Throughout the pandemic, Thai companies as others around the world have understood the importance of accelerating digital transformation and rethinking their operations to survive and thrive in the new normal. As 2022 begins, Thai leaders in the technology industry are looking for innovative ways to drive their business results while staying at the forefront of evolving customer requirements.
Technology has been a driver for economic growth for Thailand and it’s likely to grow in future. The Thai Hi-Tech industry is characterized by rapid innovation which has resulted in market disruption and enhanced competitiveness among the players. Hi-Tech firms in Thailand are now starting to generate better margins because of their initial R&D efforts. The tech start up business in Thailand have developed products using cutting-edge technology collaborating with leading research and development firms and industry manufacturers.
Well-established as well as Thai startups have understood the importance of investing in the future. They aim to nurture brilliant minds in the hope that it would enable them to grow and expand their technological capabilities. The Thai government has recognized this resource and have established organizations like the Thai Board of Investment (BOI) offering tax incentives to will help the Thai startup community and offer investment opportunities in Thailand.
For most Thai entrepreneurs, starting a business in Thailand in the tech space requires a big investment. The key source of the rise in the Thai Hi-tech space has been primarily due to Venture Capitalists (VCs), startup incubators, accelerator programs and business consulting services. As they understand the phase the world is entering into, where high-performance computing would be used everywhere and the semiconductor industry would play a crucial role in empowering this high-performance computing, along with several other technological advances. Since the semiconductor industry is very dependent on R&D, its strength is dependent on its ability to remain competitive. And this offers both domestic and foreign entrepreneurs business opportunities in Thailand.
The powerful resources offered by these VCs and foreign investment in Thailand are helping the start-ups in Thailand off the ground and contributing to the technological growth of Thailand.
Thai consumers would see more products, services and solutions, designed for enhanced customer experience and lifestyle upgrades.
Robotics and Artificial intelligence (AI)
Thailand’s robotics and artificial intelligence (AI) capabilities are growing at a rapid pace thanks to its key role in the global supply chain and innovations sparked by the pandemic. Robotics, AI and digital industries are priority sectors in the Thai government’s Thailand 4.0 scheme. This scheme plans to raise Thailand’s competitiveness by focusing on advanced technologies and sustainable growth.
Thailand’s service robot industry has grown by leaps and bounds with an explosion of innovations addressing the needs of caring for the elderly and offering healthcare services in the pandemic era. Thailand’s global competitiveness in supply chains, particularly in the automotive, electronics and food and food processing industries, have furthered the need for robotics and industrial automation as Thai businesses embrace transformative effects on productivity.
Augmented Reality (AR)
Augmented reality (AR) will create immersive workplaces for Thai employees no matter where they work from. Smart Glasses and other AR innovations would create interactive training experiences, enhanced productivity and multi-screen environments.
Other Emerging Technologies
Other emerging technologies like Virtual Reality (VR), spatial audio, natural language processing, world-facing cameras, and smart collaboration tools, would continue to change how employees in Thailand interact with technology. This would transform the concept of a workplace in ways that enable employees to seamlessly integrate and succeed as one.
5G Driving Investment in Thailand
Most of the investments in Thailand relating to 5G technology would continue to rise and would include both infrastructure projects as well as production technology upgrades in the Eastern Economic Corridor.
Thai mobile phone operators and the allied industries are investing in the infrastructure required for the 5G technology in the Eastern Economic Corridor while the investments in a Ban Chang smart city in Rayong is at the stage of completion as well. Meanwhile, infrastructure projects for the Pattaya Smart City are underway.
The Thai digital transformation would help enhance government services, minimize inequality in education, and intensify investment opportunities in Thailand. The digital system would be applied to tourism, transportation, medical industry, as well as town planning.
The Thai government is also supporting factories in the EEC for upgrading manufacturing via 5G technology. Presently, 300 factories situated in the industrial estate of WHA Corp are upgrading their production process through automation employing 5G technology and another 10,000 are projected to upgrade their manufacturing process to an automated system within a span of three to five years.
