Institute Unveils Action Plan to Tackle Shifts in Global Trade and Industry
The International Institute for Trade and Development is preparing to present a comprehensive action plan to cope with evolving global trade regulations and supply chain challenges. The plan, expected to be presented in November to Thailand’s Commerce Ministry, Thai Chamber of Commerce, and the Federation of Thai Industries, comes in response to rising production costs, labor shortages, outdated trade policies, and geopolitical tensions. Executive Director Suphakit Chareonkul highlighted the rapid changes in labor and environmental standards, technological advancements, and global conflicts as key factors complicating Thailand’s export policies and production patterns.
In a bid to boost collaboration between the public and private sectors, the institute recently concluded its Leadership Program on Trade and Development Strategy, which saw 81 executives from various industries developing innovative policy recommendations. The program focused on tourism, agriculture, food, automotive, logistics, and energy, with the aim of fostering growth and adaptability in these sectors. The institute also launched the Trade Intelligence Center to support micro, small, and medium-sized enterprises (MSMEs) in adapting to global trends, emphasizing green energy, alternative logistics solutions, and access to financial support for technology and innovation.
https://www.bangkokpost.com/business/general/2876128/plan-to-help-firms-tackle-trade-barriers
Editor’s Note: The International Institute for Trade and Development is set to unveil a comprehensive action plan in November to address the evolving challenges in global trade, including rising production costs and geopolitical tensions. This initiative aims to enhance collaboration between public and private sectors, fostering growth and adaptability across key industries while supporting micro, small, and medium-sized enterprises in navigating global trends and embracing green energy solutions.
Thailand to Establish SME-Focused Industrial Estate in Eastern Economic Corridor
The Industrial Estate Authority of Thailand (IEAT) is set to develop a new industrial estate in the Eastern Economic Corridor (EEC) tailored specifically for small and medium-sized enterprises (SMEs). Acting IEAT Governor Sumet Thangprasert revealed that part of an existing industrial estate owned by the authority would be dedicated to supporting SMEs, offering a more affordable solution for businesses with limited budgets. The initiative aligns with Industry Minister Akanat Promphan’s commitment to enhancing financial and technical support for SMEs, which play a vital role in Thailand’s economic growth.
This new industrial estate, set within Thailand’s high-tech industrial hub spanning Chon Buri, Rayong, and Chachoengsao, will offer SMEs access to essential facilities under build-to-suit leases at reasonable costs. The government also aims to promote eco-friendly manufacturing and digital technology within the estate. In collaboration with the Small and Medium Enterprise Development Bank of Thailand (SME D Bank), the IEAT plans to provide SMEs with improved financial access, offering them a valuable opportunity to grow and compete within Thailand’s key targeted industries, including next-generation automotive and smart electronics.
https://thethaiger.com/news/business/thailand-to-develop-sme-focused-industrial-estate-in-eec
Editor’s Note: The Industrial Estate Authority of Thailand (IEAT) is developing a new industrial estate in the Eastern Economic Corridor specifically for small and medium-sized enterprises (SMEs), offering affordable facilities to support businesses with limited budgets. This initiative, part of a broader commitment to enhance financial and technical support for SMEs, aims to promote eco-friendly manufacturing and digital technology, while facilitating improved access to financing through collaboration with the Small and Medium Enterprise Development Bank of Thailand.
Excise Department Proposes Carbon Tax to Curb Emissions in Thailand
The Excise Department is set to introduce a carbon tax on refined oil, initially mirroring Singapore’s rate, with plans to charge 200 baht per tonne of carbon, according to Director-General Ekniti Nitithanprapas. The tax, awaiting cabinet approval, will not impact the general public’s oil usage, as the current excise tax on oil remains unchanged. The carbon tax aims to incentivize businesses to reduce emissions, aligning with Thailand’s commitment to cut greenhouse gas emissions by 30-40% by 2030, achieve carbon neutrality by 2050, and net-zero emissions by 2065.
In line with environmental goals, the department also plans to propose a 0% tax rate on bioethylene to promote bioplastic production, and on modified passenger vans for disabled individuals. As an ESG-focused agency, the department previously implemented a sugar tax to reduce public health risks, successfully leading manufacturers to lower sugar levels in beverages. Over the first 11 months of fiscal 2024, the department reported 482 billion baht in revenue, with a target of 600 billion baht for fiscal 2025.
https://www.bangkokpost.com/business/general/2875228/department-mulls-carbon-tax-collection
Editor’s Note: The Excise Department in Thailand is set to introduce a carbon tax on refined oil, initially matching Singapore’s rate at 200 baht per tonne of carbon, pending cabinet approval. This tax aims to incentivize emission reductions in line with Thailand’s environmental commitments, while also proposing a 0% tax rate on bioethylene to encourage bioplastic production and support modified passenger vans for disabled individuals.
