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Production and sales of EVs to rise again this year: FTI

The Federation of Thai Industry (FTI) expects the production of electric vehicles (EV) to soar to almost 2 million units this year and sales of EVs to reach 190,000 units.
According to Surapong Paisitpattanapong, vice president and spokesperson of the FTI's automotive industry club, the EV vehicles production target for this year is 1.9 million vehicles, up from 1.8 million vehicles in 2023.
The increase in production will be driven by strong demand from both the domestic and export markets. This is based on expectations that the Thai economy will grow by 3.5% in 2024, which will boost domestic demand for vehicles, while the export market is also expected to remain strong, as demand for Thai-made vehicles continues to grow in key markets such as the United States, Europe, and ASEAN.
The FTI also expects EVs to continue to grow in popularity this year. The association has set a sales target of 190,000 EVs for this year, up from 160,000 EVs in 2023.
The growth of EVs is being driven by government incentives, such as tax breaks and subsidies for EV purchases. The government is also investing in the development of EV infrastructure, such as charging stations.
It is anticipated that more jobs will be created in the Thai automotive industry, which currently employs more than 1 million people and generates billions of baht in revenue.

Source : THE NATION

Cambodia trade volume with Indonesia reaches $1.1 billion in 2023

Indonesia advanced from Cambodia’s 12th to 6th largest trading partner in 2023, with trade volume between the two countries reaching nearly $1.1 billion, marking an increase of almost 15% compared to 2022, as reported by the General Department of Customs and Excise (GDCE).

Bilateral trade between the two nations stood at $1.09 billion for 2023, rising 14.6% compared to $948.53 million year-on-year, representing 2.32% of Cambodia’s total international trade, which totalled $46.83 billion. 

Exports to Indonesia amounted to $92.74 million, surging by 151.7%, while imports of Indonesian goods stood at $994.6 million, an increase of 9.1%.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on February 6 that as members of ASEAN and the Regional Comprehensive Economic Partnership (RCEP), trade between the two countries is expected to grow, particularly with the improvement in global economic conditions. 

He noted, however, that the country’s significant trade deficit necessitates greater efforts from the government and private sector to produce goods that meet Indonesian demand. 

“The increase in trade volume signifies enhanced diplomatic and trade relations between the two nations, but Cambodia needs to exert more effort to bridge the export value gap. Given Indonesia’s large population, it would be beneficial if our goods could penetrate their market more effectively,” he said. 

Vanak anticipates that, through the efforts of the public-private sector, the country’s exports to Indonesia will continue to increase in 2024.

For full article, please read here


Reporter: Hin Pisei
Source: The Phnom Penh Post 

Cambodia: Investment allure bolstered with surge in industrial sector projects

Investment projects in Cambodia's industrial sector have been on the rise, comprising over 90% of all ventures approved by the Council for the Development of Cambodia (CDC) in 2023. 

A total of 268 investments were approved in 2023, comprising 247 new undertakings and 21 production expansion projects, according to a CDC press release. 

The financing, valued at $4.9 billion, is expected to create more than 300,000 jobs. 

The CDC noted that the sector accounted for approximately 92.54% (248 projects) of the total number, contributing about 46% of total capital investment. 

The projects include the establishment of a cement factory in Battambang province, a motorcycle assembly expansion project and a solar panel manufacture and assembly factory.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on February 12 that the country’s favourable geographical location, political stability, economic growth, investment laws, transport infrastructure, labour, markets and preferential tariffs from major countries are key factors in attracting national and international investors to establish factories and enterprises. 

He stated that free trade agreements (FTAs), such as those with China (CCFTA), South Korea (CKFTA), the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-United Arab Emirates Comprehensive Economic Partnership (CAM-UAE CEPA), also play an important role in drawing financers.

"Cambodia is increasing its potential to lure investors, particularly in recent years, with the emergence of numerous large-scale factory initiatives. These include the automobile assembly-manufacturing industry, tyre production and the manufacture of components, machinery and electrical equipment, with more factories using advanced technology," Vanak said.

