VinFast Joins GAIKINDO to Strengthen Commitment to Indonesia’s EV Future
VinFast, the Vietnamese electric vehicle (EV) manufacturer, has officially become a member of the Association of Indonesia Automotive Industries (GAIKINDO), marking a significant step in its commitment to Indonesia’s green mobility goals. The membership not only reinforces VinFast’s long-term investment in the local market but also enables the company to actively contribute to shaping policies and accelerating EV adoption across the country. GAIKINDO, established in 1969, serves as a key bridge between automotive businesses and the Indonesian government, promoting the development of environmentally friendly transportation.
Since entering Indonesia, VinFast has made notable strides, including launching five electric vehicle models, initiating an EV assembly plant in Subang, and partnering with local players like Green SM and V-GREEN to expand charging infrastructure. With 24 showrooms across major cities and a growing service network, VinFast is making its vehicles more accessible through programs like free charging, zero-interest financing, and guaranteed buyback offers. Both VinFast and GAIKINDO leaders have expressed optimism about the collaboration, highlighting the company’s role in driving sustainable growth in Indonesia’s automotive sector.
Editor’s Note: VinFast has joined GAIKINDO to support Indonesia’s green mobility goals, reinforcing its long-term investment through local EV production, partnerships, and policy engagement. With initiatives like an assembly plant, expanded charging infrastructure, and consumer-friendly programs, the company is rapidly advancing EV adoption across Indonesia.
Thailand Races Against Time to Secure US Tariff Deal Amid Mounting Pressure and Geopolitical Tensions
Thailand is making a final push to secure a favorable trade deal with the United States before the August 1 deadline, aiming to match Vietnam’s 20% tariff rate and avoid the punitive 36% levy currently applied to US goods. Finance Minister Pichai Chunhavajira is set to submit Thailand’s last counterproposal, with hopes of reaching parity with recent US trade deals — including zero-tariff access for the Philippines and a 19% agreement with Indonesia. The urgency is driven by fears of economic fallout and political backlash, as the International Monetary Fund projects that Thailand may fall from its position as Southeast Asia’s second-largest economy to fifth within just a few years. Domestically, opposition parties like the Bhumjaithai Party are raising alarms over potential risks to Thai farmers and national sovereignty, calling for full parliamentary scrutiny.
Caught between growing US demands and its deepening ties with China, Thailand faces a complex balancing act. Since 2001, Bangkok has aligned closely with Beijing and remains a key member of the China-backed RCEP trade bloc. However, increasing US expectations for regional tariff consistency have placed Thailand in a diplomatic bind. With Chinese firms expanding rapidly in Thai manufacturing, any sweeping concessions to Washington risk straining relations with Beijing. Meanwhile, concerns over rural livelihoods, national policy autonomy, and currency volatility add to the pressure. As tensions rise in the South China Sea and the US strengthens alliances with Manila and Hanoi, Thailand’s ability to navigate this high-stakes trade crisis may well determine its economic trajectory and regional alignment in a shifting geopolitical landscape.
Editor’s Note: Thailand is urgently negotiating a US trade deal to lower tariffs and avoid economic setbacks, as it faces mounting pressure from domestic critics and fears of losing its regional economic standing. Navigating tensions between deep ties with China and rising US demands, the outcome could reshape Thailand’s geopolitical position and trade future in Southeast Asia.
Vietnam Launches $69 Million Semiconductor Packaging Lab in Da Nang to Boost Global Supply Chain Role
Vietnam has officially launched construction of a VND1.8-trillion ($69 million) advanced semiconductor packaging laboratory in Da Nang, marking a major step toward strengthening its role in the global semiconductor supply chain. Developed by VSAP LAB JSC, the facility will be located at Da Nang IT Park No. 2 near Thuan Phuoc Bridge and is expected to be operational by the end of 2026. Spanning over 2,288 square meters with a floor area of more than 5,700 square meters, the lab will house both a research and development zone and a fabrication area for trial production using real wafers and cutting-edge equipment. The lab is designed to produce up to 10 million units annually for both domestic and international markets.
