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    Product Market Study - ICT Market in Thailand (2012) Product Market Study - ICT Market in Thailand (2012) Document Transcript

    • THAI MARKET FOR ICT PRODUCTS Page |1 PRODUCT MARKET STUDY THAILAND’S MARKET FOR INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) MATRADE BANGKOK April 2012 1
    • THAI MARKET FOR ICT PRODUCTS Page |2TABLE OF CONTENTS1. Industry Overview Page 32. Industry Classification Page 333. ICT imports in Thailand Page 344. Distribution Channels Page 405. Standards and Regulations Page 466. Tariffs Page 497. Market Trends Page 508. Challenges Faced Page 619. Relevant Trade Fairs Page 6410. Relevant Trade Associations/Agencies Page 72Sources of Information:  www.customs.go.th  www.boi.go.th  www.moc.go.th  www.bangkokpost.com  www.nationmultimedia.com  www.eiu.com 2
    • THAI MARKET FOR ICT PRODUCTS Page |31. Industry Overview The Thai ICT market is growing at one of the highest rates in the region. With a population of over 66 million and the penetration rate of mobile and Internet continuing to grow, Thailand has become a very attractive market. Thailand is also becoming increasingly affluent and disposable incomes are growing. This has resulted in increased expenditure on IT products. The Thai IT market is the largest in the South East Asia region and despite a serious impact from the recent floods that will continue into 2012 is projected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent over the 2012-2016 periods. The total value of Thai domestic spending on IT products and services should reach US$6.2billion in 2012 and US$9.3billion 2016. In regards to IT infrastructure, the low fixed line broadband is compensated by the Kingdom’s high mobile telephone penetration, estimated at 97 per cent in 2009. Thailand’s mobile market had reached 72 million subscribers by early 2011, for an overall penetration of 105 per cent. There are now five mobile companies operating in Thailand. The top three now control 98 per cent of the market. AIS (Advanced Info Service), the Shin Corporation subsidiary, which operates the largest GSM network, has been the dominant player in the mobile market since the mid-1990s. AIS are the largest Thai mobile operator with 31.2 million subscriber’s i.e. 43 per cent of subscriber market share. 3
    • THAI MARKET FOR ICT PRODUCTS Page |4The second major player is DTAC and the third mobile market entrant isTRUE Move (formally knows as TA-Orange). TRUE Move entered themobile telephony market in 2001 in a joint venture with the Europeantelecom giant Orange, and formed the company TA-Orange. True movehas 24.6 per cent of subscriber market share of. True Move is a subsidiarycompany of True Corporation.The Thai Government has set plans for implementing mobile broadband tocompensate for the low fixed-line broadband penetration, estimated to 2per cent in 2009, in order to catch up on neighboring countries and thisgives opportunity to introduce solutions that have already been tested inother markets. With the government policy of promoting low cost InternetBroadband for Thai people, the ADSL technology was introduced to theThai internet market. True Corporation is Thailand’s largest internet serviceprovider in Thailand.However, Thailand’s ICT market faces challenges as it enters a period ofliberalization. The government has set up an independent regulatory body,the National Telecommunications Commission (NTC) to remove regulatorymatters from the former government state owned enterprise, TOT PublicCompany Limited (TOT) and Communication Authority of Thailand (CAT)area of responsibility. NTC is attempting to provide a framework for freeand fair competition and has transformed some areas. This process haseven resulted in the delay of 3G rollout in the country. 4
    • THAI MARKET FOR ICT PRODUCTS Page |5Thailand’s Board of Investment (BOI) is focusing on ICT and softwaredesign by offering special tax incentives towards this sector. BOI’s specialincentives to investors in the ICT sector, include maximum tax incentivesfor high-technology investment projects totaling more than US$1 millionand producing products not yet made in Thailand, and exemption fromimport duties on raw materials and components used for producingelectronic goods, just to name a few. This combined with BOI’s RegionalOperating Headquarters incentives has resulted in excellent opportunities Figure 1: Thailand ICT Market 2009 - 2010 and Outlook 2011for setting up foreign and Thai companies to invest in ICT companies whichinevitably will also lead to higher import possibilities as they seek partnersand collaborative technologies.  Thai year 2552 is B.C 2008, 2553 is B.C 2009, 2554 is B.C 2010 5
    • THAI MARKET FOR ICT PRODUCTS Page |6The main factors fueling growth are government stimulus programmes,banking and insurance companies spending more to upgrade operations,and computerization of practices in the education and health care sectors.The ICT growth rate is rising sharply in Thailand. Out of that, 61.6 per centgoes to communications, 14.8 percent to computer hardware, 12.4 per centto computer software and 11.1 percent to computer services.From the table and graph above, it is clear that the most concentrated ICTmarket is indeed in telecommunication sector with a total of US$12.2 billionin 2010. Many new technologies and business models have beenintroduced throughout the year such as Cloud computing, 3G mobile andWi-MAX, and industry trends, such as software-as-a-service (SaaS), GreenIT and virtualization.IDC predicts that there will be an estimate of 6 million smart phone sales in2012 with the total market value of BHT 32.789-34.544 billion. Not onlythat, the vast growth of telecommunications is also driven by the e-commerce, internet and mobile banking, cloud computers and broadband.Figure 2: Mobile represents the future of banking services 6
