Team Group in Asean expansion

Through a pool of partners in several countries from Indonesia to Vietnam, the company has for years been working on projects in the region ranging from irrigation systems to industrial development.
Myanmar is now the focus, following the lifting of sanctions by many countries, which could draw huge foreign investment into the country. A 50:50 joint venture was just set up there last month.
The process is quickening in light of further integration as the Asean Economic Community (AEC).

“Overseas operations now contribute about 20 per cent of our [Bt2.5-billion] revenue against 40 per cent from government projects in Thailand. Five years from now, the two legs’ contribution will be on par [when revenue would rise to Bt3.5 billion],” chairman Prasert Patramai said last week.

Established in 1978, Team Group has built a strong foothold in Thailand, through several national projects like Suvarnabhumi Airport and the irrigation system.
Overseas expansion was pondered some 10 years ago but was only seriously carried out in the past few years with the establishment of wholly-owned Team Lao and then Team Cambodia.
It is mulling establishing a subsidiary in Vietnam after noting the opportunity to provide consulting services in flood prevention and mass transit.
The Laotian subsidiary followed years of experience in the country, as Team Group was involved in conducting the environmental impact assessment for the Nam Thuen 2 hydropower project.
Activities in Cambodia are expected to pick up following the normalisation of diplomatic ties between Thailand and Cambodia.
With a network of engineers in the region, Team Group has submitted proposals for govern-ment and private projects in the Philippines, Vietnam and Indonesia.
The state of Myanmar’s infrastructure is very much like in Thailand in the 1970s. Thailand then sought help from university lecturers and with an influx of foreign consultants, Thai companies were established to get a slice of the cake.
The joint venture in Myanmar was set up after Team Group was contracted to conduct a feasibility study on a railroad from Dawei to Thailand as well as the EIA for a deep-sea port by Italian-Thai Group.
“In Yangon alone, there is need for traffic management, feasibility studies for hotels, power plants and a waterworks system. Through Total Business Solution (the joint venture with local partners), we aim to be a one-stop service centre.
“With our extensive experience and local partners, this will be our strength to compete with consulting firms from other countries. The opportunities are huge as Myanmar is on the global radar due to its natural resources,” he added.
Amnat Prommasutra, director of Team Group’s overseas business, said consulting firms from Singapore, Taiwan and Japan are in Myanmar, but they cater mostly to companies from their home countries.
Total Business Solution has already been contracted to conduct a feasibility study for a Thai-owned rubber plant in Marit, which covers raw material supply, taxation and profit repatriation.
It also expects to shortly sign a contract with a local company for a feasibility study for a deep-sea port and an industrial estate in Pathein. Dawei, Pathein and Tirawa are designated as strategic investment zones around Yangon.
Prasert said the shortage of Thai engineers to work overseas is viewed as the only hindrance for the group’s regional expansion. This prompts it to draw support from partners, like other firms which offer professional services.
Partners from the Philippines and Indonesia, for example, are invited to join its proposal for a |project in Pakse, Laos. And vice versa. Workshops are now being held to mobilise support in Myanmar. 
On top of 700 full-time engineers, the company has built up a client base with the help of engineers from Nepal, Japan and Belgium.
To Prasert, overseas expansion for Thai companies could have been more solid if Thailand had had a clear model of supporting companies like Japan, which through the Japan International Cooperation Agency financed investment projects overseas to facilitate Japanese firms.
“Without overseas expansion, more foreigners will be in Thailand and be our competitors, he said.
“It’s in our plan to expand into all countries in Asean and this could be achieved through the regional network. The AEC turns this expansion into a faster pace, as all countries will become neighbours and they are all alert.
“Anywhere, the bidding process is the same and we’re confident that we’re second to none,” he added.