Thai-italian working group



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AGREEMENT REACHED IN THE WORKING GROUP FOR THE COLLABORATION ON SMES SECTOR

FIRST MEETING IN BANGKOK

10-11 NOVEMBER 2005

In the First Meeting of the “THAI-ITALIAN WORKING GROUP” which has taken place in Bangkok, on 10-11 November 2005, the Thai and the Italian Delegations, led respectively by Mr. Chakramon Phasukavanich and Mr. Umberto Vattani, have agreed to consider the following issues as top priorities:




  • To provide language tuition and managerial education to help develop a more favorable environment for investments and long-term integration.

  • To establish a Database on Thai and Italian SMEs in order to supply immediate information to companies on the changing of Trade and Investments Regulations and the change of market conditions.

  • To carry out common promotional initiatives, research programs, feasibility studies, know-how transfer programs.

  • To progress with the enforcement of Intellectual Property Protection Measures in Thailand and the fight against counterfeit for goods manufactured in Thailand or which come from abroad.

  • To coordinate mutual certifying of Institutes of standardization.



  1. Joint cluster development initiative has been given high priority:




  • Italy and Thailand will jointly undertake the development of Industrial Clusters in Thailand by utilizing Italy’s extensive experience in cluster development.




  • As far as Industrial Clusters (“Distretti”) are concerned, two major activities will be undertaken:

    1. Learning Process: suitable Thai delegates/ young industrialists will be given the opportunity to acquire in-depth knowledge of cluster development at designated Institutions and Organizations in Italy (e.g. BOCCONI in Milan ,TEDIS in Venice, LUISS in Rome) or internship/ training in Italian companies;

    2. Transfer Process: appropriate Italian Clusters will be identified to work with selected Thai Clusters to “transfer” the Italian “cluster experience” to Thailand and to establish a joint strategy in developing permanent cluster-to-cluster linkages. This joint strategy will include incentives and other encouraging measures to foster Thai and Italian companies’ co-operation in Thailand and in Italy. This process will be favored by Confindustria.




  • To this effect, a joint Working Group will be set up to formulate a detailed plan of operations, with OSMEP as Thai focal point.

2. Macro-level issues

TRADE
Both Parties


  • Underline the importance of creating and monitoring the conditions for free trade, fair competition and transparency.




  • Consider of the highest priority the issue of Intellectual Property Rights and therefore will fight all counterfeit and forgery. They attach importance to progress made to enforce Intellectual Property protection measures in Thailand. Emphasis has been put on the necessity of fighting against counterfeit or forgery for goods manufactured in Thailand or which come from abroad.




  • Underline the importance of the ongoing revision of the present Tariff System in Thailand, with specific reference to luxury goods, fashion and wines. They consider this revision fundamental for the promotion of Italian investments in these sectors.




  • Attach great importance to an easing of Tariff and Non-tariff barriers in the food sector in the framework of the actions to be taken to bring in line Thai food standards to EU ones.


INVESTMENTS
Both Parties agreed to identify specific measures in order to promote investments in Thailand by Italian SMEs, among others:


  • The establishment of a dedicated Desk in BOI, OSMEP or other relevant Thai Agencies where trained personnel will respond to enquiries by Italian operators, in close contact with the “Sportello Italia” (Economic and Commercial Department of the Embassy and Italian Trade Commission).




  • Particular attention will be given to the identification of problems affecting operations of Italian SMEs in Thailand on the basis, among others, of previous experiences.




  • Ongoing evaluation of the present incentives for foreign investments and proposals of new measures is crucial. The above mentioned evaluation should focus on the character of SMEs investments (relatively small plants, limited number of employees, etc.) particularly in the framework of clusters.

In order to foster the role of Thailand and Italy as “Regional Hubs”, distribution-related investments will be favored and will be considered with great attention. The Parties also agreed to identify possibilities of collaborations in the distribution and infrastructure sectors.



3. Micro-level issues
Food Industry
Both Parties agree:

  • To promote Thai and Italian food products in order to seize the opportunities offered by the international markets and ensure their distribution throughout the two Countries.

  • To invite Italian specialists on organic products to advice Thai SMEs on aspects like technology, food, production line, packaging, hygiene and sanitation.


Tourism and SPA Industry
Both Parties agree:

  • To promote and develop Tourism between the two countries by the production of better guide books. Special attention should be given to the creation of new initiatives by Italian and Thai companies for infrastructure development in tourist areas and in relevant services sectors.

  • To facilitate Italian tourists by providing language training programs for Thai tourism personnel.


Fashion Industry
Both Parties agree:

  • To stress the attention on cooperation in the area of fashion design, furniture, jewellery, in order to enhance Italian investment in Thailand and to promote the collaboration among Thai-Italian designers, production specialists and counterparts.


Automotive Industry
Both Parties agree:

  • To develop the connection of supply chains, especially those of the Italian high-quality automobile components.

  • To invite Italian specialists to advice and mentor Thai entrepreneurs who export automobile components so that they can improve their techniques, design and material.

  • To establish Quality Control Centers in cooperation with Italian relevant Agencies.


Environmental and energy Industry
Both Parties agree:

  • To co-operate in the environmental and energy sector, with regards to waste disposals, dangerous wastes, emissions and alternative energy. The Italian side will provide feasibility studies and transfer of technology in the framework of specific agreement to be negotiated.


4. Cooperative Mechanisms
Both Parties agree:


  • To organize, at least, once a year Conferences on SMEs between the Thai Ministry of Industry, OSMEP and the Italian Ministry of Productive Activities, ICE and Confindustria for monitoring policy setting and its implementation. The second Thai-Italian Working Group on SMEs cooperation will be held in Italy in 2006.




  • To plan and organize Sectorial Meetings and Missions both in Italy and in Thailand.

Bangkok, 11 November 2005


Mr. Chakramon Phasukavanich

Permanent Secretary of The Ministry of Industry


_______________________________


Amb. Umberto Vattani

President of the Italian Institute for Foreign Trade – ICE


_______________________________



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