Electric Vehicles (EVs) Development
The EEC is also focusing on EV manufacturing as EV projects in EEC are scheduled for investments in 2022. The Thai government would support infrastructure for boosting EVs and EV development in the areas of charging stations, motor parts and batteries.
The EV manufacturing in Thailand is likely to happen at a faster rate, and the Thai government aims for domestic production to account for 30 percent of EV manufacturing by 2030. Meanwhile, Chinese carmaker GWM (Great Wall Motor) has chosen Thailand to be the base for its first smart factory in Southeast Asia for boosting international sales.
Another major project to manufacture EVs in Thailand is a joint investment between the state-run energy group PTT Plc and Taiwan’s Foxconn. PTT and Foxconn signed an MoU (Memorandum of Understanding) to make EVs and EV components for the domestic Thai market. this partnership will offer an open platform that provides hardware as well as software services to automakers in Thailand.
Another key project is a joint venture between Rojana Industrial Park Plc and Evlomo Inc in an 8-gigawatt battery energy storage project in Chon Buri. The project is projected to create 3,000 jobs, and tech transfer for electric mobility in Thailand and upgrade Nong Yai to become the EV manufacturing hub for ASEAN. The batteries would be used by four-wheeled vehicles, heavy-duty trucks, buses, and two-wheeled vehicles. The construction is likely to be completed in a span of 18-24 months.
Thailand-Guangdong Cooperation Project
The Thai government in association with the Chinese authorities have launched the Thailand-Guangdong cooperation project for promoting the high-tech industries in Thailand, including electric vehicles (EVs), and the green economy in the EEC (Eastern Economic Corridor) area. This project will also cover digital and 5G wireless technology, smart city development and healthcare will boost investment and take Thai Hi-Tech industries to the next level. The Thai government and Chinese officials will establish a joint working group that would look for potential investment projects in Hi-Tech industries and work on developing technologies and innovations for shared benefits.
One of the Thai government policies aims to link the Thailand 4.0 scheme and BCG (Bio-, Circular and Green) economic model with China’s five-year economic and social development plan. Thailand 4.0 scheme is emphasising a transition to technological advances while BCG ensures economic sustainability through optimal use of resources with minimal impact on the environment.
Thai Government’s Initiatives
The EEC is part of the Thai government’s strategy to move the country towards a high-tech economy. The Thai Government remains confident it would see THB 300 Bn in investments in the EEC as global recovery drives the need for automation, electric vehicle manufacturing and smart cities. The Thai government is confident that private investment will boost the EEC driven by rising global trade and global economic recovery.
The Thai government is offering a range of privileges and incentives for investments in the EEC, including tax holidays for 5 – 10 years based on the investment category, exemption from corporate income tax additional two years, and a 50 per cent corporate tax reduction for 3 years for investment in projects associated with human resource development.
Thailand’s reforms in business regulations eased the set-up processes and encouraged not just high-end entrepreneurs but individuals to open small business in Thailand. Thailand considerably improved its ranking in the World Bank’s ease of doing business by moving to the 21st spot. As a consequence, the market for High-tech companies in Thailand has exploded, both in terms of the number of companies as well as their customer reach. This change has impacted business functions from design marketing and sales strategies to customer service and research and development. The improvement in the Hi-Tech space is attributable to the Thai government’s efforts to streamline the overall business approval process by adopting digital systems and refining rules and regulations to stay at top of the recent developments.
Thai Market Entry Strategy
Partnering with a business consultant in Thailand is the most effective way to enter the Hi-Tech space and reach potential Thai buyers. Thai business consulting services could facilitate and expedite market entry for entrepreneurs with their cohesive market knowledge, relationships with key government officials and established distribution networks.
The post How Various Technologies are Shaping the Hi-Tech Industry? appeared first on StartUp in Thailand.
Source: Asian Correspondent
International tourism is the key and chief contributor to the economy of Thailand. The Thai economy was hit hard by the pandemic—but it is finding ways to support its travel industry and prepare for international travel to arrive once there’s a further recovery.
