Issuu

January 2022

T-AB

THAI-AMERICAN BUSINESS

INSIDE THIS ISSUE: OFFSET C02 AND HELP THE PLANET BECOME MORE SUSTAINABLE FORD INVESTS 900 MILLION U.S. DOLLARS; ADDS 1250 NEW JOBS THE GOVERNORS’ TABLES DINNER SERIES: AMCHAM ACADEMY AMCHAM AFFINITY PROGRAM

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Thai-American Business ISSN-T-A 0125-0191

Contents LETTERS 06

Executive Director

January 2022

FEATURES 08

Offset Carbon Dioxide, Lower Global Warming and Help the Planet Become More Sustainable

Reimagining Diversity, Equity & Inclusion: Listen, Learn, and Act

LEGAL UPDATES 14

2021 Regulatory Round-Up: Key Updates on Thailand’s Real Estate Laws

Thai-U.S. Bilateral Relations: Benefits and Challenges

EVENTS 24

Digital Economy Committee: Unleashing the Power of AI

Tax Committee: U.S. Tax Updates for the 2021 Tax Year

Legal Committee: Class Actions in Thailand: A Look Back at the Law, a Look Ahead at Potential Trends

Governors’ Table: AMCHAM Academy Graduation @ The Peninsula Bangkok

Zoom & Spoons: Christmas Cocktail Edition

AMCHAM Women: Stand Up Against Street Harassment

MEMBER CONTRIBUTION 20

Ford Invests 900 million U.S. Dollars; Adds 1250 New Jobs

P&G Upcycled Plastic Houses Hand Over Ceremony

NEW MEMBERS 30

20 4

New AMCHAM Members

DISCOUNTS 32

AMCHAM Affinity Program

18 •

American Chamber Of Commerce In Thailand

AD AAM 2013

SIZ

AMCHAM BOARD OF GOVERNORS 2022 PRESIDENT Jeffrey Nygaard, Seagate Technology VICE PRESIDENTS Ornkanya Pibuldham, Bank of America N.A. Tibor Pandi, Citibank Charles Blocker, IC Partners Arpaporn Samabhandhu, Johnson & Johnson TREASURER Aileen Chew, Mastercard SECRETARY Eliot Delunas, Nitro Labs GOVERNORS Viboon Kromadit, AMATA Nara Decharin, Baxter Healthcare Jeff Lehrmann, Chevron Rachel Davidson, Hilton & DoubleTree Sukhumvit Bangkok Deborah Seifert, Pfizer Kaveepan Eiamsakulrat, The K.E. Group Noah Shepherd, Stanley Black & Decker John Evans, Tractus PAST PRESIDENT Greg Wong, Agoda BOARD ADVISORS David Lyman, Tilleke & Gibbins AMCHAM President in 1975, 1986 Harold Vickery, Jr., Prem Tinsulanonda International School AMCHAM President in 1984 EXECUTIVE DIRECTOR Heidi Gallant T-AB Magazine is a publication by The American Chamber of Commerce in Thailand. 7th Floor, GPF Witthayu Tower A 93/1 Wireless Road, Bangkok, 10330 Tel: =66 (0)2 254-1041 Fax =66 (0)2 251-1605 www.amchamthailand.com Editorial Advisory Board: Heidi Gallant, Harold Vickery, Jr. Editorial Team: Meagan Anderson, Varsha Wadhwani Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber. T-AB Magazine welcomes contributions from AMCHAM members. Articles may be reproduced with acknowledgement, except those taken from other sources.

Letter from the Executive Director Dear Members, I hope the new year finds you happy and healthy as we embark on another year together. I find members are feeling positive about the future and hopeful that the worst of the pandemic is behind us. We all know that uncertainty will continue to be the name of the game as we plan this year. However, let’s use what we’ve learned in 2020 and 2021 to make our businesses more resilient. AMCHAM continues to be the place to meet new business contacts in a virtual setting. We are great at this in person too! Either way, we have you covered if you join the AMCHAM Business Today, the Insight Exchange, the Governors’ Table dinners, a working meeting, or a monthly luncheon. The 2022 Board of Governors has started their term, headed by AMCHAM President Jeffrey Nygaard, Executive Vice President of Global Operations for Seagate Technology. Jeff also served as AMCHAM President in 2017 and 2018. His full bio can be found here, along with bios for the Governors serving as your Board. On January 20, the Committee and Council Co-Chairs in 2022 will meet along with the Board for our 2022 Strategy Session. AMCHAM’s 25 Committees and Councils can be found here. If you would like to give feedback or ideas to any of our leaders, please don’t hesitate to use your AMCHAM membership directory to contact them. We’re also starting the year with plenty of government engagements. A meeting with the Ministry of Foreign Affairs to discuss APEC, a follow-up meeting with the Ministry of Public Health, and a Virtual Membership Meeting with the BOI are all happening in January. Additionally, the Chambers of Commerce that make up the Foreign Chambers Alliance convened this month to discuss the progress of the 10 for 10 initiative and our cooperative strategy for this year. I wish you the very best for 2022. The AMCHAM leadership and our secretariat team are already excited to explore inventive ways to deal with the challenges we’ll face.

