aec preparation for thai businesses

Download AEC preparation for Thai Businesses

Post on 01-Jan-2017

217 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

  • 1 SCG 2012

    AEC preparation for Thai Businesses

    AEC CLMV

    8 2557 14:15 16:15

    1

    Kulachet DharachandraCorporate Planning Director - SCG

  • 2 SCG 2012

    Agenda

    2

    Thailand and CLMV Opportunities

    SCG Growth Stories

    Challenges and how we managed

  • 3 SCG 2012

    Agenda

    3

    Thailand and CLMV Opportunities

    SCG Growth Stories

    Challenges and how we managed

  • 4 SCG 2012

    Opportunities in ASEAN and CLMV + Thailand

    ASEAN CLMV Thailand ESAN

    Population > 600M > 170M > 68M > 19M

    GDP [Bn USD] 2,300 220 370 40

    GDP [USD] per capita 3,750 1,270 5,400 2,150

    GDP growth 5-6% 6-7% 4-5% N/A

    4

  • Thailand will be even more connected to CLMV than before under new infrastructure investment plan

    Cambodia- GDP growth (14-18): 7.4%- Population: 15.1 million- Cross border trade:

    46,309MB (+19.46%)

    Vietnam- GDP growth (14-18): 6.4%- Population: 89.7 million- Cross border trade:

    18,131MB (+206.42%)

    Laos- GDP growth: 7.9%*- Population: 6.8 million- Cross border trade:

    65,205MB (+9.47%)

    * Figure of 2013, Trade figure is for Jan-May 2014

    Myanmar- GDP growth (14-18): 7.0%- Population: 61.9 million- Cross border trade:

    81,544MB (+2.63%)

    5

  • 6 SCG 2012

    Agenda

    6

    Thailand and CLMV Opportunities

    SCG Growth Stories

    Challenges and how we managed

  • SCG Competitive Landscape

    Territory

    Product

    Focus

    Domestic

    Commodity-based

    Cost Leadership

    The Old Playing Field

    ASEAN

    HVA Products & Services

    Innovation & Technology, Brand, Green Initiatives

    The New Playing Field

    7

  • SCGs Investment Practice

    Strategic fit Domestic HVA and New

    opportunities in new business Overseas expanding our

    core businesses to ASEAN

    Our Competitiveness Financials, System,

    Operations, Technology Expertise, Manpower

    Market attractiveness Growth trend Consumption per capita Consumer behavior

    8

    1

    2

    3

    SCG Investment CriteriaAlign with our vision

    SCG Investment Steps

  • - Packaging Paper- Chemicals

    Total Assets $1,111 Mil (36,050 MB)Total Assets $21 Mil (697 MB)

    Total Assets $228 Mil (7,386 MB)- Paper

    - Paper & Packaging

    - Chemicals

    - Cement-Building Materials

    - Cement-Building Materials

    - Cement-Building Materials

    - Cement-Building Materials

    - Cement-Building Materials- Cement-Building Materials

    - Packaging Paper

    Malaysia & Singapore (1996) Indonesia (1994)

    Philippines (1994)

    Vietnam (1992)

    Laos & Cambodia (1992)

    Myanmar (1994)

    Total Assets $227 Mil (7,366 MB)

    Total Assets $176 Mil (5,713 MB)Total Assets $604 Mil (19,599 MB)

    Current update of SCG Presence in ASEANASEAN assets = $2.4 billion (76,811 MB)

    (17% of total assets)

    Note: As of June 14

    9

  • 10%

    12%

    14%

    16%

    18%

    20%

    22%

    24%

    26%

    28%

    0

    10,000

    20,000

    30,000

    40,000

    50,000

    60,000

    70,000

    80,000

    90,000

    ASEAN Operation

    Export to ASEAN

    % ASEAN on Sales

    SCG ASEAN Revenue and Vietnam operation

    10

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    2010 2011 2012 2013

    VN Operation Export to VN

    Sales (MB) % on SalesRevenue from VietnamSCG ASEAN Revenue

    CAGR16%

    CAGR15%

  • SCG presence more than 20 years in Vietnam since 1992

    11

    2013

    Vina Kraft Paper

    1992

    1996

    2004

    SCG Trading

    Viet-Thai Plastchem

    CHEMTECH

    2007

    2010

    2011

    TPC VINA

    SCG CONCRETE

    New Asia

    MINH THAI WINDSOR

    1998

    2006

    2008

    CPAC Monier

    AP PackagingAlcamaxPackamax

    2012Cement Buu Long

    Tien Phong PlasticBinh Minh Plastics

    Prime Group

  • SCG International Staff: 305 persons

    SCG Staff in Overseas Operations: 14,942 persons

    As of July 2014* Consolidated basis

    Indonesia 6,681Vietnam 6,373

    Philippines 1,086

    Cambodia 400Myanmar 129Others 273

    SCG Manpower: 50,345 personsOverseas staff: 30% of total staff

    12

  • Many dimensions of Vietnam are similar to Thailand

    Source: EIU, Deutsche Bank analysis

    Vietnam Thailand

    KeyHighlight

    3 distinctive regions (North, Central, South) in culture and dialect with

    challenging logistic issues

    Familiar market moving toward sophisticated

    customer needs

    GDP Growth(2014-2018)

    6.4% 4.5%

    GDP per capita [USD]

    (2012)

    1,600 5,400

    Population [Million]

    90 68

    GDP mix

    Private consumption

    51%

    Govt. 10%

    Investment22%

    Export , 74%

    Import, 59%

    Private consumption

    65%

    Govt. 6%

    Investment27%Export ,

    89%

    Import, 88%

    13

  • 14 SCG 2012

    Agenda

    14

    Thailand and CLMV Opportunities

    SCG Growth Stories

    Challenges and how we managed

  • Cross-cultural diversity

    Local Staff Engagement

    Local Community Concerns

    Country Risk

    Law and Regulation

    Language

    FX/Currency

    Challenges from Regional Expansion

    ASEAN growth are just the first step...

    15

  • Challenges from Vietnam expansion

    16

    Macroeconomics- Currency and foreign exchange

    - VND devaluation in November 2011 and June 2013- High inflation (H1/2014, 4.98%)- High interest rate (H1/2014, 9.0%) and developing banking system

    1

    Politics- South Sea dispute with China2

    Law and Regulation - Periodical change of the regulation e.g. labor law- Local government rule under the master plan of central government

    3Environmental and social issues

    - Local community concern 4Language

    - Vietnamese translators maybe required5

    Engage local law firm Engage local communityIC approval by govt

    - Econ/Industrial zone

    Suggested practice

  • 17 SCG 2012 17

    CLMVs economy is growing.

    Population is becoming more affluent. .

    Regional Game Plan &

    CLMV SPIRIT are vital

  • Thank you

    18