At the launch ceremony on July 28, Minister of Science and Technology Nguyen Manh Hung emphasized the lab’s strategic role in enhancing Vietnam’s semiconductor capabilities, particularly in packaging and testing — critical steps in chip manufacturing. The project follows a public-private partnership model and aims to become a hub for innovation, workforce training, investment attraction, and technology transfer. The Ministry of Science and Technology pledged support for Da Nang in developing research infrastructure and fostering global partnerships in semiconductor design, packaging, and testing.
Editor’s Note: Vietnam has begun construction of a $69 million semiconductor packaging lab in Da Nang, aiming to strengthen its global supply chain role through advanced R&D and trial production capacity of up to 10 million units annually. The public-private initiative, backed by the Ministry of Science and Technology, will serve as a hub for innovation, workforce development, and international collaboration in chip design, packaging, and testing.
Sumitomo Vows to Make North Hanoi Smart City a Landmark of Vietnam–Japan Relations
Sumitomo Corporation has pledged to develop the North Hanoi Smart City into a symbol of the strong and growing partnership between Vietnam and Japan. At a meeting with Prime Minister Pham Minh Chinh on July 22, Yukihito Honda, managing executive officer and general manager of Sumitomo’s infrastructure business unit, outlined the group’s ambitious $4.2 billion project. Developed in partnership with Vietnam’s BRG Group, the smart city will feature a 108-story financial tower reaching 639 meters—set to become the tallest building in Vietnam and among Southeast Asia’s highest. Honda emphasized Sumitomo’s decades-long presence in Vietnam, citing major investments in industrial zones, urban rail, and energy, including the now-operational Van Phong 1 thermal power plant.
Prime Minister Chinh praised Sumitomo’s large-scale investments and affirmed the government’s commitment to creating a transparent, stable, and investor-friendly environment. He urged the company to work closely with local partners to ensure the timely and lawful execution of the North Hanoi Smart City project. The PM also encouraged Sumitomo’s continued engagement in urban rail and energy development, particularly the proposed Van Phong 2 gas-fired power plant. As both nations deepen their comprehensive strategic partnership, the government reaffirmed its support for transformative projects that advance bilateral cooperation and contribute to Vietnam’s socio-economic development.
Editor’s Note: Sumitomo Corporation has committed $4.2 billion to develop North Hanoi Smart City, featuring Vietnam’s tallest tower and positioning it as a landmark of Vietnam–Japan relations. The Vietnamese government praised Sumitomo’s long-term investments and pledged full support to ensure timely execution, further strengthening bilateral cooperation in infrastructure and energy.
Thailand Accelerates EV Revolution with Ambitious 2025 Green Mobility Push
Thailand, Southeast Asia’s automotive manufacturing hub, is fast-tracking its transition to electric mobility with a bold set of 2025 EV policies aimed at transforming the nation into a regional green automotive leader. The government’s roadmap targets 30% of all cars produced in Thailand to be electric by 2030, backed by generous tax incentives of up to 40%, direct consumer subsidies of $2,000 to $4,500, and eight-year corporate tax holidays for automakers. Infrastructure expansion is also a priority, with 2,000 public chargers already operational and 12,000 planned by 2030. These measures have attracted major global investments, including new plants from BYD, Great Wall Motors, and expansions by Toyota and Honda, while Tesla is exploring a regional distribution hub.
Domestic EV sales are booming, with 2025 registrations expected to exceed 100,000 units—triple the previous year—driven by affordable models and growing urban charging networks. Thailand is also positioning itself as a key player in Asia’s EV supply chain through local battery production, EV component exports, and R&D in autonomous and AI-driven vehicle technologies. The shift is delivering dual economic and environmental benefits, from job creation and oil import savings to improved urban air quality, solidifying Thailand’s role as ASEAN’s leading EV hub.