    • THAI MARKET FOR ICT PRODUCTS Page |7Currently the mobile phones market is growing rapidly with a total amountof sales of 6.7 million units (1 million units of smart phones and 700,000units of media tablets), while mobile broadband users have also shownsignificant growth. By 2014, mobile users are expected to grow until 20million.Figure 3: Mobile phone growth rateOut of the total population of 66.7 million, 20.6 million people are internetusers. The total numbers of Facebook users are over 14 million. The rapidGrowth of social networking and web 2.0 has indeed contribute to the massdevelopment of ICT sector specifically communications market. 7
    • THAI MARKET FOR ICT PRODUCTS Page |8Figure 4: communications market 8
    • THAI MARKET FOR ICT PRODUCTS Page |9Figure5: ICT Market 2011From the table above, 47.2 per cent of the ICT market is spent onHousehold or Small Offices and Home Offices and 52.8 per cent onCorporate and State Government Enterprise. Table 3: Computer Hardware (PC) Market 9
    • THAI MARKET FOR ICT PRODUCTS P a g e | 10Figure 7: IT Spending 10
    • THAI MARKET FOR ICT PRODUCTS P a g e | 11Since 2002, Thailand has developed a number of national ICT masterplans, as have other countries, in order to promote the development andutilization of ICT. The adoption of ICT among firms in Thailand, however, isstill limitedFrom table 3 and 4 we can infer that the ICT spending has increased overthe past few years. Most of the households have become the majoritybuyers as well as users of computer hardware. The overall growth can beclearly seen to shoot from 4.3 per cent to about 7per cent over the comingyears.Figure 1 shows the distribution of ICT services in an enterprise. Thecomputer usage tops the list with 67.9 per cent and sales via internet,internet usage, website presence follows. Figure 8: ICT Usage in Enterprises in Thailand (2011)Source: Thailand Development Research Institute (TDRI) 11
    • THAI MARKET FOR ICT PRODUCTS P a g e | 12Firms were found to have different objectives in using different types of ICTIn particular, their main objective in using computers was for routine tasks,such as AutoCAD (computer-aided design)/design, data processing, andengineering tasks,. In addition, firms used computers for managementinformation systems in the back office, including accounting systems salarysystems ,sales systems , inventory systems ,debtor systems , equipment orarticle systems , and budget systems , used computers for managementinformation systems in the back office, including accounting systems,salary systems ,sales systems ,inventory systems , debtor systems ,equipment or article systems, and budget systems.Figure 9: Objectives of Firms in Using Computers(2011) Source: Thailand Development Research Institute (TDRI) 12
    • THAI MARKET FOR ICT PRODUCTS P a g e | 13In terms of the purposes of Internet usage, the firms’ main objectives inusing the Internet were information searching (91%), followed by e-mailusage (73%), market monitoring (50%), advertising of goods and services(28%), purchasing or selling goods and services, and trading with partners(25%), communication channels (excluding e-mail) (19%), and banking andFinancial services (17%), as shown in Figure 3.Figure 10:Objectives of Firms in using the Internet (2011)Source: Thailand Development Research Institute (TDRI)With regard to the limitations to using computers and the Internet, andhaving a presence on the Web, Figure 4 shows that the main obstacles arequite similar. In particular, the most important obstacle to using computersand the Internet, and having a presence on the Web was that firmsbelieved that it is not necessary for their business, which accounted formore than 70 percent of the total. 13
    • THAI MARKET FOR ICT PRODUCTS P a g e | 14This may suggest that such ICT use is really inappropriate for theirbusiness models, or that firms do not realize how ICT usage could bebeneficial to their business. Other major obstacles to using ICT were foundto be the lack of employees skilled in information technology (IT) (29-31%)and poor infrastructure, such as the high expenses associated with usingICT and unavailability of network services (26-33%). Figure 11: Obstacles that Firms Face in Using ICT (2008)Source: Thailand Development Research Institute (TDRI)Table below provides a data summary across firms in 2010. It found thatthe number of sample firms with or without ICT usage varied depending onthe different types of ICT usage. For example, the number of sample firmswith or without computer usage and EDI was the highest (20,152 firms),while that of sample firms with or without Internet usage was the lowest(13,795 firms). 14