Siam Cement CEO Calls for Business-Government Collaboration on Green Economy
Thammasak Sethaudom, president and CEO of Siam Cement Group (SCG), urged for stronger collaboration between businesses and the government to accelerate the transition to a low-carbon society. Speaking at the Sustainability Expo 2024, Thammasak outlined SCG’s green initiatives and called for supportive legislation, clean energy accessibility, and household solar solutions to drive sustainability. He also recommended tax incentives, green financing, and the creation of a carbon registration agency to help businesses monitor and manage their emissions.
In addition, Thammasak emphasized the need for technological innovation and the development of green infrastructure to enhance circular energy systems, while advocating for skill development programs to support SMEs in the green transition. Deputy Prime Minister Prasert Jantararuangtong voiced the government’s commitment to considering and potentially implementing these recommendations to foster a unified effort toward achieving environmental sustainability.
Editor’s Note: Thammasak Sethaudom, CEO of Siam Cement Group, emphasized the need for stronger collaboration between businesses and the government to facilitate the transition to a low-carbon society at the Sustainability Expo 2024. He called for supportive legislation, clean energy accessibility, and tax incentives, while Deputy Prime Minister Prasert Jantararuangtong expressed the government’s commitment to exploring these recommendations to enhance environmental sustainability.
Thailand to Expand Solar Power Purchases from Households to Boost Clean Energy
Thailand’s energy authorities are considering increasing the purchase of solar power from households as part of efforts to promote clean energy and expand rooftop solar panel installations. The National Energy Policy Administration Committee previously approved a plan to buy 90 megawatts (MW) of solar power from households by 2030, but recent calls from businesses and lawmakers have prompted a push to raise this limit. Under the new power development plan (PDP), which aims to increase renewable energy use to 51% by 2037, solar power will play a central role, with the target set at 24,412MW, up from 2,863MW earlier this year.
The Energy Ministry is also offering incentives, including a new tax reduction scheme for 90,000 households from 2024 to 2027, to encourage more solar installations. The plan allows homeowners to sell excess electricity to the state grid, with a tariff set at 2.2 baht per kilowatt-hour on average. Solar panel distributors, like New Energy Plus Solutions Co., have voiced support for these initiatives, viewing them as crucial tools to reduce carbon emissions and support Thailand’s green energy transition.
https://www.bangkokpost.com/business/general/2874608/solar-power-push-for-household-rooftops
Editor’s Note: Thailand’s energy authorities are considering increasing solar power purchases from households to promote clean energy and expand rooftop installations, with plans to raise the current target of 90 megawatts by 2030. The Energy Ministry is introducing incentives, including a tax reduction scheme for 90,000 households and the ability for homeowners to sell excess electricity to the grid, which is seen as vital for reducing carbon emissions and advancing Thailand’s green energy transition.
Thailand Climbs to 41st in Global Innovation Index, Boosted by Private Sector R&D
Thailand has advanced two spots to 41st in the 2024 Global Innovation Index (GII), out of 133 economies, driven largely by private sector investment in research and development (R&D), according to the National Innovation Agency (NIA). The country improved in both innovation input and output rankings, reflecting effective use of its resources. Thailand has held the top spot for the share of GDP spent on R&D by businesses for five consecutive years, underscoring the private sector’s commitment to innovation. The nation is also revising its intellectual property laws and launching a fast-track registration process to meet international standards.
NIA executive director Krithpaka Boonfueng highlighted efforts to strengthen Thailand’s global brand in intellectual property rights, while experts like Sacha Wunsch-Vincent from the World Intellectual Property Organization (Wipo) urged Thailand to form a national task force to further promote innovation. Government agencies are also working to support startups and creative industries, with a focus on intellectual property, soft power, and human development. The Commerce Ministry aims to reduce the time needed for patent and trademark approvals, enhancing Thailand’s global competitiveness in innovation.
https://www.bangkokpost.com/business/general/2873416/thailand-rises-in-global-innovation-index
Editor’s Note: Thailand has climbed to 41st in the 2024 Global Innovation Index, largely due to increased private sector investment in research and development, according to the National Innovation Agency. The country continues to lead in R&D spending as a share of GDP, while also revising its intellectual property laws and implementing measures to support startups and enhance its global competitiveness in innovation.