For full article, please read here


Reporter: Hin Pisei
Source: The Phnom Penh Post 

Thailand and Sri Lanka ink free trade agreement to enhance bilateral commerce

Thailand and Sri Lanka signed a FTA to boost trade, expand to South Asia, and cooperate on clean energy and more.

Thailand and Sri Lanka Sign Free Trade Agreement to Enhance Bilateral Trade

Thailand and Sri Lanka signed a free trade agreement aimed at enhancing market opportunities and fostering economic growth for both countries.

The FTA covers trade in goods, investment, customs procedures, and intellectual property rights, providing tremendous business opportunities for the private sectors of both nations.

The agreement is expected to benefit Thailand’s exports of automotive parts, textiles, electrical appliances, machinery, steel products, paper, processed food, and animal feed, while also promoting liberalized air services between the two countries.

Thailand and Sri Lanka officially signed a free trade agreement (FTA) in Colombo, with the aim of strengthening bilateral trade. Prime Minister Srettha, who was present at the signing, stated that this FTA is the second of its kind between the two countries.

In his Facebook post, he also mentioned that the Free Trade Agreement (FTA) will enable Thailand to broaden its trade to other markets in South Asia, while offering Sri Lanka the opportunity to utilize Thailand as a base for enhancing trade with other ASEAN countries.

Opportunities for Thai Companies to Utilize Sri Lankan Infrastructure and Tax Privileges

Given that many Thai companies are already operating in Sri Lanka, the prime minister highlighted that the FTA will create the opportunity for these companies to make use of Sri Lanka’s infrastructure and tax benefits to expand their trade to other nations. Additionally, the agreement on air travel services and the potential for visa-free travel between the two countries are expected to promote air travel and further enhance trade relations.

Government Relaxes Golden Visa Rules for Foreign Investors at IKN

Director general of immigration at the Law and Human Rights Ministry (Kemenkumham), Silmy Karim, said that the golden visa requirements have been eased for investors, especially foreign companies, wishing to invest in the new capital city Nusantara (IKN). Requirements for foreign companies wishing to invest in IKN have been lowered from a minimum investment of 25 million US dollars to US$5 million for a stay of 5 years while for a stay of 10 years, it has been lowered from US$50 million to US$10 million. In addition, foreign companies seeking to open branches or subsidiaries in the new national capital will be exempt from turnover requirements (sales value) at their parent companies — a requirement for foreign companies opening branches or subsidiaries outside IKN. The applications for visas with the E28F index can be submitted online via the website evisa.imigrasi.go.id.. A passport with a minimum validity of six months and a photograph will need to be attached with the application. The other documents that will need to be submitted include a statement of commitment to build a company at IKN with an investment value of at least US$5 million (for a stay of five years) or at least US$10 million (for a stay of 10 years). In January 2024, 62 golden visas were issued, Karim said. The director general expressed the hope that the policy could increase the quantum of investment entering IKN.

Source: click here

ASEAN-EU Agree to Intensify Trade and Investment Relations

The 24th ASEAN-EU Ministerial Meeting, held in Brussels, Belgium, on Feb 2, agreed to further intensify trade and investment relations between countries as the EU being ASEAN’s third-largest foreign investor and third-largest trading partner in 2022.During the meeting, ASEAN re-emphasized the importance of finding solutions to long-standing market access problems. Both parties also welcome opportunities to increase trade and investment through bilateral free trade agreements, strengthen connectivity and economic relations between the two regions, and increase sustainable development for both parties, such as through the ASEAN-EU Joint Working Group on Trade and Investment (JWG). ASEAN and the EU also reaffirmed the shared values and common interests that underlie the 47 years of ASEAN-EU Dialogue Relations and expressed satisfaction with the comprehensive and diverse nature of dynamic partnerships. Furthermore, ASEAN reaffirmed its ongoing commitment to support Timor-Leste joining ASEAN that is in line with the Roadmap for its full membership in the ASEAN. The meeting also noted that the EU's support for Timor-Leste joining the World Trade Organization (WTO) will help its integration into the global economy and regional architecture.
 