    • THAI MARKET FOR ICT PRODUCTS P a g e | 15Table 1: data summary across firms in 2010Table below shows the marginal effects on the ICT usage probabilities ofeach dependent variable in the logit model. * (In statistics, logisticregression (sometimes called the logistic model or logit model) is used forprediction of the probability of occurrence of an event by fitting data to alogit function logistic curve. It is a generalized linear model used forbinomial regression. Like many forms of regression analysis, it makes useof several predictor variables that may be either numerical or categorical).i 15
    • THAI MARKET FOR ICT PRODUCTS P a g e | 16In this study, the logit regression model was used to estimate therelationship of ICT usage in enterprises. The key results by which theexplanatory variables are evaluated at the sample means are as follows: asexpected, firms with a higher share of IT related employees have higherprobabilities of all types of ICT usage. This is because employees with ICTknowledge and skills are likely to facilitate the adoption of ICT among firms. Marginal Effects in the Logit Models on Determinants of ICT Usage in all FirmsTable 2: ICT usage probabilities 16
    • THAI MARKET FOR ICT PRODUCTS P a g e | 17Owing to the high variation in firm size, there was need to check therobustness of the results, particularly the effects of firm size on ICT usage.In order to check whether the results are sensitive to the size of a firm, theoriginal sample was divided into two categories: SMEs and large firms. Theestimation results of the marginal effects on the ICT usage probabilities ofeach dependent variable in the logistic model for SMEs and large firms areShown in Tables below respectively. The results for SMEs are quiteconsistent with those for large firms, in terms of the sign, but not themagnitude of the marginal effects. The main different results are as follows: the probability of SMEs using ICT increases significantly with their size,measured by the number of their employees. For example, an increase of10 employees in an SME is likely to increase the probabilities of computerUsage, Internet usage, and website presence by 5, 2, and 1 per cent,respectively. Unlike SMEs, when large firms increase in size, theirprobability of using ICT increases only slightly. For example, an increase of10 employees in large firms tends to increase Internet usage and websitepresence by a mere 0.1 percent. SMEs in a foreign partnership are more likely to use ICT than thosewithout such a partnership. For example, SMEs with foreign partners havehigher probabilities of computer usage, Internet usage, website presence,and e-commerce than SMEs without such partners by 11, 13, 8, and 1-2percent, respectively. With regard to large firms, those in a foreignpartnership tend to use the Internet and e-commerce 1 and 5-11 percent,respectively, more than those without such partners. 17
    • THAI MARKET FOR ICT PRODUCTS P a g e | 18 SMEs established under the legal forms of juristic partnership andlimited company/limited public company tend to use all types of ICT morethan SMEs set up as an individual proprietorship, whereas large firmsestablished under the legal forms of juristic partnership and limitedcompany/limited public company are more likely to use computers and theInternet, and have a website presence than are large firms set up as anindividual proprietorship.Table 3: Marginal Effects in the Logit Model on Determinants of ICT Usage inSMEs 18
    • THAI MARKET FOR ICT PRODUCTS P a g e | 19Source: Thailand Development Research Institute (TDRI) 19
    • THAI MARKET FOR ICT PRODUCTS P a g e | 20Table 4: Marginal Effects in the Logit Model on Determinants of ICT Usage inLarge FirmsSource: Thailand Development Research Institute (TDRI 20
    • THAI MARKET FOR ICT PRODUCTS P a g e | 21Enterprise Software - Service Oriented Architecture (SOA) - Software as a Service - Web 2.0 - Cloud Computing - Open Sources Software - Storage ManagementMobile Applications - 3G (New Application on Mobile) - GPS on Mobile - Services Application on Mobile (Mobile Banking/ Mobile Payment) - Mobile Internet - Mobile App. for Business Process Management (CRM App.) - I-Phone related applicationsFrom the tables above it is seen that in 2011, Enterprise Software takes upalmost most part of the total value of computer software. The sector thathas most used of computer software is the corporate and enterprise sectordue to the special customization needs. Figure 12: Computer Services Share 21
    • THAI MARKET FOR ICT PRODUCTS P a g e | 22Table 5: Computer Services Market 2010Computer service on the other hand value at US$ 1.8 billion with networkservice taking up 36.6 per cent followed by system integration at 28 percent and data center and disaster recovery systems at 9.9 per cent. Mostcomputer services are widely used by the government sector followed byfinancial and energy sector. Table 6: Communication 2009-2010 Outlook2011 22
    • THAI MARKET FOR ICT PRODUCTS P a g e | 23 Table 7: Communication Equipment Table 8: Communication ServicesSource: www.thaijavadev.com 23
    • THAI MARKET FOR ICT PRODUCTS P a g e | 24Communications Equipment- Wi-fi Mesh (roaming network equipment)- Security Equipment- Wireless N (Multiple SSID)- Mobile Internet Device for 3G & Wi max- I-PhoneCommunications Services- Multimedia, Digital Content Mobile Interne- 3G, Wi-max- Unified Communications/Unified Messaging- Video ConferenceIn the communication market there are basically two types of market:communication equipment and communication services. Communicationequipments stood at 61.6 per cent at 2011 while the latter stands at 11.1per cent. 24