Thailand to Build First Silicon Carbide Chip Factory in Joint Venture
The Thailand Board of Investment (BOI) has approved an 11.5-billion-baht joint venture between Hana Microelectronics and PTT to build the country’s first silicon carbide (SiC) chip factory. Set to be operational by the first quarter of 2027, the factory will produce SiC wafers for use in power electronics, electric vehicles (EVs), data centers, and energy storage systems. Narit Therdsteerasukdi, BOI secretary general, stated that the plant, located in the Saha Group Industrial Park, Lamphun Province, will receive technology transfer from a leading South Korean chipmaker to produce 6-inch and 8-inch SiC wafers.
Narit emphasized the significance of the project in advancing Thailand’s semiconductor industry, citing the country’s low geopolitical risk, competitive costs, and strong infrastructure as key factors for its selection. The initiative is expected to boost Thailand’s position in the upstream semiconductor sector, create jobs, and foster collaboration with local universities to develop science and technology talent. The factory will also contribute to Thailand’s growing EV, energy storage, and data center industries, potentially attracting further investments from leading electronics manufacturers.
https://www.nationthailand.com/business/tech/40041730
Editor’s Note: Thailand’s Board of Investment has approved an 11.5-billion-baht joint venture between Hana Microelectronics and PTT to establish the country’s first silicon carbide (SiC) chip factory, set to begin operations by the first quarter of 2027. Located in Lamphun Province, the factory will produce SiC wafers for various applications, including power electronics and electric vehicles, while also enhancing Thailand’s semiconductor industry and creating jobs through collaboration with local universities.
Cabinet Approves 7.1 Billion Baht for EV3.0 Subsidies Amid Pending Reimbursements
The Thai Cabinet has approved an additional 7.13 billion baht to support reimbursements for battery electric vehicle (BEV) manufacturers under the expired EV3.0 subsidy scheme, according to Jirayu Huangsap, the Prime Minister’s advisor for public relations. While the EV3.0 program has been replaced by the more modest EV3.5 package, manufacturers are still claiming subsidies for BEVs sold under the previous scheme. The Finance Ministry had initially estimated needing 11.92 billion baht in total but has so far paid out only 6.897 billion baht.
In addition to the pending 5.02 billion baht owed, the ministry will require a further 2.11 billion baht to cover subsidies for an additional 16,500 BEVs that manufacturers have indicated they are ready to produce under the EV3.0 scheme. This brings the total additional requirement to 7.13 billion baht, which the Cabinet has now approved.
https://www.nationthailand.com/business/automobile/40041790
Editor’s Note: The Thai Cabinet has approved an additional 7.13 billion baht to reimburse battery electric vehicle (BEV) manufacturers under the expired EV3.0 subsidy scheme, addressing pending claims despite the transition to the new EV3.5 package. This funding will cover the 5.02 billion baht owed and an additional 2.11 billion baht for 16,500 BEVs that manufacturers are prepared to produce under the previous scheme.
Vietnam Unveils Ambitious Semiconductor Development Strategy with Focus on Workforce Expansion
The Prime Minister of Vietnam has approved a semiconductor development strategy aimed at transforming the country into a global electronics and semiconductor hub by 2050. The strategy, which will be implemented in three phases, focuses on selective foreign investment, workforce expansion, and infrastructure growth. By 2030, Vietnam aims to establish a network of 100 chip design firms, one semiconductor manufacturing factory, and 10 chip packaging and testing facilities, alongside training 50,000 engineers. The following phases, through 2040 and 2050, will see the country increase its engineering workforce to 100,000 and build two more semiconductor factories and 15 additional testing plants.
Human resource development is central to Vietnam’s semiconductor ambitions. The government plans to train 100,000 engineers by 2050, with universities already adapting their programs to meet the demands of the growing industry. Vo Xuan Hoai, deputy director of the Vietnam National Innovation Center, emphasized the critical role of human resources in driving the sector’s future. Despite challenges in rapid workforce training, collaboration between educational institutions and industry is expected to be key in fostering the talent necessary to achieve Vietnam’s semiconductor goals.
Editor’s Note: Vietnam’s Prime Minister has approved an ambitious semiconductor development strategy aimed at positioning the country as a global electronics and semiconductor hub by 2050, with plans to establish 100 chip design firms and one semiconductor manufacturing factory by 2030. Central to this initiative is workforce expansion, with the government targeting the training of 100,000 engineers by 2050, emphasizing collaboration between educational institutions and industry to meet the demands of the growing sector.
