Internship story – Martin Delannoy

MY THANKS

I would like to start by thanking the entire INSEEC group teaching team and the professional staff responsible for the BBA INSEEC training for having provided the theoretical part and a solid teaching allowing the good execution and adaptation during this internship in a company.

I would also like to thank Mr. Lelievre, CEO of SIAM SHIPPING for his welcome and acceptance of my application as an intern with his company, for the help and advice and support he provided every day during the period. I would particularly like to thank and express my gratitude to the following people for the enriching and interesting experience they gave me during these three months at Siam Shipping.

Mr Rahme, Marketing manager for his welcome and the trust he has shown me since my arrival in the company, for his friendliness and his real desire to share his knowledge, his support, and his professionalism.

Mr Jean, Business Developer China sector at Siam Shipping, my tutor, for having quickly integrated me into the company and for having given me all his confidence for the time he devoted to me throughout this period, knowing how to answer all my questions without forgetting his participation in the progress of this report.

 

1/ INTRODUCE MY EXPERIENCE AT SIAM SHIPPING

My internship at Siam Shipping became obvious when I was looking for an internship in a company. This company, which offers many services related to the subcontracting of its clients import and export projects, was totally in line with my current and future ambitions.

Having two websites based on the same scheme in textiles and accessories, I wanted imperatively to improve and deepen my knowledge in the management of flows, in the control of this sector of activity, customer relations, relations with large forwarding agents, and especially to create a professional network in connection with my current activity.

Moreover, attracted by the Asian countries in which I made many trips during these last years, Siam Shipping, based in Bangkok thus appeared as an evidence and as a motivation in the execution of my internship abroad. In terms of professional experience, after obtaining the telephone appointment, my motivation increased because of the company’s operating plan.

Siam Shipping is a company which goes against the current principles of the functioning of the companies, it is not a Corporate company. The trainee as well as the managers have great freedoms which are similar to those of the Digital Nomad, which is a new and current working method which corresponds to my future ambitions. The management of working time, the management of clients according to time zones, the management of the workload is thus totally controlled by the trainee and the employee while making sure to provide a rigorous and professional work.

The excitement was how, after getting many student jobs based on a corporate model, would be my adaptation after a long positive apprehension
Within this internship report, the company will first be presented in order to understand the missions that have been entrusted to me during this period.

We will end by analyzing globally and from a strictly personal point of view my vision of the world of work in Thailand, and my personal experience.

 

 2/ PRESENTATION OF THE COMPANY AND ITS CONTEXT

Known for its famous islands, and its tourism without moderation, Thailand is a country which enjoys a certain notoriety today. With an estimated population of 65 million. Thailand is ASEAN’s 2nd largest economy. The wealth of the economy derives its resources from tourism but also from agricultural products such as the wide variety of tropical fruits available on the soil, and industrial products such as textiles for example. Known for its famous islands, and its tourism without moderation, Thailand is a country which enjoys today a strong economic growth which continues to increase year after year.

INFRASTRUCTURE PROMOTING TRADE IN THAILAND

  1. ROAD TRANSPORTATION

The Thailand has overall infrastructures of quality compared to à its neighbors (Cambodia, Laos, Burma, Vietnam, India…). Road transport remains most used in Thailand (depending on the sources, the share of road transport oscillates between 80% and 92% of the tonnage of goods
carry in Thailand).

This situation can be explained by several factors:

A road reseau much more developed than a rail network (159,000 km of road against less than 5,000 km of rail). A larger flexibility both in driving time and in fixed and variable charges Road freight is the mode of transport which is favored by the Thai government which seeks to develop the road.

SEA TRANSPORTATION

The two main ports for sea freight are Laem Chabang and Bangkok. Laem Chabang are at 22th world rank in container traffic. The second port located in the south of Bangkok know less affluence with around 22% of the port traffic against 65% for Laem Chabang (sources Wikipedia). Many products from China and Vietnam transit through Thailand, including in some cases to be partially converted, before to be ship to Europe or United States.

In addition, Thailand has 35 commercial airport, Suvarnabhumi Bangkok concentrates the bulk of freight traffic (domestic and especially international) since its opening in 2006. The latter has strengthening air sector of the capital with a freight capacity of around 3 million tons per year ( for comparison, the main port of Laem Chabang saw 47 million tons transiting – 31.2 in export against 15.8 in import – in 2012). It is in this dynamic country full of opportunity that the CEO, MR Lelievre, decided in 2008 to create his own multi-service import-export company. Settled for 6 years in Thailand, he decides to put forward his skills acquired in import-export asian employee, taking advantage of the incredible dynamics of Thailand and its international exchanges.

Accompanied in this project by its 3 collaborators with very precise missions such as, the management of the company by the Web site and the commercial and administrative
management. (Wikipedia source for 1.2.3.) After these 3 years, that is to say since my arrival, we distinguish a company with solid bases in full growth in its sector of activity thanks to its extension and its adaptation with its customers, but especially by a good strategy of implantation.

 

PRESENTATION OF THE COMPANY’S STRATEGIC AREAS OF ACTIVITY

SIAM SHIPPING is a forwarding agent that operates through 4 major areas of strategic activity to meet all types of customers, but also all types of needs.

MANAGEMENT OF COMMERCIAL PROJECTS IN B TO B

Siam shipping offers to manage commercial projects in B to B which represents approximately
60% of their customer portfolio. It is with a follow-up customer, and a professionalism that the company manages to develop its customer loyalty.

 

COMMERCIAL PROJECT MANAGEMENT IN B TO C

SIAM SHIPPING offers to manage the commercial projects of clients who have non-commercial projects, such as the import of various products from China or Thailand to France. It is with a follow-up and an assistance from the beginning to the end that each project that we accompany the customer in his step by proposing a 100% assumption of responsibility. Siam Shipping adapts to customer needs.

3. RELOCATION MANAGEMENT

This branch was under the name of Siam-Relocation. It specialises in removals and provides a service of the same quality as that of its competitors. On the other hand, its competitive advantage is based on the price of its service. Indeed, Siam Shipping does not have to support important loads like those of these competitors: marketing, structure…

4. ANCILLARY SERVICES

Each commercial project or move requires additional services specific to logistics. Among these services we find a necessary packing service for all types of commercial projects and removals, customs clearance, and a storage service.

All these services allow SIAM SHIPPING to offer an optimal service able to answer all the problems. Although the company is able to offer its international shipping services for requests up to several tons and several containers, the majority of its customers rely on small requests often less than a ton. This is due to the fact that the logistics market is very hierarchical.

HOW THE FREIGHT FORWARDING MARKET IS
STRUCTURED AND WHERE SIAM SHIPPING IS LOCATED

LARGE COMPANIES

Indeed, the largest companies holding their own containers and mastering all stages of shipments, from the recovery of the goods to their delivery to the customer, refuse small contracts, usually under a ton. Large companies favor profitability by customers offering large quantities attracted by the prices offered by large companies, the cheapest on the market.

SMALL AND MEDIUM-SIZED COMPANIES

Small forwarding structures such as SIAM SHIPPING deal with small volume shipments, often operated by private individuals or small companies who do not have the strength or even the knowledge to impose themselves via large companies, often in search of a tailor-made service and a customer service attentive to their needs, able to accompany them in all stages of transport.

PUBLIC AND PRIVATE STRUCTURES

Companies such as La Poste or FedEx & DHL are responsible for sending low-capacity parcels. These services are highly appreciated by clients because of the ease of care and procedures. However its use is limited in the framework of commercial exchanges and leaves the place to the specialized forwarders able to manage shipments with capacities and a mass of more than 100 kilograms.

HOW SIAM SHIPPING MAKE THE DIFFERENCE IN A HIGHLY COMPETITIVE MARKET

Siam Shipping offers are not only limited to transport, they also have additional services very appreciated by customers. Operational and commercial follow-up are in particular assets. In effects, whatever the type of transport, goods, perishable goods, personal effects or vehicles, Siam Shipping remains in permanent contact until the final delivery. A thorough knowledge of international customs institutions enables them to respect their commitments to customers

List of services Siam Shipping provides:
  • Air Freight
  • Customs clearance
  • International Moving
  • Sea freight- Packaging service
  • Door to door service
  • Multi modal
  • Express transport

One of the keys to Siam Shipping’s success is its multilingual team: French, English, German and of course Thai. In a rapidly changing global market, communicating in your native language is very much appreciated. Siam Shipping has a varied clientele, mainly SMEs, but also multinationals, NGOs and of course individuals. For each customer, the goal is to satisfy him in order to build his loyalty. Customer success is the company’s obsession.

MY EXPERIENCE AT SIAM SHIPPING

The 02.01.18, is held the first meeting within the team SIAM SHIPPING, it is in a pleasant and sympathetic atmosphere that are presented the various objectives and the various missions in connection with the duration of the training course. The goal is to give me total autonomy so that I can work fluidly and become confident with the work and logistics in general. Then, the objective was to go directly to the meeting of the customers on the Thai ground, to analyze the customers’ needs within the SIAM SHIPPING offices, or to find new customers by concentrating on new customer targets, that of the NGOs for example, having an activity on the ground of China, or on the Thai ground, or to conquer new professional partners in order to open up to new markets.

