Thailand to Bring Online Sales Platforms into Tax System, VAT Registration Mandated
The Thai Ministry of Finance is moving to bring online sales platforms into the country’s tax system, following a cabinet resolution requiring platforms to register for value-added tax (VAT). According to a ministry source, the Revenue Department will amend the Revenue Code to enforce this requirement, which may also subject online platforms to personal and corporate income tax. This move aims to give the Revenue Department access to transaction data from these platforms, improving tax compliance. The cabinet also revoked VAT exemptions for imported goods valued under 1,500 baht, effective from July 5, in a bid to level the playing field for domestically produced goods and imported items.
This decision builds on the 2021 e-service tax law, which requires foreign online platforms offering services in Thailand, such as e-commerce, online advertising, and streaming services, to register for VAT if they earn more than 1.8 million baht annually. The government aims to ensure fair tax competition between local and foreign service providers. Additionally, the cabinet has ordered intensified measures to curb illegal sales of foreign goods, which include enforcing customs duties, corporate income tax, VAT, and safeguard measures to protect against rising imports.
Editor’s Note: Thailand is implementing new tax regulations for online sales platforms, requiring them to register for value-added tax (VAT) and potentially subjecting them to personal and corporate income taxes. This initiative, part of broader efforts to enhance tax compliance and level the playing field between local and foreign businesses, includes revoking VAT exemptions for imported goods valued under 1,500 baht. Additionally, the government is enforcing stricter measures on illegal foreign goods sales and customs duties to protect domestic industries.
Depa Launches 2025 Digital Workforce Plan to Boost Thailand’s Tech Future
The Digital Economy Promotion Agency (Depa) has unveiled its 2025 plan, “Perform Better, Think Faster, and Live Better,” aimed at enhancing the digital workforce and improving the quality of life in Thailand through technology. Depa president Nuttapon Nimmanphatcharin emphasized the focus on upskilling students and graduates, particularly in coding, through long-term initiatives like Coding Thailand and ‘Coding for Better Life.’ The plan also includes scholarships in digital technology and short-term programs like the Connexion project to strengthen e-commerce skills for entrepreneurs.
In addition to workforce development, Depa’s strategy aims to promote advancements in AI, blockchain, quantum computing, and foster Thailand’s growing e-sports ecosystem. The agency has supported 1,560 projects over the past eight years with an investment of 1.93 billion baht, resulting in an economic impact of over 24.3 billion baht. These initiatives are expected to prepare Thailand for future digital demands and expand the country’s technological capabilities.
https://thaitimes.com/depa-unveils-2025-digital-workforce-enhancement-plan
Editor’s Note: The Digital Economy Promotion Agency (Depa) has launched its 2025 plan, “Perform Better, Think Faster, and Live Better,” to enhance Thailand’s digital workforce by focusing on upskilling in coding and supporting initiatives like Coding Thailand and Connexion. The plan also aims to advance AI, blockchain, and e-sports, building on Depa’s previous support of 1,560 projects with significant economic impact.
NIA Targets Global Expansion for Thai Startups with Strategic Partnerships
The National Innovation Agency (NIA), in collaboration with the Federation of Thai Industries (FTI), the Board of Investment (BoI), and international partners, is launching initiatives to propel Thai startups into the global market. With over 3,133 projects supported in the past 15 years, the NIA aims to grow domestic demand through government procurement and attract foreign investment, targeting three unicorn startups within three years. Its corporate co-funding scheme offers investments up to 10 million baht for early-stage startups, and the FTI’s Innovation One Fund provides 20-30 million baht per deal, further strengthening local startup capital.
The NIA is also forming international alliances to open markets in Southeast Asia, the Nordic countries, and China. Partnerships with Japan, Hong Kong, and South Korea offer local startups opportunities for collaboration, feasibility testing, and funding in sectors such as health, climate, and agricultural technologies. This global focus, paired with targeted investments and acceleration programs, is designed to position Thailand as an “innovation nation” in the years ahead.
https://www.bangkokpost.com/business/general/2858292/nia-targets-startups-for-global-expansion
Editor’s Note: The National Innovation Agency (NIA), in partnership with the Federation of Thai Industries and the Board of Investment, is launching initiatives to expand Thai startups globally, targeting three unicorns within three years. With over 3,133 projects supported and co-funding options up to 30 million baht, the NIA is enhancing local startup capital while forging international alliances in Southeast Asia, the Nordic countries, and China. These efforts aim to position Thailand as a leading “innovation nation” by leveraging strategic investments and global partnerships in key sectors.