Thailand’s economy is dependent on international tourism, once a thriving sector that has been impacted due to restrictions brought in by the pandemic. But there have been constant efforts by the Thai government to boost domestic travel, as well as measures for supporting the return of international demand after the country started to reopen its doors to vaccinated travelers from 63 nations last year.
The pre-pandemic levels of tourist arrivals and spending take a year or two, as per the Thai Hotels Association. It’s likely that in the near future large groups of travelers would start heading to Thailand, provided the pandemic outbreaks remains checked and under control. There’s light at the end of the tunnel, but at the same time, it would be a gradual climb back to the pre-pandemic levels.
A Heavy Blow to Thai Tourism Industry
In 2019, Thailand was in the eighth position globally in the number of international tourist arrivals, with China being the chief source. The country recorded 40 million tourists in 2019, with the top spending categories for inbound visitors being accommodation 28%, shopping 24%, and food and beverages 21%. Moreover, the tourism sector in Thailand created around 36 million jobs and several business opportunities in Thailand in the country between 2014 and 2019.
Unfortunately, the outbreak of pandemic and subsequent restrictions has hard hit the Thai economy, particularly its tourism as international travel plunged in a matter of a year. Passengers on international flights to Thailand declined by 95% in September 2021, as compared to 2020 and much worse when compared with 2019.
This decline in the number of tourists had a huge impact on tourism spending, as international
travelers spent significantly higher than their local counterparts. In 2019, international travelers made up 33% of overall travelers in Thailand and accounted for around 60% of all tourism spending. On average international tourists spent around $1,543 per traveler, compared to $152 by local travelers. This fall in expenditure undeniably created a ripple effect on the country’s food and beverage (F&B) retail industries, which include approx. 1.2 million small and medium-sized enterprises.
Recovery seems to be on the horizon for Thailand’s economy, particularly its tourism industry. With pandemic’s hide and seek, slow growth, minimal changes to global tourism strategies, and muted world recovery, Thailand’s tourism are likely to recover to pre-crisis levels early by 2023.
Given that the GDP of Thailand depends significantly on the income from foreign tourists, the local tourism market alone won’t be sufficient to bring the country’s revenue from tourism back to pre-pandemic levels; the tourism sector’s recovery would rely on a resurgence in international travel. This recovery would likely reshape the world’s travel industry landscape and bring a strong imperative for the public as well as investment opportunities in Thailand in the private sector for ensuring the industry’s survival.
Over the longer term, the Thai government and the Thai market alike remain optimistic about international travel. Southeast Asia is among the fastest-growing markets in the world and home to a large middle class of around 300 million people with a strong interest in travelling and a thirst for international aspirations. The Thai tourism industry has requested the Thai government to be flexible with the entry restrictions for tourists both domestic and international. The government is also eagerly looking for foreign investment in Thailand to give a lift to its tourism sector.
Efforts to Stimulate Tourism
The Thai government has arranged several efforts to compensate for the loss of income due to the lack of international and domestic tourists. The Thai government’s effort to encourage domestic travel took the form of offering subsidies for flights and hotel stays for travellers. The Thai government also rolled out various measures for stimulating international travel to its beach destinations and attracting high-end tourists from international markets.
Thailand’s revenue from domestic travel reduced from $34.5 Bn to $15.4 Bn in 2020. An increase in local spending won’t alone compensate for the effect of the pandemic on its economy. Thailand has largely been reliant on the international markets, which represented around 60% of its total tourism spending in 2019.
In response, the country launched the “Phuket Sandbox” last year, an effort to draw demand from international tourists. The initiative allowed fully vaccinated tourists exemption from requirements of quarantine, provided they stayed in Phuket for not less than 14 days before travelling to different parts of the country. The model hopes to attract visitors from Asia, America and Europe—all key markets for Thailand. Various other reopening plans followed, such as “Andaman Sandbox” and “Samui Plus” plans. Together, the plans have created a network of reopened tourist spots, which hopes to position the country as an attractive destination for domestic as well as international travellers alike. Tourist Arrivals in from 91,255 in November 2021 to 230,497 in December 2021
Tourist Arrivals in Thailand
An Eye on New Markets
During the per-pandemic era, China was a key contributor to tourism income for Thailand, accounting for around 27% of its tourism receipts in 2019. Given the Chinese government’s prudent approach towards international travel, the return of Chinese visitors to Thailand at pre-pandemic levels might take a while. Thailand, therefore, is reimagining its strategy and trying to capture new sources of travellers from international markets with rapid recovery in the international travel demand.