    • THAI MARKET FOR ICT PRODUCTS P a g e | 25ICT learning centersThe Ministry of Information and Communications Technology plans toestablish 1,100 community-based ICT learning centers in the 2011 fiscalyear.According to the ICT Ministry, the centers will be set up with financialsupport of US$ 16.13million from the Government, which has beeninformed that local people in various provinces have greatly benefited fromthe existing 280 community ICT learning centers, in terms of knowledge,occupations, and income generation.Thailand began to set up community-based ICT centers in 2007. By theend of the 2011 fiscal year, the number will increase to almost 900 in allregions of the country to cope with the growing demand. The setting up ofcommunity ICT learning centers came after the Government establishedthe National ICT Learning Center in 2004. The main objective was topromote self-learning and lifelong education.For the full year 2010, the electronics and electrical appliance industryregistered US$53,317 million in exports, which was a year on year increaseof 27.2 percent.Table9:Economicprojection ofThailand 25
    • THAI MARKET FOR ICT PRODUCTS P a g e | 26Growth of Software and Data Center Firms Key PlayersSoftware, software animation and data center businesses are playing avital role in Thailand’s push for a creative economy. Along the way, thesesectors also offer lucrative opportunities for investors.Such information technology companies find Thailand to be an excellentinvestment location for many reasons. The country’s enhanced informationand communications technology (ICT) infrastructure offers resources vitalto software products development. These include reliable and swiftbroadband Internet, network security, low incidence of power outages, andoutstanding R&D and production facilities. There are nearly 40,000technical personnel in the country’s lively software sector.In addition, foreign investors benefit from local wages that are half of thosein the United States and the European Union.Thailand also offers strong government support to promote development ofthe software, software animation and data center sectors. The Board ofInvestment (BOI) classifies software development as a priority activitycrucial to the country’s prosperity. As such, the BOI offers maximuminvestment incentives to software ventures, including tax breaks andexemption on import duties for machinery.The government’s commitment to pushing Thailand well up the technologyvalue chain is complemented by sophisticated organizations such as theSoftware Industry Promotion. 26
    • THAI MARKET FOR ICT PRODUCTS P a g e | 27Agency (SIPA), Ministry of Information and Communication Technology(MICT), Software Park Thailand, National Electronics and ComputerTechnology Center (NECTEC), Thailand Software Process ImprovementNetwork, Association of Thai Software Industry, Thai Software ExportPromotion Association, Thai Animation and Computer GraphicsAssociation and Thai Game Software Industry Association.In particular, SIPA, which is under the MICT, works to enhance thesoftware sector through human resources development and improvementof product quality. Software Park Thailand is also mandated to helpstrengthen the sector through training and certification on quality standards.It also assists start-up companies in obtaining incubation space. Currently,there are more than 50 software companies operating at the facility.Another dedicated facility is the Korat Software Park in Nakhon RatchasimaProvince of northeast Thailand.Moreover, the NECTEC’s Software Engineering Laboratory has launched aseries of projects in software process engineering, requirement analysis,design, implementation, testing, evaluation and maintenance to promoteand support high-quality Thai software products.The government’s ICT Master Plan 2009-2013 continues to provide theframework for stable progress. 27
    • THAI MARKET FOR ICT PRODUCTS P a g e | 28Dynamic Software SectorMarket value of the Thai software sector in 2011 stood at US$ 2.18 billion.Demand for software products and services in Thailand will only get bigger.Entrepreneurs can see a wealth of opportunities, especially in areas suchas finance, logistics, communication, localization, entertainment andscientific research.The sector continues to be dominated by enterprise software products,which have the lion’s share at about 80 per cent of the market. Even so,steady growth is taking place in segments for software animation, mobileapplications and embedded software. The sector offers investors a youthfulverve, as most of the professionals at the country’s 1,300 softwarecompanies are under the age of 30.Among the prominent companies in Thailand’s software sector are DST,Microsoft Thailand, Reuters Software and SAS Software, which hasannounced a tripling of its local workforce within the next three years.Further testimony of the sector’s strength came when several other Thaisoftware companies were named prizewinners at the 2010 Asia Pacific.Information and Communication Technology Awards held in Malaysia.These included Geo move, Neo Invention, Larn Gear, Phuket SoftwareFactory and Thai Quest.Computer software has already expanded to a 16 per cent share of salesin Thailand’s entire ICT industry, which is valued at US$ 19.21 billion.Among the various sectors, enterprise software revenue totaled 58.07billion baht, embedded software hit US$ 110.3 million and software 28