Editor’s Note: Thailand is accelerating its electric mobility transition with aggressive 2025 policies, aiming for 30% EV production by 2030, backed by tax incentives, consumer subsidies, and major global investments. With booming domestic sales, expanding charging infrastructure, and local EV supply chain development, Thailand is emerging as ASEAN’s leading green automotive hub.
Thailand Rolls Out Financial Relief Measures for Border Communities Amid Thai-Cambodian Unrest
Thailand’s Finance Ministry has introduced a series of urgent financial aid measures to support communities impacted by ongoing clashes along the Thai-Cambodian border. Finance Minister Pichai Chunhavajira announced the move following reports of property damage, disrupted livelihoods, and economic distress in affected provinces. Key interventions include debt suspensions, interest rate cuts, and low-interest loans provided through state financial institutions. The Government Savings Bank, for instance, will offer loans to small entrepreneurs at just 0.75% monthly interest, while SMEs can access loans of up to 5 million baht with preferential rates. The Bank for Agriculture and Agricultural Cooperatives will provide emergency consumer loans, and the Export-Import Bank of Thailand will extend repayment deadlines and offer temporary credit line increases.
To bolster relief efforts, the Comptroller General’s Department has also increased the emergency spending limit for provincial governors in Surin, Sri Sa Ket, Buri Ram, and Ubon Ratchathani from 20 million to 100 million baht. Meanwhile, the Bank of Thailand is monitoring the situation closely, ensuring both employees and customers of financial institutions are supported. Several Thai bank branches in Cambodia have repatriated their staff, and banks in affected Thai border provinces have been temporarily closed for safety reasons. The Thai Bankers’ Association cited ongoing unrest, which has led to loss of life and severe community disruptions, as the reason behind these precautionary closures.
Editor’s Note: Thailand’s Finance Ministry has rolled out urgent financial relief for communities affected by unrest along the Thai-Cambodian border, including debt suspensions, low-interest loans, and expanded emergency funding for provincial governors. Banks have temporarily closed in impacted areas for safety, while the central bank monitors conditions and supports affected staff and customers.
Thailand Confident of Tariff Deal with U.S. Ahead of August Deadline
Thailand has submitted its final counter-proposals to the United States in ongoing tariff negotiations, with Deputy Prime Minister and Finance Minister Pichai Chunhavajira expressing confidence in securing a new trade agreement before the August 1st deadline. Speaking on Friday, Pichai said that “Team Thailand” had incorporated amendments based on specific U.S. requests and that the proposals were now “99.99% submitted.” While withholding details on which items might benefit from 0% tariffs, he confirmed that U.S. pork imports remain excluded from liberalisation. He also noted that any final agreement would require Thai parliamentary approval.
Permanent Secretary for the Finance Ministry, Lavaron Sangsnit, echoed Pichai’s optimism, stating that a conclusion to talks is “certainly expected before August 1st.” He emphasised that Thailand’s offer reflects the best possible terms the country can provide and anticipates a swift review from Washington. The submission marks a critical step in deepening trade ties between the two nations amid a complex negotiation landscape.
https://www.nationthailand.com/business/economy/40053071
Editor’s Note: Thailand has submitted final tariff proposals to the U.S., with top officials expressing strong confidence in reaching a trade agreement before the August 1st deadline. The deal, which excludes U.S. pork imports, marks a key moment in enhancing bilateral trade relations and requires Thai parliamentary approval.
Thailand’s Growth Outlook Dampened by U.S. Tariff Pressures, SCB EIC Warns
Thailand’s economy is projected to grow by just 1.5% in 2025, according to the latest forecast from Siam Commercial Bank’s Economic Intelligence Centre (SCB EIC), as trade tensions with the United States continue to weigh on export performance. While early-year growth was supported by front-loaded exports ahead of anticipated tariff hikes, the second half of 2025 is expected to bring mounting pressure on Thai goods in the U.S. market due to higher reciprocal tariffs. Even if a partial tariff reduction deal is reached before the August 1 deadline, Thailand’s rates will likely remain less competitive than those of key rivals such as Vietnam, Japan, and South Korea.