MY MISSIONS AND MY ROLE IN RELATION WITH THE SALES
DEPARTMENT

In the commercial service my missions are to treat the requests of the customers received via the internal sites SIAM SHIPPING specialized in the sending from Thailand and SINO SHIPPING from or to China, or for SIAM RELOCATION, specialized for the moving between Europe and Asia.

  1. MANAGEMENT OF REQUESTS RELATED TO THE REMOVAL SERVICE: SIAM RELOCATION

In order to manage a move as well as possible, my role is to analyze all the elements so that the operation is carried out without encumbers. Logistics being a highly technical environment, as a Business Developer it is important to have had prior training or professional experience in this environment, in order to give a professional service by offering an optimal service for the customer.

  1. MY ROLE IN THE MOVING DEPARTMENT

Contact by email or telephone, with the aim of:

  • Check the volume and weight of personal effects This step is decisive since it allows to know the capacity of the personal effects at the time of the
    removals. This makes it possible to determine an initial estimate of the total price of the shipment for the customer, but above all it makes it possible to determine which shipping method we will advise the customer.
  • Verification that the mode of transport chosen is consistent with your personal effects. During a move, once we have determined the weight and volume, we can now inform ourselves about the constraints imposed by the customer. These constraints are often translated in terms of time and cost. This is why we have to adapt our offer in order to offer an optimal service to the customer, which meets his needs.
  • Analysis of needs concerning ancillary services When moving, it is important to ask about the nature of the goods. Indeed, we must know the fragility of the goods transported, and therefore offer a packing service for the goods in order to ensure safe transport.
  • Verification of the conditions of access to your home, departure and arrival
  • Verification of parking authorizations for a truck and/or a container, mandatory for the day of loading and unloading
  • Documentary verification, in order to provide all necessary documents to the competent customs authorities
  • Checks concerning the tax exemption conditions

Once all these steps are established, we can propose an estimate to the customer.

MY ROLE IN THE BUSINESS DEVELOPMENT DEPARTMENT IN CHINA
AND THAILAND

Once the requests for estimate received by email, transmitted by Mr. Jean, it is then that my role intervenes. It is important to get to know the needs and get as much information as possible about the business project. This makes it possible to offer an optimized service by reducing the costs and risks associated with unforeseen events.

FOR COMMERCIAL PROJECTS, IT IS MANDATORY TO KNOW:

  • Volume and weight: Volume is weight to determine which is the best solution for the customer’s commercial project, in the case of a large volume, we prefer sea freight, in the case of a small volume, we offer a subcontracted service with our partners Fedex or DHL, or by air freight.
  • Port of destination and port of arrival: It is important to know this information from the first contact with the customer, although this information is logical regarding the handling of goods, we can sometimes propose alternative seaports depending on the precise place of delivery of goods.
  • The nature of the goods (HS CODE) In order to know if the commercial project is possible, or not, according to the legislation specific to each country.
  • The service requested according to the incoterm: Every commercial project is different, and every client requires a tailor-made service. This is why the Incoterm will be the indicator that will determine the quantity of our services and the takeover of the goods. Depending on the project, we can offer 100% takeover, i.e. we take over the goods from the supplier’s warehouse to the customer’s address abroad. We can also offer a service with a service only from the port of departure to the port of arrival, the solutions are multiple and varied.
MAKING CONTACT WITH OUR CUSTOMERS:

The contact of our customers is usually made, for those coming from Europe or China, by email, after analysis of needs and sending quotes, if the customer is interested in our offer we proceed to a contact by phone in order to conclude the transaction. Within the framework of our customers based in Thailand, more precisely in Bangkok, we
privilege a direct contact with our customers in our offices, this makes it possible to establish a climate of confidence from the first meeting and to conclude more easily. During my internship there were many meetings with our clients in Bangkok and its surroundings, without the help of our staff, it really puts us in the shoes of a business developer thanks to the responsibilities we carry. Indeed, we have no choice, we must succeed in signing the advantage of the appointments with our clients at the offices, allows us to analyze our knowledge in contact situation, we go from student employee. The feeling of feeling in a different situation is appreciable.

 

BILAN

My internship at SIAM SHIPPING was very formative and allowed me to mature professionally.

– KNOWLEDGE ACQUIRED IN WEB MARKETING

Alongside Nicolas Rahme, I was able to develop my knowledge regarding marketing in shipping industry. The work in web marketing is determining in the creation of a company, indeed, it is very important when developing a service on Internet to have an important presence, and to know the elements determining to a good referencing.

As mentioned earlier in my internship report, the main elements were taught to us and we had the opportunity to handle the activity in full autonomy. Indeed, managing a specialized activity allows to develop an ease in its understanding and in its implementation. Within the framework of my personal projects, this web marketing part acquired during my internship has given me confidence in the development of my future projects.

– KNOWLEDGE AND BENEFITS GAINED IN BUSINESS STRATEGY

The commercial strategy mentioned above allows us to highlight our personal skills. Especially during appointments with our clients, we can put to good use our acquired skills that we learned during our studies, so we put forward our linguistic skills with a mastery of English that must be perfect, and our commercial skills that translate into a good presentation of services, a professional attitude and a mastery of techniques and the logistics sector.

More precisely, it is a gain of personal confidence which was acquired since the lived situations
allow me to be more at ease concerning the apprehension of the professional appointments and
their management. It is also an acquired confidence concerning the management of removals but also international transport for private individuals or professionals thanks to many difficulties and many points which were solved by my Master of Training Courses, which is very formative and makes it possible to learn from its errors.

MY ANALYSIS OF THE COMPANY’S OVERALL STRATEGY BASED ON MY PERSONAL EXPERIENCE

My experience in web marketing has not allowed me to feel or analyzed a need for development or improvement regarding the work already done, since the website is very well referenced in search engines, which is an indicator regarding the quality of work. However, concerning my experience in the sales department, many elements appeared to me as
essential to the development of the company, in particular in the research of the optimization of the customer service:

OPTIMIZATION OF THE CUSTOMER SERVICE
– How to convert a maximum potential customer. So I decided to optimize the visual of the estimates, so that the customer sees a real company with a careful design, which indicates, in the unconscious, a qualified and good quality service. The visual aspect, makes it possible to bring a good image of the company: Here on the left the estimate before modification, and on the left the estimate after. Regarding changes in the customer contact process and the retargeting process, there are many ideas I have that can improve customer service.

– Contacting the client

The customer contact is essential and allows to create links with his interlocutor, indeed, the exchanges by email does not release any emotions, the emotions are only verbal and have negligible impact on the final decision which is to buy, or not to buy our services. My optimization proposal consists of systematically contacting the potential customer as soon as he requests a quote via the website using the telephone number required at the time of the request. Calling the customer allows to create a link through a real contact, so the chances to convert the potential customer into customer is maximized. The information between the two interlocutors is transmitted orally, and the use of a comprehensive and professional language ultimately increases turnover and customer satisfaction.

–  Keep in touch with the client

This is another strategy that seems to me essential when you have a website, and you offer a service to an audience. Thanks to the many requests via the website this allows to keep a database with many websites. Currently having 2 websites, I used to use these email addresses for commercial purposes, by regularly sending advertising. My optimization proposal is based on the same method, which consists in sending advertising regularly to all our clients, whether they have already signed contracts with our services or not. This allows to put in customers’ heads, through regular email sequences, that if they find the need to call a forwarder, SIAM SHIPPING or SINO SHIPPING can understand their needs.

– What elements should be included in the email?

In my opinion, the retargeting email should feature a relatively beautiful woman, the customers in import and export being mostly men, who uses a friendly vocabulary in order to offer discounts or important announcements to her customers. Using beauty can allow male customers to unconsciously direct themselves to our services, and
friendly language can allow it to create an almost friendly relationship in email exchange. Here is my proposal made to SIAM SHIPPING regarding the design of emails and the type of conversation to have with customers

POINT NOTED IN THE WORKING METHODS

  1. HIERARCHY

The hierarchy in Thailand is much more marked than in France, but the relationship with its employees is different. In Thailand, communicating with one’s direct superior is equivalent for a Thai to communicating with one’s CEO for a European, especially in terms of respect. The authority and control that a superior has over his employees is not acquired and maintained in the same way.

The hierarchical superior when he is Western is very often recognized for his expertise and his  professionalism, but also for his capacity to make good decisions, his authority is acquired and regulated thanks to rules. In Thailand, the leader will be appreciated only if he shows that he knows how to be interested and understand his collaborators, it is with the relations that he will know how to build with each one that his authority will become legitimate.

  1. COMMUNICATION

The atmosphere within the companies in Thailand is characterized by an extreme respect and politeness, in connection with the values of the inhabitants in the everyday life. Arrogance or having direct words are defects that show a lack of control and a disrespect much less tolerated than in the West are defects much less tolerated than in the West.

The form during a discussion is important but it is the substance of the communication varies enormously: your Thai collaborator will never disagree with your complaints. The smile is extremely used within the framework of an answer by the Thai collaborators but a smile or even a yes is not necessarily worth acceptance or understanding. As a manager, you often have to make sure that requests are understood, and do not hesitate to explain and re-explain with patience, even if your colleagues do not ask questions to make sure you understand whatever happens.

