Industrial Policy & Trade Monitor· 2665 actions· ✨ 90 recent

Vietnam issued Decree 182/2024/ND-CP on 31 December 2024, establishing the Investment Support Fund (ISF) to provide direct cash subsidies for high-tech enterprises and R&D centers. The decree offers up to 50% of initial investment costs for semiconductor and AI R&D projects meeting qualifying thresholds. The ISF is managed by the Ministry of Planning and Investment, with support available for operating costs, fixed asset investments, workforce training, and high-tech product manufacturing.

The Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme on 11 September 2024, with the Ministry of Heavy Industries notifying it via Gazette S.O. 4259(E) on 29 September 2024. The two-year programme (1 October 2024 – 31 March 2026) has a total outlay of Rs 10,900 crore (~USD 1.3 bn). It subsumes the EMPS-2024 stop-gap and replaces FAME-II (which expired on 31 March 2024). Demand incentives cover e-2W, e-3W (incl. e-rickshaws and cargo), e-trucks, e-ambulances and e-buses; supply-side outlays fund 14,028 e-buses for state transport undertakings (via CESL aggregation), Rs 2,000 crore for EV public charging stations, and Rs 780 crore for upgrading MHI testing agencies.

Germany's Federal Ministry for Economic Affairs and Energy published the "Bundesförderung Industrie und Klimaschutz" (BIK) funding guideline on 23 August 2024 and opened the first funding call on 30 August 2024, making roughly EUR 3.3 billion available through 2030 — financed from the Klima- und Transformationsfonds (KTF) — to decarbonise industrial SMEs and large manufacturers. Module 1 funds decarbonisation investment and R&D projects up to EUR 200 million per project; Module 2 funds carbon capture, utilisation and storage (CCU/CCS) investment (up to EUR 30 million) and research (up to EUR 35 million) projects. A second funding call opened in January 2026, and individual awards under the programme — including a EUR 140 million grant to Hüttenwerke Krupp Mannesmann GmbH for its EAF2HKM electric-arc-furnace steel-decarbonisation project — have since been logged as state aid by Global Trade Alert.

On 26 July 2024 the Thai National Electric Vehicle Policy Committee (EV Board), chaired by Deputy PM Pichai Chunhavajira, approved a dedicated excise-tax incentive package for hybrid-electric-vehicle (HEV, ≤ 10-seat passenger) manufacturing distinct from the BEV-only EV 3.5 regime. Qualifying manufacturers receive a locked excise rate of 6% on HEVs emitting ≤ 100 g CO2/km and 9% on 101-120 g CO2/km vehicles for the 2028-2032 period, conditional on a minimum new investment of THB 3 billion during 2024-2027, BOI approval, mandatory use of key Thai-produced parts, and inclusion of at least four of six listed ADAS safety features. The measure is expected to draw THB 50 billion (~USD 1.4 billion) in additional HEV manufacturing investment and is positioned as the intermediate-emission complement to EV 3.5's BEV-only purchase subsidies and 2% excise rate, extending Thailand's "EV Hub of ASEAN" industrial strategy to capture Japanese OEM hybrid-platform capex (Toyota, Honda, Nissan, Mazda) alongside the Chinese-OEM BEV wave already locked in under EV 3.5. The decision required separate Cabinet endorsement and was published via the BOI /EV-Board channel rather than amending the EV 3.5 instrument.

Regulation (EU) 2024/1735 - the Net Zero Industry Act (NZIA) - was published in the Official Journal on 22 June 2024 and entered into force on 12 July 2024 (twenty days after OJ publication). It sets a binding target that at least 40% of the EU's annual deployment needs for net-zero technologies be manufactured within the EU by 2030. It establishes a streamlined permitting regime for Net-Zero Strategic Projects (NZSP) capped at 18 months for construction permits (9 months for smaller projects), creates Net-Zero Regulatory Sandboxes, and requires public procurers and auction designers to include resilience and sustainability criteria that effectively favour non-China-sourced equipment. The Act is the manufacturing-capacity complement to the Critical Raw Materials Act (CRMA, Reg 2024/1252, filed separately) and was explicitly designed to close the EU's competitive gap with US IRA manufacturing incentives.

The Diet enacted on 31 May 2024 (promulgated 7 June 2024 as Law No. 45 of 2024) the "Act on Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries". The provisions establishing Japan's first US IRA-style production-and-sales-linked tax credit took effect 2 September 2024 per METI's press release of the same date. Eligible enterprises with a METI-certified business plan can claim tax deductions tied to domestic production-and-sales volume of five designated strategic products: electric vehicles, green steel, green chemicals, sustainable aviation fuel (SAF), and semiconductors. The credit is available for ten years from certification (certifications must be issued by 31 March 2027), with an annual cap of 40% of corporate tax liability (20% for semiconductors) and a 4-year carry-forward. Eligibility is conditional on meeting wage-growth or capital-investment thresholds in each fiscal year.

The Indiana Economic Development Corporation approved up to USD 18.3 million in EDGE (Economic Development for a Growing Economy) payroll-based tax credits for Amazon Data Services Inc., tied to Amazon Web Services' USD 11 billion data center campus at the Indiana Enterprise Center in New Carlisle, St. Joseph County. The credit was one component of a larger state incentive package announced by Governor Eric Holcomb on 2024-04-25, which also included up to USD 55 million in Hoosier Business Investment tax credits, up to USD 20 million in redevelopment tax credits, up to USD 5 million in training grants, a USD 7 million road-infrastructure contribution, and a 50-year state sales-tax exemption on data center equipment. IEDC records cite an incentive-agreement effective date of 2023-09-01. The project committed to creating at least 1,000 new jobs.

