Market Opportunities: Information & Communication Technologies

Thailand

EU Business Avenues in South East Asia

Dr. Thanachart Numnonda

21 March 2017 - Brussels

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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

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2

3

4

5

6

7

Case Studies8

Thailand: General Statistics

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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%

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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

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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

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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]

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2

1

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Thailand’s Social Networks Most Active Platform

44%

65%

64%

53%

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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

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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

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ICT Ecosystem

Government Industry

Associations

Hard Disk Drive

& Software

Vendors

ICT

End Users

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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

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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

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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

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Digital Thailand II: Full Transformation

Driving the country

forward with digital

technology and

innovation

Global Digital

Leadership

Leading with digital

technology and

innovation

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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

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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

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3 4

Government Policies: 1 𝟏 𝟐 - Year Priority Activities

Infrastructure

Economy

Society

Government

03

02

04

01

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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

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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

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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

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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

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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

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1

2

3

4

5

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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

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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

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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

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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

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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.

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