Best Buys Thailand

Myanmar has officially opened a 287 km pipeline which extends from the Yadana gas field in the
Andaman Sea to Yangon in Myanmar, according to local media.
The 24 inch diameter gas pipeline is comprised of a 151 km offshore section, with the remaining 136 km
section onshore.
The pipeline is operated by French firm Total SA and America’s Chevron Corporation, in partnership
with the state-owned Myanmar Oil and Gas Enterprise.
Thailand’s state-owned company PTT is also a partner in the project, and a large quantity of the gas
sourced from the offshore field is being transmitted to Thailand.

The President of Thailand’s Agency for Real Estate Affairs has warned against the possible formation of
a bubble in the kingdom’s property market.
Dr. Sopon Pornchokchai expressed his opinion that, during 2011-2012, a bubble could form because of
rapid construction of low-priced housing as developers rush to take part in the county’s Board of
Investment homes project.
He said: “When there is more supply, it is likely that there would be more speculation,” adding that the
Royal Thai Government should not support any “unnecessary” purchases of second homes which could
lead to speculation in the sector. He also urged home buyers to manage their finances well, and for
lenders to be prudent with their financing, especially in the case of projects being constructed in poor
locations.
The Agency has forecast the value of new homes being launched during 2010 will be worth THB158.4
billion (US$4.84 billion) – down 15 per cent on the value of homes launched during 2009.

http://www.property-report.com/site/property-bubble-fears-for-thailand-6636

Sany Heavy Industry Co Ltd, a Chinese construction machinery manufacturer, will invest up to US$100
million to build a new production base in Thailand with annual turnover of about $100 million.
Sany say Thailand’s demand for excavators is strong, with the products used in many major projects
such as the Airport Rail Link, mass transit extensions and a luxury residential project.
The company said it was making the investment because of its “strong confidence” in the country,
despite its political challenges.
“We see a good opportunity to have a new production base in Thailand as it is the centre of Southeast
Asia and its culture is similar to ours,” said deputy general manager Zhongke Zhang.
The investment outlay will be between $40 million and $100 million, covering the acquisition of land
plots sized from 60,000 to 100,000 square metres in an industrial estate and the construction of a
manufacturing plant.
The company, now in talks with a few industrial estates, is studying regulations in each Board of
Investment zone.
It will decide on the location within the next few months from among a handful of sites such as Bang Na-
Trat Road, 304 Industrial Estate in Prachin Buri, Laem Chabang and Bo Win.
Construction will begin by the end of the year and production will start with the assembly of excavators,
the main parts of which will be imported from China, said Mr Zhang.
“The benefit from our investment in Thailand will be an opportunity to distribute our products to
Southeast Asian countries like Burma, Laos, Vietnam and Cambodia,” he said.
At the same time, about 90% of the parts imported from China to be assembled in Thailand are tax-free
under the China-Thailand Free Trade Agreement. Moreover, logistics costs in Thailand are lower when
compared with the 10% of the product price for goods manufactured in China, he said.
“We also want to change the attitude toward Chinese products from being low-priced with inconsistent
quality to good-quality by introducing our products,” he said.
Mr Zhang said local demand for excavators in Thailand was strong, with 2,000 units a sold locally each
year. Of the total, the company hopes to grab a market share of 200 units worth $100,000 each in the
first year of assembly in 2012.He added that Thailand’s capacity would contribute 2-5% to the
company’s total revenue which is projected to exceed 200 billion baht by the end of the year, up from
153 billion last year.
Sany also aims to generate 500 billion baht and one trillion baht in revenue in 2012 and 2014
respectively.

Last year, the company set up a subsidiary in Thailand with registered capital of 2 million baht.

