CHAPTER 4 KHON KAEN CITY CONTEXT AND KHON KAEN CITY
4.4 The Involvement of the Public and Private Sector in Khon Kaen City
4.4.1 The Private Sector
In the private sector, new generation business operators who inherited businesses from their parents realized potential problems from future growth of Khon Kaen city. Thus, they would like to prepare the infrastructure to accoomodate the growth of the city, starting from establishing mass transit systems in the form of the LRT.
As for the private sector, there are 15 business operators in Khon Kaen Province who are co-founders of Khon Kaen City Development (KKTT) Co., Ltd., and 7 consultants. The name list is as shown below ("Opening 15 Leaders of KKTT,"
2015).
Co-founders of Khon Kaen City Development (KKTT) Co., Ltd. include the following:
1) Mr. Suradech Taweesaengsakulthai, Chief Executive Officer of Cho Thavee PLC. – A spart part seller and a dealer of HINO trucks.
2) Mr. Chokechai Khunwasi, Chief Executive Officer of Toyota Kaennakorn Co., Ltd.
3) Mr. Bordin Sereeyothin, Executive Director of Khon Kaen Fishing Net Co., Ltd.
4) Mr. Channarong Buristrakul, Managing Director of Isaan Piman Group Co., Ltd. – A large real estate business operator in Khon Kaen Province and in the Northeast.
5) Mr. Thana Sirithanachai, Managing Director of Siri Karn Group 90 Co., Ltd. – Being a housing estate business operator and providing finance services for automobiles, markets, and apartments in Bangkok.
6) Mr. Prasit Wongnijasila – Pharmacy business.
7) Mr. Chanvit Tangtanawat – Housing estate business and real estate business.
8) Mr. Kamolpong Sanguantrakul – A dealer of Toyota Khon Kaen.
9) Mr. Chaisiri Leesirikul – Rice mill business.
10) Mr. Pharon Thiraphanu – SP gas station business.
11) Mr. Kungwan Laovirojjanakul - Bualuang restaurant owner.
12) Mr. Mana Kansaksiri – Construction material business.
13) Mr. Siriwat Taveesangskulthai – Romtravi Khonkaen Corporation Limited, a dealer of HINO trucks in Khon Kaen.
14) Mr. Ekapong Angsriprasert, a financial specialist.
15) Mr.Chainarong Patthanapriradej - Fairy Plaza (Shopping Mall).
Consultants:
1) Mrs. Wadsana Taveesangskulthai
2) Associate Professor Rawee Hanpachern, PhD.
3) Mr. Phiyabutr Promlakano 4) Mr. Kemchart Somjaiwong 5) Mr. Samart Angwarawong 6) Mr. Surapol Taveesangskulthai 7) Mr. Sming Yimsiri
The co-founders of Khon Kaen City Development (KKTT) Co., Ltd. consist of business operators in construction, production of goods for export, real estate, automobile dealer, rice mill, and other businesses as summarized in the table below.
Table 4
.
1 Type of Business of Co-
founders of Khon Kaen City Development(
KKTT)
Co
.
, Ltd.
No. Type of Business Number
(persons) 1 Real estate (land for rent, housing estate) 3
2 Automobile production 1
3 Production of goods for export 1
4 Automobile dealer 3
5 Rice mill 1
6 Gas station 1
7 Commerce (restaurant, shopping mall, pharmacy)
3
8 Construction material 1
9 Others (financial specialist) 1
Because those business operators operate large businesses in Khon Kaen, they were able to invite 20 large companies to engage in the partnership, each of whom contributed to fundraising with an amount of 10 million baht, totaling 200 million baht. In addition, another 8 economic organizations were invited, including Bank of Thailand – Khon Kaen Branch, Federation of Khon Kaen Industries, Khon Kaen Chamber of Commerce, Federation of Khon Kaen Tourism Industries, Khon Kaen Bank Club, Faculty of Management Sciences Khon Kaen University, Association for Promotion of Thai Small and Medium Entrepreneurs – Khon Kaen, and MBA Alumni Association – Khon Kaen University, to join in the partnership.
