Index Creative Village spreads wings into Asean markets
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Hoping to capitalise on the upcoming Asean Economic Community (AEC), Index Creative Village is set to expand its event-organising business into the regional market, initially targeting revenue of Bt100 million this year from Burma and Vietnam.
The firm will invest about Bt100 million on support facilities and equipment, as well as on establishing “event depot” offices in both countries.
“This is a big step for our 22-year-old company. We are discussing with local partners both in Myanmar and Vietnam to have permanent offices and train local staff,” co-chief executive officer Kriengkrai Kanchanapokin said yesterday.
He said his firm had signed contracts to organise three events next month, two of them from the Burmese government and one from a private company.
Among the former events, Burma’s Information and Culture Ministry selected Index Creative Village to hold the Myanmar Academy 2010 Awards from February 7 to 9 in the new capital, Naypyidaw.
The company expects there will be about 3,500 delegates from the local entertainment industry and government officials during the event, which is considered to be one of the most important national ceremonies, alongside the country’s Independence Day and Union Day.
He added that the company would focus on the government sector in Burma, and on private events in Vietnam.
“When the AEC is fully implemented in 2015, Thailand will gain greater geographical benefits from land connections, labour incentives and regulatory support, while Myanmar and Vietnam are now open for business from overseas,” the executive said.
Although purchasing power in the two countries remains limited, there is more room to grow because of the size of the populations, 55 million in Burma and 70 million in Vietnam, Kriengkrai added.
During the second phase of regional expansion next year, Index Creative Village will first move into Malaysia, and then Indonesia.
Kriengkrai believes Thailand could be a “hub of creativity” because event organisers can offer their creativity, expertise and experience for new clients in the region.
In the next three years, the company expects overseas business will contribute about 20 to 25 per cent of its annual income.
This year, the firm projects a 15-per-cent rise in revenue from Bt1.78 billion last year, while industry growth should come in at about 20 per cent.
Concerts, musical drama, exhibitions and museum design will see significant growth and drive this year’s income, he said, while the company will realise additional revenue from special projects.
These include Bt260 million from the Thailand Pavilion at the South Korean Yeosu International Exposition in May, and Bt300 million from seven pavilions at the BOI Fair, which runs until Friday at Impact Muang Thong Thani.
Kriengkrai added that the private sector would contribute 75 per cent of income, with the rest coming from the government.
Because of the impact from the severe flooding in the final quarter, Index Creative Village ended the year with 9-per-cent growth from its performance the previous year.
The 2010 level excluded income from the Thailand Pavilion project at the Shanghai World Expo 2010.
