Thailand

Introduction The electric vehicle (EV) industry is central to the global shift towards sustainable, greener transport, and Thailand's Board of Investment (BOI) is working strategically to establish the country as a key player in the EV supply chain. The recent AION Sourcing Day, in partnership with Chinese EV manufacturer GAC AION, aimed to integrate Thai parts manufacturers into the global EV market, boost domestic production and foster international collaboration. I. Thailand's EV Policy and Boi Incentives The BOI is supporting Thailand’s EV industry through various incentives designed to attract foreign investment and enhance local capabilities to help Thailand to become a regional EV hub while still meeting environmental sustainability goals. Key initiatives include: Corporate Income Tax Exemptions: EV manufacturers and parts producers are eligible for tax holidays of up to 8 years. Import Duty Reductions: Exemptions or reductions are provided for imported machinery and raw materials used in EV production. Infrastructure Development Support: Investments in EV infrastructure, such as charging stations and battery facilities, are actively encouraged. Technological Cooperation: Joint ventures and technology transfer agreements between foreign investors and local manufacturers will be encouraged to strengthen domestic capabilities. These measures are in line with the Thai government’s 30@30 policy, which aims to achieve 30% zero-emission vehicle (ZEV) production by 2030. II. GAC AION’S Role in Thailand GAC AION’s investment in Thailand includes the establishment of a production base in the Amata City Industrial Estate, Rayong Province with an investment of over 5.6 billion baht, aimed at creating an export hub for EVs in the ASEAN region. The company’s phased investment strategy will integrate Thai parts manufacturers into its supply chain and strengthen Thailand’s role as a regional manufacturing hub. It will also align its operations with Thailand's environmental goals by prioritizing the production of ZEVs. AION Sourcing Day and Domestic Integration The event focused on the sourcing of key components such as interior, exterior, electrical, and battery parts. The event sought to generate more than 2.25 billion baht in domestic component purchases, creating substantial opportunities for local manufacturers to join the EV supply chain. GAC AION’s decision to prioritize Thai manufacturers is driven by their high-quality production, cost efficiency through reduced transportation costs and streamlined logistics, and improved after-sales service. This collaboration provides Thai manufacturers with access to GAC AION’s global supply chain, promotes technology transfer to share knowledge through collaboration, and stimulates local economic growth and labor market support. III. Legal and Regulatory Considerations Accessing BOI incentives To access BOI incentives, companies must meet certain compliance requirements: Local Content Requirements: To benefit from tax and duty exemptions, a specified minimum percentage of components must be sourced locally. Environmental Standards: Manufacturing processes must adhere to Thai environmental regulations, including compliance with emission standards and proper waste management practices. Investment Thresholds: Companies must reach specified minimum investment thresholds to qualify for incentives. Promoting Technology Transfer and Intellectual Property Protection In addition, the BOI encourages partnerships between foreign investors and local manufacturers for technology transfer as part of the incentive program. However, the investors must comply with intellectual property (IP) regulations. The key factors to consider are: Licensing Agreements: Establishing fair licensing terms for shared technologies. IP Protection: Safeguarding proprietary technologies while encouraging innovation. Developing local talent for Thailand’s EV sector Thailand’s labor laws mandate prioritizing the hiring and skill development of local workers. To support the EV industry, the government has launched training programs and fostered partnerships with educational institutions to develop a skilled workforce for advanced manufacturing roles. IV. Opportunities and Challenges Opportunities Industry Leadership: Thailand is strategically positioned to emerge as a leader in EV manufacturing and exports within the ASEAN region. Economic Development: Increased investments in EVs and related industries will stimulate GDP growth and create new employment opportunities. Environmental Progress: The shift to ZEVs contributes to reducing greenhouse gas emissions, supporting global sustainability objectives. Challenges Supply Chain Integration: Local manufacturers must achieve global quality standards to effectively participate in the EV supply chain. Regulatory Compliance: Meeting stringent environmental and labor regulations can require significant resources. Global Competition: Thailand faces stiff competition from regional players like Indonesia and Vietnam, which are also seeking to attract EV investment. Conclusion The partnership between the BOI and GAC AION marks a crucial step in Thailand's progress towards establishing itself as a leading EV hub in the region. By incorporating local parts manufacturers into the EV supply chain, this initiative will boost economic development while solidifying Thailand’s standing in the global automotive market. However, realizing these ambitions requires careful management of legal, regulatory, and operational challenges.

Introduction The integration of artificial intelligence (AI) with neurotechnology is driving transformative innovation, but it also poses significant legal and regulatory challenges for businesses operating in the sector. While much attention has been paid to AI-related regulation, healthcare law remains critical in this area, particularly as its legal importance grows in regions such as the US, EU, and clinical centers such as Thailand.