Thailand’s Renewable Energy Shift to Generate B190bn in Revenue for Power Companies
Thailand’s transition towards renewable energy is set to deliver a windfall of 190 billion baht in additional revenue for power companies from electricity sales to the government between 2024 and 2037, according to Krungthai Compass, the research unit of Krungthai Bank. This surge in revenue comes as the state plans to increase the share of renewable energy in the total electricity supply from 20% to 51% by 2037, as outlined in the new power development plan (PDP), which awaits government approval. The renewable energy sector’s annual growth is projected at 7.9%, with total revenue expected to rise from 100 billion baht in 2023 to 290 billion baht in 2037.
Key investments in solar, wind, and biomass power facilities are anticipated to reach 1.7 trillion baht over the next 13 years, generating an estimated 39.6 gigawatts of power. Solar farms, primarily in the North, will account for most of the new capacity, followed by wind farms in the Northeast. Biomass plants are expected to be developed nationwide, utilizing agricultural waste as fuel. The shift to renewable energy is also projected to lower power tariffs to below 4 baht per unit, reducing both costs for consumers and carbon emissions by 27.5 million tonnes.
https://www.bangkokpost.com/business/general/2856862/b190bn-windfall-from-renewable-shift
Editor’s Note: Thailand’s shift to renewable energy is expected to generate an additional 190 billion baht in revenue for power companies from 2024 to 2037, driven by an increase in renewable energy’s share of the electricity supply from 20% to 51%. Investments in solar, wind, and biomass power facilities will total 1.7 trillion baht, boosting annual revenue and potentially lowering power tariffs while significantly reducing carbon emissions.
Paetongtarn Shinawatra Expected to Lead Economic Management in New Government
As the new Cabinet formation nears completion, Paetongtarn Shinawatra is expected to take charge of overall economic management, building on policies from the previous Srettha Thavisin administration. Former Prime Minister Thaksin Shinawatra confirmed her role leading the economic team, with a focus on teamwork and collaboration with external experts. Key policies, such as the 10,000-baht digital handout initiative, are set for immediate implementation, while broader economic strategies will address debt resolution, credit issues, and interest rate policies.
The government’s economic approach will also require coordination with coalition partners, as various ministries, like Labour and Energy, are overseen by different parties. Prime Minister Srettha Thavisin is expected to closely monitor key economic committees and ensure a structured mechanism for policy implementation and follow-up, distinguishing his administration from its predecessor. Effective communication of policies, particularly economic measures, will be crucial to maintain public understanding and confidence.
https://www.nationthailand.com/blogs/business/economy/40041107
Editor’s Note: Paetongtarn Shinawatra is set to lead economic management in the new government, focusing on key policies such as the 10,000-baht digital handout while collaborating with external experts and addressing debt, credit, and interest rate issues. Prime Minister Srettha Thavisin will oversee the implementation and coordination of these policies across coalition partners and ministries, aiming to ensure effective communication and public confidence.
Thailand to Revise Tax Rates and Offer Incentives to Attract Foreign Investors
The Ministry of Finance is accelerating plans to revise tax rates and introduce a range of incentives to position Thailand as a competitive investment destination, Deputy Finance Minister Phaophum Rojanasakul announced at Thailand Focus 2024. The government aims to attract investments in key industries, including tourism, medical and health, food, aviation, and digital sectors, by offering both fiscal and non-fiscal incentives. With a 64% increase in investment promotion applications in the first half of this year, the Board of Investment’s report highlights growing interest in electronics, automotive, and data centre industries.