    • THAI MARKET FOR ICT PRODUCTS P a g e | 29maintenance services reached US$ 40.97 million in 2010, according toNECTEC figures.Spending on computer software in the country is mainly by privatecorporations, the government, and households or small home offices,which account for 29per cent, 28 per cent and 7 per cent of the market,respectively.Whereas in past years software piracy was a substantial problem, the Thaigovernment has beefed up enforcement of laws and copyright protection,and conducted nationwide sweeps on illegal products.. That month a Thaisoftware executive went on record as praising police officials at theEconomic and Cyber Crime Division for effective raids on pirated goodsSoftware AnimationWith reliable quality, a knack for innovation and low prices, Thailanddeserves its reputation as one of the world’s top software and animationhubs. Companies from Hollywood to Europe to Japan outsource their workto the Thai industry and purchase local releasesFor software animation in particular, Thailand is especially strong incartoons and characters, computer-generated imagery, web-basedapplications and interactive applications. Animation products ring up US$322.6 million worth of sales in Thailand annually. Experts see that climbingto US$ 451.6 million in 2013 under the government’s creative economycampaign and with increased demand for Thai animation products fromneighboring countries. 29
    • THAI MARKET FOR ICT PRODUCTS P a g e | 30Thai companies such as Anya, Magic Software, Kanchorn, Monk Studio,TIGA and Kantana are among those driving progress in the softwareanimation sector. The Kantana group, sought out by everyone from 20thCentury Fox and Warner Brothers to Walt Disney and DreamWorks, is alsoknown as the creator of “Khan Kluay,” Thailand’s first 3-D animation featurefilm.Among recent major developments in the software animation sector, Thaianimation and computer graphic products bagged over US$ 16.13 millionsales at Digital Media Asia Festival 2010. Organizers of the event said thishefty haul shows that Thai enterprises are capable of outstanding creativework as well as reliable subcontracting.Figure: 13 Key Player in Thai Software Industry 30
    • THAI MARKET FOR ICT PRODUCTS P a g e | 31Data CentersThailand’s data centers and disaster recovery centers sector is a risingstar. By definition, data centers are high-integrity facilities that house theservers of many clients, generally storing them in the multiple- rackcabinets of specially designed rooms. Such centers, which can occupy oneroom of a building, several floors or even an entire building, provideservices such as server storage, data backup and security, andenvironmental control to help ensure business continuity for clients.T.C.C. Technology Co., Ltd. (TCCT) is one of the leading providers ofcommercial data center services in Thailand. Net Niche Call and DataCenter also stands at the forefront, and Fujitsu Systems Business(Thailand) remains a top foreign- invested company.Thailand’s young data centers sector recently has taken several big strides,sharpening the country’s technology competitiveness. It was in 2010 thatthe BOI, under efforts to strengthen Thailand’s position as an ICT regionalhub, added data centers to its list of activities eligible for investmentincentives. The measure aims to encourage more investment in informationtechnology businesses. Businesses in this new category will be eligible foran eight-year corporate income tax exemption as well as an exemptionfrom import duty on machinery, regardless of location.SIPA’s board also recently approved funds to support 84 projects bysoftware startups in celebration of His Majesty King Bhumibol Adulyadej’s84th birthday in 2011. 31
    • THAI MARKET FOR ICT PRODUCTS P a g e | 32In another big step, TCCT, the country’s biggest provider with 29,700square feet of data center capacity in Bangkok, has entered into acollaborative project with IBM to build a state-of- the-art “green” datacenter. The facility aims to provide ultimate efficiency, maximizing TCCTcustomers’ investment in the company. IBM will specially engineer the newTCCT center to ensure green compliance with world standards, particularlyon electrical, emergency power and cooling systems. It will feature adynamic setup of raised floors, heat-resistant walls, humidity controllers,automatic doors, fire protection, and environment- friendly systems.Industry experts project that by 2030, data centers worldwide will consume12 per cent of global energy. Green facilities such as this one show thatThailand’s information technology industry is doing its part to protect theenvironment.Prince of Song kla University has also launched a project to establish adata center that would promote the yachting industry in Phuket, one ofThailand’s world-class ocean resorts. Still in the development stages, theproject receives some funding from the Ministry of Industry, with the datacenter expected to be running in early 2011. Research is still beingconducted on whether it should exist solely online or as a physical office.Phuket’s marinas currently service about 1,300 vessels of 30 to 100 feet insize. The goal is for the increased information flow from the data center toboost service to 5,000 such yachts. 32