CONFLICT MANAGEMENT

Thanks to my network, I was able to clarify this point which seems interesting in a country where trade unions are almost non-existent, how it settles conflicts internally in their company, whereas in France we are protected by rights and where conflicts often have institutionalized solutions. In Thailand, if you want to keep good relations with your employees and stay in a good working atmosphere, it is important to know some rules to best adapt to the culture. To settle your conflicts internally with your colleagues, it is preferable not to involve other people in this conflict and to settle it only in the presence of the person concerned, it is necessary to remain calm and patient because in Thailand, to lose one’s composure is often a sign of weakness and a lack of control of oneself.

 

HOW TO BUILD PERSONAL AND FRIENDLY RELATIONSHIPS

It is often the fruit of our culture, the French and even the Europeans: we do not develop enough friendly and personal relations with our colleagues, because it is important to distinguish our different types of relations: personal and professional. But in Thailand, co-workers can also be very good friends very easily. Thai people, unlike the French, attach immense importance to the quality of professional relations in the workplace. The motivation lies in the establishment of strong and almost friendly links between the hierarchy and the other employees, and less in the promises of promotions at the professional career level. This is explained by the fact that Thai people prefer harmony in the workplace because colleagues are almost full members of their families.

Regarding loyalty to their company, Thai employees will not hesitate to change employers in the event of disagreement, in terms of labor relations, working methods or pressure. The unemployment rate being very low, and the family ties are very strong, the Thai employee will have no problem during his job search period because he has several supports. This observation was made thanks to numerous questions put to my expats and Thai friends but
also stems from my own feelings and a personal opinion.

TO CONCLUDE

My internship at Siam Shipping was a very enriching experience in terms of cultural and professional learning. It was with great satisfaction that I was able to deepen my knowledge in the logistics field while working without constraints of time and schedule.
This working model requires autonomy and responsibility towards its important commitments and allows to offer great freedoms without losing in effectiveness.
From a personal point of view, it is an increase in self-confidence that has taken root with regard to the professional environment, the maintenance of relationships, the setting to work, but above all a comforting in my idea and professional project. Indeed, my internship in Bangkok allowed me to meet many locals, but also to create me a real network of entrepreneurs who today allowed me and support me in the development of my project, result of much reflection during my internship period, this is why my third year will be in university in Bangkok. The project that we will set up will be an online textile sales platform allowing many designers to show case their collections on the European market. The clothing having a very low cost of production in Thailand and being of quality, consumers will be able to buy many articles while having a social approach: paid small creator, with the satisfaction of a unique clothing. We planned to finance local associations with a share of the monthly profit so that our action would have a real social and responsible approach.

These 3 months in Bangkok were very interesting, with a culture shock and a demand to adapt to these significant changes. The confrontation with a foreign environment with the usual comfort and a work model totally different from my previous professional experiences in France was a beneficial confrontation and opened opportunities and brought me to maturity.

Development of the cross border from / to Thailand

Border Trade: A Future Direction or the Thai Economy in ASEAN

The near future, it seems certain that Thailand will 11 become a hub for land-based trade in Southeast Asia and a gateway for the movement of goods through the region, because of its strategic location at the heart of the ASEAN Economic Community. As a result, the country will enjoy an increase in the value of cross-border trade transactions as well as more tourist arrivals, consequently boosting the Thai economy.

Exchanges in ASEAN

This optimistic forecast is based on my belief that land transport through Customs checkpoints along Thailand’s borders will overtake marine transport as the main channel for regional trade because trucks and trains take less time.

These are not new claims and I do believe that business operators and the private sectors generally may be skeptical about the preparedness of Thailand’s government agencies to cope with this major and complex trend in order to take full advantage of it.

In making the forecasts, I am taking into account the context and environment of regional collaboration; the direction in which our neighboring countries and other ASEAN nations are developing; investment flows from the world’s biggest economies to Thailand and other ASEAN Member States; and the preparation of Thailand’s public sectors in terms of infrastructure, amendments of laws and regulations to facilitate the business, and simplification of working procedures for the ease of doing business.

Significantly, the value of Thailand’s border trade has continued to increase (see the Tables below), despite of a slowdown in the global economy brought about by the economic downturn in China and a consequent weakening of the Japanese economy. Trade and investment in Thailand and other ASEAN Member States continue to expand. Before elaborating on the preparations already made by the public sectors for this transformation in regional trade, I will lay out some background.

In 2003, ASEAN Concord II named the ‘three pillars’ that, when created, would cement the association of the 10 nations: the ASEAN Security Community (ASC); the ASEAN Economic Community (AEC); and the ASEAN Socio-Cultural Community (ASCC). In 2006, the ASEAN Economic Ministers agreed to speed up establishment of the AEC to implementation by the end of 2015.

ASIA Cross border Map – KART

cross-border-thailand-asean

The Physical AEC and Future Economic Trends

At the end of 2014, the population of the 10 ASEAN Member States that were a year away from becoming the AEC was about 637 million. In descending order of numbers, this comprised Indonesia, about 254 million; the Philippines, 108 million; Vietnam, 93million; Thailand, 68million; Myanmar, 56million; Malaysia, 30 million; Cambodia, 15 million; Laos, 7 million; Singapore, 6 million; and Brunei, 400,000. It seems likely that in the future the economic integration of the 10 ASEAN Member States will be extended to include China, South Korea and Japan, a grouping that is currently known as ASEAN+3. This will entail a quantum leap in market size.

This would create a trading bloc with a population well in excess of three billion. Bilateral and multilateral free-trade pacts have been a major feature of increasing levels of economic integration within the geographic region encompassing the ASEAN+6 grouping.

These trends have stolen the limelight from the development of regional transport networks and economic-development zones along three major ‘economic corridors’, which include:

  • The East-West Economic Corridor, which stretches 1,500 km from Myanmar through Thailand and Laos to Vietnam (Mawlamyine to Myawaddy in Myanmar; Mae Sot to Phitsanulok, Khon Kaen, Kalasin and Mukdahan in Thailand; Savannakhet in Laos to long Ha and Danang in Vietnam).
  • The North-South Economic Corridor, which spans 1,280 km from China to Myanmar, Thailand, Laos and Vietnam over several routes (from Kunming to Jinghong and Daluo, in China; Kengtung to Tachileik in Myanmar; and from Mae Sai to Bangkok in Thailand. Alternatively, from Kunming to Jinghong in China; Boten to Louang Namtha and Houayxay in Laos; and from Chiang Khong to Bangkok in Thailand. The third route extends from Kunming in China to Hanoi and the port city of Haiphong in northern Vietnam.
  • The Southern Economic Corridor, which connects Thailand, Cambodia and Vietnam by three routes: Bangkok to Aranyaprathet

Poipet and Phnom Penh in Cambodia and Ho Chi Minh City to Vung Tauin Vietnam – a distance of 1,005 km: Bangkok to Trat in Thailand, Koh Kong to Ste Ambel and Karnpot in Cambodia, Thence to Ha Tien, Ca Mau and Nam Can in Vietnam – a distance of 907 km; and from Bangkok in Thailand through Siem Reap, Stung Treng and Oyadav, in Carnbodia’s Ratanakiri province to Pleiku and Guy Nhon in Vietnam – a distance of 1,150 km. Many related transport and other agreements have been signed and sealed in preparation for exponential growth in land-based trade.

These include the following bilateral pacts:

  • Thai-Laos Road Transport Agreement:
  • Memorandum of Understanding between Thailand and Malaysia Regarding the Movement in Transit of Perishable Goods by Road from Thailand through Malaysia to Singapore:
  • Agreements on the Facilitation of Goods and Passenger Transport at the Lao Bao-Dansavan h Border Checkpoint between Vietnam and Laos, and that between Savannakhet in Laos and Mukdahan in Thailand;
  • Initial Implementation of a Cross-Border Transport Agreement for the Aranyaprathet-Poipet Checkpoint between Thailand and Cambodia; and
  • Initial Implementation of a Cross-border Agreement between Thailand and Myanrnar for the Mae Sot-Myawaddy and Mae Sai-Tachileik Checkpoints. Multilateral agreements have already been signed regarding recognition of domestic driving licences issued by ASEAN Member States and recognition of commercial vehicle inspection certificates. Further transport agreements that will be enforced in the future include the ASEAN Framework on the Facilitation of Cross-Border Goods Transport, the Greater Mekong Subregion Cross-Border Transport Agreement and the Protocol on Inspection and Quarantine Requirements for Imports and Exports of Fruits between Thailand and China through Third Countries.

All of these developments are creating a momentum that is reflected in recent figures for the value of Thailand’s border trade:

Value of Cross-Border Goods Imports Border

BORDER201320142015TOTAL
Thailand-Myanmar117,512,66121,702,16102,406,02321,620,84
Thailand-Cambodia10,135,8618,233,5017,348,1645,717,52
Thailand- Laos23,536,0627,145,6232,964,1583,645,83
Thailand- Malaysia144,761,38148,123.19120,547.63413,432.20
TOTAL295,295.95315,204.47273,265.96884,416.39

Value of Cross-Border Goods Exports

BORDER201320142015TOTAL
Thailand-Myanmar79,429.5693,964.5982,268.23255,662.38
Thailand-Cambodia84,395.3396,715.5186,087.87267,198.71
Thailand- Laos108,639.88124,233.72106,221.34339,094.95
Thailand- Malaysia139,512.88142,864.78111,263.14393,640.80
TOTAL411,977.66457,778.60385,840.591,255,596.85

The Customs Department, the main tasks of which are to facilitate and control cross-border trade, protect society and environment, collect tax revenues as well as investigate and suppress illegal Customs-related activities, has issued numerous measures to support border, cross-border and transit trades. These measures also implement under the ASEAN Economic Cornmunity, e.g. the elimination of tariff and non-tariff barriers, amendments of rules of origin, revision/update of regulations/working procedures, etc.