FEATURES

Offset Carbon Dioxide, Lower Global Warming and Help the Planet Become More Sustainable By Richard Jones, Indorama Ventures & Director of IVL Foundation

Greenhouse gas (GHG) emissions were the highest in human history between 2000 and 2010 at 49 billion tons per year, and this number is rising. Carbon dioxide accounts for 76% of GHG emissions, which is mainly released by burning fossil fuels. The average American car releases 4,700 kilos of CO2 per year. The average American home produces 7,500 kg of CO2 per year. A one-way flight from San Francisco to Bangkok is equivalent to 2,670 kilos of CO2 per passenger.

Approximately 26% of the land in the world is already covered with forests, with a surface area of about 150,000,000 km2. In principle we would need to add cover onto 42% of the current land to plant enough trees to solve the problem of capturing carbon to slow global warming. When deciding that you want to plant trees, choosing which kind of trees is an important step.

Natural climate solutions, a combination of land management, forestation, and other factors, can provide over one-third of the cost-effective climate mitigation needed between now and 2030 to stabilize global warming.

When choosing what trees to plant, it is best if you consider that trees with large leaves and wide crowns photosynthesize better. Native tree species will grow better in their local areas; it would be best to find what trees are native to your location.

How To Choose

Fast-growing trees scrub carbon dioxide from the atmosphere better during their first decade; it is considered to be their most productive time. Trees that produce more oxygen (because of their ability to produce oxygen even at night) are Neem, Peepal, and Areca palm. Douglas-fir, spruce, true fir, beech, and maple are toward the top of the list. Smaller plants that give off lots of oxygen in your bedroom or office are Basil, Aloe vera, and Sansevieria (snake plant). Mangroves Mangroves are found in 123 countries, covering an area of 152,360 km2. However, over two-thirds of the world’s mangroves are found in just 12 countries, with Indonesia alone accounting for over 20% of the total mangrove cover of the world. On a regional scale, Southeast Asia has one-third (51,049 km2) of the world’s mangroves – more than any other region in the world. Carbon offsets here could therefore be very cost effective. During normal growth, mangroves rapidly convert carbon dioxide into biomass. The saturated soils in which they grow contain low levels of oxygen, which bacteria and fungi would need as fuel to break down dead plant matter, so instead, this dead material is stored in the soil. Cutting down mangroves means releasing larger amounts of carbon into the atmosphere. This in turn causes the wet soil to dry up, leading to the release of even more stored carbon into the atmosphere. Estimates suggest a range of between 150 million to 1 billion metric tons of CO2 is emitted annually due to the destruction of mangrove forests globally. Thus, at the global scale, coastal wetland destruction could account for 1-3% of industrial emissions; a number that is on the rise as more and more coastal wetlands are destroyed every year around the world. Mangroves offer enormous benefits to fisheries, coastal protection, and the livelihoods of coastal inhabitants. It has been found that a two-meterwide strip of mangroves along a shore can reduce wave height by 90%. Other studies have found that mangrove forests helped reduce shoreline damage during the 2004 Indian Ocean tsunami and Tropical Storm Wilma in Belize in 2005.

Just planting mangroves does not mean there has been a long-term contribution to saving the planet. In Sri Lanka, a survey of 23 sites where planting had been attempted showed that in more than half, none of the mangroves survived – and over 50% of seedlings survived in only three sites. In another survey of mangrove replanting across 74 sites in Thailand and the Philippines, only 20% survived. Such planting projects often fail due to inappropriate targets in which planters are incentivized by numbers of trees or the total area planted, rather than, say, survival rates after one year. Perhaps unsurprisingly, this has led to mass planting in unsuitable places with no follow-up care. Asia In Asia, bamboo (yes, it is officially a grass) is useful as it releases 30% more oxygen into the atmosphere and absorbs more carbon dioxide compared to other plants. China has a giant native species of bamboo called Moso. 9

Each year, a hectare of Moso bamboo absorbs 5.1 tons of carbon, which can compensate for the CO2 emissions of three people in China (or one person in the U.S.A.). China has 3.37 million hectares of Moso bamboo, which is about three percent of China’s total forest area. In India, the Neem, Ficus, Oake Walnut, Mahogany, and Cassia are good at sequestering carbon while herbs like Tulsi and the woody grass bamboos are well known CO2 sequesters and air purifiers. Teak (known locally in India as Sagwaan) has the highest capacity for carbon sequestration among trees there. USA In case you were wondering, there are many trees in the USA that are good at storing and absorbing CO2, such as the common horse-chestnut, black walnut, American sweetgum, Ponderosa pine, red pine, white pine, London plane, Hispaniolan pine, Douglas fir, scarlet oak, red oak, Virginia live oak and bald cypress. Algae Finally, the masters of carbon capture are algae, mosses, and lichens, which take up approximately 14 billion tons of carbon dioxide and fix approximately 50 million tons of nitrogen per year. Algae are one of the most efficient instruments in nature for carbon dioxide consumption. Algae needs three crucial elements to grow: light, water, and carbon dioxide.