Source: click here

ASEAN for Business Jan 2024: ASEAN Sets Course for a Carbon Neutral Future

Learn more about the recently adopted ASEAN Strategy for Carbon Neutrality and the eight adopted strategies to accelerate ASEAN's journey to a carbon neutral future in the ASEAN for Business Bulletin January 2024 edition.

The bulletin also features the Opinion-editorial from Aparna Badharwaj and Marko Lackovic, Partner and Managing Director of Boston Consulting Group, on the strategy.

View and download the bulletin here.

‘Centre of gravity’ for regional aviation

Brunei Darussalam is “poised to be the aviation centre of gravity”, for the Southeast Asia region, according to AeroAsia Holdings Corporation, a company leading an international collaboration venture to support the country’s aviation industry.

A memorandum of understanding (MoU) was signed by AeroAsia with a number of other companies to support this development at a signing ceremony at The Rizqun International Hotel on Friday.

AeroAsia said that as of 2023, the aviation services market is valued at approximately USD130 billion, adding that Airbus projects that this valuation is expected to nearly double to USD255 billion by 2042.

Airbus forecasts a demand for 40,850 new passenger and freighter aircraft deliveries over the next 20 years. At the same time, Boeing projects that Southeast Asia will represent 70,000 new pilots, 130,000 new technicians and 210,000 new cabin crews between 2030 and 2042, according to the company.

It said the Sultanate is geographically located at the centre of Southeast Asia with a flight time radius of within three hours.

“Brunei represents a strategic base of operations to train aviation personnel and service aircrafts within the region,” it said.

Source: Borneo Bulletin

Read the full article here

Unleashing Brunei’s start-up potential

The inaugural Brunei Startup Summit 2024, held at The Rizqun International Hotel, Gadong yesterday, gathered local and international start-ups, aspiring entrepreneurs, industry experts, investors, and stakeholders.

Organised by the Brunei Economic Development Board (BEDB) in collaboration with Darussalam Enterprise (DARe) and the Brunei Innovation Lab (BIL), the summit aims to promote growth, collaboration and innovation within the Sultanate’s start-up ecosystem, under the theme ‘Innovate to Elevate: Charting the Path to a Future of Possibilities’.

Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah, as the Chairman of the BEDB and DARe, officiated the event.

Acting Chief Executive Officer (CEO) of BEDB and DARe Daniel Leong expressed gratitude to the stakeholders involved in coordinating the summit.

He highlighted the event’s goal of uniting start-ups, ecosystem builders, and venture builders to create a collaborative environment for mutual learning, sharing insights, discussing industry trends, and engaging in dialogue sessions.

Source: Borneo Bulletin

Read the full article here

BOI offers investment incentives to draw chip manufacturers

The Thai government is looking to attract investment in the chip industry, with the Board of Investment (BOI) planning to hold talks with major producers later this year.
The government has tasked the Industry Minister and the BOI to accelerate investment in upstream electronics industries such as chips.
The electronics industry is one of the three target industries identified by Prime Minister Srettha Thavisin. The aim is to attract investment to upgrade industries and technologies in Thailand in the fields of digital business, electronics and electric vehicles (EV).
The government has identified the chip industry as a key priority for its economic development plans. Chips are essential components for a wide range of modern industries, including electronics, automotive and telecommunications.
The Board of Investment is offering a range of incentives to attract chip investment, including tax breaks, land subsidies and support for workforce development, its secretary general Narit Therdsteerasukdi said.
Chips are becoming a global strategic product in the transition to smart electronics and digital, as well as in the development of generative AI and digital transformation, which has generated a huge demand for cloud services around the world, Narit added.
Investors have already chosen Thailand as the production base for both PCB (Printed Circuit Board) and PCBA (Printed Circuit Board Assembly), making Thailand the No. 1 production base in ASEAN and No. 2 in the region after China.
The BOI's talks with chip producers are expected to begin in the coming months. The government is targeting investments in both the production of finished chips and the manufacture of chip components.
The government believes that attracting chip investment will help to boost Thailand's economy and create jobs. The chip industry is expected to grow rapidly in the coming years, creating new opportunities for businesses and workers.
The BOI's efforts to attract chip investment are part of a broader government strategy to develop Thailand's manufacturing sector. The government is also targeting investment in other industries, such as electric vehicles, renewable energy, and biotechnology.

