Thailand told green manufacturing is no longer optional

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TPSO says advanced green manufacturing can become Thailand’s next economic growth engine, helping industries remain competitive as global markets increasingly demand cleaner, low-carbon production.

BANGKOK, Thailand – Thailand must accelerate its transition to advanced green manufacturing if it hopes to remain competitive in an increasingly sustainability-driven global economy, according to the Trade Policy and Strategy Office (TPSO). The agency says environmentally friendly manufacturing is no longer simply a corporate responsibility or additional business cost, but a new engine of economic growth capable of strengthening Thailand’s long-term position in international markets.

TPSO Director Nantapong Chiralerspong said advanced green manufacturing combines modern production technologies with sustainable practices, including clean energy, lower carbon emissions and digital innovations that improve resource efficiency.



As global trade becomes increasingly shaped by environmental regulations and sustainability standards, countries are adopting more non-tariff measures that reward low-carbon production, making green manufacturing essential for exporters seeking to maintain access to international markets. Thailand already possesses several industries well positioned to benefit from the transition.

The country is the world’s largest exporter of air conditioners, accounting for around 28 percent of global trade in the sector. Officials say manufacturers can further strengthen their competitiveness by adopting low-carbon refrigerants and cleaner production processes. Thailand also has opportunities in solar energy technologies, particularly high-value optical components used in advanced solar equipment, where domestic manufacturers already possess significant technical expertise.


The office also highlighted electric vehicles as another major opportunity. Although Thailand is not yet a leading EV producer, it has one of Southeast Asia’s most comprehensive conventional automotive supply chains, allowing many existing components—including vehicle bodies, braking systems and suspension parts—to be adapted for next-generation electric vehicles. Officials say continued investment in battery technology and advanced electronics will help Thai manufacturers integrate more deeply into the global EV supply chain.

Another promising sector is bioplastics and environmentally friendly chemicals, where Thailand benefits from abundant agricultural feedstocks such as sugarcane and cassava alongside its established petrochemical industry and ongoing Bio-Circular-Green (BCG) Economy initiatives.



Nantapong said Thailand’s existing industrial strengths provide a strong foundation, but success will require coordinated action between government and the private sector to develop internationally recognized green standards, encourage technology transfer, increase domestic sourcing of components and improve industry understanding of evolving global trade requirements.

He stressed that advanced green manufacturing should be viewed as Thailand’s pathway to long-term economic resilience rather than an environmental obligation, helping businesses create higher-value products while protecting the country’s competitiveness in an increasingly carbon-conscious global marketplace.