Doing Business in Thailand by Mr. Jerry Suyavong

1

THAILAND

APRIL 2015

DOING BUSINESS IN

THAILAND

2 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

TABLE OF CONTENTS

1. LINEAR TRANSFER AUTOMATION INC.

2. THAI AUTO SECTOR

3. DOING BUSINESS IN THAILAND • MAGNA STORY • SUMMIT STORY

4. CONCLUSION

• KEY STRATEGIES • KEY TAKE-AWAYS

3

LINEAR TRANSFER AUTOMATION INC.

4 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

ABOUT LINEAR

• WE ARE A LEADING GLOBAL SUPPLIER OF SERVO TRANSFER SYSTEMS, DE-STACK FEEDERS AND TANDEM LINE - TURNKEY

• WE PROVIDE SUPERIOR SERVICE & TRAINING • WE ARE COMMITTED TO THE HIGHEST QUALITY, PERFORMANCE

AND COMPETITIVE COST 5 REASONS TO INVEST IN LINEAR AUTOMATION 1. SPEED / UPTIME 2. FLEXIBILITY 3. 24/7 SUPPORT 4. PROJECT MANAGEMENT 5. COMPETITIVE PRICING / PERFORMANCE GUARANTEE

5 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

OUR PRODUCT

1. FRONT & REAR, FR-CLASS™ 2. THROUGHT THE WINDOW™ , W-CLASS™ 3. TITAN SERIES ® 4. MD-CLASS (MULTI-DIRECTIONAL) 5. TANDEM / PRESS CELL INTEGRATION 6. BLANK DE-STACK FEEDER 7. TOOLING & TURNKEY PROJECT 8. TRANSFER OPTIONS SUCH AS:

• AUTOMATIC TRANSFER BAR LOAD/UNLOAD SYSTEM • STATIONARY OR REMOVABLE PARKING POST • TEACH PENDANT CONTROL • PRESS PAD INSTALLATION • DIE ANALYSIS, ETC.

6 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

GESTAMP, TN (1320T, 216”x100”), FR-Class, 2010

7 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

MI, USA, LTS-2000, FR-Class

8 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

MI, USA, TWIN RAM, W-Class, 2002

9

THAI AUTOMOTIVE INDUSTRY

OVERVIEW

10 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

LOCATION OVERVIEW OF MAJOR MANUFACTURERS

11 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

MAJOR OEMs

12 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

2013

Month Production Domestic Wholesales

Export (CBU)

January 236,025 125,817 86,697 February 229,204 129,910 94,527 March 256,280 157,529 102,742 April 170,451 109,673 67,641 May 231,101 111,848 86,577 June 217,110 106,018 96,182 July 201,481 98,258 82,710 August 193,074 100,289 103,065 September 194,737 94,945 118,253 October 185,117 88,989 96,844 November 182,818 93,483 96,006 December 158,893 113,921 87,961

Total 2013 2,456,291 1,330,680 1,119,205

2014

Month Production Domestic Wholesales Export (CBU)

January 162,652 68,508 81,025 February 173,506 71,669 97,171 March 181,334 83,983 113,313 April 126,730 73,260 69,804 May 148,011 69,681 94,788 June 160,542 73,799 103,946 July 151,339 69,527 91,785 August 140,797 68,835 89,550 September 164,299 69,137 97,570 October 159,760 70,850 93,413 November 158,038 73,068 106,591 December

Total 2014 1,727,008 792,317 1,038,956

ACTUAL PRODUCTION, SALES & EXPORT

13 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

LOOKING TOWARDS 2020

14

DOING BUSINESS IN THAILAND

MAGNA & SUMMIT GROUP

15 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

MAGNA AUTOMOTIVE THAILAND (MAT)

EXECUTIVE DIRECTOR & COUNTRY GENERAL MANAGER Magna Automotive Thailand Ltd. Location: Amata Nakhorn Industrial Estate Park Established: 2009 Customers: AAT, Ford, Toyota, Honda China, Isuzu Product: Bumper Beam, Sub-assy, latch, others

16 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

CHALLENGES AND SOLUTIONS

• SETTING UP A COMPANY (TYPE OF BUSINESS) • UNDERSTANDING THE DOCUMENTATION & PROCESS • FINDING EMPLOYEES / OFFICE / FACTORY / PLACE TO LIVE • DECIDING ON THE MODE OF TRANSPORTATION • POLITICAL CHANGE

COUP D’ETAT RED SHIRT VS YELLOW SHIRT AIRPORT CLOSURE

• WORK BALANCE WORK VS. ET WORK VS. FAMILY ALL OF THE ABOVE !