The situation might change quickly, especially during these volatile times. The Thai government is closely monitoring the revival of the top source markets and would help its industry players in planning their recovery efforts and capturing untapped value.
Recognizing the shifting traveller trends, and the premium traveller’s resilient nature, the government is pushing to attract travellers from countries with rising demand for international travel. The Thai government’s measures include relaxing and revisiting certain regulations like yachting regulations and taxes on luxury goods—for improving and stimulating the premium travel experience.
Taking a step further, the Thai government is about to launch a Long-Term Residence (LTR) scheme for attracting foreigners to Thailand through new LTR visas (valid up to 10 years), ownership relaxations to foreigners for residential property, tax and investment incentives, and more. The program would be targeting four key personalities:
Thailand’s ambition is to welcome over a million of these target tourists and generate domestic spending over THB 1 Trillion in the coming five years, starting 2022.
Thailand’s government is also developing a keen interest in casinos, as the country continues to bank on tourism as the prime source of its economic growth. This will also provide a shift and offer various business ideas, Thailand would try to model cities like Las Vegas for bolstering its tourism industry.
Thailand is planning to collect a $9 fee from international tourists from April for developing attractions and covering accident insurance. The new fee would be priced in with the airline tickets and is part of the Thai government’s sustainable tourism plans. Thailand expects around 5-6 million international arrivals this year. International tourists are projected to generate $23.97 Bn this year.
Source: Asian Correspondent
The pandemic has brought economic turmoil and has impacted all the sectors in Thailand. A steep decline in tourism revenue from $117.5 Bn in 2019 to $24.5 Bn in 2020 caused the contraction of the Thai economy by 5% in 2020.
However, the crisis has also introduced new business opportunities in Thailand for FinTech firms. Lockdowns, social distancing, and temporary bank closures have changed customer behaviour, spurring FinTech start up business in Thailand. Thailand’s internet economy is now worth $30 Bn, up 51% from 2020.
Thailand Fintech Landscape
Thailand has been progressive to embrace new technologies for increasing its competitiveness. The financial institutions in Thailand have been particularly proactive in enhancing their existing framework, implementing robust safeguards for customers, and investing in developing innovative systems. Thai regulators have been real quick in addressing gaps in legal as well as the regulatory framework that has arisen due to changes to domestic as well as global fintech business.
The Thai government’s key growth strategy is to improve and expand Thailand’s capacity for high value-added technologies such as blockchain, big data, artificial intelligence (AI), robotics, machine learning and cloud computing providing investment opportunities in Thailand.
Fintech Trends Driven by the Pandemic
In the Southeast Asian region, Thailand is among the biggest advocates of tech-driven growth with countries like Singapore and Indonesia. These trends were the result of the pandemic’s disruptive effects which created a renaissance for FinTech Thai startups in the country. This, along with consumer behaviours that are growing along digital lines and consumers looking for safer options, has positioned Thailand to lead the way in enhancing digital facilities and promote greater financial inclusion in line with Thailand 4.0’s innovation drive.
ASEAN Fintech Landscape
Even before the pandemic, the Thai government has been working to encourage digital payment for consumers and businesses. The pandemic further pushed this effort; the ongoing shifts toward digital payments, digital investments, neobanking, alternative financing and alternative lending significantly have increased during the pandemic and will only rise in the coming years.
Transaction Value by Segment
The government seeks to encourage the much-required collaboration between the traditional Thai banking companies and FinTech companies for helping the banks become more agile and compete with their counterparts globally. The Thai government is also fostering closer cooperation between Thai regulators and FinTech companies for minimising any obstacles to its FinTech development.