One company, ecoLogic Studio, created a building cladding made up of algae that can turn buildings into air pollution filters. Called Photo.Synth.Etica, the bio-digital cladding is created with micro-algae that can capture solar radiation and absorb CO2 and air pollution from the atmosphere ten times more effectively than trees. Every two square meters of the cladding can absorb, on average, the same amount of CO2 as a fully grown tree, which is roughly 22kg of carbon a year. The algae can grow into biomass, which can be harvested and sold to make other products such as bioplastic raw materials, biofuels, or fertilizers. In the final stage of the process, the freshly photosynthesized oxygen is released out of the top of the cladding, successfully pumping out clean air into the urban atmosphere or the building interior. As you can see, there are many natural ways we can use to capture carbon and give back oxygen to the world. Consider planting something today that will pay back later. Richard Jones set up IVL’s first sustainability department in 2011 and enjoys discussing plastic waste management, especially the need for recycling.

Can we eliminate plastic waste?

Plastic waste is a problem. And we are going to fix it. How? First, by getting help from our industry friends who also want to #EndPlasticWaste. Ensuring no waste – plastic or otherwise – gets in our environment. We’re finding new after-use opportunities. We’re cleaning up our ocean. We’re improving waste management. Plastics benefit our lives in so many ways. And we can’t let it go to waste. It’s time to change the conversation. To change our planet. How can you help? #DontWaste

dow.com/packaging

FEATURES

Reimaging Diversity, Equity & Inclusion: Listen, Learn, and Act By Onanong Pratakphiriya, L’Oreal Thailand

The world is changing in profound ways. So too is the workplace. The way we communicate, build corporate culture, and work have evolved due to a mix of new technologies and the unprecedented effects of a global pandemic. In turn, Diversity, Equity & Inclusion (DE&I) issues have become more pressing and essential now than ever before. The level of awareness and demand for proof points on DE&I is unparalleled. It is important for companies to constantly innovate their Diversity, Equity, and Inclusion policies. Interestingly, several recent studies indicate companies experience better financial results when they prioritize DE&I. According to the International Labor Organization’s 2019 global report, companies with more inclusive business cultures and policies see a 59 percent increase in innovation and a 37 percent improvement in the assessment of consumer interest and demand. Another study from McKinsey & Company found that organizations with gender-diverse executive teams were 25 percent more likely to outperform non-diverse teams in terms of profitability while those with ethnically and culturally diverse executive teams were 36 percent more likely to achieve above-average profitability. Companies must reimagine their DE&I approach and make their policies more mature to not only survive but also to flourish. 12

Every industry today feels the push toward greater DE&I. For the beauty industry, the global beauty landscape is changing. The inclusive beauty movement is redefining the industry and consumers are embracing it. Beauty has become more accessible and more inclusive by catering to all individuals, regardless of their gender, age, religion, skin tone, skin type, and more. This has been shown through product offerings and communications from brands. Brands are promoting diversity by making makeup accessible to encompass a wider range of beauty aspirations. There are also brands that celebrate beauty in its diversity and collaborate with people of different genders, backgrounds, skin types, and walks of life. More brands are aware of the responsibility they have to represent beauty in all its diversity and aware of the importance of DE&I to their success. However, DE&I topics are complex and no one person has all the answers. It is important to listen, learn, and take informed actions to lead an inclusive, responsible, and generous company. It is also important to foster DE&I with all stakeholders: consumers, employees, and communities while being mindful of the intersectionality of these pillars, including gender equity and LGBTQIA+, health and disability, socioeconomic and multinational origins, and age and generation.

Spotlighting Intersectionality It is important for businesses to not only consider the above-mentioned intersectionality areas but take steps to improve attention to the diverse needs and considerations of each one. Companies can start advancing from within the organization and while also contributing to the of more inclusive environments people.

gender equity for consumers establishment for LGBTQIA+

The inclusion of people with disabilities through the creation of safe spaces, inclusive hiring, employee support is a great start on the road to a more diverse work place. For socio-economic and multinational origins, it is crucial to ensure that the needs of all individuals are met regardless of their background. Finally, there are four main generations currently active in today’s workforce. Companies should work on promoting collaboration among employees of different generations as well as understand the expectations of target customers of all ages.

consist of diverse representatives from different levels and functions as well as external experts to gather various views. Other efforts can include company-wide team building activities like L’Oreal’s Beauty of Inclusion Awards to encourage DE&I across the value chain and share best practices internally. Teams from around the world share concrete actions that drive equity and inclusion and eliminate discrimination. The awarded team receives a budget to spend together as a taskforce with their country DE&I team supporting their projects. DE&I is a complex topic which means educational tools are crucial to developing teams and ensuring a safe, inclusive work environment. Developing an intensive learning path for employees to better understand a wide range of key DE&I areas can be a step in that direction. While DE&I has become a growing area of focus for many organizations, there is still work to do. Businesses must keep listening, learning, and taking actions to understand, embrace, and deliver on DE&I. It cannot be done alone and overnight. DEI requires an entire organization, not just the Human Resources team.

