Equinix to Invest $500 Million in Thailand to Meet Rising Digital Demand
Equinix has announced plans to invest $500 million in Thailand over the next decade, responding to the growing demand for digital services driven by Thailand’s “Cloud First” policy. This strategic investment includes a recent $34 million land acquisition in Bangkok’s Bangna area, where the company will establish two International Business Exchange (IBX) data centers, offering over 3,375 cabinets upon full completion. Located near Bangkok’s existing interconnection ecosystem and key transport routes, this location is positioned to enhance digital connectivity across Thailand and neighboring CLMV countries (Cambodia, Laos, Myanmar, and Vietnam).
Narit Therdsteerasukdi, secretary general of the Thailand Board of Investment, highlighted the strategic appeal of Thailand as a major hub for digital and cloud services in the region. Equinix’s Asia-Pacific vice president, Cyrus Adaggra, emphasized the company’s dedication to creating a robust digital ecosystem that integrates leading cloud providers and businesses. This expansion marks Equinix’s ongoing efforts to extend its Asia-Pacific footprint, with existing facilities across key metros in Australia, China, Japan, Singapore, and more.
https://www.frontier-enterprise.com/equinix-to-invest-500-mn-in-thailand-as-demand-for-digital-servicesrises/#:~:text=Equinix%20intends%20to%20invest%20%24500,Bangkok%20for%20US%2434%20million
Editor’s Note: Equinix is investing $500 million in Thailand over the next decade to meet the growing demand for digital services, driven by the country’s “Cloud First” policy. The investment includes a $34 million land acquisition in Bangkok, where two new data centers will enhance digital connectivity across Thailand and neighboring CLMV countries.
Thai Government to Amend Trade Laws, Address Economic Hurdles
Thailand’s government has committed to amending laws that hinder trade following a private sector proposal highlighting economic barriers. Spokesman Jirayu Houngsub stated that legal obstacles are costing the economy an estimated 100 billion baht annually. In response, Prime Minister Paetongtarn Shinawatra tasked Finance Minister Pichai Chunhavajira with coordinating solutions with businesses, focusing on economic stimulus, support for SMEs, water management, and competitiveness. Additionally, the Public Sector Development Commission Office has been asked to streamline procedural steps and address delays in licensing, which have affected the nation’s growth.
The prime minister also directed officials to counter the influx of low-cost Chinese products in the domestic market by requiring online importers to register and adhere to Thai tax and certification standards. This move comes as the National Economic and Social Development Council (NESDC) projects Thai economic growth to reach 2.3-2.8% in 2024, driven by tourism, increased consumption, and a gradual export recovery. However, the NESDC noted that political stability, swift budget disbursement, and climate change monitoring are essential for sustaining this growth.
https://www.bangkokpost.com/business/general/2892558/premier-requests-adjustment-of-laws-that-hamper-trade
Editor’s Note: Thailand’s government is set to amend trade laws that are reportedly costing the economy 100 billion baht annually, following a proposal from the private sector. Prime Minister Paetongtarn Shinawatra has tasked Finance Minister Pichai Chunhavajira with coordinating efforts to improve economic stimulus, support for SMEs, and reduce procedural delays in licensing. Additionally, the government plans to curb the influx of low-cost Chinese products by requiring online importers to comply with Thai tax and certification standards, aiming to boost competitiveness and support sustainable growth.
Thailand to Leverage AI for Competitive Edge in Free Trade Areas
Thailand is set to harness artificial intelligence (AI) to enhance trade competitiveness and optimize free trade area predictions, according to Commerce Minister Pichai Naripthaphan. At the Southeast Asia Trade and Development Forum 2024, Pichai highlighted Thailand’s position as a leader in AI and AI-based data center investments, with over 160 billion baht invested in data centers this year alone. The country aims to leverage AI for trend analysis and to support small and medium-sized enterprises (SMEs), enabling them to improve product quality and marketing efficiency with minimal costs. The Board of Investment recently reported significant investments, including Equinix’s 16.5 billion baht commitment to Thai data centers, as well as expanded manufacturing bases from global companies like HP Inc.