Xie Feng, general manager of Sany Heavy Industry (Thailand) Co Ltd, said the company’s products
were used in many major projects such as the Airport Rail Link, mass transit extensions and a luxury
residential project, Mahanakhon.
Its main partner is Sino-Thai Engineering and Construction Plc.
“The Thai production base will be a model for expansion into at least 30 plants worldwide in the next
three to five years and 60 to 70 in 10 years,” he said.
Founded in 1989 in Changsha in southeastern China and listed on the Shanghai and Hong Kong
exchanges, the company has a manufacturing base and research and development in the US and India
with investments of $60 million each.
Last year, it spent 100 million to build a manufacturing base and R&D unit in Germany and plans to
invest $200 million in Sao Paulo to expand into the Latin American market. Currently, it has more than
30 subsidiaries overseas, exporting to 150 countries worldwide.
Its products include construction, road and pile-driving machinery, crawler cranes, non-excavation
machinery for construction, equipment for the coal industry and harbour equipment.

Kaeng Sua Ten is part of drought battle plan
The Agriculture Ministry plans to revive the controversial Kaeng Sua Ten dam as part of its drive to
solve the water crisis threatening the country.
Agriculture and Agricultural Cooperatives Minister Theera Wongsamut yesterday said he will push for
projects, including Kaeng Sua Ten dam, to increase the number of reservoirs nationwide to deal with the
persistent drought.
The dam will benefit 44 districts in 12 northern and central provinces and provide water for tens of
thousands of farms and households.
Kaeng Sua Ten dam was one of five dams put on hold in 1997 by the Chuan Leekpai government
following protests by the Assembly of the Poor and after opposition from conservationists.
Opponents say the dam will destroy about 20,000 rai of the country’s most pristine teak forest in Phrae’s
Mae Yom National Park.
Thailand Construction News – TCN161 – 23-06-10 Page 9 of 37
The Yom is the only one of four rivers flowing into the Chao Phraya (the others are the Ping, Wang and
Nan rivers) without a dam and a large reservoir.
Mr Theera said he will make sure a study of the Kaeng Sua Ten dam project along with a development
plan for the Yom River basin will be completed and submitted for cabinet approval by year’s end.
He said he will also push for a project to divert water from the northern Kok, Ing and Nan rivers into the
Sirikit dam in Uttaradit, as well as a project to divert water from the Yuam River in Mae Hong Son into
the Bhumibol dam in Tak.
The water diversion projects are expected to retain about 5 billion cubic metres of water, Mr Theera
said.
The Kaeng Sua Ten project has the backing of Deputy Prime Minister Sanan Kachornprasart who will
help secure cabinet approval for the plan, Mr Theera said.
The minister said the water shortage has to be dealt with now for the benefit of future generations.
“I don’t want to be scolded in the future for failing to do something to prepare for and solve the water
problem,” Mr Theera said.
He said he is ready to face opposition to the Kaeng Sua Ten dam from activists. “Environmentalists
must decide what is in the country’s best interests.”
The minister said the water shortage problem will persist as the monsoon rains has subsided and no
rainfall is forecast until next month.
The drought has required the production of artificial rain to supplement natural water flows into the Sirikit
and Bhumibol dams.
Daily cloud-seeding operations will take place from now until October.
Mr Theera said he and Maj Gen Sanan will travel today by helicopter to inspect the two dams and the
rain-making operations.
Mr Theera said Prime Minister Abhisit Vejjajiva is concerned about the low water levels in dams
nationwide.
The volume of water in 33 large dams, 37 medium-sized dams and other reservoirs across the country
is only 47% of their combined capacity.
Only 15% of the water in these dams and reservoirs is suitable for consumption.
Only 4% of the water in the two major dams, Bhumibol and Sirikit, is available for consumption over the
next 50 days, or until the end of July when the rainy season begins, Mr Theera said.
Warawuth Khantiyanant, director of the Bureau of Royal Rainmaking and Agriculture Aviation, said
cloud seeding last week has drawn about 2million cubic metres of rainwater to Bhumibol dam and about
6 million cubic metres to Sirikit dam.