The Department’s trade facilitation measures that will help to out transaction costs of doing business include:

  • Provide advance rulings on Customs valuation, classification and rules of origin;
  • Introduce the Customs Automation System, including the National Single Window, ASEAN Single Window and Tracking Systems;
  • Introduce CCTV system and other technologies for Customs control purposes
  • Introduce X-ray Inspection System for cargo inspection;
  • Establish Customs checkpoints and prototype checkpoints to promote border trade by separating areas for cargo and people inspection; and
  • Introduce information and communication technologies to the Department’s general administrative work and Customs services, Other measures to facilitate trade and promote international trade include the provision of post clearance audit. In addition the Customs Act was also amended, in line with the Cross-Border Transport Facilitation Act B.E.2556, to allow Customs to work in Common Control Areas, or those areas where joint Customs operations involve officials from bordering countries.

As a result, Thai Customs officials will be able to work with Customs officials from neighboring countries in Common Control Areas, enabling “single stop inspections” and cargo clearances. The Mukdahan-Savannakhet checkpoint, the border of Thailand and Laos, will be the first area to implement the Common Control Area concept, following the creation of the Common Control Area at the Lao Bao-Dansavanh checkpoint, the border of Vietnam and Laos.

In this connection, eight Customs Houses under the said pilot projects are located in Aranyaprathet, Klong Yai, Mukdahan, Mae Sot, Sadao, Padang Besar, Chiang Khong and Nong Khai, with four key elements:

  1. Provide designated areas for cargo clearance, which are separated from immigration procedures and equipped with Information and Communication Technology.
  2. Provide “One-Stop Services”(OSS), following the international standard; automation systems , for example, the National Single Window which allows the interface with relevant agencies to exchange information e.g. licenses, certificates, etc. and public service manuals with diagrams detailing working processes, types of documents, and expected service times.
  3. Apply cross-border trade-facilitation and promotion measures e.g. incentives under Customs and other related laws, advisory and consultancy services on the Customs related activities.
  4. Conduct, and coordinate-Corporate Social Responsibility (CSR) activities within their communities.

The Customs Department is also planned to renovate Customs Houses and border checkpoints, construct new office buildings, including working facilities for Customs officials to enhance the efficiency of existing services for business operators and people in general.

In addition, new Customs/Immigration Quarantine facilities are planned to be established at the Klong Luk border checkpoint, an office building will be constructed at the Klong Yai border checkpoint, and extra facilities at the Mukdahan Customs House. The infrastructure and Customs-facilities projects under 2stphase of the Special Economic Zones include the construction of a Customs House and cargo inspection yard in Nong Khai, along with the development of the Nong Khai border checkpoint.

New Customs Houses, in some cases with associated facilities, will be built in Chiang Khong, Nakhon Phanom, Chiang San, the Ban Pu Nam Ron permanent checkpoint in Kanchanaburi province, and the Chiang Khong Customs House. Furthermore, opening and closing times of border crossings have been extended to match those of permanent border checkpoints to facilitate the movement of both cargo and travel.

The international commitment to this massive integration is attracting increasing flows of investment from the world’s biggest economies into Thailand and other ASEAN Member States. It is difficult, in the light of all these factors, to be anything but optimistic for the future.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Containers in Thailand

Shipping Containers from/to Thailand

An intermodal container is a great standard shipping case, designed and built for intermodal freight transport, which means these can be used in different modes of transport – ship, rail or truck – without unloading / reloading their cargo. Intermodal containers are mainly used to store materials and transportation efficiently and safely. These containers are known by several names: cargo container or cargo container ISO…

Intermodal case are available in different types and a number of standard sizes, but 95% of the world container fleet are called “dry goods” or “general purpose”. They are durable steel boxes closed.

For more information on the dimensions and volumes of containers look like the following:

container-size-fcl

Like cardboard boxes and pallets, these are a way to group goods and easily manipulated, moved, stacked and store safely. Intermodal containers share a number of key design characteristics to facilitate handling but also to be identified more easily.
In 2015 there were about 22.5 million intermodal boxes in the world. The containers have largely replaced the traditional break bulk cargo.

We can also find them since few years in architecture. Indeed, it’s really easy and cheap to build a structure with containers and then to customized it as needed.

We can also talk about air freight container which are totally different. These are adapted to fill airplane and so to optimize the small space we can use on an airplane.

5 practical tips to consider when using maritime transport services

More than 90% of world trade represents products that are shipped by ocean freight where logistics managers are required to obtain fast and cost-effective ocean freight services. There are many factors to consider when investigating freight services with 3PL freight forwarders, although they are experienced in logistics and cargo management.

In addition, these practical tips can have a significant impact on the delivery of services and the costs associated with the shipping you will be paying. Any transport company requiring maritime freight services must take into account several important details, such as: ship routing, in-depth knowledge of incoterms, choice of loading and unloading port, Accurate shipment and the correct transport documentation / information.

Take a look at the 5 practical tips from SIAM Shipping that will help you better understand your purchases of ocean freight services, whether in Australia or internationally:

Read on to learn 5 tips to consider when buying ocean freight services, whether in Australia or globally.

1. Do you know your routing of goods

Transportation costs and delays are having a major impact because of the routing of the cargo, that is, the route the ship is going to take. In order to deliver faster, ships look for shorter routes but this also leads to higher costs and vice versa. Freight forwarders are used to working with international trade routes such as China to Australia or the United States to Australia every day. In addition, to help customers decide which haulage and freight most closely match their real-time needs, freight forwarding companies are trying to gain more and more experience.

2. Select your Incoterms wisely

Incoterms (international trade terms) can sometimes prove to be high and have an impact on your landing costs. Global Incoterms determines fundamentally the costs, insurance and freight divisions between the seller and the buyer. It can also have an influence on potential risk, paperless and control of your goods as you go through each stage of the supply chain. As a result, you should consider discussing all your wishes regarding a shipping with a specialized marine freight forwarder before opting for the Incoterms or selecting a sea freight service.

3. Carefully choose port loading and unloading:

When requesting a marine freight service quote, choosing the best port of loading and unloading is crucial, and requires significant expertise in transportation. Specialized companies are likely to choose ports that are less congested and more efficient, guaranteeing a fast and safe operation. International shipping companies are constantly updating on ocean freight services, and can advise you on choosing the best port for your export or import.

4. Choose the size of your cargo container

It’s essential to select the most suitable freight method to optimize the availability of your products, their costs and delivery times. Before selecting the service, it is necessary to measure the volume of your products to determine whether you have a lower load than the container (LCL) or a load that completely fills the container (FCL). Then you can consider delivery on time, freight costs and the flexibility offered by the service while making your decision as a sea freight provider. Suppliers specializing in marine transportation services can assist you in all these options depending on your specific needs.

5. Provide correct documentation and information

Providing the proper documents as well as all information about your cargo is a key step to release your belongings quickly at the national customs and then to deliver until the place needed. We have essential contract logistics capabilities that innovative freight forwarders provide to customs clearance consultants and marine cargo specialists in to assist you.

To improve your freight operations and avoid surprises later, speak with your freight forwarder and consider these 5 practical tips before planning your ocean freight services to or from Thailand and internationally. For more than a decade, we have continued to help small and medium-sized businesses to offer cost-effective contract logistics solutions that include marine cargo services from major ports around the world.

Multi Modal freight Thailand

Multimodal transport services from to Phuket

Multimodal freight transport consists of a freight delivery under a single contract but carried out with the support of several option to ship your belongings. The multimodal freight forwarder signs a contract with the customer and will act as a single carrier under his own name, even if the transport is organized by different operators. In addition, this single carrier is responsible for all the transport subject to the grid system if the standard conditions and terms are in force for different modes of transport.

Segments of Siam Shipping’s multimodal systems

  • Container shipping from China, Korea, India, Egypt and the United States to the ports of the Russian Federation, the Baltic States and Finland
    • Container transport by rail from China with transport from the transshipment depots to the consignee
    • Road transport of containers by road from the sea ports of St. Petersburg, the Baltic States and Finland to destinations in Russia
    Direct contracts and long-term relationships with shipping lines and spacer operators in Europe and Russia give SOVTRANSAVTO the advantage of being the first freight forwarder and offer quotations with very competitive prices for shipping containers. Shipping from China, Korea, India and other countries.

Siam Scope of Multimodal Logistics

  • Choice of route planning and delivery method to achieve the best compromise in terms of delivery and cost to the customer, identification and approval of transhipment and handling procedures in seaports And freight deposits.
  • The issuance and review of shipping documents is linked to a designated delivery time after INCOTERMS 2017, letters of credit, terms and conditions of the sales contract.
  • Monitoring and monitoring of containers in real time while controlling planned arrivals at sea ports and railway stations.
  • Container handling and unblocking services, toll charges and tariffs, and payment regulations for shipping companies.
  • Customs clearance of containers in the railway terminal or seaport, the provisions relating to customs clearance from departure of the goods to the internal customs deposit.
  • The shipping containers included in the transport from the port of arrival to the warehouse of the consignee as well as the reinstallation of the empty containers, the door-to-door delivery of the railway containers.
  • Optimal terms and conditions for insurance of the goods, insured and fast reimbursement in case of loss, all with minimal paperwork.