Thailand is highly advanced with respect to the use of the internet compared to several countries. Globally, the time spent on the internet on an average by a user is around 6.43 hours per day. However, in Thailand, this average is around 9 hours per day. As per JP Morgan, around 50% of internet users in Thailand make mobile payments and almost 71% shop online using mobile devices per month. These figures represent a high level of dependency on mobile and online transactions.
The demand for FinTech services is projected to grow swiftly as tech giants such as Alibaba, IBM, Tenpay, Apple and Facebook extend their activities into Thai financial markets. Thai banking institutions are quickly embracing the changes made possible by new innovative technologies for catering to the new generation of consumers.
Many industries and government authorities outside of the fintech industry have been progressive in embracing blockchain. A few of the recent developments in the adoption of blockchain technology include the partnership between the Customs Department of Thailand, IBM and logistics provider Maersk for deploying a digital trade platform.
Big companies in Thailand are pouring funds into Bitcoin mining as the trade and investment in cryptocurrency booms across the country as young investors look for better returns from their savings amid low-interest rates and an economic slowdown. Looking at the rise in investment in cryptocurrencies, Binance, one of the world’s largest cryptocurrency exchanges in the world by trading volume, is gearing up to set up a crypto exchange in Thailand.
The use of cryptocurrency for payment is still limited in Thailand. However, cryptocurrency is now a very popular investment alternative in Thailand. According to reports issued by the Securities and Exchange Commission of Thailand (SEC), the monthly transactional value on Thai cryptocurrency exchanges reached THB 90 Bn in January 2021 as the prices of bitcoin soared and reached new highs attracting the Thai public’s attention.
The country has become a front-runner in the region in the crypto industry as well as other financial technologies. Around 10% of its internet users have some form of cryptocurrency investment, helping Thailand secure the second spot in the crypto market just behind Nigeria as per 2021 data. The government has been supportive of the ownership of cryptocurrencies in Thailand which has led to this growth in digital currencies in the country.
Virtual banking services have grown rapidly in Thailand in the consumer lifestyles space which has led to a rise of tech development companies. Digital banking is the new norm in Thailand for banking and financial institutions. Banking and financial institution have in Thailand curated roadmaps for offering better services through digital banking functionality to their customers. This has been essential for Thai banking and financial institutions to stay competitive in this digital era.
To meet the Thai consumer expectations and demands, traditional banks in Thailand such as Siam Commercial Bank and Kasikornbank have been developing online channels to reduce their “bricks and mortar” presence. The banking institutions are able to drastically reduce their costs and help them in paying attractive returns on savings to their customers.
There’s a rise of B2B fintech firms in Thailand, especially the ones offering back-end infrastructure for the banks and other financial institutions. Thai B2B fintech companies have the potential to expand the market to the regional or even at the global level.
Several fintech firms in the country have been in the process of developing financial services such as payment via a digital platform. With a digital-only bank, customers may not face problems of complex hidden fees, making direct deposits, or making payments via different channels.
Algorithm Stock Trading
The swift change of technology has affected the financial markets in Thailand significantly. To enhance efficiency and liquidity in the market, the SET (Stock Exchange of Thailand) allows Thai stockbrokers to offer their clienteles algorithmic and automatic stock trading.
Algorithmic trading employs a computer program that follows a specified set of instructions for placing a trade. In theory, the trade could generate profits at a speed and frequency that are impossible for any human trader.
Thai investors are accepting algorithm trading as the new financial technology, but still, there are concerns about their reliability and profitability. Such exposures and risk offer business opportunities in Thailand to tech companies to develop platforms that can build and improve investors’ trust in algorithm trading as a profitable and reliable trading strategy.
Artificial Intelligence (AI)
Artificial Intelligence (AI) is the key technology that is disrupting all aspects of financial service. In near future, banks in Thailand will move from ‘wealth managers’ to ‘data managers’. At this point, fintech would serve their purpose and use AI tools for supporting the bank operations in data management, information security, and generating additional income using that data. Fintech would develop a channel for the financial institutions in Thailand to access and closely engage with their customers. Banks would recommend financial products to their customers after their AI tools analyze the customer profile. Further, AI would be applied in data security as well as an authentication protocol for ensuring safe and efficient financial transactions.