Myanmar officially opened a pipeline linking the Yadana natural gas field in the Andaman Sea to
Yangon, to ease a chronic power shortage in its largest city, state media reported Sunday.
Government-controlled newspapers said Energy Minister U Lun Thi turned a golden valve to open the
24-inch diameter pipeline in a ceremony Saturday in Insein Township north of Yangon.
He called the new pipeline the pride of the nation.
The gas pipeline is 136 kilometers on land and 151 kilometers offshore and is operated by Total SA, a
French energy group, and US-based Chevron Corporation, in partnership with the state-owned Myanma
Oil and Gas Enterprise.
The Thai state-owned company PTT is also a partner, and much of the offshore field’s gas is directed to
Thailand.
The project has generated controversy, with human rights groups accusing the French and US
companies of financially propping up Myanmar’s military government.
They also accused the junta of widespread abuses against the ethnic Karen minority, whose territory
has been used for the pipeline project.

Amari Group, a Thai hotel operator, yesterday set up a new company to supervise the management and
investment of its hotel business and pursue an expansion plan and business restructuring.
Onyx Hospitality Group aims to penetrate both local and international hospitality markets in Asia-Pacific
and the Gulf region, said founder Yuthachai Charanachitta.
The company will invest 1.5 billion baht in a corporate growth strategy which will result in new properties
being introduced for all hotel brands. It wants to position Onyx as a market leader in hospitality
management in the region.
“We expect to operate at least 51 properties, both our own and for others, by 2018,” he said.
Onyx projects substantial profits in 2018 since its business will not be limited only to hotel management
but also property development.
Yesterday, it announced two new hotel brands: Saffron (for luxury hotels) and OZO (for three-star
hotels). The Amari brand still focuses on the four-star hotel segment and will spearhead penetration into
offshore markets.
Onyx CEO Peter Henley added that the company saw high business opportunity in the four-star hotel
segment because of its small size. Besides, the Amari brand is well-known among foreign investors and
guests.
For the Saffron brand, the first project is now under construction, scheduled to open its door in the first
quarter of 2011. Located on Wireless Road, the Oriental Residence Bangkok calls for a total investment
of 1.6 billion baht.
After the re-launching of the Amari brand in late 2009, there are currently 11 Amari properties in tourist
destinations. The 128-room services apartment Amari Residences Bangkok will fully open in
September, targeting short- and long-term visitors, especially those visiting the capital for medical
treatments. Another project is the Amari Hua Hin, which is scheduled to open in 2012.

The OZO brand will focus on both business and leisure travellers. At present, two projects under its own
investment in Koh Samui and Bangkok are being studied. “We will invest to build hotels for the three
brands. After completion, the hotels in each brand will be models to show to international customers in
the future,” said Mr Yuthachai.
Mr Henley added that Cambodia, India, China, the Middle East, and the Maldives had high potential for
the hotel business with many deals under negotiations.
A strategic development towards achieving this was the recent formation of Onyx India Hospitality
Group Pvt Ltd, a joint venture with the well-known Indian hospitality professional, Mandeep S. Lamba.
This new partnership provides Onyx with an established and dedicated network in India and localised
hospitality expertise. This will enable Onyx to expand and serve hotel owners in this strategically
important market.

Phuket’s Banthai Group have opened a new boutique luxury beachfront pool villa resort Wanakarn in
Thai Muang Phang Nga. The property is currently in the soft opening stage and will have a grand launch
in November.
Opening rates of THB 15,000 a night are currently on offer while prices will move to THB 35,000 later
in the year. International marketing is being done by niche firm Select Hotels and Resorts. More
details at Wanakarn Resort
The Thai Muang area currently has a buzz on back what is being touted as the next Laguna Phuket
styled destination resort by Hong Kong developer Richard Li.
The 1000 rai mega project will have multiple international hotels, a championship golf course,
residences and looks to be established as the epicenter of a growth north of Phuket island.

http://www.thephuketinsider.com/hotels/greater-phuket-new-luxury-hotel-open-in-thai-muang.php