Advantages of multimodal transport

This means of transport system is organized one by one in order to gain in terms of time, money and reduces the risk of degradation of the goods at the transhipment point as well.

The market is physically reduced because of the multimodal transport system, because goods move quickly from one point to another. However, this makes it possible to reduce the distance between the base materials and the customers, which is very advantageous. Since only one operator handles all modes, it is not necessary to create multiple documents for each transport segment.

The recipient of the goods merely has to deal with the MTO, also called Multimodal Transport Operator, in relation to the transport of goods. This is the main function of multimodal transport, eliminating the need to establish a connection with all entities separately.

door to door services thailand

Door to Door service Thailand

Shipping in Bangkok, Thailand

SIAM Shipping is a group with a service door to door distribution from Thailand with head office in Bangkok and associate worldwide is one of the rank finest in cooperation matter on Southeast Asia, we present a whole diversion to drive release counting a Door Gate – a resolution sends extremely modified to your total approval. Our resolution is full door to door distribution as the name indicates two-time we approach your door at moments that go well with you, no issue where you wish for to pick up and distribute, whichever the metropolis or peak and still on the islands, transversely the globe, we are persuaded SIAM Shipping swears deliverance. We will perform to envelop all your consignment from resources necessities from A to Z, we will perform in the highest concern on anything, compilation, stuffing, papers, shipment and last deliverance, we desire afterward you can pay for to speak I have a dependable associate, and it’s SIAM SHIPPING. We present distribution in Bangkok, door to door distribution with a worldwide deliverance.

We supervise management all phases and facts of your all distribution such as loading and unloading such as new manufacturer we do not shatter the sequence of freezing, Gratitude to our knowledge in conditions of things chill or other particular or precise merchandise. Our services door to door distribution may consist of all phases of the cargo or sea Air, we will fold up in 4 to distribute up to you and at the time you inquire, ended fingers crossed for trusted time deliverance, SIAM Shipping is nowhere and takes care of your deliverance with the highest reliability for the happiness of our clients.

We take care of manipulative a highway simple for your consignment, rapid and reasonable to send tender with high-quality and cost.

Our group is at your complete clearance, we talk three languages smoothly, and we are glad to obtain you in our workplace with any inquiries, suggest and extremely modified learning.

We will be enchanted to assemble you, and you clarify all the procedures.

Packing services Thailand

Commodities stuffing service by SIAM Shipping assist you to decide and apply the best covering for all your goods and stocks.

Your deliverance has together import export was instant to inquire you is very significant but convey with no scratch is still more essential than that. The resolution SIAM Shipping commodities stuffing services.

SIAM Shipping present with a selection is elasticity in your limitation many resolutions will be planned in ideal according to your commodities and all principles of diverse countries.

Our residence estimates all the expenditure and will lessen the rate to the pleasure of the client review.

SIAM Shipping finished of first-class embalages on the gauge and protected to keep away from scratch and every day disturbance while regarding the cost of walking and occasionally even 30% less expensive than the contender we present a high-quality exchange, and you will be fulfilled. Very reasonable in conditions of price gratitude to our supply of limited employment and our diverse storehouse in Thailand. Nevertheless, we have a system of business stuffing all around the world, and we will be satisfied to send you a price tag that is in the marketplace. With our specialized covering services by knowledgeable employees, based on the worldwide principles. Furthermore, SIAM SHIPPING can wrap up the particular commodities.

We build up commodities stuffing service and optimize the covering of your goods to make sure the protection of your commodities according to your form of transportation of your selection. Our covering services resolution with our covering services, your consignment will be sheltered from the dealers at the end of the release, make sure the honesty and stability of your delivery sequence.

From easy trial parcels to maritime freight containers, you can depend on SIAM Shipping to manage expenses, meet up the target, make sure the privacy of content, and optimize all your coverings. Our resolutions incorporated from plain boxes, pack with sturdy, covered boxes, metal boxes, timber pallets, timber crates, fumigation, and bubble-pack and as well the fragile propel will be crammed with bubble wrap, and we hold with concern. Will be satisfied to gather you in our workplace and make learning and a free of charge quote for your drive, our covering has set up an accustomed all, and our limited associate will take care to value your desires and needs. Jealous to please our client, we stay at your removal for your expectations approximation.

*We will recommend you with satisfaction on your plan.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Thailand’s logistics challenge

THAILAND’s next challenge towards Logistics Hub of ASEAN

When talking about logistics in ASEAN, all eyes are on Thailand because it has been marked as the most highly potential country for both transport logistices hub and business center of the region. This is due to the Kingdom’s central geographical position and the fact that it is connected many of its business partner countries by its land border and transport networking system including road, rail, air and sea. Thailand is also the only ASEAN country that is a party to every economic-corridor cooperation pact.

However being logistics hub of ASEAN is not such easy as pie. Thailand has to be made ready in both basic infrastructure, or the “hard side” of logistics, so as to facilitate regional transport connectivity, and know-how in logistics and supply-chain management, or the “soft side” of logistics. Moreover, both of these elements must be highly efficient, in order to create an interconnected network of production, trading and services within the region.

ASEAN set to become a 21th-century global logistics and trading hub

ASEAN is becoming increasingly important for its significant contribution to global economies. Implementation of the ASEAN Economic Community at the end of 2015 made the region a market with high potential, with a combined population of more than 640 million. Given this economic strength, the region will also become a transport hub with connections to countries elsewhere in the world.

China has embarked upon its “One Belt and One Road” strategy to expand its investments via “Silk Road Economic Belt” and the “Maritime Silk Road” starting from ASEAN and connecting to South Asia, Central Asia and west to Europe.

In an official visit to ASEAN countries in late 2013, Chinese President Xi Jinping said “Southeast Asia is one of the important region for Maritime Silk Road, and China was preparing to increase its maritime cooperation with ASEAN. The One Belt and One Road initiative is expected to lead to investments in basic infrastructure in ASEAN as high as USS1.6 trillion over the next 5-10 years. Projects will include dual-track railways, high-speed trains, ports, airports and road projects that will improve transport connectivity and reduce logistics and transport costs by channeling goods through multimodal transport links, thus enhancing the region’s logistics efficiency.

All of these factors are expected to produce a major shift in world trade and investment in the 21st century, as well as to bring hope to business sector currently beset by economic slowdown. Thanks to its strategic location at the center of ASEAN, Thailand will play an important role in building connectivity among countries both within and outside the region. This will lead to sustainable economic growth in Thailand. Hence, it is vital that the country make clear how to take these advantages creating the most benefit for the country.

ASEAN-community

Thailand’s policy towards becoming the Logistics Hub of ASEAN

Thailand has given very great importance to the development of its logistics system since it began to see logistics as a key element for the enhancement of national competitiveness and economic development. As well, it saw an opportunity to become a logistics hub for the region. The first National Logistics Development Strategy (2007-2011), set a goal of upgrading the country’s logistics system to reach world standards, in a bid to establish its role as the center of trade and business in the Indochina Subregion. The Second National Logistics Development Strategy (2013­2017) expanded the country’s strategic goal to become the “Trade and Services Hub” of the Greater Mekong Subregion and a Gateway to Asia. To achieve this goal, the country began strengthening the competitiveness of Thai companies as a supply chain collaboration, enhancing the efficiency of trade facilitators and developing other enabling factors. The execution of the plan is driven by the National Committee on Development of Management Systems for Freight and Services.

According to the Ministry of Transport survey, Thailand’s principal mode of carrying its international trade is the use of marine transport. Road transport comes in second and is continuously growing in importance. By the collaboration and cooperation of the countries in Great Mekong Subregion, it’s leading to many economic corridors, pushing Thailand to be road transport hub of the region. These include the R12 trade route linking Thailand to Vietnam and Southern China; the R9 route connecting the Pacific coast of Vietnam to the western side of the Indian Ocean; the R3 route linking Southern China to mainland ASEAN and further south to Malaysia and Singapore; and the R1 route stretching from Myanmar to Vietnam. All of these road links pass through Thailand, and they have significantly boosted border trade between Thailand and its neighboring countries. In particular, the commodity trade significantly benefits from these road link system. Not only connect to its neighboring countries, it’s also further to other countries like China, India and Bangladesh within reach by rapidly high efficient road transport connectivity.

Thailand’s development and readiness to become Logistics Hub of ASEAN

The first and second National Logistics Development Plans have steered Thailand on the right track. This is evidenced by the logistics cost reduction of the country for the past 10 years. The related agencies have pursued the national logistics plans in various dimensions, including transport infrastructure development, special economic zones, international trading gateway, logistics management efficiency in manufacturing sector, and other logistics facilitation.

Despite all of this progress, the second logistics development plan could not fully achieve all of its goals because of many uncontrollable factors such as the global economic slowdown and its political turbulence. While its neighbor like Malaysia has already invested in electric rail industry for some time, Thailand just began to develop its basic infrastructure and enhance transport supporting industries as well as logistics sectors.

The country development has been hindered for several years. From now on, Thailand must gear up itself to be ready for the logistics hub of ASEAN. An efficient collaboration between the relevant agencies is necessary to push forward the plan to achieve the goals.