The SCB EIC warns that the situation could worsen in 2026, with GDP growth potentially slowing to just 1.2%, or even 0.4% in a worst-case scenario where the U.S. imposes a 36% retaliatory tariff and Thailand fails to secure relief. Electronics and electrical appliances are seen as especially vulnerable to market share losses, while stricter U.S. rules of origin and potential transhipment tariffs may further raise trade costs. Meanwhile, the Thai government is cautiously assessing broader concessions in agricultural trade, amid fears of disruptions to domestic pork, poultry, and maize producers. If liberalisation proceeds, comprehensive support for smallholder farmers will be crucial to cushion the impact.
https://www.nationthailand.com/business/economy/40052927
Editor’s Note: Thailand’s growth outlook has dimmed due to mounting U.S. tariff pressures, with 2025 GDP expected at just 1.5% and further risks looming in 2026 if trade relief fails. Vulnerable sectors like electronics and agriculture face heightened costs and competitiveness challenges, prompting the Thai government to weigh concessions and support for affected farmers.
SCB EIC Warns Nearly 3,000 Thai Industries Risk Becoming ‘Chinese Product Fronts’
Thailand is undergoing a structural economic shift that could see nearly 3,000 domestic industries reduced to mere fronts for Chinese goods, according to new analysis from Siam Commercial Bank’s Economic Intelligence Centre (SCB EIC). The report highlights that the country’s role in global supply chains is increasingly shifting from producer to transit hub, as Thai industries grow more dependent on Chinese-made inputs. Imports have risen at an average annual rate of 10% from 2020 to 2024, outpacing GDP and export growth, driving the import-to-GDP ratio to 53%—its highest level in 12 years—and contributing to a third consecutive year of trade deficits.
SCB EIC attributes the surge to three key factors—the release of surplus goods from China’s slowing economy, the rise of cross-border e-commerce, and the expansion of domestic businesses heavily dependent on imported raw materials. Critical sectors such as steel, plastics, and automotive have become deeply integrated into Chinese supply chains, while some firms reportedly operate as low-value “buy-and-sell” ventures or conduct minimal assembly to bypass Western tariffs. The centre warns that this trend risks hollowing out local production and could undermine Thailand’s economic sovereignty if left unchecked.
https://www.nationthailand.com/business/economy/40052831
Editor’s Note: SCB EIC warns that nearly 3,000 Thai industries risk becoming mere fronts for Chinese goods as rising imports and supply chain dependence shift Thailand’s role from producer to transit hub. Critical sectors like steel, plastics, and automotive face declining local production, threatening economic sovereignty amid widening trade deficits.
Taiwan’s New Representative Peter Sha-li Lan Arrives in Thailand to Boost Bilateral Ties
Taiwan’s newly appointed representative to Thailand, Peter Sha-li Lan, arrived in Bangkok on Sunday, where he was welcomed by his deputy, staff from the Taipei Economic and Cultural Office, and members of the Taiwanese community. Speaking at the airport, Lan highlighted the importance of President Lai Ching-te’s New Southbound Policy, the “economy on which the sun never sets” vision, and Foreign Minister Lin Chia-lung’s Diplomatic Allies Prosperity Project in fostering trade and economic relations. He noted that the ongoing restructuring of global supply chains underscores Taiwan’s strength in high-tech, electronics, and semiconductors, which has prompted many Taiwanese businesses and entrepreneurs to expand into Thailand.