Source : THE NATION

Renewable incentives to be boosted

The Industry Ministry plans to revise investment incentive packages for companies in the RE100 group to better attract investors and serve new investment in the country.

Several hundred companies worldwide have joined RE100, a global renewable energy initiative that commits its members to using 100% renewable energy.
RE100 is in line with Thailand's plans to cut carbon dioxide emissions to build a low-carbon society by 2050, said Industry Minister Pimphattra Wichaikul.
"Authorities will discuss how to promote RE100 in Thailand because Thai and foreign investors are interested in clean energy, which is a global trend," she said.

In 2021, then prime minister Prayut Chan-o-cha vowed at the 26th UN Climate Change Conference that Thailand would be more serious in dealing with climate change, striving to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050, along with a net-zero target, a balance between greenhouse gas emissions and absorption, by 2065.

Clean energy development must go together with the country's investment promotion.

Thailand is focusing on 12 targeted S-curve industries, including new-generation cars, notably electric vehicles, smart electronics and medical equipment.
The industries will be developed in the Eastern Economic Corridor (EEC), which covers Chon Buri, Rayong and Chachoengsao. The government wants to make the EEC the country's high-tech industrial hub.

"These industries have a high potential to grow in the future and most of them need renewable energy to support their manufacturing," said Ms Pimphattra.
The Industrial Estate Authority of Thailand (IEAT) will play an important role in helping facilitate and boost investment.
Veeris Ammarapala, governor of the IEAT, said his agency will develop new industrial areas and organise roadshows to introduce Thailand and its investment policies to prospective investors.

"The IEAT set a target to boost investment which must contribute 27% to the country's GDP by 2026," he said.

Source Bangkok Post

Thailand Gears up for FTA Discussions with EU in January

Thailand aims to finalize free trade agreement with EU within two years.
Thailand is gearing up to host the second round of discussions on a free trade agreement (FTA) with the European Union (EU) at the end of January. The goal is to reach an agreement within the next two years. The Department of Trade Negotiations Director-General, Chotima Iemsawasdikul, emphasized that the talks will prioritize liberalizing trade, investment, and services. The plan is to hold three meetings annually, with the aim of completing negotiations by 2025.

Recent developments in Thai-EU FTA negotiations
The first round of discussions took place in Brussels, Belgium, in September. The negotiations involved 19 expert-level subcommittees covering various trade aspects, including digital trade, intellectual property, and sustainable development. Commerce Minister Phumtham Wechayachai discussed the FTA with members of the European Parliament in Bangkok, expressing hope for their support in swiftly concluding and enforcing the Thai-EU FTA. Discussions also included green trade, environmental sustainability, and climate change issues.

Currently, the EU has signed FTA agreements with Vietnam and Singapore. And in the meantime, EU in talks with Indonesia. As for the EU-Thailand FTA, it is in the process of resuming negotiations. Like the EU FTA with Malaysia and the Philippines.

EU’s significant role in Thailand’s global trade
The EU is a crucial economic partner for Thailand, being the country’s fourth-largest trading partner. In the first ten months of the year, two-way trade between Thailand and the EU reached US$35 billion, accounting for 7.3% of Thailand’s total global trade. Thailand’s exports to the EU, including computers and rubber products, were valued at $18.2 billion, with imports from the EU, such as machinery and medical products, totaling $16.7 billion. The EU’s approval is vital for the FTA, and recent interactions underscore the EU’s keen interest in Thailand as an economic partner.

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