Introduction Thailand's Securities and Exchange Commission (SEC) has identified the necessity for a thorough overhaul of its regulatory framework to keep pace with evolving socio-economic conditions, technological progress, and the dynamic nature of private sector innovation. Current laws have faced criticism for their ambiguity, lack of alignment with global standards, and insufficient mechanisms to enforce criminal liability in areas such as securities, derivatives, and digital assets. I. Key Draft Regulations The SEC has drafted four major new regulations to modernize the capital markets framework. Draft Securities and Exchange Act Draft Derivatives Act Draft Trust for Transactions in Capital Market Act Draft Act to Amend the Royal Decree on Digital Asset Business These changes are designed to promote transparency, remove barriers, and establish robust legal mechanisms in line with international standards, benefiting operators, investors, and the public. No. Topic Details 1 Promoting the Digital Capital Market Amendments to fully support electronic processes in the market New regulations for service providers crucial to capital market operations 2 Supervision of Securities and Derivatives Business Operators Enhanced supervision of major shareholders of business operators. New provisions for supervising personnel involved in securities and derivatives businesses. Mandatory announcement of financial statements. Business dissolution procedures in the event of license revocation. 3 Supervision of Secondary Markets and Related Organisations New provisions to reduce restrictions on the establishment and operation of trading centers. Additional regulatory measures to enhance supervision and operational efficiency. New provisions for investments in securities offered by associations. 4 Fundraising and Auditing Firm Supervision Improved regulations for the issuance and offering debt instruments. Clear guidelines on mergers and acquisitions(M&A) Supervision of auditing professionals 5 Low Enforcement and penalties for Non-Compliance Designated authority for SEC officers to investigate specific offenses New measures to align securities 6 Regulatory Bodies under the SEC New requirements and prohibited characteristics for SEC expert committee members Clarification that SEC is not governed by social security laws   Figure 1. Proposed Draft of the Securities and Exchange Act.   No. Topic Details 1 Electronic Processes in the Capital Market New provisions enabling operations and processes to be conducted electronically. Legal recognition of the validity of electronic transactions in the capital market. 2 Supervision of Derivatives Business Operators and Related Entries Revised regulations for supervising derivatives business operators, secondary markets, and associated organisations. Mandatory requirements for derivative advisors to maintain accurate records and disclose operating results and financial status Enhanced supervision of other market participants, including investment advisors, planners, analysts and contract managers 3 Witness Protection Measures Additional safeguard for witness during investigations and evidence collection in criminal cases. Protection from civil and criminal liability, except for individuals directly involved in the wrongdoing 4 Investigate Authority of SEC Officials Authority grated to SEC officials to act as investigative officers for handling specific offenses.   Figure 2.Proposed Draft of the Derivatives Act.   No. Topic Details 1 Electronic Processes in Capital Market Introduction of new provision enabling various operations and processes to be conducted electronically. Legal recognition of the validity of electronic transactions in capital markets 2 Witness Protection Measures Enhanced protections for witnesses during examinations and evidence-gathering processes conducted by authorities in cases involving serious crimes. Witnesses will be granted protections as outlined in relevant laws governing protection in criminal cases. Safeguard against criminal and civil liability for witnesses who provide factual information, evidence, or documentation in good faith to the SEC, with exemptions for individuals directly involved in the offense.   Figure 3.Trust for Transactions in Capital Market Act and Draft Amendment to the Royal Decree on Digital Asset Business.   II. Preparing Businesses For Regulatory transition Adapting to SEC’s proposed regulatory updates requires businesses to take proactive steps to ensure compliance and capitalize on emerging opportunities. Here are key recommendations: 1. Familiarize yourself with the Regulations Thoroughly review the proposed legislation and, if necessary, consult with professionals to fully understand its implications and compliance requirements. 2. Assess Current Practices Conduct a comprehensive evaluation of your existing operations and policies. Identify areas that may need to be adjusted to comply with the upcoming regulations. 3. Train Employees Improve workforce readiness by offering training programs or organizing in-house sessions to ensure employees are equipped to understand and effectively implement the new standards. 4. Engage with Authorities Foster open communication with regulatory bodies to seek clarification, offer feedback, and establish cooperative relationships that support compliance efforts. 5. Monitor Implementation Timelines Stay updated on regulatory timelines, including the effective dates of new provisions, and plan accordingly to ensure changes are implemented on time. 6. Prepare for Enforcement Strengthen your compliance framework by creating a response plan. Maintain detailed records and documentation to demonstrate adherence to the updated regulations during audits or reviews. III. A leap forward for Thailand's Capital Market The SEC’s draft revisions represent a major step toward modernizing Thailand’s capital market. By bridging existing gaps and aligning with international standards, these updates aim to create a more transparent, efficient, and competitive financial ecosystem. Businesses that actively prepare for these changes not only secure compliance but also gain a strategic advantage in navigating an evolving regulatory landscape.

IN BRIEF The Ministry of Energy has announced a new 25th bid-round of applications for petroleum exploration and production rights,