Pichai emphasized that AI could drive ASEAN integration by streamlining cross-border trade standards and reducing barriers. With AI-powered tools for analyzing market trends, trade flows, and investment risks, Southeast Asia has a unique opportunity to enhance productivity and leapfrog traditional development stages. According to a Google and Temasek report, AI could add up to US$1 trillion to Southeast Asia’s GDP by 2030. By equipping businesses and policymakers with advanced data insights, AI is expected to improve strategic decision-making, fostering growth across the region.
https://www.bangkokpost.com/business/general/2892443/country-to-utilise-ai-to-monitor-free-trade-areas
Editor’s Note: Thailand plans to leverage artificial intelligence (AI) to boost trade competitiveness and optimize predictions in free trade areas, with significant investments in AI-driven data centers. Commerce Minister Pichai Naripthaphan emphasized that AI will support SMEs, streamline cross-border trade, and enhance ASEAN integration, potentially adding up to $1 trillion to Southeast Asia’s GDP by 2030.
Thai Government Launches Digital and Green Funds to Boost SME Competitiveness
The Industry Ministry of Thailand has allocated over 10 million baht to support small and medium-sized enterprises (SMEs) in embracing digital technology and eco-friendly practices, with an eye on enhancing their competitiveness amid economic challenges. Assistant permanent secretary Nirada Visutthichardtada announced that 200 SMEs would be chosen to benefit from two new funds: the 5-million-baht Digital Transformation Fund, aimed at helping SMEs adopt appropriate digital tools, and the Sustainable Productivity Fund, also worth 5 million baht, to promote environmentally friendly operations. Targeted sectors include farm produce processing, fashion, and lifestyle businesses, with an expected economic boost of over 54 million baht from the digital fund alone.
The Sustainable Productivity Fund will focus on helping SMEs implement energy-saving and eco-friendly practices, aligning with Thailand’s goal of achieving carbon neutrality by 2050. Through better energy management, participating SMEs will not only cut operational costs but also contribute to reducing the country’s carbon footprint. Nirada emphasized the critical role of SMEs, which account for 35% of Thailand’s GDP, noting that these funds will support their adaptation to green and digital practices essential for future growth and market competitiveness.
https://www.bangkokpost.com/business/general/2891822/new-fund-to-encourage-smes-to-go-digitally-green
Editor’s Note: The Thai government has launched two new funds, totaling 10 million baht, to help SMEs embrace digital technology and sustainable practices. The Digital Transformation Fund and the Sustainable Productivity Fund aim to support SMEs in sectors like farm produce processing and fashion, with an expected economic boost of over 54 million baht. By promoting energy-saving measures and eco-friendly operations, these initiatives align with Thailand’s carbon neutrality goals and help SMEs stay competitive in a changing market.
Thailand Emerges as Key Hub for PCB Manufacturing with Mektec’s $920 Million Investment
The Board of Investment (BoI) is optimistic about the growth of Thailand’s printed circuit board (PCB) industry, as Mektec Manufacturing Corporation, a subsidiary of Japan’s NOK Corporation, recently invested 920 million baht to expand operations in the country. This makes Mektec the largest PCB manufacturer in Southeast Asia. Thailand, now among the world’s top five PCB manufacturing hubs, has attracted new investors and seen existing companies increase their local investments. The BoI has supported this growth by offering incentives to companies like Mektec, which specializes in flexible PCBs (FPCBs) for products such as electric vehicles (EVs), telecom, medical devices, and complex electronics.
Somchai Asawarungsaengkul, managing director of Mektec Thailand, stated that the company’s expanded production will meet rising demand, particularly in the EV industry. Mektec’s factory in Ayutthaya’s Bang Pa-in Industrial Estate, which employs 3,000 workers, sources 2.5 billion baht annually in local raw materials. The expansion aligns with Mektec’s vision to establish a smart factory and reinforce Thailand’s position in the global electronics supply chain, driven by advances in 5G, IoT, and artificial intelligence.
https://www.bangkokpost.com/business/general/2891266/boi-upbeat-on-outlook-for-pcb-sector
Editor’s Note: Mektec Manufacturing Corporation has invested 920 million baht to expand its operations in Thailand, positioning the country as a key hub for printed circuit board (PCB) manufacturing. With this expansion, Mektec becomes the largest PCB manufacturer in Southeast Asia, meeting growing demand, especially in the electric vehicle (EV) sector. Supported by the Board of Investment, Mektec’s smart factory in Ayutthaya strengthens Thailand’s role in the global electronics supply chain, driven by innovations in 5G, IoT, and AI.