Lan, who previously led the Ministry of Foreign Affairs’ Department of East Asian and Pacific Affairs and served as ambassador to Saint Vincent and the Grenadines, succeeds Chang Chun-fu. During Chang’s tenure, Taiwan and Thailand signed a landmark investment promotion and protection agreement in June 2024, followed by a memorandum of understanding on technical and vocational education and training this June. Lan said he plans to strengthen cooperation across trade, technology, education, labor, and culture while deepening bilateral connections amid Thailand’s evolving geopolitical and business landscape.
https://focustaiwan.tw/politics/202507200012
Editor’s Note: Peter Sha-li Lan, Taiwan’s new representative to Thailand, has arrived in Bangkok to advance bilateral ties through initiatives aligned with the New Southbound Policy and Taiwan’s high-tech strengths. Building on recent trade and education agreements, Lan aims to deepen collaboration across key sectors amid shifting global supply chains.
13MP Expected To Focus On Green Technology, Digital Transformation, Social Protection – Academicians
KUALA LUMPUR, July 17 (Bernama) — The 13th Malaysia Plan (13MP) is expected to focus on green digital transformation, modernisation of high-tech industries and the empowerment of artificial intelligence (Al) as part of long-term strategies to build economic resilience and sustainable development. An expert in Finance and Entrepreneurship, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK), Professor Datuk Dr Nik Maheran Nik Muhammad said she anticipates the 13MP to be aligned with key policy documents such as the MADANI Economy framework, the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030.
She added that infrastructure development will be a critical pillar, with expected initiatives including the expansion of green transport networks, renewable energy grids and high-speed internet in rural areas. In the education sector, she foresees a continued focus on Technical and Vocational Education and Training (TVET), digital education and curriculum development for future-ready skills. For the health sector, she predicts that emphasis will be placed on preventive healthcare, telemedicine and the digitisation of national health records to improve service delivery and access across the population.
Building on the performance of the 13MP, he said the 13MP is likely to focus on balanced development, especially in Sabah and Sarawak, digital transformation, green economy initiatives, education and TVET reform, food security, energy security and strengthening the public health system post-COVID-19. The 13MP is scheduled for tabling in Parliament on July 31.
Editor’s Note: Malaysia is facing serious water supply challenges due to climate change, prolonged droughts, and pollution, especially in urban areas like Klang Valley. These issues threaten public health, biodiversity, and economic stability. To improve, Malaysia needs to modernize water infrastructure, enforce stricter pollution controls, and raise public awareness about water conservation. However, challenges like fragmented governance, high costs, and low public engagement make progress tough.
Website: https://www.bernama.com/en/general/news.php?id=2446211
Malaysia to Host Inaugural ASEAN AI Malaysia Summit 2025
PUTRAJAYA, 18 July 2025 –The Ministry of Digital officially announced the ASEAN AI Malaysia Summit 2025 from 12 – 13 August 2025 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur, a first-of-its- kind regional convergence designed to catalyse collaboration, governance, and innovation in artificial intelligence. This landmark event will bring together policymakers, industry leaders, researchers, and civil society from across the globe with a unified purpose: to shape a sustainable, secure, and inclusive AI future for Southeast Asia. The Summit underscores Malaysia’s leadership as the Chair of ASEAN and reflects its commitment to advancing responsible AI development through regional solidarity and action.
This flagship event will serve as a high-level platform to harmonise national strategies, align data governance standards, and unlock cross-border innovation opportunities. Discussions will span AI sovereignty, innovation, regulatory harmonisation, digital public infrastructure, talent development, and more.
The ASEAN AI Malaysia Summit 2025 is proud to be supported by a distinguished group of strategic partners, including the ASEAN Secretariat, ASEAN Foundation, EU- ASEAN, US-ASEAN Business Council, 500 Global, Alibaba Cloud, Grab, McKinsey and Women in Tech. These partners play a pivotal role in co-creating the Summit’s agenda, driving high-impact initiatives and shaping the region’s AI trajectory.
The Summit will also feature a special event, Youth Caucus, held in conjunction with Malaysia’s Chairmanship of ASEAN. This event is organised by KiniEvents and Malaysia Institute for Debate and Public Speaking (MIDP) in collaboration with NAIO, MyDIGITAL Corporation, Google and Khazanah Research Institute. This platform empowers young Malaysians to critically discuss AI’s societal impact, preparing them to meaningfully shape ASEAN’s digital future.