SpaceX to Invest $1.5 Billion in Starlink Satellite Internet Expansion in Vietnam
U.S.-based SpaceX, led by billionaire Elon Musk, plans to invest $1.5 billion to bring its Starlink satellite Internet services to Vietnam, as announced by Tim Hughes, SpaceX’s senior vice president for global business, during a meeting with Vietnamese Party General Secretary To Lam in New York. The investment aims to support Vietnam’s digital transformation efforts and provide universal Internet access, utilizing SpaceX’s 6,000 satellites in low earth orbit. Hughes emphasized Vietnam’s potential as a key market for Starlink’s global expansion and highlighted the company’s commitment to aiding the country’s development.
The Vietnamese leader expressed strong support for SpaceX’s initiative, underscoring the importance of digital transformation to Vietnam’s future. He also thanked SpaceX for its offer of assistance following the recent devastation caused by Typhoon Yagi in northern Vietnam. In a separate meeting with Prime Minister Pham Minh Chinh, Hughes praised Vietnam’s favorable investment climate and highlighted Starlink’s potential to enhance education, training, and disaster prevention through improved Internet access, urging Vietnam to prepare the necessary infrastructure for the project.
Editor’s Note: SpaceX plans to invest $1.5 billion to expand its Starlink satellite Internet services in Vietnam, aiming to support the country’s digital transformation and provide universal Internet access through its 6,000 satellites in low earth orbit. During discussions with Vietnamese leaders, SpaceX’s senior vice president Tim Hughes emphasized Vietnam’s potential as a key market and highlighted the importance of improved Internet access for education, training, and disaster prevention, while expressing gratitude for Vietnam’s support following Typhoon Yagi.
Bali Aims to Enhance Indonesia’s Semiconductor Ecosystem, Says Economic Minister
Indonesia’s Kura-Kura Bali Special Economic Zone (KEK) is set to strengthen the nation’s digital semiconductor ecosystem, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. Speaking at the “Shaping the Future Economy: AI & Semiconductor” event in Denpasar, Airlangga emphasized the importance of evolving the semiconductor sector to improve Indonesia’s digital infrastructure. He highlighted the potential for significant growth in the digital economy, currently valued at approximately $82 billion, with projections to reach $300 billion by 2030.
In a bid to bolster this growth, Airlangga proposed that China’s Tsinghua University establish a youth center within the KEK to support the development of Indonesian youth in the semiconductor field. This initiative aims to enhance collaboration and innovation, further advancing Indonesia’s digital ecosystem. The success of this plan will depend on the effective implementation of the Digital Economy Framework Agreement by ASEAN nations, which is crucial for the region’s technological advancement.
https://www.techinasia.com/news/bali-strengthen-semiconductor-ecosystem-minister
Editor’s Note: Indonesia’s Kura-Kura Bali Special Economic Zone (KEK) aims to enhance the nation’s semiconductor ecosystem, as highlighted by Coordinating Minister for Economic Affairs Airlangga Hartarto at a recent event in Denpasar. He proposed the establishment of a youth center by China’s Tsinghua University within the KEK to support the development of local talent in the semiconductor field, emphasizing that the success of this initiative relies on effective collaboration among ASEAN nations under the Digital Economy Framework Agreement.
Indonesia’s CarbonEthics Raises $2.1 Million to Advance Climate Solutions
CarbonEthics, an Indonesia-based developer focused on natural climate solutions, has successfully secured $2.1 million in a seed funding round led by Intudo Ventures, with contributions from angel investors. This recent funding will enable the company to acquire additional carbon projects and expand its team of technical experts. By 2030, CarbonEthics aims to manage 8 million hectares of land, enhancing its impact on carbon reduction efforts.
Founded in May 2019, CarbonEthics specializes in blue carbon ecosystems while also addressing peatland and green ecosystems. The company is dedicated to restoring environments that assist businesses in lowering their carbon emissions. This latest financing follows a previous $220,000 pre-seed round completed earlier in 2023, backed by Spiral Ventures and Ecoxyztem. With pre-feasibility studies conducted across over 4.2 million hectares, CarbonEthics is poised to potentially yield more than 1 million tonnes of verified CO2e annually through its initiatives.
https://www.techinasia.com/news/indonesias-carbonethics-secures-21m-climate-solutions
Editor’s Note: CarbonEthics, an Indonesia-based developer of natural climate solutions, has raised $2.1 million in a seed funding round led by Intudo Ventures to acquire more carbon projects and expand its technical team. The company aims to manage 8 million hectares of land by 2030, focusing on blue carbon ecosystems and restoring environments to help businesses reduce their carbon emissions, with potential annual yields exceeding 1 million tonnes of verified CO2e.