AEC preparation for Thai Businesses

Transcription

1 AEC preparation for Thai Businesses Kulachet Dharachandra Corporate Planning Director - SCG โค งส ดท ายส AEC อ สานก บ CLMV จะปร บต วอย างไร โรงแรมพ ลแมน ขอนแก น ราชา ออค ด จ งหว ดขอนแก น 8 ก นยายน :15 16:15 SCG

2 Agenda SCG Growth Stories Thailand and CLMV Opportunities Challenges and how we managed SCG

3 Agenda SCG Growth Stories Thailand and CLMV Opportunities Challenges and how we managed SCG

4 Opportunities in ASEAN and CLMV + Thailand ASEAN CLMV Thailand ESAN Population > 600M > 170M > 68M > 19M GDP [Bn USD] 2, GDP [USD] per capita 3,750 1,270 5,400 2,150 GDP growth 5-6% 6-7% 4-5% N/A SCG

5 Thailand will be even more connected to CLMV than before under new infrastructure investment plan Vietnam - GDP growth ( 14-18): 6.4% - Population: 89.7 million - Cross border trade: 18,131MB ( %) Myanmar - GDP growth ( 14-18): 7.0% - Population: 61.9 million - Cross border trade: 81,544MB (+2.63%) Laos - GDP growth: 7.9%* - Population: 6.8 million - Cross border trade: 65,205MB (+9.47%) Cambodia - GDP growth ( 14-18): 7.4% - Population: 15.1 million - Cross border trade: 46,309MB (+19.46%) * Figure of 2013, Trade figure is for Jan-May

6 Agenda SCG Growth Stories Thailand and CLMV Opportunities Challenges and how we managed SCG

7 SCG Competitive Landscape The Old Playing Field The New Playing Field Territory Domestic ASEAN Product Commodity-based HVA Products & Services Focus Cost Leadership Innovation & Technology, Brand, Green Initiatives 7

8 SCG s Investment Practice SCG Investment Criteria Align with our vision 1 Strategic fit Domestic HVA and New opportunities in new business Overseas expanding our core businesses to ASEAN SCG Investment Steps 2 3 Market attractiveness Growth trend Consumption per capita Consumer behavior Our Competitiveness Financials, System, Operations, Technology Expertise, Manpower 8

9 Current update of SCG Presence in ASEAN ASEAN assets = $2.4 billion (76,811 MB) (17% of total assets) Myanmar (1994) Total Assets $176 Mil (5,713 MB) - Cement-Building Materials Vietnam (1992) Total Assets $604 Mil (19,599 MB) - Cement-Building Materials - Chemicals - Paper & Packaging Philippines (1994) Laos & Cambodia (1992) Total Assets $227 Mil (7,366 MB) - Cement-Building Materials Total Assets $228 Mil (7,386 MB) - Paper - Cement-Building Materials Malaysia & Singapore (1996) Indonesia (1994) Total Assets $21 Mil (697 MB) Total Assets $1,111 Mil (36,050 MB) - Packaging Paper - Packaging Paper - Chemicals - Cement-Building Materials - Cement-Building Materials Note: As of June 14 9

10 SCG ASEAN Revenue and Vietnam operation Sales (MB) 90,000 80,000 70,000 60,000 50,000 SCG ASEAN Revenue CAGR 15% % on Sales 28% 26% 24% 22% 20% 25,000 20,000 15,000 Revenue from Vietnam CAGR 16% 40,000 18% 10,000 30,000 20,000 16% 14% 5,000 10, % 10% VN Operation Export to VN ASEAN Operation Export to ASEAN % ASEAN on Sales 10

11 SCG presence more than 20 years in Vietnam since 1992 Prime Group 2013 Binh Minh Plastics Tien Phong Plastic Cement Buu Long 2012 Packamax Alcamax 2011 AP Packaging New Asia 2010 CPAC Monier SCG CONCRETE Vina Kraft Paper MINH THAI WINDSOR CHEMTECH TPC VINA SCG Trading Viet-Thai Plastchem 11

12 SCG Manpower: 50,345 persons Overseas staff: 30% of total staff SCG International Staff: 305 persons SCG Staff in Overseas Operations: 14,942 persons Indonesia 6,681 Vietnam 6,373 Philippines 1,086 Cambodia 400 Myanmar 129 Others 273 As of July 2014 * Consolidated basis 12

13 Many dimensions of Vietnam are similar to Thailand Key Highlight Vietnam 3 distinctive regions (North, Central, South) in culture and dialect with challenging logistic issues Thailand Familiar market moving toward sophisticated customer needs GDP Growth ( ) 6.4% 4.5% GDP per capita [USD] (2012) Population [Million] 1,600 5, Private consumption 65% Private consumption 51% GDP mix Import, 88% Govt. 6% Import, 59% Govt. 10% Export, 89% Investment 27% Export, 74% Investment 22% Source: EIU, Deutsche Bank analysis 13

14 Agenda SCG Growth Stories Thailand and CLMV Opportunities Challenges and how we managed SCG

15 Challenges from Regional Expansion ASEAN growth are just the first step... Cross-cultural diversity Local Staff Engagement Local Community Concerns Country Risk Law and Regulation Language FX/Currency 15

16 Challenges from Vietnam expansion Suggested practice Engage local law firm Engage local community IC approval by govt - Econ/Industrial zone 1 Macroeconomics - Currency and foreign exchange - VND devaluation in November 2011 and June High inflation (H1/2014, 4.98%) - High interest rate (H1/2014, 9.0%) and developing banking system 2 - South Sea dispute with China Politics Law and Regulation - Periodical change of the regulation e.g. labor law - Local government rule under the master plan of central government Environmental and social issues - Local community concern Language - Vietnamese translators maybe required 16

17 CLMV s economy is growing. Population is becoming more affluent.. Regional Game Plan & CLMV SPIRIT are vital 17 SCG

18 Thank you 18