Thailand aims to become a regional electric vehicle manufacturing hub by leveraging its position in the global automotive sector and transforming its strategic advantages under technology-driven circumstances. This requires an integrated ecosystem approach that addresses innovation across global value chains, particularly in identifying strategic value propositions in markets and policy reforms internationally. National policy reform must make sense of global dynamics to help Thailand transform competitively and win global ambition based on competitive markets and policies in the emerging electric vehicle sector. Positioning Thailand's electric vehicle ecosystem as part of global value chains critically advances its structural competitiveness, particularly as a vital regional and global partner.

1. World Bank Group’s Trading for Development in the Age of Global Value Chains
Bangkok, Thailand / Page 1 (2) Edition: January 27, 2021
Thailand’s Electric Vehicle Ecosystem: Transforming Strategic Policy
Reform in Integration to the Global Value Chains
Siripong Treetasanatavorn
Sloan Fellow, Massachusetts Institute of Technology
Winning greater transformative purposes of the Global Value Chains (GVCs) is a key
pivotal imperative, making sense of global partnership and collaboration as lynchpins
of national competitiveness, particularly in the emerging Electric Vehicle (EV) sector.
Cohering competitive policy reform on a whole-of-government basis, Thailand strives
to become a regional EV manufacturing hub by leveraging structural advantages with
current market position in the global automotive sector (Thailand exported autos with
approximately 2 million units in 2016, i.e., in the 12th global position1
). Transforming
strategic advantages under technology-driven circumstances in this sense, however,
requires an integrated ecosystem approach, addressing disruptive innovation across
the GVCs, particularly in identification of strategic value proposition in greater market
and policy reform landscape both on national and international levels (market uptake
on the global level dependent on economic competitiveness of the EV’s batteries but
also scale and scalability of charging infrastructure especially in China and Europe2
).
Making sense of national policy reform in global dynamics of the GVCs is therefore a
prerequisite to Thailand’s transformative choice and thereby winning global ambition
based on competitive market and policy reform in the emerging EV’s global narrative.
Leading globally transformative influence in the highly-competitive EV sector requires
a well-orchestrated value proposition in dialogs of structural transition addressable to
competitiveness rationale in the dynamics of the GVCs respecting local and regional
factor conditions. Focusing on key innovation capabilities contributable to ecosystem
advantages not just commands strategic purposes of forward-looking national reform
in advocacy and stewardship of long-term competitiveness as strategic global partner
based on GVC participation (competitiveness based on EV battery innovation as key
objective of Thailand’s national policy reform, particularly driven by dedicated special
economic zone across the Eastern Economic Corridor3
). Resonating greater strategic
purposes of the GVCs in forward-looking dialogs of the country’s structural transition
is all the more pivotal and indispensable to how the country makes sense of strategic
priorities of the EV ecosystem development, but also why such leadership matters in
strategic and diplomatic sense to the country on regional and global stages (strategic
purpose of the EV policy with implications to Thailand’s infrastructure as an emerging
ASEAN’s electricity and transportation hub4
). Positioning strategic purpose of the EV
ecosystem as part of the GVCs therefore plays a critical role in advancing Thailand’s
structural competitiveness, particularly as vital partner on regional and global stages.
Orchestrating strategic priorities in achievement of EV ecosystem competitiveness is
also of paramount significance considering decision-making complex in interaction of
market and policy instruments especially on a long-term sustainable growth pathway.
Incentivizing market decisions at the fundamentals of choice competitiveness makes
strategic sense for the EV uptake not just on the premise of value competitiveness in
attractive economic terms, but also of the availability of supporting infrastructure such
as EV charging stations across urban areas (competitive EV subsidies and charging
infrastructure as key competitive rationale for EV uptake across top 20 urban cities5
).
Winning greater ecosystem purpose on the sustainability highground essentially also
plays a pivotal sense-making role, especially by making sense of short-run economic
competitiveness in perspective of long-run sustainability ambition in the international
community (differentiated proposition of the Oslo model based on a holistic approach
to zero carbon emission by coupling socio-economic and regulatory policy reforms in

2. S. Treetasanatavorn. Thailand’s Electric Vehicle Ecosystem
Edition: January 27, 2021 Bangkok, Thailand / Page 2 (2)
forward-looking view to achieving greater sustainability ambition6
). Cohering complex
market and policy decision-making indeed plays a key transformative role in greater
competitiveness dialog of national reform prioritization particularly in consideration of
interdependent causes and causalities of short- vis-à-vis long-run sustainable impact.
Charting forward market and policy reform toward competitive EV ecosystem uptake
therefore requires broad-based strategic discussion at least in the following three key
areas in consideration of long-term implications to the GVC participation by Thailand.
First, strategic value proposition in the EV’s GVCs. Global disruptive innovation is for
Thailand a challenge but also an opportunity particularly in ASEAN growth narratives
with Thailand’s broad-based capabilities in the automotive sector. Strategic partners
in ASEAN and on a global level is necessary but not sufficient unless Thailand leads
with globally competitive value proposition from perspective of the GVC contribution.
Second, competitive reform package considering market and policy tools. Policy-led
reform successfully jumpstarted Thailand’s EV global ambition particularly based on
leadership of the Eastern Economic Corridor. Greater attention to market incentives
is nevertheless required to balance supply-side policy with demand-side economics,
particularly in strategic orchestration with charging infrastructure buildup, but also in
forward-looking contribution to the country’s sustainable energy prospect. Third and
last, dedicated smart urban areas as EV launchpad. Smart mobility shall become a
strategic growth policy not only in backward integration to the GVCs but particularly
also in transformation of domestic economy. Coming-together of urban, energy and
mobility future shall undoubtedly make greater sense especially once demonstrated
in practice, particularly by advancing sustainable impact from mutual economic gain.
Winning public conviction with socio-economic competitiveness shall make sense on
this common ground, especially on a stronger sustainable foundation going forward.
References
1. Board of Investment Thailand (BOI), 2017.
2. BNEF on Electric Vehicle Outlook, 2020.
3. Thailand’s Eastern Economic Corridor (EEC) and Bangkok Post, 2020.
4. Energy Policy and Planning Office, Thailand’s Ministry of Energy, 2016.
5. International Council of Clean Transportation (ICCT), 2017.
6. World Economic Forum, 2018