    • THAI MARKET FOR ICT PRODUCTS P a g e | 33Thailand’s software, software animation and data center sectors areachieving big gains, but competition on an international level grows moreintense with each passing second. As such, the biggest challenge facingThai software and information businesses is the need to improvecontinuously to stay abreast of low-cost makers in China and India and withadvanced producers in the West.With the support of the BOI and many other government agencies, it isclear that Thailand is competitive on many levels, as investors have alreadydiscovered.2. Industry ClassificationMost of the products/components covered in this report fall underHarmonized System Code8471 – Automatic data processing machines and units thereof; magnetic oroptical readers, machines for transcribing data onto data media in codedform and machines for processing such data, not elsewhere specified orincluded. 33
    • THAI MARKET FOR ICT PRODUCTS P a g e | 343. ICT Adoption in ThailandIn May 2011, there were 24.5 million total internet users in Thailand, apenetration rate of around 33 per cent. The number is expected toreach 36 million within the next 5 years from the NationalBroadband Policy, which is expected to further boost internetshopping. According to a survey conducted by Master CardWorldwide, the share of internet buyers to total internet usersincreased from around 40% in 2008 to 70% in 2010. The majority ofshoppers are women and those between the ages of 25-34. The top5 bestselling items are airline tickets, garments and fashionaccessories, VCDs and DVDs, hotel and resort accommodations,and cosmetics. Should the share of internet sales to totalinternet users remain close to the survey r esult at about 70%, inthe next 5 years the number of internet buyers in Thailand isexpected to reach 24 million, or an 8% increase per year. Growthhas also been recorded in terms of imports of computer parts andaccessories. 34
    • THAI MARKET FOR ICT PRODUCTS P a g e | 35 Table10: Thailand Imports/ World Thailand Imports WORLDno. no. no. growth rate (%) share (%) 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 w2010 (Jan.-Nov.) (Jan.- (Jan.-Nov.) Nov.) 1 Crude oil 20,405.8 30,159.8 19,113.7 21,459.2 1.46 47.80 -36.63 27.02 14.58 16.83 14.30 12.90 2 Machinery and parts 12,172.1 14,880.9 12,073.8 15,270.5 7.57 22.25 -18.86 39.08 8.70 8.30 9.03 9.18 3 Chemicals 10,020.9 12,644.5 8,667.8 11,480.2 13.51 26.18 -31.45 46.99 7.16 7.06 6.48 6.90 4 Electrical machinery and parts 9,503.1 10,742.9 9,394.2 11,117.6 1.17 13.05 -12.55 31.34 6.79 5.99 7.03 6.68 5 Iron, steel and products 8,575.4 13,759.1 7,383.5 10,640.3 15.69 60.45 -46.34 67.44 6.13 7.68 5.52 6.40 6 Electronic integrated circuits 9,822.6 9,197.1 8,105.9 9,899.7 13.84 -6.37 -11.86 36.36 7.02 5.13 6.06 5.95 7 Jewellery including silver bars and gold 4,117.3 8,856.1 5,477.2 9,294.6 5.82 115.10 -38.15 117.28 2.94 4.94 4.10 5.59 8 Computers, parts and accessories 7,520.4 7,815.3 6,827.5 7,527.4 -1.01 3.92 -12.64 22.28 5.37 4.36 5.11 4.53 9 Other metal ores, metal waste scrap, and 7,129.6 8,004.6 4,747.4 6,850.1 17.24 12.27 -40.69 61.80 5.09 4.47 3.55 4.1210 Parts and accessories of vehicles 3,336.8 4,010.3 3,374.6 5,411.2 8.66 20.19 -15.85 86.04 2.38 2.24 2.52 3.2511 Vegetables and vegetable products 2,847.6 4,367.5 3,580.1 4,188.9 23.87 53.38 -18.03 29.17 2.03 2.44 2.68 2.5212 Electrical household appliances 2,889.6 3,635.2 3,480.6 4,147.3 40.43 25.80 -4.25 31.86 2.06 2.03 2.60 2.4913 Natural gas 2,071.8 3,524.5 3,029.9 3,444.5 3.44 70.12 -14.03 26.45 1.48 1.97 2.27 2.0714 Scientific, medical, testing appliances 2,677.6 3,178.8 2,743.4 3,390.6 12.37 18.72 -13.70 37.49 1.91 1.77 2.05 2.04 and15 Metal manufactures 2,298.3 3,260.9 2,491.1 3,383.7 -8.74 41.89 -23.61 51.85 1.64 1.82 1.86 2.0316 Miscellaneous manufactured articles 2,212.3 2,747.9 2,355.2 2,919.1 20.99 24.21 -14.29 37.60 1.58 1.53 1.76 1.7517 Plastic products 2,377.3 2,779.9 2,300.6 2,869.9 6.20 16.94 -17.24 38.14 1.70 1.55 1.72 1.7318 Fertilizer and pesticide 1,738.7 2,989.4 1,800.3 2,208.4 38.13 71.93 -39.78 34.58 1.24 1.67 1.35 1.3319 Medicinal and pharmaceutical products 1,733.5 2,004.0 1,969.4 2,155.9 21.85 15.60 -1.73 19.62 1.24 1.12 1.47 1.3020 Fresh aquatic animals, chilled, frozen, 1,569.1 2,191.3 1,767.8 1,778.0 11.78 39.66 -19.33 9.55 1.12 1.22 1.32 1.07Total 20 records 115,019.4 150,750.0 110,684.0 139,437.0 8.77 31.06 -26.58 41.69 82.18 84.11 82.81 83.83Other 24,939.5 28,473.3 22,979.4 26,892.0 8.29 14.17 -19.29 29.12 17.82 15.89 17.19 16.17Total 139,958.9 179,223.3 133,663.4 166,329.0 8.69 28.05 -25.42 39.49 100.00 100.00 100.00 100.00Source:Information and Communication Technology Center with Cooperation of the Custom Dept 35