Starting on the Inside with Leadership and Team Engagement When starting a DE&I approach, leaders must be committed, and employees should be engaged. Companies may establish a DE&I, representative, committee, or working group to foster discussions and strengthen commitment. The committee can

Onanong Pratakphiriya has nearly 20 years of experience in communications. She is an advocate on women empowerment and represents as Human Rights correspondent for L’Oreal.

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LEGAL UPDATE

2021 Regulatory Round-Up: Key Updates on Thailand’s Real Estate Laws By Duangkamon Amkaew and Papon Kanungvanichakul, Baker McKenzie

Overview It is undeniable that the pandemic has a significant impact on Thailand’s real estate sector. The overall market situation has seen growth in late 2021 and business operators are looking forward to new investment opportunities. This article looks back at the recent government initiatives that have been launched to help the real estate market from the impact of Covid-19 and what to look for in 2022. Key Recent Regulatory Updates Potential Change to the Law on Foreign Land Ownership In September 2021, the Cabinet approved a new type of long-term resident visa to attract high-potential foreigners to reside in Thailand. However, the topic which seemed to steal the visa scheme’s thunder was the government’s plan to study the feasibility of allowing these foreigners to own land in the country. Although further details of the plan have not been revealed, the mere suggestion of a feasibility study was heavily criticized by opposition politicians, activists, and many nationalists. Thailand has, for several decades, prohibited foreigners from owning land (with limited exceptions). Previous attempts to rescind or relax this prohibition were aborted 14

within a brief period due to strong resistance from the public. It remains to be seen what privileges the government will offer to attract wealthy foreigners, and whether the need for rebooting Thailand’s economy will be enough to reverse the public’s opinion on this controversial subject. Updated Building Insurance Requirements With effect from November 5, 2021, the regulations on buildings requiring public liabilities insurance have been updated to re-categorize the subject buildings into two groups based on their stage of usage. Buildings in the first group (such as buildings with a height of 23 meters or higher, and those having an area exceeding 2,000 square meters), must have the required insurance before beginning construction, modification, relocation, or demolition and must maintain it until the activities are complete. The other group (for example, hotels with at least 80 rooms in the same building) must have insurance throughout the time the buildings are in use. The new regulations also prescribe the minimum insured amount that the insurance must cover. This building-stage categorization and the minimum amount requirement did not exist in the previous regulations. The updated regulations should provide a more comprehensive guideline to building owners for complying with the building insurance requirements.

Real Estate Investment Trusts (REITs) With an aim to provide more flexibility to real estate developers and deal makers in terms of real estate investment trust structuring and fundraising, there were a few regimes that were introduced to promote investments in 2021. REITs Buy-Back With an aim to assist real estate businesses, the Capital Market Supervisory Board, in January 2021, introduced the new categories of REITs that come with either a buy-back “obligation” or a buy-back “option” under which a property owner can repurchase their property during a specified period and for a specified value. REITs with the buy-back schemes must be formed separately from traditional REITs, for which an owner’s buyback obligation or option is not permitted. Investment in Trust Units Starting from May 1, 2021, Stock Exchange of Thailand (SET)-listed REITs can now invest in other trusts units, in addition to the permitted investments in customary real property and shares in properties holding companies. This introduces the new concept of permissible indirect investment by REITs to cover the trust units

formed under Thai laws (except for REIT units) and foreign trust units of the trust legally incorporated under other relevant jurisdictions, creating more channels for REITs to make indirect investments both in Thailand and abroad. Private REITs Private REITs, also known as private placement REITs became effective on June 16, 2021. The new concept allows REIT settlors to offer REIT units which will not be listed and traded on the SET to specific groups of investors. The private REITs require a minimum of two investors, and their trust units can only be offered on a private placement basis to (i) institutional investors and (ii) REIT managers and persons in the same group of the REIT Manager. Unlike traditional REITs, private REITs are not subject to the minimum investment size or gearing ratio requirements imposed by the Securities and Exchange Commission. The approval process is likely to be faster, making them more attractive and flexible considering Thailand’s current economic condition. Private REITs can also come with buy-back conditions, which could provide real estate with cash flow solutions while retaining the operating rights and the right to repurchase properties from REITs.