No easy road ahead in Thailand’s bid to become the Logistics Hub of ASEAN

In ASEAN, Thailand’s logistics system remains inferior to those in Singapore and Malaysia, which are outstanding for their good basic infrastructure, punctual delivery of goods, well planning, efficient management systems and application of state-of-the art technologies in logistics management. By Logistics Performance Index (LPI), World Bank measures and ranks the international competitiveness of countries in term of their logistics system. It is based on six key dimensions:

  1. efficiency of the customs-clearance process;
  2. quality of trade- and transport-related infrastructure;
  3. ease of arranging competitively-Priced international shipments;
  4. competence and quality of logistics services;
  5. ability to track and trace consignments; and
  6. timeliness of shipments in reaching their destinations within scheduled or expected delivery times.

In the 2014 rankings, Thailand was rated 35th globally and 3″ within ASEAN, following Singapore and Malaysia, which came the 5. and the 25″ in the world rankings, respectively. The Kingdom scored poorer mostly in service dimensions, in both public and private sectors. It showed the country still lagged well behind Singapore and Malaysia, which were better prepared in their domestic security and had government policies that pursued their development objectives more seriously than those in Thailand. Hence, it is a challenge for Thailand to now step up to be on a par with these regional leaders.

Clearly, the road to become an ASEAN logistics hub is not an easy one. There are still many obstacles that must be overcome before Thailand reaches the victory line. Logistics development is therefore regarded as a national agenda that must be continuously pushed forward to achieve results, since it is vital to unlock the country’s full potential.

Steps needed to upgrade Thailand’s logistics performance to make it the hub of ASEAN

If Thailand’s full potential is to be unlocked over the next five years, the country has to speed up the development of its logistics system to enable the linking of domestic and international activities, in a bid to enhance its competitiveness and capitalize on its AEC membership. Development of basic infrastructure – the “hard side” of logistics – can facilitate regional connectivity and the efficiency of logistics and supply-chain management – the “soft side” of logistics – represent the strategic path to success.

When it comes to basic infrastructure – the hard side of logistics – Thailand must speed up development of transport and distribution networks, including road, marine, rail and air services, as well as domestic and international distribution centers, if it is to enhance its efficiency in terms of service costs. The country should also hasten the development of special economic zones in border areas, strategic trade routes and new economic towns for manufacturers, traders and service providers, in an attempt to spark the growth of trade and economic activities.

Moreover, it has to find speedy solutions to problems and obstacles, including outdated laws and regulations that do not bode well for the promotion of business potential and competitiveness as well as complicated and time-consuming customs procedures. It must also facilitate the financial, banking and insurance processes that are involved in imports, exports and international trading.

The current government passed an important milestone when it realized the importance of logistics development. It has accelerated the disbursement of budgets, especially investments in basic infrastructure and marine and road-transport networks, such as inter-city motorway projects and the dual-track railway. It has also designated five areas for the development of five special economic zones in the first phase, and another five in the second phase. It’s equipped with the incentives for investment in those area. Moreover, the government has already approved the infrastructure development to facilitate the special economic zones.

Development of soft-side logistics must occur in parallel

Development of Thailand’s logistics management system is no less important than the “hard-side of logistics, if the country is to achieve sustainable development and step up to become an logistics hub of ASEAN.

People whose work are involved in logistics and supply chain activities must gain a level of understanding and knowledge that creates true efficiency, especially among middle- and high-level managers responsible for formulating logistics plans and strategies for organizations. Support must be provided for the development of “digitized” logistics and supply-chain systems through the application of state-of-the-art technologies to enhance its logistics competitiveness. Learning tool kits are also necessary for educating people continuously. Lastly, the logistics information must be organized as the databases for logistics development of the country.

Dreams, perseverance and achievement

Becoming the ASEAN logistics hub is not a distant dream for Thailand if the public and private sectors can collaborate to create a clear-cut roadrnap for reaching that goal. It is admirable that many agencies have begun to produce their own plans designed to help the country reach its goal. These include the Ministry of Transport’s Development Strategy for National Transport Infrastructure (2015-2022) and the Ministry of Finance’s Guidelines to Drive the National Single Window System (2015-2021). The Ministry of Industry Pm to introduce a Second Masterplan for the Development of Logistics Systems for the Manufacturing Sector, and next year will map out a plan to develop supporting industries to facilitate transport and infrastructure‘ and logistics activities, in line with the Second National Logistics Development Plan. If these plans are followed, then Thailand’s target of becoming ASEAN, logistics hub should definitely not be far from reach.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Thailand’s transport infrastructure development

Bangkok crossroads of the world

With a population of more than 19 million, Bangkok is one of the most visited cities in the world. This city is considered as an attractive destination for expats who benefit from all the benefits it offers. Bangkok welcomes more than 20 million visitors a year.

In addition to be a popular destination, Thailand is a member of ASEAN (Association of Southeast Asian Nations) which is a political, economic and cultural organization of ten Asian countries. South-East Nations was founded in 1967 in Bangkok as part of the Cold War.

cross-border-asean

With a growing population in Thailand and being the crossroad for several countries in Southeast Asia. Thailand’s has a heavily used transportation network, which is growing each year, with many projects underway, but the question is : given the population growth, will the development of transport infrastructure be sufficient ?

An issue that is still at the heart of the debates.

What modes of transportation in Bangkok?

The capital of Thailand, offers several transportation, that allow to circulate in the city, between cities, but also between countries (foreign).

Among these:

  • Taxis
  • Tuk-tuk (three-wheeled motor scooter)
  • Motor-bike taxis
  • Bus
  • Boats
  • Subways: BTS (Skytrain) and MRT (underground)

We recognize that the better way to go around the city is the moto-bike taxi, which is not affected by traffic jams. We can only notice that the passenger will be in contact with the pollution coming from cars, or moto-bikes. We advise to wear a mask when you go on them.

budget-thailand-government

Currently, we have five different transport networks:

  • Primary roads: which mainly include highways
  • Secondary roads: rural and local roads
  • Sea lanes: which allow boats access to rivers, canals, and the coast.
  • Railways: There are two, single-track and double-track
  • Airports: domestic and international flights, Bangkok airways, and navy airport

Here is a table that illustrates the number of kilometres covered by these transportation networks

transport-network-thailand

Transportation issues in Thailand

The main problems of a congested city like Bangkok are the noise, the accidents, the air pollution and the denaturalization of the landscape. Pollution is well known to cause many respiratory diseases and is the first consequence of global warming. Thus, we must promote public transport to reduce the number of drivers of private cars. This is very complicated knowing that the state gives help to buy a car and it is the cheapest means of transport for locals or tourists.

The strategy adopted by the Thai government

The Thai government has put in place 5 plans over the 2015-2022 period to reduce cost of logistics and transportation, improve competitiveness of the economy.

Plan 1: Intercity Rail Networks Development

  • Railway network

Thailand’s railway network currently has a combined length of 4,043 km. The average speed of its passenger trains is 60km/hr as compared with 39 km/hr for its freight trains. The much slower rate for freight trains is because most of them travel on single track lines.

The Double Track Projects of 6 routes started in 2014 and must be completed this year. The project has added 903 km of railway at a cost of 129,308 million baths. In parallel, a second project continues. It consists in creating 8 new roads, it started in 2015 and it will finish in 2020. It will allow to add 1626 km of railway. The aims of the project for 2020, is to reduce intercity travel by private car proportion from 59% to 40%.

In the table you can see the benefits of this project:

PresentOver the next seven years
Combined Length4,043 km5,097 km
Single Track3,685 km1,882 km
Double / triple Track358 km3,215 km
Network47 provinces53 provinces
Trip200 trips / day800 trips/day
Good transportation11 million ton/year50 million tons/year
Passenger transportation45 million passengers-trips/year75 million passengers-trips/year
  • High Speed Rail

MLIT and Mot will cooperate on the development of the high-speed rail on Bangkok-Chiang Mai route with use of Japanese high-speed rail technologies and experiences. Today this line is the busiest since Chiang Mai is one of the favourite destinations of tourists.

  • Railway development on Southern Economic Corridor

The objective of the Project is to expand freight railway transportation between industrial parks along the Southern Economic Corridor and Laem Chabang Port by improving railway transportation system and by establishing the freight management system jointly with State Railway of Thailand (SRT), thereby contributing to the sustainable economic development in Thailand.

Plan 2: Improving Public Transport Networks & Services

  • Expansion of MRT (metro) and BTS (skytrain)

Since August 2016, the MRT has two lines, the blue and the violet. The creation of the purple line was part of the infrastructure development project for the 2015-2020 period. This has greatly facilitated the movement of residents through 16 new stations. 3 other lines are planned, the pink, yellow and orange line.

electric-railway-bangkok

  • Construction of roads and bridges

This new route would provide a connection between the Western Outer Ring Road and Rama II Road. The project is being planned by the Expressway Authority of Thailand (Exat). The tender process is expected to be run in December 2017 with the winner being selected in the first three months of 2018.

Meanwhile plans are also being made for a new bridge that will span the Chao Phraya River that is intended to help cut congestion in the area. The project is being planned by the Rural Roads Department of Thailand, with the new crossing located close to Sanambin Nam Road

  • Procurement of NGV buses and depots

It plans to buy 35 electric buses and 2,476 hybrid buses in the future.