Thailand Targets Digital Growth with Infrastructure Upgrades Announced at Bitkub Summit
Thailand is accelerating its push toward a digital-driven economy, with a major focus on upgrading its digital infrastructure. At the Bitkub Summit 2024, held in Bangkok on October 19-20, Deputy Prime Minister and Minister of Digital Economy and Society, Prasert Chantararuangthong, outlined the government’s plans to enhance the nation’s digital tools and infrastructure, strengthen data security regulations, and prioritize initiatives like the “cloud first” policy and e-government services. Prasert emphasized that these efforts aim to boost Thailand’s global competitiveness and support economic growth through a robust digital economy.
Echoing the government’s vision, Topp Jirayut Srupsrisopa, founder of the cryptocurrency exchange Bitkub, highlighted the digital economy’s role in helping Thailand overcome the middle-income trap, noting examples from China and Vietnam. Jirayut expressed hopes for the Bitkub Summit to become Thailand’s premier tech event, fostering public awareness and knowledge-sharing. This year’s summit featured over 20 global speakers and encouraged a sustainable approach to digital transformation, showcasing a collaborative effort between government initiatives and private-sector innovation as central to shaping Thailand’s economic future.
Digital economy minister seeks digital infrastructure upgrade
Editor’s Note: At the Bitkub Summit 2024, Thailand’s government outlined plans to upgrade its digital infrastructure, enhance data security, and prioritize initiatives like the “cloud first” policy to boost economic growth and global competitiveness. Deputy Prime Minister Prasert Chantararuangthong and Bitkub founder Topp Jirayut Srupsrisopa emphasized the role of the digital economy in overcoming the middle-income trap and positioning Thailand as a regional tech leader.
Thailand Rolls Out Biometric ID System at Major Airports for Streamlined Passenger Experience
Airports of Thailand (AOT) is launching an automated biometric identification system to enhance boarding procedures at six major airports, including Suvarnabhumi, Don Muang, Chiang Mai, Mae Fah Luang Chiang Rai, Phuket, and Hat Yai. From November 1, domestic passengers can use facial recognition technology to verify their identity, while the system will be fully available to international travelers by December 1. Passengers opting into the system can clear checkpoints without presenting passports or boarding passes, making check-in smoother and quicker, as each registration will be valid for one journey only.
AOT President Kirati Kitmanawat noted that the new system aligns with AOT’s goal of offering world-class travel experiences, adding that the biometric technology will free up passengers’ time to explore airport amenities. The shift comes amid rising travel demand, with AOT expecting passenger numbers at the six airports to reach nearly 130 million between October 2024 and September 2025, an increase of 8.95% year-on-year. Flight numbers are projected to rise to 808,280, with major growth anticipated at Suvarnabhumi and Don Muang airports due to the influx of international travelers, particularly from China, India, South Korea, Russia, and Japan.
https://www.nationthailand.com/business/tech/40042801
Editor’s Note: Airports of Thailand (AOT) is introducing an automated biometric ID system at six major airports, allowing domestic passengers to use facial recognition for quicker boarding starting November 1, with international travelers gaining access by December 1. The new system eliminates the need for passports or boarding passes, streamlining check-in and enhancing the passenger experience. AOT anticipates a rise in passenger numbers to 130 million for 2024-2025, driven by growing international travel, particularly from China, India, and other key markets.
Nvidia Eyes Major Investment in Thailand, CEO Jensen Huang to Visit Bangkok in December
Nvidia, a global leader in chip technology, is considering a significant investment in Thailand to promote the country as a regional hub for data centers and artificial intelligence (AI). According to Commerce Minister Pichai Naripthaphan, the investment aligns with Thailand’s ambitions to attract top tech companies, joining the ranks of Amazon, Google, and Microsoft, which have already invested in the nation. The move is expected to strengthen Thailand’s digital ecosystem and position it as a strategic player in the region’s tech landscape.
Nvidia CEO Jensen Huang is scheduled to visit Bangkok in December, where he is expected to announce further details about the company’s plans. While specifics regarding the investment amount and operational focus remain under wraps, the Commerce Minister noted that Nvidia’s entry could encourage other tech companies along the supply chain to invest in Thailand, further enhancing the country’s digital infrastructure and economic potential. More information about the venture is anticipated within the coming months.
https://www.nationthailand.com/business/tech/40042592
Editor’s Note: Nvidia is considering a major investment in Thailand to boost the country’s position as a regional hub for data centers and artificial intelligence, following in the footsteps of tech giants like Amazon, Google, and Microsoft. CEO Jensen Huang is set to visit Bangkok in December to reveal more details, with the investment expected to enhance Thailand’s digital ecosystem and attract further tech companies to the region.