Asset Warehousing In April 2021, the Bank of Thailand (BOT) issued the asset warehousing campaign as one of their financial measures to help business operators, particularly for those in the property and hospitality sectors. The key mechanisms for the asset warehousing program are that it allows the debtors (with certain qualifications) to repay their debts by temporarily transferring their qualified collateral assets of such debts to the banks. The debtors are allowed to lease back those assets from the bank to continue their business operations. Within three to five years, the debtors can exercise the right to buy back the transferred assets from the bank. The government also provided an exemption on the official registration fees for the transfer of collateral assets for the first transfer and buy-back stage to further support the campaign. Ongoing Trends In 2021, many businesses in Thailand rushed to embrace cryptocurrencies as an alternative to pay for their goods and services. Thailand’s real estate market, especially the residential market, was no exception. Several residential developers announced that homebuyers could now pay the purchase price with cryptocurrencies. Even though Thai laws do not forbid this arrangement directly, the requirement of fund remittance evidence can be a hurdle for foreign buyers of condominium units. The condominium law requires those buyers to, at the transfer registration step, present evidence

from a bank in Thailand of inward remittance in the amount not less than the condominium unit’s purchase price. Therefore, if the foreign buyer wishes to pay any part of the unit purchase price with cryptocurrencies, the parties will need to structure the payment arrangements carefully to ensure that the fund remittance evidence can be obtained for the transfer registration. As Thailand opens its door to welcome tourists with the aim to boost the economic recovery, it is a challenging year ahead and it remains to be seen what the coming years will bring and how the new trends will shape the real estate industry.

Duangkamon Amkaew is a Partner in Real Estate, mergers and acquisitions, hotel/resort, and property development. She is recognized as Band 2 Lawyer for Real Estate by Chambers Asia Pacific. Papon Kanungvanichakul is a Senior Associate specializing in real estate and mergers and acquisitions. He advises clients on investment structures, and asset and business acquisitions.

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LEGAL UPDATE

Thai-U.S. Bilateral Relations: Benefits and Challenges By Arunrat Chumroentaweesup, Tractus Asia Introduction Thai-U.S. bilateral relations can be traced back more than 198 years. However, relations have undergone radical transformations since their genesis. The Treaty of Amity and Economic Relations was signed in 1833 and amended later in 1966. It is a special economic relationship that gives special rights and benefits to U.S. business entities in Thailand. American firms enjoy two significant benefits. First, U.S. entities are permitted to maintain a majority shareholding or to wholly own a company, branch office, or representative office located in Thailand. Second, U.S. companies are permitted to engage in business on almost the same footing as Thai firms and are exempted from most of the foreign investment restrictions imposed by the Foreign Business Act. Investment Inflow into Thailand- In 2020, the United States invested 5.6 billion Dollars in Thailand. These investments accounted for 11% of the total Foreign Direct Investment (FDI) inflow into Thailand, being eclipsed by only Japan (12%) and China (17%). U.S. FDI inflow into Thailand significantly increased in 2021, expanding by 49% from 2020. Conversely, FDI from China only rose by 2% and FDI from Japan shrank by 27%. It is worth noting

that among Thailand’s top five FDI providers, the United States is the only source market outside Asia. The top three business sectors for U.S. FDI were wholesale and retail trade – repair of motor vehicles and motorcycles, financial and insurance activities, and real estate activities. Outflow from Thailand -Similarly, since 2017, the U.S. is the third largest recipient of Thai FDI–accounting for 6.3 billion Dollars or 9% of Thailand’s total FDI outflow in 2020. It declined by 22% from the previous year. However, the amount of Thai direct investment abroad has been more than the U.S. FDI inflow into Thailand. The top three business sectors for Thai FDI were financial and insurance activities, manufacture of chemicals and chemical products, and wholesale and retail trade – repair of motor vehicles and motorcycles. Trade There is no bilateral Free Trade Agreement (FTA) between Thailand and U.S. There were discussions in 2004, aimed at easing barriers to trade and investment between the two nations. However, FTA negotiations have been put on hold since 2006 after the dissolution of the Thai parliament and the coup. Despite this complication, bilateral trade values continue to increase.

Thailand As shown in Table 1, in 2020, the U.S. was Thailand’s number one goods export destination, followed by China and Japan. Thailand was a net goods exporter to the United States. From 2019 to 2020, the value of Thai exports to the United States has risen 9% to 34 billion Dollars. As the destination for 15% of Thai exports, the United States is Thailand’s largest export market, whereas China and Japan accounted for 13% and 10% of Thai exports, respectively. The top three products that Thailand exported to the United States were hard disk drives, proprietary format storage devices, and new pneumatic rubber tires used for motor cars. In 2020, the U.S. market was Thailand’s third largest source for imported goods, after China and Japan. The value of goods imported from the United States dropped 14% from 2019 and was at 15 billion Dollars or 7.3% of Thailand’s imports, while Chinese and Japanese goods captured 24% and 13% of the Thai import market, respectively. The top three products that Thailand imported from the United States were crude petroleum oils, tanks and other armored fighting vehicles, and electronic integrated circuits parts. The United States -In 2020, the United States had a trade deficit with Thailand. Thailand was the 25th largest destination for exports from the United States, capturing 0.8% of U.S. exports. Conversely, 1.6% of U.S. imports were Thai goods, making Thailand the 16th largest provider of imports to the United States. Benefits Undeniably, U.S. businesses in Thailand have benefited considerably from the Treaty of Amity as they can wholly own companies and are exempted from certain restrictions of the Foreign Business Act. At the same time, U.S. FDI provides critical capital for Thai industries to expand and is a boost to domestic businesses. Investment from the United States will eventually increase Thailand’s economic growth and job creation. An additional benefit is technology and knowledge transfer. U.S. businesses in Thailand also bring in the latest technologies and provide job training to Thai employees. These exchanges serve to advance Thailand’s human capital development.