Starting a Fintech Company in Thailand
The tech industry and startup landscape in Thailand are booming. For the last few years, big corporates have taken a keen interest in Thai startups and have established accelerators for driving growth for businesses using financial technology. Entrepreneurs and investors both within Thailand and overseas are flocking in to take advantage of its strategic location, ease of doing business policies, well-connected transport infrastructure, lively community of startups and digital businesses.
With the level of digital banking that has risen to new heights, Thailand offers a solid policy concerning financial technology and offer attractive incentives for starting a company in Thailand. Business consulting services in Thailand can help entrepreneurs with the setting-up of a Fintech company in Thailand and also guide them regarding the various Fintech regulations in this country.
Source: Asian Correspondent
Thailand’s vibrant automotive industry offers foreign OEMs (Original Equipment Manufacturer) competition and a vast network of supporting industries. As Thailand continues to expand its automotive manufacturing base, the presence of auto part suppliers is increasing – setting up R&D (Research and Development) departments to better serve their customers.
Thailand’s Motor Vehicle Production Over the Years
With one of the major markets for automobiles in Southeast Asia, Thailand’s vehicle production reached around 470k units in Q1 of 2021. Compared to other ASEAN countries, Thailand was the leader in the production of motor vehicles in 2020. Thailand’s production surpassed Malaysia and Indonesia in production volume.
The Federation of Thai Industries (FTI) expects the production of automobiles in 2022 to be approximately 1.7 to 1.8 million units, with domestic sales in the range of 800k – 850k units and overall exports of 900k – 950k units.
Thailand continues to be the central auto-motive hub within the South East Asian region, with the best-in-class automotive supply and logistics chain. Whilst the auto industry suffered significantly in the last few years, the underlying trend suggests that the Thai auto industry is back on the growth track.
Thailand 4.0 Scheme to Boost Innovation
Thailand has responded to the Fourth Industrial Revolution happening globally by establishing its new economic model under the Thailand 4.0 scheme that is based on an innovation-driven economy.
Thailand 4.0 Scheme
Thailand 4.0 readiness has identified its auto industry as the largest beneficiary of this innovation leaden drive due to its well-established infrastructure and skilled personnel as the auto manufacturing hub for several foreign automakers.
Major Automotive Players in Thailand
At present, there is a lot of foreign investment in Thailand from mainland China, Japan and South Korea. The country’s Eastern Economic Corridor Office of Thailand (EEC) aims to promote investment opportunities in Thailand for industries that are considered to be a driving force for the sustainable economic growth of the country. And among the key areas of further development is the technological and innovative advancements in its automotive sector.
The country has developed from an automotive component assembler into a top automotive producing and exporting hub. Thailand today ships the country manufactured vehicles to over 100 countries globally.
Market Share in Thailand by OEM
Thailand has an established presence of almost all the global leading automotive manufacturers, assemblers as well as component makers. Companies such as Toyota, Honda, Mitsubishi, Isuzu, BMW and Nissan together account for the largest share of the roughly two million vehicles produced in Thailand annually.
Supply Chain Operational Shifts
Since automotive components are difficult to transport, the shift to manufacturing these parts locally helps and expedites the supply chain. Due to this shift, both the cost of transportation costs as well as the time to deliver them are reduced. Companies within Thailand are shifting locally due to the saving in resources from the accelerated supply chain. Additionally, a shift in the country’s automotive industry is its rise in the scale of production; once a specific level of local output is achieved, localisation becomes cheaper and more efficient than importing from abroad. In Thailand, this shift has been apparent; in short, the Thai automotive industry’s supply chain has streamlined and has become much more efficient in the last few years owing to its technological advancements and localisation.
