Regional Agreement A. ASEAN-China Free Trade Area (ACFTA) 1) Reducing Trade Barriers: Tariff Reduction (Investasean,2023) -BYD Co. exports electric vehicles and batteries to Thailand at competitive prices. -Thai government cut the import tax on electric vehicles from 8% to 2% for foreign makers who promise to begin local production within a certain timeframe. 2) Facilitating Investment Opportunities (Investasean,2023) -BYD invests in production facilities and R&D centers in Thailand of17.9 billion baht to set up a new facility in Thailand that will start producing 150,000 passenger cars per year from 2024, some of which will be exported to Southeast Asia and Europe. (Reuters, 2023) 3) Enhancing Market Access / Eliminates non-tariff barriers and harmonizes trade regulations.(ASEAN,2023) -BYD Co. expands distribution network and reaches more customers in Thailand (UOB,2023) leads to market access improvements after ACFTA implementation. B. Regional Comprehensive Economic Partnership (RCEP) 1) Aims to reduce or eliminate tariffs on various products and services (Deloitte, 2021) -BYD benefits from reduced tariffs on electric vehicles and batteries and it exports electric vehicles to Thailand more competitively (Nikkei, 2022) 2) Promotes regulatory cooperation and harmonization among member countries (Deloitte, 2021) -BYD benefits from standardized trade rules, streamlining its operations which makes them navigates regulatory frameworks more efficiently in Thailand. 3) Facilitates technology exchange and collaboration in R&D (Kimura, Thangavelu, Narjoko,2020) -BYD leverages RCEP platform to enhance technological capabilities and partners with Thai entities for innovation and product development (Th.Chinaembassy, 2022) 4) Economic Cooperation and Integration where offers capacity building, technical assistance, and investment facilitation (Lee,2022) -BYD benefits from improved business environment and infrastructure and strengthens its regional presence through FDI and joint ventures. (Xinhuanet,2020) C. China-Thailand Free Trade Agreement (CTFTA) 1) Tariff Concessions with little to no government tariffs on exports to Thailand (Mahanakornpartners, 2021) -BYD Co.'s products become more cost-competitive in the Thai market (Bloomberg, 2022) -Increased demand for BYD's electric vehicles in Thailand due to tariff reductions (Businesstimes, 2023) 2) Offers a predictable and transparent investment environment for Chinese -It protects investors from discrimination and ensures fair treatment. -BYD establishes a manufacturing plant in Thailand with confidence in the investment climate (ChinaDaily, 2023) D. Association of Southeast Asian Nations (ASEAN) 1) Reduced trade barriers and harmonized regulations, creating a single market and production base. -BYD Co. leverages this base by intend to supply electric vehicles to neighboring countries from its production facilities in Thailand (Reuters,2022) 2) Facilitating Trade and Investment -BYD benefits from reduced import costs and regulatory barriers where they can imports components for electric vehicles at lower costs, increasing competitiveness in ASEAN markets. (Schröder, Iwasaki, 2021) 3) Promoting collaboration in cpecific industries like clean energy and electric vehicles. (Aseanenergy, 2023) - BYD benefits from joint research, policy harmonization, and information sharing. - ASEAN initiatives establish common standards for electric vehicle charging stations. (Aseanenergy, 2023) Multilateral Institutions A. World Trade Organization (WTO) 1) Promotion of Global Trade in Clean Energy and Electric Vehicles -The WTO enforces fair trade regulations and reduces trade barriers (WTO, 2023) -BYD competes on an equal footing in the global marketplace. (WTO, 2023) -BYD invest in Thailand's electric vehicle market with fair competition (Sinsadok,2022) 2) Protection of Intellectual Property Rights safeguards BYD Co.'s innovative technologies during expansion in Thailand. (WTO,2023) -Intellectual property rights, such as