    • THAI MARKET FOR ICT PRODUCTS P a g e | 36 Table 10: Thailand Imports/ MALAYSIA Thailand Imports MALAYSIAno. description value : million US$ growth rate (%) share (%) 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 (Jan.- (Jan.-Nov.) (Jan - Nov.) Nov) 1 Computers, parts and accessories 1,324.1 1,354.2 1,410.0 1,337.3 4.13 2.28 4.12 5.80 15.37 13.92 16.44 13.87 2 Crude oil 1,014.6 1,422.4 1,371.3 1,265.4 -33.28 40.19 -3.59 5.23 11.77 14.62 15.99 13.13 3 Electrical machinery and parts 571.6 885.0 851.5 889.7 37.97 54.84 -3.79 15.69 6.63 9.10 9.93 9.23 4 Chemicals 704.4 822.7 524.0 694.9 6.21 16.80 -36.31 47.26 8.17 8.46 6.11 7.21 5 Data media for picture, sound recording 320.7 650.1 569.0 635.5 69.77 102.71 -12.47 21.99 3.72 6.68 6.64 6.59 6 Electronic integrated circuites 544.1 561.0 489.3 566.3 6.98 3.11 -12.79 27.02 6.31 5.77 5.71 5.87 7 Machinery and parts 366.0 381.5 402.5 411.6 9.47 4.24 5.50 12.14 4.25 3.92 4.69 4.27 8 Electrical household appliances 297.6 240.0 196.3 352.9 70.49 -19.36 -18.20 99.24 3.45 2.47 2.29 3.66 9 Scientific, medical, testing appliances 272.4 261.7 208.1 324.9 20.54 -3.94 -20.49 73.45 3.16 2.69 2.43 3.3710 Plastic products 196.5 240.5 197.1 297.3 -15.66 22.37 -18.04 69.04 2.28 2.47 2.30 3.0811 Other metal ores, metal waste scrap, and 225.4 273.2 157.0 226.9 13.49 21.21 -42.53 59.73 2.62 2.81 1.83 2.3512 Wood in rough, sawn or chipped wood and 257.9 254.3 200.5 213.4 3.98 -1.41 -21.17 15.52 2.99 2.61 2.34 2.2113 Miscellaneous manufactured articles 173.4 181.5 226.7 206.1 32.40 4.69 24.87 0.11 2.01 1.87 2.64 2.1414 Ships, boats and floating structures 16.0 9.3 6.3 167.6 -82.58 -42.00 -32.42 2,572.05 0.19 0.10 0.07 1.7415 Jewellery including silver bars and gold 109.4 130.8 120.5 166.0 25.12 19.56 -7.85 59.47 1.27 1.34 1.41 1.7216 Iron, steel and products 192.7 231.3 156.8 161.7 62.95 19.99 -32.22 10.76 2.24 2.38 1.83 1.6817 Finished oils 282.8 175.3 205.4 159.2 -46.49 -38.02 17.17 -2.04 3.28 1.80 2.40 1.6518 Vegetables and vegetable products 107.2 151.5 102.3 156.3 25.21 41.34 -32.43 67.55 1.24 1.56 1.19 1.6219 Fertilizer and pesticide 126.8 164.6 147.4 155.8 13.89 29.81 -10.42 21.28 1.47 1.69 1.72 1.6220 Metal manufactures 92.1 115.5 85.6 118.2 5.47 25.49 -25.94 51.63 1.07 1.19 1.00 1.23Total 20 records 7,195.6 8,506.3 7,627.5 8,507.0 -0.38 18.21 -10.33 24.50 83.50 87.46 88.95 88.26Other 1,421.4 1,219.7 947.2 1,131.8 13.36 -14.19 -22.34 30.28 16.50 12.54 11.05 11.74Total 8,617.1 9,726.0 8,574.7 9,638.7 1.65 12.87 -11.84 25.15 100.00 100.00 100.00 100.00Source: Information and CommunicationTechnology Center with Cooperation of the CustomDepartment 36
    • THAI MARKET FOR ICT PRODUCTS P a g e | 37 Table 11: Thailand Principal Imports Thailand Principal Imports Computers, parts and accessories value : million US$ growth rate (%) share (%)no. country 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 (Jan.-Nov.) (Jan.-Nov.) (Jan - Nov) 1 CHINA 2,525.27 2,785.72 2,757.14 3,121.52 19.14 10.31 -1.03 23.95 33.58 35.64 40.38 41.47 2 MALAYSIA 1,324.08 1,354.22 1,410.04 1,337.32 4.13 2.28 4.12 5.80 17.61 17.33 20.65 17.77 3 SINGAPORE 672.95 609.14 565.60 959.38 -24.44 -9.48 -7.15 104.05 8.95 7.79 8.28 12.75 4 U.S.A. 875.55 863.32 578.67 621.68 -0.97 -1.40 -32.97 19.22 11.64 11.05 8.48 8.26 5 JAPAN 352.69 477.77 338.98 372.06 -36.56 35.47 -29.05 25.43 4.69 6.11 4.96 4.94 6 THAILAND 243.93 301.44 280.50 244.98 -8.33 23.58 -6.95 -6.67 3.24 3.86 4.11 3.25 7 TAIWAN 372.11 316.01 170.05 227.99 -0.04 -15.08 -46.19 43.37 4.95 4.04 2.49 3.03 8 HONG KONG 147.89 148.31 134.74 164.31 38.08 0.29 -9.15 34.48 1.97 1.90 1.97 2.18 9 UNITED KINGDOM 11.85 125.21 134.97 132.24 -6.50 956.86 7.80 7.44 0.16 1.60 1.98 1.76 10 VIETNAM 294.20 354.21 211.30 76.45 5.12 20.40 -40.35 -60.64 3.91 4.53 3.09 1.02 11 PHILIPPINES 375.50 198.08 63.63 55.68 -16.27 -47.25 -67.87 -7.63 4.99 2.53 0.93 0.74 12 S. KOREA 42.37 49.52 32.34 44.34 -37.81 16.88 -34.68 53.37 0.56 0.63 0.47 0.59 13 GERMANY 30.82 26.70 20.22 27.57 -5.97 -13.37 -24.27 48.27 0.41 0.34 0.30 0.37 14 MEXICO 79.26 42.75 26.92 26.35 37.19 -46.07 -37.02 5.15 1.05 0.55 0.39 0.35 15 IRELAND 27.32 27.65 16.03 22.92 -35.53 1.20 -42.02 70.77 0.36 0.35 0.23 0.30 16 INDONESIA 74.34 49.99 15.24 21.31 -5.30 -32.75 -69.52 53.40 0.99 0.64 0.22 0.28 17 SEYCHELLES 0.02 0.05 0.75 13.83 -89.17 154.55 1,385.32 3,220.14 0.00 0.00 0.01 0.18 18 NETHERLANDS 6.74 7.82 7.96 8.86 -49.91 15.98 1.74 27.79 0.09 0.10 0.12 0.12 19 FINLAND 12.47 18.28 21.87 8.14 -36.56 46.66 19.60 -62.29 0.17 0.23 0.32 0.11 20 PUERTO RICO 1.59 2.61 3.27 6.05 -76.11 64.33 25.27 92.94 0.02 0.03 0.05 0.08Total 20 records 7,470.9 7,758.8 6,790.2 7,493.0 -0.76 3.85 -12.48 22.36 99.34 99.28 99.45 99.54Other 49.4 56.5 37.3 34.4 -28.84 14.33 -33.98 7.34 0.66 0.72 0.55 0.46Total 7,520.38 7,815.32 6,827.53 7,527.42 -1.01 3.92 -12.64 22.28 100.0 100.0 100.0 100.0 Source: Information and Communication Technology Center with Cooperation of the Custom Department 37
    • THAI MARKET FOR ICT PRODUCTS P a g e | 38 Table 12: Computers and accessories Computers and accessories value : million US$ growth rate (%) share (%)no. country 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 (Jan.-Nov.) (Jan.-Nov.) (Jan- Nov) 1 CHINA 955.54 1,187.27 1,257.99 1,388.70 22.62 24.25 5.96 19.89 47.57 50.16 59.02 56.21 2 MALAYSIA 246.05 300.80 218.70 416.40 -1.82 22.25 -27.30 120.84 12.25 12.71 10.26 16.85 3 THAILAND 104.72 187.39 180.97 145.91 -14.29 78.94 -3.43 -15.62 5.21 7.92 8.49 5.91 4 SINGAPORE 133.60 140.59 110.41 115.64 10.09 5.24 -21.47 16.76 6.65 5.94 5.18 4.68 5 U.S.A. 127.25 114.87 79.87 83.73 -7.14 -9.73 -30.47 18.83 6.33 4.85 3.75 3.39 6 JAPAN 95.46 135.17 63.63 61.15 6.16 41.61 -52.93 5.60 4.75 5.71 2.99 2.48 7 VIETNAM 15.63 32.85 30.54 35.39 16.69 110.15 -7.01 26.76 0.78 1.39 1.43 1.43 8 TAIWAN 62.04 55.08 34.46 34.61 -26.52 -11.22 -37.44 9.99 3.09 2.33 1.62 1.40 9 S. KOREA 25.26 26.45 25.35 33.67 -45.51 4.71 -4.14 50.17 1.26 1.12 1.19 1.3610 IRELAND 23.19 23.58 15.55 20.87 -22.71 1.66 -34.02 60.51 1.15 1.00 0.73 0.8411 GERMANY 23.56 17.31 10.50 19.70 96.37 -26.54 -39.33 117.60 1.17 0.73 0.49 0.8012 