As part of its vision to establish Thailand as a financial hub, the government is exploring measures such as income and corporate tax reductions, along with non-tax incentives like visa benefits and streamlined labour entry processes. The Ministry of Finance is working on both adjusting tax rates and improving the financial ecosystem to attract foreign investment, with new financial legislation expected to be drafted within two months. The initiative aims to make Thailand more competitive compared to other financial hubs in the region.
https://www.nationthailand.com/blogs/business/economy/40041022
Editor’s Note: Thailand is set to revise tax rates and introduce new incentives to attract foreign investors, targeting key industries such as tourism, medical, and digital sectors. Deputy Finance Minister Phaophum Rojanasakul announced these changes at Thailand Focus 2024, aiming to boost the country’s appeal as a financial hub by offering fiscal and non-fiscal benefits. With a significant increase in investment applications, the government plans to implement income and corporate tax reductions, along with enhanced visa and labor processes, to enhance Thailand’s competitiveness in the region.
Rusal Advances Carbon-Neutral Aluminium for Cable and EV Battery Industries
Rusal has developed ALLOW INERTA, a breakthrough extra-low carbon aluminium produced using innovative technology that significantly reduces greenhouse gas emissions during the electrolysis process. This cutting-edge method lowers CO2 emissions to just 0.01 tons per ton of aluminium, far below the industry average of 11.4 tons, as per 2022 estimates from the International Aluminium Institute. The production process uses non-consumable materials, such as ceramics or metal alloys, in the anodes, dramatically cutting emissions. ALLOW INERTA aluminium is currently produced at Rusal’s Krasnoyarsk Aluminium Plant and has been successfully integrated into packaging, energy, automotive, and electronics industries.
Recently, Rusal’s low-carbon aluminium has been adopted by international cable and electric vehicle (EV) battery manufacturers. A major cable producer has confirmed the high quality and environmental benefits of the aluminium wire rod made with ALLOW INERTA, citing its improved electrical conductivity and lower project costs in renewable energy applications. Additionally, EV battery manufacturers in China are preparing to use this aluminium in the production of foil for electric vehicle batteries, marking a significant step in reducing the carbon footprint of the industry and aligning with global decarbonization efforts.
https://www.nationthailand.com/business/corporate/40040820
Editor’s Note: Rusal’s innovative ALLOW INERTA aluminium, produced with a breakthrough technology that reduces CO2 emissions to just 0.01 tons per ton, is gaining traction in the cable and EV battery industries. This extra-low carbon aluminium has been adopted by international manufacturers for its high quality, environmental benefits, and cost efficiency, supporting global decarbonization efforts.
Vietnamese Farm Produce Gains EU Market Access Through ESG Practices
Vietnamese agricultural enterprises are increasingly adopting Environmental, Social, and Governance (ESG) standards to secure access to international markets, particularly in the European Union (EU). Phuc Sinh Corporation became the first agricultural firm in Vietnam to secure a $25-million loan from the Dutch investment fund, SAIL Investments, thanks to its ESG commitments. According to Phan Minh Thong, the company’s chairman, ESG reporting has become essential for demonstrating sustainability and social responsibility to investors, with the EU market now prioritizing ESG-certified products for import. Thong noted that ESG compliance not only increases profitability but also broadens market opportunities.
As the EU strengthens its focus on sustainability, Vietnamese farm producers must adapt to the evolving standards in food safety and green agriculture. Despite Vietnam’s agricultural potential, over 80% of the country’s exports to the EU remain unbranded. Experts like Dang Bui Khue, sustainability director at TUV NORD Vietnam, emphasize the competitive edge ESG-certified products hold in global markets, though obtaining certification is a financial and logistical challenge. Nevertheless, firms that invest in ESG are well-positioned to succeed in the competitive EU market, which imports approximately $290 billion worth of agro-forestry-fishery products annually.
Editor’s Note: Vietnamese agricultural firms are increasingly adopting ESG standards to access the EU market, with Phuc Sinh Corporation securing a $25-million loan from SAIL Investments due to its ESG commitments. As the EU prioritizes ESG-certified products, Vietnamese producers must adapt to these standards to enhance market opportunities and profitability, despite the financial and logistical challenges of obtaining certification.
