The Trade Policy and Strategy Office (TPSO), a part of the Ministry of Commerce of Thailand, in collaboration with Kasetsart University as an advisor for the CLMVT Forum Enhancing Trade and Cooperation in the Region Project, recently conducted an academic seminar and workshop under the theme "CLMVT Forum 2023: Reshaping Supply Chains for Sustainability & Carbon Reduction."
This event was dedicated to the concept of environmentally-friendly supply chain management and took place on September 4, 2023, in both a hybrid format at the Grand Richmond Hotel, Nonthaburi, and online via the Zoom platform. The opening ceremony was presided over by Mr. Wichanun Niwatjinda, Deputy Director General of Trade Policy and Strategy Office under the Ministry of Commerce. Distinguished speakers from the public sector, private sector, and academia shared their insights on sustainable supply chain management, with a focus on three key product categories: food products, automotive products, and rubber products. The seminar drew more than 200 participants, both online and offline.
Mr. Wichanun Niwatjinda, Deputy Director General of Trade Policy and Strategy Office, Ministry of Commerce, revealed that TPSO has been organising the CLMVT Forum since 2016. The forum serves as a platform for high-level representatives from the government, private sector, and academia in the CLMVT countries to discuss, exchange information, and share insights on economic and trade policies, preparing for the new era of global trade dynamics. In the fiscal year 2023, TPSO acknowledges the growing global attention to addressing global warming and climate change, with governments worldwide enacting laws and measures to promote and support the private sector in adjusting their production processes, services, supply chains, and logistics systems to be more environmentally friendly.
Given that the CLMVT countries play a significant role as a production base and integral part of the global supply chain, it is crucial for all sectors within CLMVT to collaborate in finding ways to adapt and elevate their production standards to align with international environmental standards and regulations. This alignment must adhere to the policies, laws, and standards of major trading partners and cater to the evolving preferences of modern consumers, who increasingly prioritise environmental concerns. The Ministry of Commerce has therefore implemented policies and measures to foster cooperation among various sectors, preparing businesses for the continuous evolution in the new era of trade.
Project advisors presented findings indicating that key trading partners of the CLMVT countries, including the European Union, the United States, and Japan, have stringent environmental standards that Thai and CLMV businesses must adhere to. Leading global companies are setting goals to achieve net-zero carbon emissions, impacting the entire value chain. Consequently, small and medium-sized enterprises (SMEs) face challenges in elevating their standards to minimise carbon emissions to maintain their position in the global value chain.
During the panel discussion on "Green Supply Chain Management: Trends and Future Changes," Mr. Techa Boonyachai, Vice Chairman of the Thai National Shippers' Council, emphasised the need for stakeholders to collaborate in creating environmentally friendly supply chains. He proposed a process for businesses to move towards achieving net-zero carbon emissions, involving the identification and elimination or avoidance of emissions, followed by de-energisation or decarbonisation.
Subsequently, managing residual carbon emissions would entail establishing a new value proposition and strategic plans toward achieving net-zero carbon emissions for enterprises.
Dr. Anurug Ruangrob, President of the Thai Sustainable Agriculture Trade Association (TSATA), stressed the importance of Thailand rapidly adapting its export products in line with international trade regulations, especially the Carbon Border Adjustment Mechanism (CBAM), which currently covers product categories such as iron and steel, cement, electricity, fertiliser, aluminium, and hydrogen, with the potential for expansion. Entrepreneurs need to modify their business approaches throughout the supply chain, from agriculture and packaging to investing in clean energy and reducing food waste.
Dr. Nuwong Chonlakup, a representative from The National Energy Technology Centre (ENTEC) under the National Science and Technology Development Agency (NSTDA), and a committee member of the Electric Vehicle Association of Thailand, highlighted the increasing global bans on the sale of Internal Combustion Engine (ICE) vehicles, with the growing adoption of Plug-in Hybrid Electric Vehicles (PHEVs). Thailand's continuous development of electric charging stations positions it for future opportunities to attract investments and expand electric vehicle (EV) production bases.
Mr. Supadetch Ongsakul, Deputy Secretary General of the Thai Rubber Association, emphasised the need for businesses exporting rubber products, particularly to the European Union, to ensure their products are deforestation-free. Imported or exported products must undergo due diligence to ensure compliance with international standards such as the Forest Stewardship Council (FSC) standard and employ traceability technology to enhance their competitive advantage.
In the afternoon session, workshops were organised and divided into three rooms, each focusing on potential products. The aim was to gather opinions on collaborative strategies for the development of environmentally-friendly supply chains in the CLMVT region, as well as management strategies for eco-friendly supply chains and related logistics systems. The results from the "CLMVT Forum 2023: Reshaping Supply Chains for Sustainability & Carbon Reduction" academic seminar and workshops will be used to formulate policy recommendations on collaborative strategies for the development of eco-friendly supply chains for potential products in the CLMVT region. These recommendations will be presented to the Ministry of Commerce, relevant government agencies, and entrepreneurs for utilisation and adaptation towards more environmentally-friendly supply chains.