In addition, there are another 24 Chinese organizations in Khon Kaen Province, namely, Huakhiew Wittayalai School and Rathuthid School Alumni Association - Khon Kaen, Huakhiew Wittayalai School Council – Khon Kaen, Teo Aun Association Of Thailand – Khon Kaen, Chin Tia Hia Khon Kaen Association, Chinese Music of Khon Kaen, Khon Kaen Hakka Association, Pueng Thao Kong Ma Association – Khon Kaen, Kek Yang Association – Khon Kaen, Pho Leng Association – Khon Kaen, Hainanese People Club – Khon Kaen, Khon Kaen
Chamber of Commerce, Chit Kuson Khon Kaen Foundation, Library Association of Chinese culture – Khon Kaen, Kwong Siew People Association – Khon Kaen, Sawang Khon Kaen Samakki Uthit Rescue Foundation, Federation of Khon Kaen Industries, Ding Clansmen Association – Khon Kaen, Tungtrakul Association - Khon Kaen, Kow Clansmen Association – Khon Kaen, Khon Kaen Dragon & Liondance Athletic Association, Ung Clansmen Association – Khon Kaen, Jung Clansmen Association – Khon Kaen, and Lee Clansmen Association, engaging in a partnership for Khon Kaen city development. These Chinese organizations were comprised of wealthy men, millionaires, and landlords in Khon Kaen who had a similar role of executive consultants to co-founders of Khon Kaen City Development (KKTT) Co., Ltd. (The second representative of the private sector, personal communication, May 21, 2019). In addition, the progress of the project had been continuously reported to these 24 Chinese organizations. The structure of the cooperation is shown below.
Figure 4.5 The Structure of the Private Sector Cooperation
Forming a Think Tank group to provide a guideline for Khon Kaen city development, these business operators established Khon Kaen City Development (KKTT) Co., Ltd. This could be regarded as a gathering of leading business entities in Khon Kaen Province, aiming to develop the infrastructure of Khon Kaen Province, with design and city development being correctly carried out, and ensuring proper growth of Khon Kaen city, which deserves to be a hub of ASEAN region and a future city based on the viewpoint: “Khon Kaen is a major city of the region with a high growth potential. If our province was left growing without any suitable plan, it might look like a decayed area in the future. Furthermore, how could we do to develop our province or plan to prepare for prospective growth?” (Khon Kaen City Development, 2018).
Khon Kaen City Development, or KKTT determines their role as that of an organization for “accumulating knowledge and expertise, coordinating, pushing forward, and providing financial support” (The fourth representative of the private sector, personal communication, September 3, 2019), with the aim of making an investment, starting from the LRT Project and development of areas along the LRT line, which is called Transit Oriented Development or commercial area development led by public transport. KKTT was registered as a limited company on January 9, 2015, with a registered capital of 200 million baht. The first project of KKTT would be the LRT Project (Khon Kaen City Development, 2018). The co-founders of Khon Kaen City Development (KKTT) Co., Ltd. did not expect profits from the joint venture ("Opening 15 Leaders of KKTT," 2015), and had no intention of working for political purpose (The fifth representative of a local administrative organization, personal communication, February 13, 2019). Business operators who engaged in the joint venture would not vote in elections or public hearings in order to disqualify themselves from local and national political competitions in order to assure local and national politicians of their intention not to be political competitors (The first representative of the private sector, personal communication, November 24, 2018). As a result, KKTT gained cooperation and support for the city development project as planned. With regard to the establishment of Khon Kaen City Development (KKTT) Co., Ltd., there were 5 directors as follows: ("Opening 15 Leaders of KKTT," 2015).
1) Mr. Suradech Taweesaengsakulthai, Chief Executive Officer of Cho Thavee PLC.
2) Mr.Chokechai Khunwasi, Chief Executive Officer of Toyota Kaennakorn Co., Ltd.
3) Mr. Channarong Buristrakul, Managing Director of Isaan Piman Group Co., Ltd.
4) Mr. Thana Sirithanachai, Managing Director of Siri Karn Group 90 Co., Ltd.
5) Mr. Bordin Sereeyothin, a business successor of Khon Kaen Fishing Net Co., Ltd. – Operating export businesses in several countries.
Khon Kaen City Development (KKTT) Co., Ltd. has played a role as Think Tank to plan and support systematic development of Khon Kaen city, as well as coordinate with officers responsible for implementing the city development projects from the public, private, and civil society sectors. Therefore, new generation business operators who gathered to establish Khon Kaen City Development (KKTT) Co., Ltd.
had a significant role because they were regarded as a main mechanism for driving the city development project through its coordination at the local level. They connected between local administrative organizations and the people in Khon Kaen Province, including the public sector and other authorities which stimulated several activities relevant to Khon Kaen city development. For example, by holding meeting to brainstorm ideas with the public sector (local and regional authorities), the private sector, and the people in Khon Kaen city, or meeting between the public sector (local authorities) and the private sector to plan how to drive the city development project and gain recognition from the government.