Plan 3: Enhancing connectivity between key domestic production base and neighbouring countries

  • Dawei Special Economic Zone

The development of the Dawei Special Economic Zone (DSEZ) project is the development and implementation of projects on the designated area of ​​land from Phu Nam Ron, Kanchanaburi, and the Thai border, is accessible by road. The DSEZ project may include an offshore port, shipbuilding and maintenance facilities, an industrial complex, petrochemical complexes, an oil refinery, a steel mill, a fertilizer plant, a coal or gas plant, other public services linking Dawei District lands to Thai borders with oil and gas pipelines and linking transmission lines along roads and rail lines, the township for residential and commercial development and tourism, resorts and activities for the benefit of the people of Myanmar for the region.

Plan 4: Increasing Water Transport Networks

  • Inland port development

For the port of Laem Chabang it is phase three that will start. As a reminder, this project is divided into three phases of expansion. The goals of the phase III named “development project” is to serve the increasing throughput in the future. Thanks to its expansion phases, Laem Chabang is the world’s 22nd port.

You can see the three phases in the photo:

laem-chabang-terminal

Single rail transfer operator (SRTO):

Goal:

  • Develop the infrastructure and necessary facilities to serve the unloading / loading containers transported by rail in the port area.
  • Increase the efficiency of the rail transfer and then make the operation faster and safer.
  • Reduce the country’s logistics costs respect for government policy, Ministry of Transport and Port Authority of Thailand.

 

Coastal port development

Goal:

  • Develop the coastal terminal for the transport of containers transported from / to LCP by coastal vessel of the southern port of Thailand or by barge from the inland waterway.
  • Reduce the country’s logistics costs in line with Government policy, Ministry of Transport and Thailand Port Authority.
  • Reduce traffic congestion and provide port users with a cost-effective mode of transportation.

Plan 5: Enhancing Air Transport Capability

Pushing forward the development of major airports as gateways will improve connection to other countries.

Airport capacity expansion

In March 2016, the first phase of expansion of Suvarnabhumi airport began, it includes 28 parking spaces for long-haul aircraft, tunnels and a network of utilities. The second phase that began last October includes an expansion of the east wing, the main existing passenger terminal.

airport-bangkok-capacity

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Cross border services in Thailand

Cross border transportation for CLMV region.

The Asian economic community expects to strengthen Thailand’s positioning as the key transportation hub for the Greater Mekong subregion (GMS), according to a study by Solidiance.

Growth of the GMS trade

Indeed, Mickaël Feige, responsible for the country of Solidiance, believes that the AEC would increase the trade of the Kingdom with the surrounding countries: Myanmar, Malaysia, Laos and Cambodia but also countries like China and Vietnam.

Thailand has gradually benefited from reducing import duties on products shipped to LTVC countries in comparison to non-alcoholic beverages, motorcycles, tires, soap and cleaning products. Thailand’s cross-border trade with Myanmar, Laos and Cambodia, which represents 20, 14 and 9% of the total in 2012, is expected to grow tremendously in the coming years with a growth rate of about 30%.

This liberalization of the AEC logistics sector will benefit both Thai investors and several other Asian countries. To survive this competition for the ACS, small logistics companies with fewer than 50 trucks in circulation should either become outsourced business units of global enterprises or strengthen to form a wider network.

Ranking of the most used roads for Import/Export:

According to the study, R9 is the axes most used by logistics companies among the 4 major routes connecting Thailand and other GMS countries, as shown by these percentages:

  • R9: 41.18% (GMS)
  • R3A: 21.57% (Chiang Rai-Laos-Kunming)
  • R1: 15.69% (Sa Kaew-Cambodia-Vuong Tao, Vietnam)
  • R3B: 7.84% ((Chiang Rai-Myanmar-Jinghong, China)

The main products that Thailand exported to its neighboring countries via cross-border trade in 2012, a quarter represented natural rubber, computers and parts accounted for 5%, diesel 4% and automobiles and parts 4% as well.

Natural gas was ranked first among Thailand’s cross-border imports with almost one third of the total:
– Natural gas: 30%
– Electrical machinery and parts: 9%
– Computers and parts: 9%
– Copper products: 5%
– Data, audio and video recorders: 4%

Thailand is one of the major logistic player in ASEAN

ASEAN is a potential market which represents about 600 million consumers. It is composed of: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

This strategy aims to derive great benefits from the country’s geographical position in Southeast part of Asia.

The five commercial bridges are composed of several roads that can accommodate important transport flows to neighboring countries.

They include:

  • The North Gate, Thailand, Myanmar, Laos and southern China
  • The northeast footbridge, connecting Thailand to Laos, Vietnam, southern China and East Asia
  • The eastern gateway connecting Thailand to Cambodia, Laos and Vietnam
  • The West Gateway linking Thailand to several BIMSTEC countries, particularly Bangladesh, India and Myanmar
  • The southern gate, connecting Thailand to Malaysia, Singapore and Indonesia.

cross border thailand

ASEAN Rules and Regulations for Cross-Border Security Obligations

At the end of 2015, the arrival of the ASEAN Economic Community, the capital market actions of Lex Mundi members operating in the ASEAN, came together so that they share with shareholders and customers at the regulatory level Security measures applicable to cross-border supply within all the ASEAN member state one-by-one.

Indeed, this guide provides an understanding of very important elements such as exemption requirements, registration and the regulatory body, rules for the marketing of securities, promoter or agent commitment requirements, but also relevant considerations and disclosure requirements.
In addition, voluntary issuers and providers seeking to increase their income (debt or equity) in the border and emerging markets of ASEAN will be pleased to take advantage of this guide. Institutional investors, private equity funds and fund managers or any other stakeholders involved in the bidding process may also be interested in the guide to identify the requirements to be met before entering the capital ASEAN.

Thailand regulation

Applicable regulations and market information

• Exchange and Securities Commission (“SEC”)
• The Thailand Stock Exchange (“SET”) where all the securities are ranked and listed on the land.
• 639 companies listed on 31st of January 2015.
• Market capitalization of 12,898.70 billion THB / USD 359.49 billion at 31/01/15.

Offer of securities and / or conditions of registration and exemption

Most of the time, selling securities in Thailand is not allowed. The only way to circumvent this rule is to obtain an SEC authorization and is mandatory for new security titles only). In addition, enrollment statements and preliminary prospectuses were conducted with the SEC and entered into force. Once the sale is complete, you will have to submit a sales result report.

Foreign equities

Actually, the SEC receives many requests for public offerings of foreign shares, but it only accepts them for the following examples:

A) For the main list on the SET
B) For double entry on both currency and SET
C) No listing on the SET (only authorized for shares of ASEAN companies wishing to be listed or already listed on the ASEAN stock exchange).

Exemptions

In the exemple of an offer to sell foreign shares, the SEC’s approval requirements are exempted, such as the examples below:

A) Private place of shares which belongs to foreigners that are defined in one of the following ways:
1) Made within 12 months to more than 50 investors;
2) An offer to sell shares with a total value which does not exceed THB 20 million during the twelve months only if the total calculation of the real aggregate value of the Offered Shares is based on the price that the Shares can offer;
3) an offer to sell shares to professional institutional investors; or
4) An offer to sell shares while the seller and the buyer are actually shareholders in the  company that issue shares and if the offer of shares is not for sale in general.

(B) An offer to sell foreign shares to employees or directors of the foreign stock option plan or its affiliation in Thailand.

Obligations Abroad (Government Bonds or Corporate Bonds)

Most of the time the offer to sell foreign bonds is allowed. Prior approval coming from the Ministry of Finance is required for sales of foreign bonds issued in Bath, and is granted to ASEAN, China, South Korea and Japan only.

The SEC makes specific conditions and regulations, such as the terms and conditions, transfer restrictions and their registration, the debenture representative or the valuation, for different bidding circumstances such as Private placement.

Exemptions

That being said, the submission of the draft terms and conditions to the SEC is always necessary, although the approval of the SEC is granted in all cases.

The filing of prospectuses and registration statements are exempted under certain conditions, for example in the following situations:

  • Recent private placement of government or corporate bonds to more than 10 investors for 4 months (with transfer restriction registration).
  • An offer for the sale of bonds which belongs to the government or corporate bonds that are issued by international financial institutions under the obligation prescribed and accepted by the Ministry of Finance.
  • An offer for the sale of new corporate bonds in Thailand with more than 10 commercial banks taking into account the law on financial institutions for 4 months.

Foreign Collective Investment Scheme (CIS)

Shares which are in a foreign investment company controlled by CLC may be offered for being sold in Thailand and are exempt from approval only in the following cases:

1 ASEAN CIS (ASEAN) – Providing ASEAN shares to accredited investors (institutional or high net worth in Thailand) must comply with several conditions such as:

  • Managed by a qualified SIC Operator
  • Units must also be offered for being sold in the country of origin
  • Units must be offered for sale and sold in Thailand or through a Thai licensing brokerage
  • Own a Thaï representative in Thailand

Offering SIC units to retail the investors (general investors) in Thailand can be subject to additional conditions (in addition to those applied to accredited investors) such as:

  • The regulator of origin agrees with the SEC the Memorandum of Understanding on the simplified framework for the cross-border public offerings of the ASEAN CIS
  • The details of the SIC scheme shall be in accordance with the ASEAN IEC Part I and II Operators Manual
  • Provide a distribution channel to settle any dispute without recourse to the court unless the regime does not fit with the Dispute Resolution and Enforcement Mechanism rules (“DREM”), etc.