Vietnamese Firms Struggle Against Low-Cost Chinese Products Flooding E-commerce Platforms
Vietnamese businesses are grappling with an influx of low-cost goods from Chinese e-commerce giants such as Temu, Taobao, and 1688, which are rapidly gaining popularity among local consumers. The availability of these affordable products, often with free delivery and competitive return policies, has made it difficult for Vietnamese companies to compete on price, as well as on quality and service. With Chinese products priced significantly lower than similar Vietnamese items, local companies are being forced to reduce their prices, eroding profit margins and market share. This trend has raised concerns about the long-term viability of Vietnamese enterprises in sectors such as household goods, fashion, and electronics.
Experts warn that, despite benefiting from low prices, Vietnamese consumers may face a weakened domestic market if local businesses cannot keep pace with their Chinese counterparts. The dominance of Chinese e-commerce platforms, which benefit from extensive logistics networks and subsidies, has fundamentally altered the Vietnamese retail landscape, spurring calls for improved infrastructure and government support for local firms. Industry leaders suggest that Vietnamese enterprises should focus on strengthening logistics, enhancing product quality, and exploring international markets to mitigate risks. Additionally, there are calls for a legal framework to protect Vietnam’s domestic market from foreign competition, as the presence of Chinese e-commerce platforms continues to grow.
https://tuoitrenews.vn/news/business/20241018/vietnamese-firms-grapple-with-lowcost-products-from-chinese-ecommerce-platforms/82486.html
Editor’s Note: Vietnamese businesses are struggling to compete with the influx of low-cost Chinese products flooding e-commerce platforms like Temu, Taobao, and 1688, which offer lower prices and attractive delivery policies. This has led to shrinking profit margins for local firms and raised concerns about the long-term health of the domestic market, prompting calls for better infrastructure, government support, and legal protections against foreign competition.
German Firm PNE AG Plans $4.6 Billion Offshore Wind Farm in Binh Dinh, Vietnam
Germany’s PNE AG is set to invest $4.6 billion in an offshore wind power project in Binh Dinh Province, south-central Vietnam, with plans to develop a facility capable of generating 2,000 megawatts of electricity. The project, which is expected to be executed in three phases, will see over $1.5 billion allocated to each phase, with the aim of significantly boosting the province’s renewable energy capacity. Provincial leaders have been collaborating with PNE AG since 2019 and have gained insights into the company’s technology through visits to its projects in Germany.
Binh Dinh’s Secretary Ho Quoc Dung highlighted the province’s favorable conditions for renewable energy development, citing its 134-kilometer coastline as ideal for offshore wind power. Once operational, the project is anticipated to generate approximately 7.1 billion kWh of electricity annually, enhancing national power security and supporting economic growth in the region. Additionally, it is expected to contribute about VND1.6 trillion ($62.9 million) to the provincial budget each year, marking a significant step forward for both Binh Dinh and Vietnam’s energy landscape as PNE expands its operations in Asia.
https://tuoitrenews.vn/news/business/20241023/german-firm-seeks-to-develop-46bn-offshore-wind-farm-in-southcentral-vietnam/82569.html
Editor’s Note: Germany’s PNE AG is investing $4.6 billion in an offshore wind farm project in Binh Dinh, Vietnam, aiming to generate 2,000 megawatts of electricity across three phases. The project is expected to boost the province’s renewable energy capacity, contribute $62.9 million annually to the local budget, and enhance Vietnam’s national power security.
Ho Chi Minh City Launches SoiHub: A New Innovation Ecosystem for Businesses
Ho Chi Minh City has officially launched SoiHub, an innovative ecosystem designed to support businesses and foster high aspirations within Vietnam’s Startup and Innovation Ecosystem (S&I). Inaugurated at the Tech Valley building in Quang Trung Software City on October 25, 2024, SoiHub is the result of a 15-year partnership with Finland, aimed at addressing challenges in innovation, policy, and human resources for both domestic and international companies. The center will provide a unique talent incubation space and prototype technologies, emphasizing green growth initiatives that differentiate it from other hubs across the country.
