On July 21, 2022, Vietnam’s Ministry of Industry and Trade (MOIT) submitted Report No. 126/BC-BCT to the Prime Minister regarding the mechanism for transitional wind and solar power projects. In this report, the MOIT proposed some recommendations to explicitly address difficulties for outstanding wind and solar power projects (“Transitional Projects”) which have been developed under the Prime Minister’s Decision No. 13/2020/QD-TTg dated April 6, 2020, on the development of solar power projects (Decision 13) and Decision No. 37/2011/QD-TTg dated June 29, 2011, on the development of wind power projects (Decision 37), as amended by Decision No. 39/2018/QD-TTg dated September 10, 2018 (Decision 39). The Transitional Projects primarily include those which have completed construction but have not yet been put into operation, and those which have been put into operation but for which the power price has not yet been decided, due to missing the deadline set forth under the aforementioned decisions to be eligible for the feed-in-tariff (FIT). In particular, the MOIT has proposed the following key recommendations to the Prime Minister: Mechanism for Transitional Projects The MOIT proposes two options: Option 1: Developers of the Transitional Projects negotiate and sign power purchase agreements (PPA) with Vietnam Electricity (EVN) within the price framework issued by the MOIT in accordance with the Law on Electricity, the Law on Prices, and their subordinate guiding legislation; or Option 2: The Prime Minister formulates a new decision specifying the mechanism for bidding on the purchase of power produced by the Transitional Projects, estimated to be implemented for the time limit of three years and within the price framework issued by the MOIT. Mechanism for future wind and solar power projects The MOIT proposes to apply the mechanism that developers of future wind and solar projects negotiate the power price and sign the PPA

On August 5, 2022, the Central Bank of Myanmar (CBM) adjusted the country’s official reference exchange rates. The new rate for US dollars is USD 1 to MMK 2,100—up from the previous rate of USD 1 to MMK 1,850. Authorized dealer (AD) banks (i.e., those licensed to exchange foreign currency) were to begin using the updated rates that same day, in accordance with Myanmar’s requirement to convert foreign currency transfers and balances to local currency using the official CBM rates. In addition, the CBM issued Notification No. 36/2022 to clarify its foreign currency conversion requirement for exporters. The notification specifies that only 65 percent of income received from exportation needs to be converted into MMK within one day. An analysis of the regulations laying out the currency conversion requirements mentioned above suggests that the remaining 35 percent of export earnings balance will be converted into MMK if exporters do not use it within 30 days. Noncompliance with the requirements of Notification No. 36/2022 is punishable under the Foreign Exchange Management Law with imprisonment for up to one year, a fine, or both. For more details on these foreign exchange developments, or on any aspect of financial regulations in Myanmar, please contact Tilleke & Gibbins at [email protected]

Thailand’s Securities and Exchange Commission and the Stock Exchange of Thailand (SET) have opened a public hearing period on proposed changes to requirements for IPO securities issuers and other regulations relating to companies listed on the SET and the Market for Alternative Investment (MAI). The proposed changes aim to prevent the use of publicly offered securities to avoid or violate strict regulations on investment management. During the public hearing period, interested parties may submit comments on the proposed rules until August 18, 2022, with the finished regulations expected to be issued soon after. Key Proposed Changes to Rules for Securities Issuers Under the proposed rule adjustments, securities issuers (i.e., operating companies, holding companies, or foreign companies that request a public offering) must not be investment companies, except for companies or subsidiaries undertaking financial institution business (e.g., commercial banks, finance companies, credit foncier companies, securities companies, and life/non-life insurance companies). “Investment company” refers to a company that has more than 40 percent of its total assets as passive investments in securities, derivatives (excluding for hedging purposes) or digital assets. When considering whether a company that has a subsidiary is classified as an investment company, it will be determined based on the consolidated financial statement. Excluded from such classification are investments for low-risk liquidity management (i.e., bank deposits, government bonds, debt instruments backed by the Ministry of Finance, money market mutual funds, or fixed-income funds); affiliate companies that do not operate as investment companies; subsidiary companies under the same group company; and investments in business networks, synergies, or value chains. Key Proposed Changes to Rules for Listed Companies A company with the characteristics of an investment company mentioned above is not allowed to list its securities on the SET or the MAI. Companies listed on SET and MAI with more than

Thailand has issued separate regulations temporarily exempting hotel operators and factory owners from paying their annual government fee. The special allowances are meant to mitigate the COVID-19-related financial impacts that have hit the hospitality and manufacturing sectors in Thailand. The exemption for hotel business operators came on July 8, 2022, when the Ministry of the Interior promulgated the Ministerial Regulation Re: Exemption from the Government Fee for Hotel Business Operators B.E. 2565 (2022). This regulation exempts hotel business operators from paying the annual government fee, which is at the rate of THB 40 per room, from July 1, 2022, to June 30, 2024. The exemption for factory business operators was laid out in the Ministry of Industry’s July 1, 2022, Ministerial Regulation Re: Exemption from Annual Government Fee for Factory Business Operators B.E. 2565 (2022). Under this regulation, operators of type 2 factories (which must notify the Ministry of Industry before operation) and type 3 factories (which must obtain a factory operation license before operation) as designated under the Factory Act B.E. 2535 and its amendments are relieved from paying the annual government fee from June 10, 2022, to June 9, 2023. This fee varies (ranging from THB 300 to THB 43,500 per year) depending on the horsepower of machinery used in the factory. For more information on these exemptions, please contact Tilleke & Gibbins at [email protected]