SICs in the form of a random foreign exchange traded funds (ETFs) – can offer foreign ETFs to the investors in Thailand but it’s subject to a lot of various conditions but not restricted to:

  • The Principal Exchange must be a member of WFR
  • The original regulator must be a member of the IOSCO
  • Have goals to create returns for those who own shares with direct fluctuations such as gold price, commodity index, crude oil index, etc.
  • The ETF operator must contact a person in Thailand to coordinate and facilitate the prescribed questions in Thailand, etc.

Securities marketing where issuer / sponsor Offshore and investor in land

The requirements as set out in the left-hand column are for the sale of cross-border foreign securities for investors in Thailand, namely SEC approval and the final result report of the sale.

Simply put, one can speak of a practical exemption that is accepted by the SEC (no express legal exemption) that a foreign supplier responding to a request which wasn’t solicited made by a Thai investor but which should not be considered As an offer on his part.

Need to Hire Land Sponsor, Licensing or Other Distribution Agent:

Offering and selling foreign securities through a company issuing residence permits would not prevent the general market prohibition, with the exception of ASEAN CIS (see previous section “Offer of securities and / or conditions of Registration and exemption “.

Legend or other disclosure requirements for supply materials

No legend required. However, if the situation can be considered as a private placement (if any), any statement that is similar to the following can be recommended when distributing the offering documents:

This documentation has to be given in a confidential way to the person who is supposed to be addressed. The document can not be reproduced or transmitted to anybody except the person to whom the document is addressed.

Myanmar regulation

  • Market Information and Applicable Regulatory Authority
  • Yangon Stock Exchange Joint Venture Company Limited
  • Securities and Exchange Commission of Myanmar (“SEC”)
  • Yangon Stock Exchange opened on 12/09/15.
  • No companies listed for the moment. The initial six companies can be listed at the beginning of 2016.

Offer of securities and / or conditions of registration and exemption

A public company that makes a public offering of real estate securities is required to provide the necessary process documents to the SEC under the Securities Act, 2013 and the SEC must approve the offer. These process documents are comprised of the memorandum, prospectus and articles of association, audited financial statements for the previous 2 fiscal years and other information requested by the SEC.

*There are no exemptions from the above requirements under the 2015 Real Estate Securities Act.

Marketing of Securities Where Issuer / Offshore and Investor Onshore Sponsor

Concerning the securitie’s marketing where the issuer / sponsor is offshore and the onshore investor, there is no specification in the Securities Exchange Law of 2013.

Need to Hire Land Sponsor, Licensing or Other Distribution Agent

The Issuer is not obligated to engage an onshore developer, licensee or other distribution agent under the Securities Exchange Law of 2013 or 2015.

Legend or other disclosure requirements for supply materials

The 2013 Securities Act or the 2015 Securities Exchange Rules clarifies that there is no mandatory health that warn disclosure or legend. However, this is linked to any disclosure that can be given by the SEC on some occasions.

Other relevant considerations

At the end of 2015, the Yangon Stock Exchange is supposed to start its activities. In addition, the SEC will have the power to set additional conditions for the issuance of marketable securities, according to the Securities Exchange Law of 2013.

Cambodia

Applicable regulatory authorities and market information

  • Cambodia Securities Exchange (“CSX”) where securities must be registered in the territory.
  • Securities and Exchange Commission of Cambodia (“SECC”)
  • Three listed companies (2015).
  • Market capitalization of approximately $ 176 million.

Offer of securities and / or conditions for registration and exemption:

Before being placed on the Cambodian market, security must be validated by the SECC. In this country, anything that affects or is close to the public market must be offered in correlation with the Cambodian securities rules. The specification of the proposed bid must be registered with SECC.

The above requirements do not apply to cases that are:

1) offers proposed by the Cambodian Government,
2) bids whose price is fixed during the negotiation
3) any other offer selected by SECC.

Securities or Issuers / Promoters and Investor Marketing:

When a national bid is issued, the securities must be validated with the SECC and registered with CSX. In addition, such securities may only be registered in the territory of Cambodia.

The rules do not prevent local investors from owning securities issued by foreign countries. On the other hand, the foreign issuer can not sell its offer to the Cambodian public: there is no legal obligation under Cambodian law that would oblige the foreign issuer to inform the SECC of the end of the sale of its securities. It is necessary to hire a sponsor or other distribution agent on site to obtain a license for a product. On an offer, all intermediaries involved in the bid must be registered and accredited by the SECC.

Legend and other disclosure requirements for procurement:

The disclosure document must satisfy all requirements as required by applicable laws and regulations. However, the SECC does not require any restrictions on sales restrictions.

The elements that must appear in the document are the responsible parties that relate to the disclosure document and the prospectus prospectus.

Laos

Applicable regulatory organism and market information

  • Lao Security Exchange (“LSX”), titles must be detailed in the territory.
  • The Lao Security Commission (LSC)
  • Five listed companies (2015).
  • Market capitalization of 10.969 billion KIP / USD 1.35 billion in 2015.

Offer of securities and conditions for registration or exemption

Under current legislation, all securities intended to be sold or offered in the jurisdiction must be registered with the LSC. No exemption is possible for this rule.

Securities marketing where the issuer / promoter and the offshore investor in the country.

When an offer of securities is issued for Laos, the securities must be registered with the LSC and been on the list made by the LSX.

ASEAN economy

Vietnam

Settlement and Market Information

  • Vietnam State Securities Commission (“SSC”)
  • The Ho Chi Minh Stock Exchange (“HOSE”) and the Hanoi Stock Exchange (“HNX”) are regulators
  • 373 listed companies in the Hanoi Stock Exchange (HNX):
  • Market capitalization that represents more or less VND 150 983 billion or USD 6.7 billion in 2015.
  • 314 companies listed on the Ho Chi Minh Stock Exchange (HOSE) in 2015.
  • A market capitalization that represents VND 985.258 billion or USD 43.7 billion in 2015.
Offer of securities and / or conditions of registration and exemption

In Vietnam, an offer of securities to the public issued by a joint-stock company can be different from the list of shares of that company on the stock exchange. Indeed, there are two scholarships: PIPES (in Ho Chi Minh City) and HNX (in Hanoi). The main requirements for the offering and issuance of securities of a issuer considered as a foreigner in Vietnam are as follows:

For the offering of shares intended for the public, a issuer considered as a foreigner has to follow those obligations:

  • Shares must be issued in Dong (“VND”)
  • The production and trade activities of the year prior to the public offering must be in line with international accounting laws;
  • There is an official Vietnam investment project, a plan for the delivery and use of the product
  • The amount of the increase in the offer of sale may not represent more than 30% of the investment capital amount of the project; You must undertake to subscribe the issue considered as an RM commitment to a securities company
  • There is also a bank that monitors the use of the product
  • The foreign issuer should not finance the product in another country; The Foreign Exchange Control Act regulating the issuance of securities in Vietnam (the opening and maintenance of a bank account in a Vietnam-approved bank, the proceeds and payments relating to the issue must be complied with Via this bank account)
  • The meeting of shareholders in the context of a public offer or convertible bonds (a company of the board of directors or a CA is mandatory for public offers). Securities listed on the stock exchange in less than one year started from the date of the end of the sale.

To register bonds, a issuer considered as foreigner has to follow those requirements:

  • Bonds must be denominated in dong
  • Bonds are already approved for public sale in correlation with the Vietnam Securities Act
  • Bonds to be seized must be As well as those which have been ceded to the public;
  • After being registered with HOSE and HNX; The undertaking undertakes to submit to its obligations and to the local law;
  • Companies must have been consulted by a local securities company to register their obligations;
  • From what we know, there has not been a successful sale to the public by foreigners to date. Foreign issuer or developer market securities and property investors No specific rules are available. Most of the time, the rules applicable to local issuers apply to foreign issuers.

An issuer is not entitled to:

  • commit any act of cheating, misrepresentation or misrepresentation of information that may lead to errors;
  • providing or registering government securities; • disclose false information that would encourage other third parties to buy, sell or disclose insufficient or untimely information that would affect the market price;
  • Even if the SSC monitors the registration of bids, the bidder must only use the information detailed in the prospectus sent to the SSC to operate the market, provided that the issuer submits the information to the SSC. The date of issue and the sale of securities. The award must be a single proposal. The operation of a market should not be directed by the media. It is essential to contact the Sponsor, Licensee or other distribution agent. Please refer to the previous section titled “Requirements for the Offer and / or Registration and Exemption of Securities”. Legal Requirements or Other Information Requirements for Investment Materials
  • SSC is authorized to consider and assign the certificate for the offering of government securities. The certificate of public offer of securities transmitted by the SSC certificates that the public offer of securities has been duly registered in correlation with the laws of Vietnam.
  • Within one week of the date of certification for the Government Offering, the issuer must announce the offer in three issues in a row of a newspaper.
  • Securities may be distributed only after the issuer make sure that purchasers of securities can access the prospectus. Considerations Public Offer or List of Securities By a issuer considered as a foreigner in Vietnam can be more difficult than expected by laws, as Vietnam’s objective is to attract foreign investment to Vietnam.

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