Thailand’s Board of Investment (BOI) Initiatives
The auto industry has been experiencing a gradual shift in Thailand from a manufacturing to a high-value manufacturing economy after all the efforts it has put into promoting the use of science, innovation and advanced technology. In parallel to this, Thailand has also ensured the development of infrastructure and the right ecosystem for driving business opportunities in Thailand in its auto sector.
Thailand’s BOI has supported Thailand’s economic transformation by incessantly improving its promotional incentives for strengthening the country’s position as a preferred investment destination for automakers. The BOI’s incentives have enhanced the business competitiveness in Thailand as many start up business in Thailand are offering technological disruption to the Thai auto sector.
Thanks to the Thai startup ecosystem and BOI initiatives ranging from infrastructure development to continuous government support and attractive promotional measures, the country has welcomed investments over THB 900 Bn alone baht in 2018.
The Thai government is planning to incentivize people to purchase EVs by establishing a fund for subsidizing up to 20 per cent of the EV prices. Also, they’re increasing the taxes on almost all motor vehicles, including passenger cars, hybrids, eco-cars, and plug-in hybrids, for allowing different vehicle tax rates for EVs.
Growing Hub for Electronic Vehicles (EV)
The government of Thailand has ambitious plans to turn the country into a Southeast Asian manufacturing hub of electric vehicles. Big companies in Thailand are preparing to invest considerably in a greener transportation mode after the National Electric Vehicle Policy Committee suggested that by 2030
Thailand’s 50% total auto production would be comprised of electric vehicles.
The message to auto manufacturers and business outsourcing companies is to grab the business opportunities Thailand is offering in the necessary infrastructure for supporting electric vehicles. As per BOI the investment in EV production and its infrastructure reached crossed THB 79 Bn between 2017 and 2019. This figure is projected to rise at a faster pace over the next 3-5 years.
Toyota has the first-mover advantage as it was the first auto manufacturer to make EVs in Thailand. The number of EV manufacturers in the country is increasing including auto parts makers, those are gradually switching to produce EV parts which would create supply chains ready for the development of the EV ecosystem.
The global demand for EVs is growing. Globally, the number of electric vehicles is expected to rise to 35% of overall vehicle consumption by 2040. To help spur the auto industry, the Thai government is actively promoting foreign manufacturers to the country as their base for the production of EVs in the region. Thailand’s BOI is also offering generous tax incentives to auto manufacturers as well as the auto parts industry.
Supporting Technological Advancement in EVs
Thailand’s NSTDA (National Science and Technology Development Agency) is entrusted with the crucial task of accelerating technology and innovation development for enhancing Thailand’s competitiveness in the global EV market. NSTDA has been working in tandem with partners from the government, private, academic and non-government sectors, both at domestic as well as at international levels.
The Thai government’s policy and goals on electric vehicles are becoming more concrete, such as offering support for operators willing to install vehicle charging stations. The Thai government has also set a rate of THB 2.6 per unit for electricity charging across Thailand, which is comparatively cheaper than home electricity rates. The support also BOI privileges designed to encourage starting a business in Thailand in high-tech automotive parts like battery parts, power electronics devices, electric motors and charging stations.
The policy of NSTDA is to comprehensively support the EV technology and to grow the advanced knowledge among the agency personnel on designing, developing, and testing the EV parts, and built units that could be key potentials in the global niche market of EVs.
Such an optimistic outlook bodes well for automakers, ancillary companies and high-tech industries. As the country gears up to enter the Thailand 4.0 area, system suppliers and equipment makers would find a lot of business opportunities in Thailand in helping manufacturers in upgrading their manufacturing capabilities, further improving their efficiencies and quality, and taking their production to the next level.
The initial trend of a solid transformation is already taking shape, with BOI’s attractive incentives serving as a crucial catalyst. The success of these innovative companies will inspire locals to open small business in Thailand. With this rise, foreign businesses would explore investment opportunities in Thailand and indigenous businesses would follow in their footsteps. When a change comes on a large scale, an economic transformation follows, thus enhancing national competitiveness.
The post Few Technology Trends for Automotive Industry in Thailand appeared first on StartUp in Thailand.
Source: Asian Correspondent