patents, trademarks, and copyrights, are protected and that makes BYD confidence to invest in research and development. (Nikkei,2022) 3) Establishment of rules for International trade to facilitates trade liberalization and reduces barriers(WHO,2023) -BYD can enter new markets like Thailand more easily. -WTO's dispute settlement mechanism ensures fair and transparent trading can protect BYD’s interests against unfair trade practices in Thailand. B. International Monetary Fund (IMF) 1) IMF provides loans to member countries facing balance of payment difficulties(IMF,2023) -During the Asian financial crisis, the IMF provided financial assistance to stabilize Thailand's economy and restore investor confidence. (IMF,2000) -BYD Co. benefited from the improved economic situation in Thailand, making it a more attractive market for investment. (Hubbis, 2023) 2) Expertise and Policy Guidance -The IMF offers guidance on economic policies to member countries, including Thailand. -This guidance helps countries implement sound economic reforms and create a favorable business environment. (IMF,2023) -BYD benefitted from the IMF's support in Thailand's economic reforms, making expansion more viable. 3) IMF’s programs Macroeconomic Stability and Financial Sector Reforms (IMF,2022) -A stable economic environment attracts foreign direct investment, including BYD’s investments in clean energy and electric vehicles. -The IMF indirectly supports BYD’s business operations through its role in macroeconomic stability and financial sector reforms. C. United Nations Industrial Development Organization (UNIDO) 1) Capacity Building and Technical Assistance -UNIDO supports BYD Co. in enhancing operational efficiency through capacity-building programs. (Intarakumnerd, 2021) -BYD Co. optimizes production processes, reduces waste, and increases cost-effectiveness in Thailand. 2) UNIDO's expertise in clean energy technologies aids BYD in adopting sustainable manufacturing practices(UNIDO,2023) -BYD Co.'s environmentally conscious approach enhances its reputation and competitiveness. - Solar-Powered Electric Vehicle Charging Infrastructure. to develop solar-powered charging stations (UNIDO, 2019) - Thailand moves towards renewable energy targets, aligning with UNIDO's sustainable goals. (UNIDO, 2022) D. Asian Development Bank (ADB) 1) Aids Thailand's economic growth with financial and technical support (ADB, n.d.) -ADB's assistance aligns with BYD’s expansion goals in sustainable energy and transportation. -ADB has committed 240 public sector loans, grants, and technical assistance totaling $7.4 billion to Thailand. 2) Infrastructure Development - ADB's support for charging stations and renewable energy projects (SmartEnergy,2021) - Lead to BYD gains a strong market presence and expands its customer base in Thailand. E. The Paris Agreement- International treaty combating climate change and promoting sustainable development. -Aims to limit global warming below 2 degrees Celsius (UNFCCC, 2023) -BYD Co.'s electric vehicles aligned with the Agreement's focus on clean transportation (BYD, 2023) 1) United Nations Framework Convention on Climate Change (UNFCCC) 's Role in Sustainable Development -Promotion of sustainable practices and clean energy initiatives - Supports the global transition to electric vehicles (UNFCCC, 2023) 2) Favorable Policies and Regulations -Governments' recognition of the need to transition from fossil fuels to sustainable alternatives -Policies encouraging investment in clean energy solutions and electric vehicles -Thailand's incentives promoting EVs and charging infrastructure (Techwire, 2022) 3) Regional Expansion of EV Adoption -Regional initiatives complementing the Paris Agreement's goals -Thailand's Long-term Low Greenhouse Gas Emission Development Strategy which emphasizing the importance of sustainable transportation (Thailand LTS, 2023) Example of Impact on Multilateral BYD's Expansion Factors Institutions (Multilateral Institutions) IP rights are protected World