Key features of SoiHub include its role as an international gateway connecting various stakeholders, such as government entities, tech startups, and educational institutions. With partnerships established with major corporations like Samsung and Qualcomm, as well as collaborations with 20 local governments and 75 universities, SoiHub aims to develop a talent sandbox for startups to engage with advanced technologies and innovative business models. The ecosystem will also facilitate favorable conditions for tech companies setting up in the Quang Trung Software City, including tax exemptions of up to 11 years, ensuring easy access to critical areas of the city and accelerating Vietnam’s development in key sectors.
https://tuoitrenews.vn/news/business/20241026/ho-chi-minh-city-launches-new-innovation-ecosystem-for-businesses/82613.html
Editor’s Note: Ho Chi Minh City has launched SoiHub, a new innovation ecosystem at Quang Trung Software City, designed to support businesses and foster green growth initiatives. Established through a 15-year partnership with Finland, SoiHub connects startups, government entities, and major corporations like Samsung and Qualcomm, offering talent incubation, advanced technologies, and tax incentives to boost Vietnam’s tech development.
MARC and Impac+ Forge Partnership to Enhance ESG Advisory and Sustainable Finance in Indonesia
Malaysian Rating Corporation Berhad (MARC) and Indonesian sustainability consultancy Impac+ have signed a Memorandum of Collaboration (MoC) to strengthen their alliance in Environmental, Social, and Governance (ESG) advisory services and sustainable finance solutions. The signing ceremony, held in Jakarta on October 18, 2024, signifies a pivotal step in addressing the increasing demand for innovative and localized sustainable finance initiatives in Indonesia. The partnership will focus on bespoke consulting services and upskilling initiatives, aimed at empowering businesses and industries to effectively integrate ESG principles into their operations.
Both Arshad Mohamed Ismail, Group CEO of MARC, and Rizky Wisnoentoro, CEO of Impac+, expressed their enthusiasm for the collaboration. Ismail emphasized MARC’s commitment to promoting sustainability best practices and contributing to a holistic sustainability landscape in Indonesia, while Wisnoentoro highlighted the significance of combining resources to address the country’s unique sustainability challenges. This partnership reflects MARC’s dedication to expanding its influence in the regional ESG landscape, supporting the development of a robust ESG ecosystem through strategic collaborations that align with the growing emphasis on sustainable finance and responsible investment.
https://www.marc.com.my/latestmarc/marc-and-impac-collaborate-to-enhance-esg-and-sustainability-initiatives-in-indonesia/
Editor’s Note: MARC and Impac+ have formed a partnership to enhance ESG advisory services and sustainable finance in Indonesia, focusing on bespoke consulting and upskilling initiatives. The collaboration aims to empower businesses to integrate ESG principles into their operations and address the country’s unique sustainability challenges.
Indonesia Bans iPhone 16 Over Unfulfilled Investment Commitments by Apple
Indonesia has officially banned the import and use of Apple’s iPhone 16, as announced by Industry Minister Agus Gumiwang Kartasasmita. The decision comes in light of Apple’s failure to meet its promised investments and requirements for locally produced components in the country. While Apple holds a leading position in the premium smartphone segment, the ban is indicative of the new government’s assertive stance on enforcing regulations and compliance, particularly as the country grapples with its evolving economic landscape.
Although the ban is not expected to significantly impact Apple’s overall revenues, it highlights Indonesia’s determination to bolster its domestic technology sector and ensure compliance with investment commitments from foreign companies. As the world’s fourth most populous nation, Indonesia is seeking to promote local production and sustainable growth, emphasizing the need for multinational corporations to align with national development goals. The recent political changes, with a new government in place, signal a shift toward a more assertive regulatory environment in the tech industry.
https://www.theregister.com/2024/10/27/asia_tech_news_in_brief/
Editor’s Note: Indonesia has banned the import and use of Apple’s iPhone 16 due to the company’s failure to fulfill investment commitments and local component production requirements. This move reflects the government’s stronger stance on enforcing regulations and promoting local production, particularly in the tech sector. While it may not significantly affect Apple’s global revenues, the ban underscores Indonesia’s push for sustainable growth and compliance with national development goals in its evolving economic landscape.