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Market Opportunities: Information & Communication Technologies
Thailand
EU Business Avenues in South East Asia
Dr. Thanachart Numnonda
21 March 2017 - Brussels
2
Presentation Agenda
General Thailand Statistics
ICT in Thailand
Thailand ICT Ecosystems
Thailand Government Digital Economy Policies
Value Chain Maps
ICT Market Opportunities
Setting up ICT Business in Thailand
1
2
3
4
5
6
7
Case Studies8
Thailand: General Statistics
4
Statistics
• Population: 6,701 million
• GDP: €365 Billion
• GDP per Capita: €3,240.34
• GDP per Capita PPP: $13,131.45
• GDP Annual Growth Rate: 0.40%
• Labor force: 38.38 Million
• Unemployment rate: 1.15%
5
Thailand’s ICT Demographics
Factor Thailand’s Figures Rank in SEA
Mobile Connections 97 million 4th
Mobile Penetration 150% 2nd
Internet Users 24 million 4th
Internet Penetration 37% 5th
Social Media Users 32 million 3rd
Source: Thailand Startup Ecosystem Q4 2015, Bangkok Entrepreneurs
Southeast Asia (SEA) is composed of 11 countries and over 620
million people
6
Thailand in Southeast Asia
Thailand Singapore Indonesia Philippines Vietnam Malaysia
Population 4th 1st 2nd 3rd
GDP (Nominal) 2nd 1st
Mobile Connections 4th 1st 3rd 2nd
Mobile Penetration 2nd 1st
Internet Users 4th 1st 2nd 3rd
Internet Penetration 5th 1st 3rd 4th 2nd
Social Media User 3rd 1st 2nd
ICT in Thailand
8
Internet Usage in Thailand
Internet: 46 million users
Penetration Rate: 67.0%[We are Social, Dec 2016]
Broadband: 5.49 million users
Penetration Rate: 27.36%[NBTC, Jan 2015]
Fixed Line Subscription: 5.69 million users
Metropolitan: 2.97 million users
Provincial: 2.72 million users [NBTC, Jan 2015]
3
2
1
9
Thailand’s Social Networks Most Active Platform
44%
65%
64%
53%
10
ICT Market (2015)
2,046
680
1,071
6,031
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Hardware Software IT Services Telecommunications
9.83 Billion (Euro)Million Euro
Sources: BMI, IDC, Companies’ annual reports
11
Internet / Mobile Banking in Thailand
• 14,137,723 accounts
• €73.22 billion worth
of transactions
• 19,365,014 accounts
• €13.41 billion worth of
transactions
Internet Banking Mobile Banking
Source: Bank of Thailand; Sep 2016
Thailand ICT Ecosystems
13
ICT Ecosystem
Government Industry
Associations
Hard Disk Drive
& Software
Vendors
ICT
End Users
14
Stakeholders: Government Agencies
Ministry of Digital Economy and Society
• Formally known as Ministry of ICT (MICT)
• Administrative scope to plan, promote,
develop and implement activities related
to a digital society and economy
National Electronics and Computer
Technology Center (NECTEC)
• Promotes development of electronic,
computing, telecommunication, and
information technologies through R&D
activities
15
Stakeholders: Industry Associations
Association of Thai ICT Industry (ATCI)
• Thailand’s first IT professional association
• Members include computer hardware and software manufacturers,
distributors, and service providers, which represent over 80% of
Thailand’s ICT market
Digital Economy Promotion Agency (DEPA)
• Supports and train individuals and software personnel
• Promotes the software market and manufacturing process in
Thailand through financial incentives, grants and loans
Thailand Tech Start-up Association
• Represents the start-up community and conducts R&D for the Thai
start-up ecosystem
• Works closely with corporates and government to recommend
start-up friendly initiatives and policies STARTUP THAILAND
Thailand Government Digital
Economy Policies
17
Timeline of Government Policies
32 4
Digital Foundation
Investing and
building digital
foundation
Digital Thailand I:
Inclusion
Ensuring every one
can reap the benefits
of digital technology
1
Digital Thailand II: Full Transformation
Driving the country
forward with digital
technology and
innovation
Global Digital
Leadership
Leading with digital
technology and
innovation
18
Government Policies: 10-Year Goals
Competitiveness
• Thailand will be ranked
among the top 15 of the
World Competitiveness
Scoreboard
• Digital sectors will make
up at least 25%
contribution to GDP
1 2
3 4
Digital Thailand
2
3 4
Equal Opportunities
• All Thais will have access
to broadband Internet as
a basic utility
• Thailand will be ranked
among the top 40 of the
ICT Development Index
(IDI)
Human Capital
• All Thais will be
digitally literate
Government Reform
• Thailand will be ranked
among the top 50 in the
UN e-Government
rankings
19
3 4
Government Policies: Strategies
Strategies
1. Build country-wide high-capacity digital infrastructure
Ensuring accessibility, availability, and affordability