Challenges A challenge Thailand may face is profit repatriation if U.S. businesses are unwilling to reinvest profits back into Thailand. This eventuality would create a huge capital outflow from Thailand. However, this possibility is mitigated by Thailand’s Exchange Control Act, which aims to maintain the stability of Thai baht and monitor capital outflows. The Act permits investments to be repatriated freely but requires supporting documentation such as evidence of sale to an authorized bank. Recently, Thailand became part of Asia’s Regional Comprehensive Economic Partnership on Trade (RCEP), the world’s largest regional trade agreement, signed on November 15, 2020. This might pose some challenges to U.S. exporters to compete against RCEP exporters. However, U.S. companies that have located their production facilities in Thailand can benefit from the RCEP agreement to penetrate huge markets in Asia Pacific. They can import components from several RCEP countries to assemble in a Thai facility and export finished products to RCEP countries. Recommendation Finally, the governments of Thailand and the United States should consider resuming FTA negotiations. One of the obvious benefits of reducing and eliminating trade and investment barriers is lower prices. Imported goods will become available at a lower price, allowing local consumers in both countries more affordable access to a variety of products. Additionally, an FTA will increase efficiency. A Thai-U.S. FTA could be a catalyst for making local industries as well as the nation more competitive in the region. During FTA negotiations, both governments need to thoroughly consider the adverse impacts of an FTA and explore ways to mitigate these. Arunrat Chumroentaweesup is a Consulting Manager at Tractus Thailand. Her expertise includes site selection, market entry strategy, investment attraction in ASEAN.

MEMBER CONTRIBUTION

Ford Invests 900 million U.S. Dollars; Adds 1250 New Jobs By Ford Motor Company

On December 8, 2021, Ford Motor Company showcased the modernization of its Thailand manufacturing operations with a 900 million U.S. Dollars (28 billion baht) investment in new technologies and systems, the company’s largestever single investment in Thailand. Part of the Ford+ plan for growth and value creation, the investment supports production of the next-gen Ranger pickup truck and Everest SUV. The investment – Ford’s largest single outlay in Thailand - brings Ford’s cumulative investments in the country to more than 3.4 billion Dollars (100 billion baht) over 25 years. The modernization program bolsters Thailand’s role as a global production and export base for Ford, through its wholly owned Ford Thailand Manufacturing (FTM) and joint-venture AutoAlliance Thailand (AAT) truck plant. Driving a Promising Future The investment underscores Ford’s ongoing commitment to deliver world-class quality vehicles to customers in Thailand and around the world, while driving opportunities for local industry growth. 20

The addition of a second shift at FTM adds up to 1,250 incremental jobs, increasing Ford’s local workforce to more than 9,000 employees. Ford also provided opportunities for its local supply chain partners with more than 400 million Dollars (13 billion baht) invested in the supply chain network to localize and enhance the quality of vehicle parts and design related tools, creating approximately 250 incremental jobs. Modernizing Everywhere The overall investment brings Ford’s manufacturing facilities in Thailand in line with the latest global efficiency, flexibility, and quality processes, through extensive upgrades and new state-of-the-art manufacturing technologies and accompanying training for Ford employees and suppliers. The company is almost doubling the number of robots at both FTM and AAT, with the addition of 356 state-of-the-art robots at the body shop and paint shop. This brings the level of automation at the body shop at FTM and AAT from 34 percent to 80 percent and 69 percent, respectively. Ford’s

manufacturing workforce will work seamlessly with high-tech equipment and tools to enhance manufacturing efficiency and quality and continue to improve overall customer satisfaction. Creating Must-Have Products and Services Ranger and Everest are Ford’s most successful vehicles in Thailand, and the company continues to improve its offering with the recently revealed Thai-built next-gen Ranger. Built at both FTM and AAT, and due to be launched in mid-2022, the next-gen Ranger - will benefit from the advanced technologies and modernized systems in place. Exporting vehicles is a significant part of Ford Thailand’s manufacturing business, with Ford Ranger sold in over 180 markets around the world, as well as holding the title of the best-selling truck in several countries across Asia Pacific. AAT will also be the lead production hub for the upcoming next-gen Everest SUV, utilizing the extensive upgrades on offer. Article submitted by Gold tier member Ford Motor Company.