Many foreigners who buy property in Phuket opt for a stand-alone house (or ‘villa’), either in a managed
estate or on a single plot, instead of an apartment or condominium, as the latter usually do not provide
the individuality and/or privacy the buyer seeks.
Due to legal restrictions in Thailand that prohibit land ownership by foreigners, it is common for
foreigners buying stand-alone homes to enter into two main legal agreements: one, a building sale and
purchase agreement; and two, a land lease agreement. These together provide the foreigner with
ownership rights to the building and lease rights to the underlying land.
Often, as part of the process of a foreigner buying a house off-plan, a construction agreement may be
used in addition to a land lease agreement.
Unfortunately, the Land Department in Phuket does not issue title deeds expressly for buildings as it
does for land. However, a government policy has been established that considers certain documents as
relevant and acceptable when determining whether or not someone legally owns a building, which
includes stand-alone homes.
Among the documents the Land Department considers as relevant in determining ownership is a valid
construction permit that refers to a specific building and mentions the buyer as the owner of the building
for which permission to build has been granted.
Another document is the building sale and purchase agreement recognized by the Land Department
when the transfer of a building from the seller to the buyer is registered.
That said, sometimes developers or sellers do not, for tax reasons, register with the Land Department
the transfer of ownership of a building from seller to buyer.
In such cases, the only document the Land Department can generally accept as evidence of ownership
of a building is the construction permit. Here is often where the problem starts.
Typically, construction permits are issued in the name of the developer or the builder. The party named
in the permit is legally considered to be the owner of the building.
If the person or company named as the building’s owner in the construction permit does not apply with
the relevant authorities in Phuket for the name on the permit to be changed to the name of the buyer
upon completion, then the builder remains the legal owner. That’s it.
This stands regardless of whether the buyer has entered into a construction agreement, paid for the
construction and moved into the completed building.

Condominium projects will continue enjoying the highest growth among other kinds of property projects
this year, according to an industry executive.
Samma Kittasin, director of the Property Data Center, said condominium projects remained very
attractive among potential buyers in the first quarter of this year as the number of condominium units
whose ownership was already transferred totaled 60,000 units, more than double that of the same
quarter last year.
He said another 60,000 units are due to start up in the rest of this year.
Actually, many property developers planned to launch their projects in the second quarter, but had to
postpone the inauguration due to the recent political turmoil.
“They are monitoring the economic situation in the third quarter of this year. Should the situation
improve and return to normal, they will launch the construction of the 60,000 units in the fourth quarter,”
he said.
Mr Samma said the information gathered by the center showed the proper projects, particularly
condominiums, which gain great popularity among consumers, are located in areas where there are
mass transit systems.
Thailand Construction News – TCN161 – 23-06-10 Page 6 of 37
Last year, projects, which are of interest among potential purchasers, are located along the Blue Line
Bangsue-Tha Pra electricity train route, the Blue Line Hua Lampong-Bangkae route, the Red Line
Bangsue-Rangsit route, the Green Line Berling-Rangsit route, and the Green Line Mor Chit-Saphan Mai
route.
The number of condominium units sold in 2009 totaled 87,500 and those expected to be sold this year
are projected to reach 189,000 units.

The Electricity Generating Authority of Thailand plans to build the country’s largest solar power plant in
Prachuap Khiri Khan after rejecting a coal-fired power plant proposal that was strongly opposed by local
residents.
Bunpot Sangkeo, Egat’s deputy governor for corporate social responsibility, said yesterday the new
plant would be built on 4,000 rai in Thap Sakae district where the agency had planned to build the
controversial fueled coal-fired energy plant which residents feared would have detrimental health and
environmental effects.
Egat expects the new 5,000-kilowatt photovoltaic plant to win public approval as it would cause fewer
environmental problems than a coal-fired operation.
Mr Bunpot said the project would be subject to public hearings before it could proceed. Egat would soon
begin explaining the plant’s details.