2. Boost the economy with digital technology
Driving New S-Curve, Raising Competitiveness, Building new businesses, Creating values
3. Create a knowledge-driven digital society
Building participation, Ensuring inclusive and equal usage
5. Develop workforce for the digital era
Developing skilled workforce, Creating jobs,Building strength from within
4. Transform into digital government
Creating open government,
Facilitating people and
businesses, Integrating into
One Government
6. Build trust and confidence in the use of digital technology
Updating laws and regulations, Encouraging investments, Ensuring security
20
3 4
Government Policies: 1 𝟏 𝟐 - Year Priority Activities
Infrastructure
Economy
Society
Government
03
02
04
01
21
Infrastructure
• Provide free Wi-Fi at 10,000 locations,
including Non-formal and Informal
schools (reaching 2 million students),
Border Patrol Police schools and Digital
Community Centers all over the country
• Double international bandwidth to meet
the demands of growing economic
activities
• Deploy broadband to all villages
• Set up the Digital Thailand Infrastructure
Fund
Government Policies: 1 𝟏 𝟐 - Year Priority Activities
22
Government Policies: 1 𝟏 𝟐 - Year Priority Activities
Economy1. Digital Start-ups, SMEs, OTOP,
Community Enterprise• Foster 1,500 digital startups, SMEs, and micro SMEs, with
300 ready-to-commercialise prototypes annually
• Coach 15,000 SMEs to trade online and standardise 100,000
product items
• Build at least 10,000 online community stores via digital
community centers
• Develop 1,600 digital farmers
2. Smart Cities• Build 5 Smart Cities within 3 years for Smart Economy and
Smart Living (Pilot at Phuket and Chiangmai)
3. National e-Payment• Create data standards for the National e-Payment System
• Cover people’s daily activities and hence reducing up to
75,000 million baht in costs and expenses
Society
23
1. Healthcare• Develop a Personal Health Record system (PHR) that
links all country-wide hospitals to benefit 1,000,000
people
2. Digital Literacy• Train 8,000 people from disadvantaged and elderly
groups in digital skills for vocation / income generation
• Provide online vocational content to 700,000 students in
vocational schools and 400,000 people from general
public
• Train 600,000 people to be digitally literate
3. Education & Lifelong learning• Provide Massive Open Online Courses (MOOCs) for the
public in both education and non-education settings
• Develop an English-learning mobile application for all
groups of people including public servants, business
owners, workers, and general public
• Pilot a digital package in the 20 most marginalised
schools to bridge the digital divide
Government Policies: 1 𝟏 𝟐 - Year Priority Activities
24
1. Government Infrastructure• Craft an e-Government law that mandates digital
government plan / strategy, government service
standards, data protection, data security, monitoring of
workplan
• Establish and upgrade Government Shared
Infrastructure / Data Center, government cloud (G-
Cloud), and government mail system (MailGoThai)
2. Online Facilitation• Pioneer at least 79 types of smart services in a push
towards becoming paperless
• Build a platform to encourage entrepreneurship
• Develop a mobile communication system (G Chat) that
can accommodate at least 15,000 users
3. Access and Participation• Provide a government one-stop portal (GovChannel) that
can be accessed via website, mobile applications, Smart
Government Kiosk
3 4
Government
Government Policies: 1 𝟏 𝟐 - Year Priority Activities
ICT Opportunities
In Thailand
National e-Payment Master Plan
Approved by Cabinet on 1 Dec 2015
Develop the country's one-stop e-Payment services
- Cashless society
- Payment infrastructure development
- Increased efficiency in the e-Tax System and social
welfare registration to promote financial inclusion
26
National e-Payment Master Plan
Master Plan comprises 5 projects
Building of awareness
AnyID payment system
Expansion of use of electronic cards
E-tax system and e-transaction documents
E-payment of government entities
27
1
2
3
4
5
28
ICT Thailand: Latest Trends
E-commerce
market in
Thailand
forecasted to
top €27
billion in
2016
Investment
of 4G by
Telecom
providers
High demand for
Internet banking
and mobile banking
Government
Digital
Economy
policy boost
IT budget
More retail
business will
go online
Higher
investment
on ICT
Setting Up in Thailand
30
Entering Thailand’s Market
Leveraging
Pro-Business
Environment
Collaborating
with locals
Better
Infrastructure
network
Majority of Thai company
shares must be owned by
a Thai citizen.