MEMBER CONTRIBUTION

P&G Upcycled Plastic Houses Hand Over Ceremony By Procter & Gamble

On December 3, 2021, Procter & Gamble (Thailand) Ltd. (P&G) handed over five upcycled plastic houses for living and the environment and five bathrooms to the Governor of Chachoengsao at the Nong Prue Temple, Phanom Sarakham District, Chachoengsao Province. The Upcycling Plastic Houses for Living and Environment project aims to provide a temporary shelter for vulnerable persons, Covid isolation, and to alleviate the living conditions of people affected by natural disasters. This project is based on P&G’s sustainable goals (Ambition 2030) which is aligned with the United Nations’ Sustainable Development Goals (UN SDGs). It also reiterates P&G’s principle of Force for Good and Force for Growth by giving back to the society and helping those who are in need.

Moreover, it follows the company’s concept of Waste to Worth by creating added value out of plastic waste and reducing plastic usage. Houses under the Upcycling Plastic Houses for Living and Environment project were built from mixing over 10 tons of recycled plastics with other building materials. The project has helped reduce plastic waste and prevent them from leaking into the oceans - causing marine plastic/debris pollution.

EVENTS Digital Economy Committee: Unleashing the Power of AI – November 26 Speakers: Dr. Orathai Sangpetch, Vice President of Research and Strategy at CMKL University and Supparat Sivapetchranat Singhara na Ayutthaya, Chief Executive Officer of ST Telemedia Global Data Centres (Thailand) and Chief Digital Officer of Frasers Property Thailand. Moderators: Peter Fischbach, Owner of ISM Technology Recruitment Ltd. and Waleeporn Sayasit, General Manager - Corporate Communications at T.C.C. Technology. Organized by: Digital Economy Committee Event Highlights: Speakers at the event did a deep dive into how business and countries can leverage the power of Artificial Intelligence. They spoke about challenges and opportunities in the field and the basic frameworks and tools needed to help an organization prepare for integrating AI. “Every organization can leverage the power of AI if they have the right resources, infrastructure, and mindset.” - Dr. Orathai “Organizations not only need to find the use case for adoption and technology but also how they will govern the data from a legal perspective.”-Supparat

Tax Committee: U.S. Tax Updates for the 2021 Tax Year - November 22 Panelists: Matthew Stevens, Managing Director at Global U.S. Tax Plan and Josh Maxwell, partner at Hone Maxwell, LLP, and Of Counsel at Mahanakorn Partners Group Organized by: Tax Committee Event Highlights: At the event, panelists discussed some of the proposed changes to the U.S. tax code and what individual and corporate taxpayers need to prepare for as well as how the proposed changes will impact estate planning for U.S. citizens. This session was an invaluable primer for the issues needed to consider for 2021 year-end tax planning and tax reporting.

Legal Committee: Class Actions in Thailand: A Look Back at the Law, a Look Ahead at Potential Trends – December 13 Speakers: Suruswadee Jaimsuwan, Counsel, Tilleke & Gibbins and Robert Tang, Of Counsel, DLA Piper (Thailand) Limited Organizers: Legal Committee Event Highlight: Speakers at the event provided an overview of Thailand’s class action law and the types of cases that have been filed since its enactment. They also addressed local and global trends in class actions, in particular in the ESG (Environmental, Social & Governance) space and explore whether and how these trends could potentially appear in Thailand.

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EVENTS

The Governors’ Tables Dinner Series Governors’ Table: AMCHAM Academy Graduation @ The Peninsula BangkokDecember 2 Hosted by AMCHAM Board Governors: Greg Wong of Agoda, Tibor Pandi of Citibank, Kaveepan Eiamsakulrat of The K.E. Group, Charles Blocker of IC Partners, Ornkanya Pibuldham of Bank of America, and Noah Shepherd of Stanley Black & Decker Event Highlights On December 2, the AMCHAM community was able to network and mingle with the second graduating cohort from the AMCHAM Academy program. The AMCHAM Academy was designed to develop the rising leaders of member organizations. It connects high-talent mid-senior management staff with leaders in the business world in small group seminars. Academy participants emerge from the program with strong cross-industry peer networks, fresh business and leadership insights, and the creative mindset necessary for expanding company success in the modern world.

This year’s special seminar speakers included: Harald Link, Chairman, CEO & Owner of B.Grimm; Aloke Lohia, Founder & Group CEO of Indorama Ventures; Jareeporn Jarukornsakul - Chairman of WHA Industrial Group; and Maneerut Anulomsombut, CEO Thailand of SEA Group.