Editor’s Note: Malaysia’s hosting of the ASEAN AI Summit 2025 puts it on the map as a regional AI powerhouse, attracting global attention, investment, and collaboration. To truly capitalize, Malaysia must ramp up talent development, tighten public-private partnerships, and lead in setting ethical AI standards. But challenges like fragmented regulations, digital inequality, and trust in AI systems could slow progress if not tackled head-on.
Website: https://asean.org/malaysia-to-host-inaugural-asean-ai-malaysia-summit-2025/
Gobind: Generative AI could unlock RM479b for Malaysia’s economy, but must be a ‘force for good’
KUALA LUMPUR, July 27 — Widespread adoption of AI by businesses and workers in Malaysia is set to accelerate the nation’s economic growth across various sectors, said Digital Minister Gobind Singh Deo. In a statement today, Gobind said that Generative AI alone is projected to unlock up to USD113.4 billion in productive capacity for the country.
Speaking at the High-Level Meeting on Global AI Governance during the World Artificial Intelligence Conference 2025 in Shanghai, China, yesterday, he underscored the shared responsibility of countries worldwide to ensure that AI continues to be a force for good. Gobind said Malaysia welcomes the outcome document of the Global AI Governance Action Plan, and highlighted domestic efforts, including the establishment of the National AI Office (NAIO) last December to coordinate and drive the country’s AI agenda.
The Network, according to Gobind, will act as ASEAN’s regional platform for AI safety, facilitating best practice exchanges, research collaboration, standards development and responsible AI adoption. Gobind also said Malaysia will host two major global events this year, the inaugural ASEAN AI Malaysia Summit in August and the Smart Cities World Expo Kuala Lumpur in September, aimed at bringing together policymakers, industry leaders and academics to discuss AI, innovation and digital transformation.
Editor’s Note: Generative AI could inject up to RM479 billion into Malaysia’s economy, boosting productivity and innovation across sectors. To harness this potential, Malaysia is investing in ethical AI governance, talent development, and regional leadership through initiatives like the National AI Office and ASEAN AI Safety Network. However, challenges like misuse, cybersecurity risks, and the digital divide must be tackled to ensure AI becomes a force for good.
No hawker or small trader licences for foreigners, says Nga Kor Ming
KUALA LUMPUR, July 28 — Local authorities (PBT) have never allowed foreign nationals to apply for or hold hawker licences, small trader permits, or business premises licences, Housing and Local Government Minister Nga Kor Ming said today. Speaking during Question Time in the Dewan Rakyat, Nga stressed that this long-standing policy is in line with existing regulations under the hawkers by-laws as well as the trade, business, and industrial by-laws.
He was responding to Hulu Selangor MP Mohd Hasnizan Harun, who had asked about the current policy regarding foreign nationals operating businesses in Malaysia, particularly in the retail sector. He said the government is committed to supporting Malaysians by providing business opportunities at subsidised rental rates, which made it imperative to prevent misuse by foreigners.
Nga added a Malay proverb to emphasise the government’s stance: “The government will never allow a situation where, as the saying goes, kera di hutan disusukan, anak di rumah mati kelaparan.” The proverb tells of misplaced priorities in which kindness is shown to outsiders to the extent of neglecting one’s own family or responsibilities. He issued a stern warning to all licence holders, stating that local authorities will not compromise on any breach of licensing conditions.
Editor’s Note: Malaysia’s decision to ban foreigners from holding hawker and small trader licences aims to protect local livelihoods and ensure fair access to public business spaces. While it strengthens opportunities for Malaysians, it may limit cultural diversity and foreign entrepreneurial input. To improve, Malaysia should invest in digital enforcement, upskilling locals, and transparent policies. However, challenges like consistent enforcement, grey areas in employment, and public perception remain key hurdles.