The Indiana Economic Development Corporation approved up to USD 55 million in Hoosier Business Investment (HBI) tax credits for Amazon Data Services Inc., tied to Amazon Web Services' USD 11 billion data center campus at the Indiana Enterprise Center in New Carlisle, St. Joseph County. This is the largest single instrument in the five-part state incentive package Governor Eric Holcomb announced on 2024-04-25, which also included up to USD 18.3 million in EDGE payroll tax credits, up to USD 20 million in redevelopment tax credits, up to USD 5 million in training grants, a USD 7 million road-infrastructure contribution, and a 50-year state sales-tax exemption on data center equipment. IEDC describes all incentives as performance-based, claimable only once the underlying investment and job-creation commitments are verified. IEDC records cite an incentive-agreement effective date of 2023-09-01.

The Indiana Economic Development Corporation approved up to USD 20 million in redevelopment tax credits for Amazon Data Services Inc., tied to Amazon Web Services' USD 11 billion data center campus at the Indiana Enterprise Center in New Carlisle, St. Joseph County. This is the third of five distinct incentive instruments in the state package Governor Eric Holcomb announced on 2024-04-25, alongside up to USD 18.3 million in EDGE payroll tax credits, up to USD 55 million in Hoosier Business Investment tax credits, up to USD 5 million in training grants, a USD 7 million road-infrastructure contribution, and a 50-year state sales-tax exemption on data center equipment. IEDC records cite an incentive-agreement effective date of 2023-09-01.

The European Commission approved on 8 April 2024 a €267 million Slovak State aid measure (SA.103740) under Article 107(3)(a) TFEU and the 2022 Regional Aid Guidelines to support Volvo Cars Slovakia s.r.o.'s construction of a new battery-electric-vehicle manufacturing plant in the Valaliky Strategic Industrial Park near Košice in eastern Slovakia. The facility is designed for up to 250,000 BEVs per year against a total private investment of approximately €1.2 billion, creating around 3,300 direct jobs in one of Slovakia's least-developed NUTS-2 regions. The aid takes the form of a direct cash grant and marks the single largest project-level EU state-aid notification by Slovakia in over a decade, anchoring the country's pivot from ICE-vehicle sub-assembly toward full BEV manufacturing.

The Dutch Council of Ministers on 28 March 2024 approved Project Beethoven, a EUR 2.51 billion public-investment package for the Brainport-Eindhoven semiconductor ecosystem. The package combines EUR 1.28 billion from the Nationaal Groeifonds, EUR 450 million in additional central- government education/talent spending, and EUR 780 million in regional co-funding from the Province of Noord-Brabant and the Municipality of Eindhoven. Investment pillars cover infrastructure (mobility, road capacity on A2/A58/A67, energy-grid reinforcement), a national semiconductor-talent plan targeting 2,000 master's-programme graduates per year by 2030, 16,000+ new housing units in the Brainport region, and quality-of-life improvements. The Government stated it expects these measures to lead ASML to continue to invest and maintain its statutory and tax domicile in the Netherlands.

METI committed up to 732 billion yen (~US$4.86 billion) in direct subsidies for Japan Advanced Semiconductor Manufacturing K.K. (JASM) to build a second wafer fab adjacent to the first JASM facility in Kikuyo, Kumamoto Prefecture. Confirmed by METI Minister Ken Saito at the Fab 1 opening ceremony on 24 February 2024, two weeks after TSMC, Sony Semiconductor Solutions, Denso, and Toyota jointly announced the Fab 2 expansion (6 February 2024). Fab 2 will produce 6/7nm and 40nm logic for automotive, industrial, consumer, and HPC end-markets, with combined Fab 1 + Fab 2 capacity exceeding 100,000 12-inch wafers per month. Construction targets year-end 2024; operations target year-end 2027. Combined with the 476 billion yen Fab 1 grant, total JASM subsidies reach ~1.208 trillion yen, the largest single direct manufacturing subsidy in Japanese history. METI conditions require >=10 years of post-startup production and >=50% Japanese-domestic procurement of silicon wafers, materials, and components.

Slovakia's Národná rada adopted Act No. 31/2024 Z.z. on 13 February 2024, amending Act No. 57/2018 Z.z. on Regional Investment Aid by inserting two new sections — §28a (Mimoriadna investičná pomoc / Exceptional Investment Aid) and §28b (Exceptional Investment Aid in sectors strategic for the transition to a climate-neutral economy) — creating the national legal base for disbursing the EC-approved €1 billion Slovak TCTF net-zero state-aid envelope (EC decision 15 December 2023, SA case approved under the Temporary Crisis and Transition Framework). The scheme supports manufacturers of batteries, solar panels, wind turbines, heat pumps, electrolysers, CCUS equipment, key components thereof, and related critical raw materials, with aid ceilings of €350 million per project in general districts and €150 million in Bratislava region, at aid intensities of 15–60% depending on company size and geography. Act 31/2024 is the horizontal enabling statute underpinning all large-scale Slovak net-zero state-aid awards flowing from the TCTF/NZIA envelopes — including future battery gigafactory, electrolyser, and clean-tech plant grants in the 2024–2025 window.