Intellectual 1. Intellectual and that makes BYD Property Organization Property, confidence to invest in (WIPO), World Trade Technology research and Organization (WTO) Exchange and R&D development. TRIMS agreement (Nikkei,2022) 2. Energy and Resources 3. Trade and Investment 4. Customs and Tariffs International Finance Corporation (IFC), Asian Development Bank (ADB) IFC provides financing for BYD's expansion in Thailand's EV sector (IFC,2022) Regional Agreement Regional Comprehensive Economic Partnership (RCEP), China-Thailand Free Trade Agreement (FTA) Example of Impact on BYD's Expansion (Regional Agreement) Tariff reduction, regulatory cooperation, and tech exchange foster BYD's EV industry growth (China Briefing, 2022). ACFTA grants BYD preferential market access and ASEAN-China Free Trade technology transfer Agreement (ACFTA) opportunities (Aseanbriefing, 2021) Lower import costs boost Association of Southeast BYD's competitiveness in Asian Nations (ASEAN) ASEAN EV markets (Schröder, Iwasaki, 2021) Ensure fair access to World Trade international markets Organization (WTO) for BYD in Thailand (WTO,2020) World Trade WTO principles ensure Organization (WTO), fair trade practices and ACFTA reduces tariffs ASEAN-China Free Trade General Agreement on predictability, benefiting between ASEAN countries Agreement (ACFTA) Tariffs and Trade BYD's expansion in and China (Investasean,2023) (GATT) Thailand. (WTO,2021) Factors 5. Labour and Employment 6. Environmental Regulations 7. Taxation 8. Infrastructure and Transportation Example of Impact on BYD's Example of Impact on BYD's Multilateral Institutions Expansion (Multilateral Regional Agreement Expansion (Regional Institutions) Agreement) China-Thailand Free conducive labor environment, International Labour Promote decent work Trade Agreement enhancing job creation for BYD Organization (ILO) opportunities (ILO,2021) (CTFTA) in Thailand (Englishnews, 2023) United Nations Thailand's Greenhouse Gas AEC promotes adoption of ecoFramework Convention on Emission Strategy focuses on ASEAN Economic friendly technologies, Climate Change sustainable transportation Community (AEC) benefiting BYD's growth in (UNFCCC)/ Paris (Thailand LTS, 2022) Thailand (ASEAN,2022) Agreement International Monetary ASEAN-China Free Reduces import duties, Promotes tax reforms, Fund (IMF), World Trade Trade Agreement enhancing BYD's creating a transparent tax Organization (WTO) (ACFTA), Chinacompetitiveness and costenvironment in Thailand General Agreement on Thailand Free Trade effectiveness in Thailand (IMF,2022) Tariffs and Trade (GATT) Agreement (FTA) (Mahanakornpartners,2021) Asian Infrastructure Belt and Road BRI promotes infrastructure Investment Bank (AIIB), AIIB provides funding for Initiative (BRI), development and connectivity, United Nations Industrial infrastructure projects China-Thailand Free while CTFTA reduces trade Development Organization (UOB,2020) Trade Agreement barriers (Xinhuanet, 2023) (UNIDO) (CTFTA) Factors Example of Impact on BYD's Multilateral Institutions Expansion (Multilateral Institutions) Regional Agreement Example of Impact on BYD's Expansion (Regional Agreement) 9. Dispute Resolution World Trade Organization Fair mechanism for trade (WTO), Dispute dispute resolution, ensuring a Settlement secure environment for BYD. Understanding (DSU) (WTO, n.d.) China-Thailand Free Trade Agreement (CTFTA) Enable BYD to resolves conflicts, enhances trade cooperation in energy sector. WTO provides a framework for China-Thailand 10. Social and World Trade Organization reducing trade barriers, and Free Trade Cultural (WTO) ensuring non-discrimination in Agreement Factors market access. (CTFTA) CTFTA boosts bilateral trade, leverages cultural affinity for expansion (Xinhua,2023) ACFTA improves market ADB's support for charging ASEAN-China Asian Development Bank access, reduces barriers, 11. Financing stations and renewable energy Free Trade Area (ADB) fosters BYD's growth (Flick, projects (SmartEnergy,2021) (ACFTA) Kemburi, 2012)