Vietnam Moves Toward Mandatory Green Building Standards Amid Rise of Eco-Friendly Materials
Vietnam is on the path to making green building practices mandatory, driven by increased demand for eco-friendly construction materials and sustainable development. Companies like Fico Tay Ninh Cement and SCG Concrete Roof are at the forefront, introducing low-carbon products that significantly reduce carbon emissions. These materials, including green-labeled cement and sustainable roof tiles, are helping developers meet the growing demand for environmentally conscious construction in high-rises, warehouses, and industrial parks.
The trend is gaining momentum as Vietnam commits to achieving net-zero emissions by 2050. Developers are increasingly seeking green certifications like LEED and Green Mark to enhance their projects’ sustainability. Green building projects, particularly in industrial parks, are leading the way, with 55% of such developments meeting green standards. While initial costs for green buildings are higher, experts predict that the investment will pay off through long-term operational savings, improved occupant health, and enhanced market competitiveness.
Editor’s Note: Vietnam is advancing towards mandatory green building standards, driven by a surge in demand for eco-friendly materials like low-carbon cement and sustainable roof tiles. As the country aims for net-zero emissions by 2050, developers are increasingly adopting green certifications, with 55% of new industrial park projects meeting these standards, despite higher initial costs.
Taiwan (China) Boosts Investment in Vietnam’s High-Tech Sector Amid Geopolitical Shifts
Taiwanese investment in Vietnam’s high-tech industry is surging, driven by shifting geopolitical dynamics and a need for resilient supply chains. The US-China trade war and the COVID-19 pandemic have accelerated Taiwanese firms’ expansion into Vietnam, with major players like Foxconn and Pegatron increasing their presence. In 2023, Taiwanese investment quadrupled to $2.2 billion, and Taiwan (China) now ranks as the fourth-largest foreign investor in Vietnam, with nearly 3,200 projects and $39.5 billion in registered capital.
Vietnam has emerged as a key destination for Taiwanese technology companies, benefiting from its strategic location, skilled workforce, and favorable trade agreements. The country’s semiconductor industry, projected to reach $20-30 billion by 2030, is attracting significant Taiwanese investment, including $250 million from Tripod Technology. With a robust economic recovery and favorable conditions for high-tech investments, Vietnam is set to strengthen its role in the global electronics and semiconductor supply chains.
Editor’s Note: Taiwanese investment in Vietnam’s high-tech sector is rapidly increasing, with 2023 figures showing a quadrupling to $2.2 billion as geopolitical shifts and supply chain needs drive expansion. Major Taiwanese firms like Foxconn and Pegatron are bolstering their presence, positioning Taiwan (China) as the fourth-largest foreign investor in Vietnam, with nearly 3,200 projects and $39.5 billion in registered capital. Vietnam’s strategic location, skilled workforce, and favorable trade agreements are enhancing its appeal, particularly in the semiconductor industry, which is expected to attract significant investment and grow to $20-30 billion by 2030.
Indonesian Transportation Minister Urges Citizens to Adopt Electric Vehicles for a Greener Future
Transportation Minister Budi Karya Sumadi is urging Indonesians to embrace electric vehicles (EVs) as the nation pushes to boost e-mobility adoption. While acknowledging the current high cost of EVs, Budi stressed the importance of promoting green transport early on to familiarize the public with the technology, which will benefit future generations. He made the remarks following a meeting with B-Universe Media Holdings in Jakarta, emphasizing that the shift from petrol vehicles to EVs is vital for reducing emissions and combating climate change.
Indonesia aims to reach net zero emissions by 2060, with a target of having 2 million electric cars and 13 million electric two-wheelers on its roads by 2030. As of May 2024, the country recorded 144,547 units of EVs, signaling early progress in the transition. Budi remains hopeful that the rise of the EV lifestyle will contribute to Indonesia’s environmental goals, despite the current financial challenges.
https://jakartaglobe.id/business/minister-wants-people-to-embrace-the-ev-lifestyle
Editor’s Note: Indonesian Transportation Minister Budi Karya Sumadi is advocating for the adoption of electric vehicles (EVs) to advance the country’s green transport goals and reduce emissions, despite the current high costs of EVs. With a target of 2 million electric cars and 13 million electric two-wheelers by 2030, Indonesia has made early progress, recording 144,547 EVs as of May 2024, and aims to achieve net zero emissions by 2060.