i.e Foreigners can own
up to 49%
Ranked 74th ICT
development index in
2015, up from 92nd in
2010
Government policies like
Seven-Year Investment
Promotion Strategy (2015)
with high priority given to
ICT industries
Major
Improvement in
technological
development
€ 287.4m of capital being
committed to
infrastructure network
and data centres
Top 3 Value Chains & Maps
Broadband Infrastructure
Upstream Downstream
Solution
Provider
Policy Maker /
Regulator
System
IntegratorEnd User
Reseller /
Distributor
• Ministry of
Digital
Economy &
Society
• The National
Broadcasting &
Telecommunications
Commission
• ECS
• Ingram
• Optimus
(Thailand)
• Supreme
• AIT
• Smart
ComTech
• Metro
• CDG
• CAT
• TOT
• Government
• Forth Thailand
• One of the main government policies
• The total budget in the next two years is about €40m
• Industries in Thailand aim for Industry 4.0
Market
Characteristics
32
Big Data
Upstream Downstream
End UserSystem
IntegratorReseller
IT
Consultant
Data
Center /
Hosting
Big Data
Vendor
• True IDC
• AIS
• iNet
Thailand
• None
• Vintcom
• YiT
• ST
Intelligent
• PwC
• Deloitte
• Accenture
• IMC
• ST
Intelligent
• BX Center
• CDG
• YIT
• MFEC
• K-Bank
• KrungThai Bank
• Bangkok
Airways
• Thai Airways
• PTT
• AIS
• True
• DTAC
• Central Group
• Telco, FSI and Retail sectors invest a lot in big data infrastructure
• Executives have strong awareness on big data but lack human
resources
• Marketing is interested to use social media data
Market
Characteristics
33
FinTech
Upstream Downstream
Financial
Institution
System
IntegratorConsultant
s
RegulatorR & DDeveloper /
Start-upVenture
Capital
• NSTDA
• Jitta
• StockRadar
• Finnomena
• ClaimDi
• Thai Startup
• Association
• Tuk-Tuk 500
• Krungsri Rise
• SCB
• Bank of Thailand
• Securities &
Exchange
Commission
• TNIS
• CDG
• YIT
• MFEC
• PwC
• Deloitte
• Accenture
• K-Bank
• SCB
• Krugsri
• TMB
• Thanachart
• Thai Life
Insurance
• AIA
• Many banks in Thailand invest in digital technology
• National e-payment policy
• New players are disrupting the FSI business in Thailand
Market
Characteristics
34
Case Study
Nationmultimedia.com
Dr.Somchai Sujjapongse, Permanent Secretary for
Finance says in order to address the opportunities and
challenges of FinTech, the Ministry of Finance has
been at the forefront of promoting an integrated system
for national electronic payment in Thailand. This
particular initiative is called “National e-Payment
Master Plan”.
National e-Payment:
opening doors to Thailand
4.0 and digital economy
Deployment of ICT Thailand
Telecomasia.net
SK Telecom, CAT to
launch IoT network in
Thailand
SK Telecom has teamed up with Thai state-owned
operator CAT Telecom for a project to deploy a LoRa-
based IoT network and services in Thailand.
Under the agreement, the operators plan to deploy a
LoRa-based IoT pilot network in Bangkok and Phuket
and launch IoT pilot services from April.
The Verge
Microsoft is making it
easier for the Thai
government to break
web encryption
The Thai government is looking to take greater control
over its citizens' web encryption, according to a new
report from Privacy International, and Microsoft is part
of the problem. At issue is the Thai government's root
certificate, which is used to verify HTTPS-enabled
websites. Windows automatically trusts the certificate,
but many competing operating systems do not.
36
THANK YOU!