CREATE A “TRUSTED AND RELIABLE” TEAM

17 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

AUTO INTERIOR PRODUCT RAYONG (AIPR) SUMMIT AUTO GROUP

18 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

MAIN PRODUCT LINE: NVH, INJECTION, PAINT SHOP AND ASSEMBLY GENERAL MANAGER, OPERATIONS SUMMARY • 70 rai or 120,000 sqm • Approx. 1800 employees • Various Interior Products • AAT, Ford, GM, Suzuki

19 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

CHALLENGES & SOLUTIONS

• CHAIN OF COMMAND – NEED NEW ORGANIZATIONAL CHART

• LABOR SHORTAGES • HR ISSUES (DRUG, LOVE & GAME) MUST CREATE

TRANSPARENCY • FEAR & THREAT MUST BUILD RESPECT, TRUST &

ACCOUNTABILITY

20 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

NATURAL DISASTER – THE FLOOD

21 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

OTHER FACTORS

• ATTITUDE TOWARDS WORK NEED TO CREAT A GOOD, RESPECTABLE & PROFESSIONAL WORKING PLACE

• POOR COMMUNICATION WITH EMPLOYEES & CUSTOMERS HAVE A STAND DOWN

• PARTS DEFECT AND DELAY NEED TO UNDERSTAND THE PROBLEM & PROCESS

• UNEXPECTED INCREASE IN VOLUME + TAKING ON PARTS FROM OTHER REGIONS & COMPANIES

• LOW CAPACITY & UNABLE TO OUTSOURCE • ISO / TS16949 CERTIFICATION & 5 S

CREATE AN INDPEDENT, ACCOUNTABLE & “FAMILY

ORIENTED” TEAM

22

CONCLUSION

23 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

KEY STRATEGIES

• VISIT THAILAND

• UNDERSTAND THE BATTLE FIELD (TYPE OF BUSINESS, OPPORTUNITIES, CHALLENGES, TAXES, LOCATION, ETC.)

GOVERNMENT PARTICIAPTION JOINT VENTURE OR LIMITED LIABILITY COMPANIES LIABILITY COMPANY UNLIMIITED PARTNERSHIP, GENERAL OR LIMITED UNDISCLOSED PARTNERSHIP SOLE PROPRIETORSHIP OR INCORPORATION SUBSIDUARIES/BRANCHES/REPRESENTATIVE OFFICE TRUSTS AND OTHER FIDUCIARY ENTITY

• DOCUMENTATIONS: WORK PERMIT / VISA / PERMANENT RESIDENT TAX RECEIPT & TAX DOCUMENTATION IMPORT / EXPORT

24 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

KEY STRATEGIES (cont…)

• CREAT A PRODUCT PORTFOLIO ROADMAP – KNOW YOUR CAPABILITIES & PRODUCT

• UNDERSTAND YOUR COMPETITORS

• BRING NEW TECHNOLOGY / PROCESS HYDROFORMING / ROLL FORMING / HOT STAMPING RECYLCE TECHNOLOGIES ELECTRIC VEHICLE PARTS / PRECISION MACHINING COMPLEX STAMPING & PROCESS COMPLEX ASSEMBLIES (IE. IP) AUTOMATION HOT PRESS, COLD PRESS

• FIND A PARTNER OR GO ALONE

• HIRE LOCAL STAFF (AT LEAST 2 OR MORE)

• PLAN TO EXPORT YOUR PRODUCT

25 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

Chachoengsao Toyota Motor Thailand Isuzu Motors (Thailand)

Samutprakarn Toyota Motor Thailand Isuzu Motors (Thailand) Nissan Automobile Thai Swedish Assembly (Volvo) Hino Motors (Thailand) Thonburi Automotive Assembly (Hyundai, Mercedes, Tata Motor)

Rayong Auto Alliance (Thailand) General Motors (Thailand) BMW Manufacturing (Thailand) Suzuki Motor Ford Motor

Samutsakorn Thai Rung Union Car

Bangkok Bangchan General Assembly Thai Honda Manufacturing

Ayudhaya Honda Automobile (Thailand)

KEY STRATEGY TO YOUR SUCCESS: LOCATION, LOCATION, LOCATION

26 Prepared by Jerry Suyavong – Confidential Disclosure or duplication without consent is prohibited.

• CHANGE IS HARD • EXPECT THE UNEXPECTED • PLAN AHEAD • KNOW YOUR SURROUNDING • BRING IN “NEW TECHNOLOGY / PRODUCT / PROCESS” • BE CALM, BE COOL AND BE COLLECTIVE

• BE MINDFUL OF:

RISING COST LABOR SHORTAGES FACTORY LOCATION / SIZE POLITICAL CHANGE NATURAL DISASTER CULTURE / RELIGION

KEY TAKE-AWAYS

27

THANK YOU !

JERRY SUYAVONG, Vice President, Asia Linear Transfer Automation Inc. Email 1: jsuyavong@lineartransfer.com Email 2: jerry.suyavong@gmail.com LINE: jerry.suyavong