean Tech.
• Energy
• License
• Intellectual Properties

US CAN
EAST ASIA
WEST EUROPE

• Plan
• Investment offshore
• for export to third
• Counties (CO)
• Brand Acquisitions
• Joint production
• services for third
• countries

Source for Securing Energy
National energy supplies
B2B MNCs Incorporated government agents
Trading Firm (ME)
MIDDLE EAST
Oil Natural Gases
S. AMERICA
EAST EUROPE

• Expansion
• Expansion into new
• Untapped countries.

Source of Raw Materials Competitive Labor

• Government
• Bilateral Agreement
• Private
• Business Matching
• Trading Firms

• Farming
• Garment (Fashions)
• Furniture (Lifestyles)
• Low Technologies

• OUT-IN
• Raw Materials
• OUT-OUT
• -Cheap labor
• -Low overhead costs

CLMV
SOUTH ASIA
S. AMERICA
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Global Market
Strategic Road Map for MNC
Short Medium Term
Long Term
Gov
Private Sectors
Venture Capital
BUY
Superior Thai Firms (MNC)
Brand Acquisition
Cobranding
Global Brand
Superior, Advantage Competitive Industrial
Segments
Surperior, Advantage Competitive Distributors
R D Investment
Thai Origin Brand
Incentive Policy (BOI for IP)
BUILD
Research Development Future High
Sophisticated Products and Industries
Oversea Experts and RD Institutes
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Strategic Road Map of Distribution Network
Rotterdam
Pusan
Habin
Alexandria
Missouri
Guang dong
Miami
Dubai
Kun ming
Panama
Durban
xx
Gateway for International Logistics
xx
Distribution Center to Cover Targeted Areas
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DFT ROLES New Initiatives
CURRENT
NEW

• Import Management
• Global Sourcing (Raw material)

• Import Management
• Global Sourcing (Raw material,
• Technology , Labor etc.)
• Thai Product Promotion

• Outbound Investment
• ECS (Neighboring Countries)

• Outbound Investment
• FTA Countries

• G2G / Barter Trade
• Barter Trade

• G2G / Counter Trade
• Account Trade

• Trade Measure
• Info. Center (NTB, SPS, TBT)
• Early Warning and Private sector preparation

• Trade Measure Strategy
• Trade Measure Strategic Center

• Trade Facilitation
• Utilization of GSP/FTA
• PrivilegeExport Documentation

• Trade Facilitation
• Internet Linkage (Future
• Paperless)

• Agricultural Product Export Policy
• Value Creation, Branding

• Agricultural Product Export Policy
• Increase Export, Stabilize Price
• (Rice, Tapioca)

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DTN
INTELLIGENCE

• Proactive role in services, investment new
  economy
• Barriers elimination
• Strategic partnership

• Market access

• Clear policy directives coordination
• Legal experts
• Competent Negotiators

• Inter ministry coordination
• Networking

• Coordination
• Utilization

• Effective implementation