2021’s AMCHAM Academy Graduating Cohort: Nattha Srisomwong of Aetna Horia Tapai of Agoda Teerayut Tamsri of Caterpillar Ronnarong Chanleka of Chevron Sajee Sriwiroj of Citibank Pajaree Meekangvan of Esso Walinthip Sakulbongkod of FedEx Kamolchanok Prasertsom of Ford Komkrit Saithong of Jelly Belly Chokchai Keeree of Johnson & Johnson Natpaphat Pipatkulkij of PCS Natthapa Jaiphasuk of Philip Morris Jackson Ferguson of Minor International Duangkamol Rochprasert of Seagate Sampan Silapanad of Western Digital Ladda Rojanavilaivudh of WHA Group 27

EVENTS

Zoom & Spoons: Christmas Cocktail Edition – December 15 Speaker: Diageo’s Brand Ambassador, Sarawut Pinpech (Ball) Event Highlights AMCHAM hosted its festive Zoom & Spoons: Christmas Cocktail Edition event, a special event in the Zoom & You series for members to enjoy a unique networking experience. Diageo’s Brand Ambassador, Sarawut Pinpech (Ball), guided members in step-by-step instruction on how to make delicious Christmas cocktails in the comfort of their home. Breakout rooms were used as an opportunity for members to network with others at the event.

Stand Up Against Street Harassment - January 14 Organized by: AMCHAM Women Event Highlights “Some people find distraction a good way to diffuse a situation.” - Phumjai Krisintu Members learned how to recognize street harassment while adding methods of diffusion to their toolbox. The training was useful for bystanders or targets to implement. 28

NEW MEMBERS

Welcome New Members CORPORATE MEMBERS American International Tax Advisers are specialists in international tax planning and structuring for companies where there is a connection with the U.S., such as U.S incorporation. They can provide high level planning and compliance services, such as fiduciaries, transfer pricing, trust and tax reclaims. Designate: Thomas Carden, Managing Director

Advance Commercial Chemicals Co., Ltd. is distributor and wholesaler for specialty solvents, silicone products, industrial chemicals, lubrication oil, biological products and supplies generic, organic chemicals products. The company is able to customize its products, solutions, and services to meet the specific requirements of its diverse client base. Designate: Tanakorn Mahanontharit, Managing Director Apichet Technology Co., Ltd. provides business consulting and representative services for businesses operating in Thailand and SE Asia. They specialize in assisting manufacturing companies and industrial service companies with business development, site selection, formation and mobilization, expansion, restructuring, strategy, governance/leadership, and crisis intervention. Designate: Franklin Timmons, Managing Director The L3Harris Bangkok Training Center offers airlines a purpose-built training facility where innovation, training, and technology are combined to ensure maximum aviation safety while maintaining a high level of regulatory compliance. Operating since 1996, the Bangkok Training Center is a world-class provider of ATR, Airbus A320, and Airbus A330 pilot. Designate: Greg Shockley, Ma Accountable & General Manager Kintetsu World Express are a leading global logistics provider offering air freight, sea freight, customs brokerage, cross border trucking, domestic transportation, and warehousing and distribution services. In Thailand, KWE operates in 18 locations employing over 1,300 multi-cultural staff fully focused on meeting customer expectations and service reliability whilst contributing towards a sustainable society. Designate: Paul Stracey, Business Development Manager 30

December 2021 Levi Strauss & Co. is one of the world’s largest brand-name apparel companies and a global leader in jeans wear. The company designs and markets jeans, casual wear, and related accessories for men, women, and children under the Levi’s®, Dockers®, Signature by Levi Strauss & Co.™, and Denizen® brands. Its products are sold in more than 110 countries worldwide. Designate: Sameer Koul, General Manager, Southeast Asia

Qatar Airways is proud to be one of the youngest global airlines to serve all six continents, and thanks to their customers’ response to their offerings, they are also the world’s fastest-growing airline. They connect more than 140 destinations on the map every day, with a fleet of the latest-generation aircraft, and an unrivalled level of service from Hamad International Airport in Doha. Designate: Narmonrath Seenalasatporn, Senior Account Manager Pacific Prime is an award-winning international health insurance intermediary with over 20 years of experience in the industry. Their collaboration with top insurers worldwide - both local and regional, allows them to offer a wide range of health and medical insurance plans in Thailand. Designate: Naambo Hilma Nelago Shivute, Key Account Manager

Sindhorn Midtown is a distinctively Thai brand with an international mindset. One that comes alive through a modern interpretation of Thai culture, style, and design. Sindhorn Midtown offers a dynamic guest experience with smart technology, multi-functional spaces, and a focus on authenticity. Designate: Umaporn Vongpipun, General Manager

Wayfairer Travel designs tailor made luxury holidays and tours around the world. Get involved across social media and talk to them about what inspires you. Co-Founders Tom Blakey and Harry Prowse created Wayfairer to share their passion for travel that is both luxurious and responsible. Their mission is to offer luxury holidays which are authentic, meaningful, and socially responsible, and which also benefits local communities and conserves the environment. Designate: Jason Stevens, Chief Executive Office 31

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