MEXICO 76.04 40.73 25.31 18.81 35.51 -46.43 -37.86 -20.19 3.79 1.72 1.19 0.7613 PHILIPPINES 18.40 4.69 15.28 17.39 -66.17 -74.49 225.57 24.92 0.92 0.20 0.72 0.7014 SEYCHELLES 0.02 0.05 0.75 13.83 -89.17 154.55 1,385.12 3,220.09 0.00 0.00 0.04 0.5615 INDONESIA 27.78 24.66 12.74 13.08 -20.59 -11.22 -48.35 12.83 1.38 1.04 0.60 0.5316 HONG KONG 26.72 15.53 8.56 11.23 0.99 -41.88 -44.90 38.53 1.33 0.66 0.40 0.4517 UNITED KINGDOM 6.76 8.18 5.01 5.59 -9.95 21.12 -38.81 15.90 0.34 0.35 0.23 0.2318 ISRAEL 4.70 5.96 6.63 4.80 24.95 26.79 11.09 -21.17 0.23 0.25 0.31 0.1919 PUERTO RICO 0.96 0.65 1.90 3.77 -24.60 -31.96 190.18 105.86 0.05 0.03 0.09 0.1520 NETHERLANDS 5.57 3.14 1.22 3.45 39.26 -43.57 -61.13 212.07 0.28 0.13 0.06 0.14Total 20 records 1,979.3 2,325.0 2,105.4 2,447.7 5.55 17.47 -9.45 27.32 98.53 98.23 98.77 99.08Other 29.5 41.9 26.1 22.8 -32.74 41.89 -37.62 4.54 1.47 1.77 1.23 0.92Total 2,008.7 2,366.87 2,131.50 2,470.54 4.67 17.83 -9.94 27.06 100.00 100.00 100.00 100.00 8 38
    • THAI MARKET FOR ICT PRODUCTS P a g e | 39 Source: Information and Communication Technology Center with Cooperation of the Custom Department Table 13: Part of Computers Parts of Computers value : million US$ growth rate (%) share (%)no. country 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 (Jan.-Nov.) (Jan.-Nov.) (Jan- Nov) 1 CHINA 1,333.15 1,362.73 1,248.60 1,415.88 12.24 2.22 -8.37 25.15 30.16 30.23 31.15 37.66 2 MALAYSIA 982.62 1,024.03 1,189.52 900.42 12.93 4.21 16.16 -16.16 22.23 22.72 29.68 23.95 3 U.S.A. 599.61 594.30 402.56 406.41 6.61 -0.88 -32.26 11.34 13.56 13.18 10.04 10.81 4 SINGAPORE 324.37 307.91 231.30 221.37 10.74 -5.08 -24.88 6.60 7.34 6.83 5.77 5.89 5 JAPAN 131.92 223.15 233.75 220.12 -50.62 69.15 4.75 6.70 2.98 4.95 5.83 5.85 6 HONG KONG 120.20 132.42 125.51 152.47 51.74 10.16 -5.22 34.40 2.72 2.94 3.13 4.06 7 UNITED KINGDOM 4.77 116.90 129.66 126.51 12.49 2,348.39 10.91 7.23 0.11 2.59 3.23 3.36 8 TAIWAN 65.38 54.26 104.27 107.76 26.95 -17.00 92.16 8.19 1.48 1.20 2.60 2.87 9 THAILAND 138.54 113.97 99.32 98.98 -1.48 -17.74 -12.86 10.68 3.13 2.53 2.48 2.6310 VIETNAM 278.10 321.01 180.63 40.91 4.36 15.43 -43.73 -75.38 6.29 7.12 4.51 1.0911 PHILIPPINES 357.07 193.36 48.24 38.28 -9.38 -45.85 -75.05 -17.41 8.08 4.29 1.20 1.0212 S. KOREA 16.66 22.74 6.54 9.29 -18.51 36.50 -71.25 52.81 0.38 0.50 0.16 0.2513 INDONESIA 46.18 25.28 2.44 8.21 7.28 -45.26 -90.34 264.06 1.04 0.56 0.06 0.2214 MEXICO 3.15 1.74 1.39 6.87 104.13 -44.76 -19.89 419.09 0.07 0.04 0.03 0.1815 INDIA 0.41 0.65 0.02 1.40 -14.52 59.66 -97.11 7,325.40 0.01 0.01 0.00 0.0416 PUERTO RICO 0.52 1.67 1.27 1.38 -90.23 222.64 -24.01 14.41 0.01 0.04 0.03 0.0417 GERMANY 4.35 3.05 0.55 1.13 -13.57 -29.85 -81.89 163.25 0.10 0.07 0.01 0.0318 HUNGARY 0.07 0.09 0.08 0.38 -36.50 41.92 -9.99 375.54 0.00 0.00 0.00 0.0119 COSTA RICA 0.07 0.94 0.27 0.30 -80.29 1,216.43 -71.46 27.57 0.00 0.02 0.01 0.0120 ISRAEL 0.11 0.17 0.06 0.28 -3.58 53.94 -65.26 371.07 0.00 0.00 0.00 0.01Total 20 records 4,407.3 4,500.4 4,006.0 3,758.4 5.11 2.11 -10.99 3.57 99.69 99.84 99.94 99.95Other 13.7 7.3 2.2 1.7 -51.15 -46.36 -69.44 -19.28 0.31 0.16 0.06 0.05Total 4,420.92 4,507.72 4,008.23 3,760.07 4.74 1.96 -11.08 3.55 100.00 100.00 100.00 100.00Source: Information and Communication Technology Center with Cooperation of the Custom Department 39
    • THAI MARKET FOR ICT PRODUCTS P a g e | 404. Distribution channelsThe basic distribution channel is through computer wholesalers anddistributors. Some of the established distributors are as below:Table 15 40
    • THAI MARKET FOR ICT PRODUCTS P a g e | 41 41
    • THAI MARKET FOR ICT PRODUCTS P a g e | 42There are also key distribution areas where many small retailers arecentered around, similar to Malaysia’s Low Yat Plaza.4.1 Pantip Plaza. (4 Branches)The flagship store is located at:604/3 Petchburi Rd, Rachatevi Bangkok 10400Tel: (662)256-0355Fax: (662) 256-0449E-mail: info@pantipplaza.comwww.pantipplaza.com 42
    • THAI MARKET FOR ICT PRODUCTS P a g e | 434.2 IT CITYIT CITY Public Company Limited is a superstore, selling computers,peripherals and other related IT products (One Stop Shopping IT Products)under the trade name "IT CITY" which is a retail superstore chain,specializing in IT products. Its slogan is "The IT Superstore".Contact address: Headquarters is located at 604/3 Pantip Plaza Bldg., 5th-6th Fl., Petchburi Road, Tanon Petchburi, Rajthevee, Bangkok 10400,Thailand.Tel: 0-2656-5030-45Fax: 0-2656-5049Website: www.itcity.co.th4.3 Hardware HouseHardware House International is retail outlet specializing in consumerAudio/Visual/Consumer Electronics, computer equipment, IT and digitallifestyle products.It has 90 branches covering the Bangkok metropolitan area and distributedto IT centers in the provinces.Address: 33 / 4, 2nd Floor, Rama 9 Road.Huay Kwang, Bangkok 10310.Tel: (662) 685-8900Fax: (662) 685 8826Website: http://www.hwhinter.com/index.php 43
    • THAI MARKET FOR ICT PRODUCTS P a g e | 444.4 IT SquareIT square supports 300 retailers specializing in IT products and services.Space overall than 120,000 square meters with convenient parking to2,500 vehicles with the idea that. "Digital life at IT Square" is also a 9 storeyoffice building and approximately 15,000 square meters of space availablewith.Address: 333/100, Moo 4 Chaengwattana Road, Laksi, BangKhen,Bangkok, 10210, ThailandTel: 025760333Fax: 0-2576-0789.Website: http://www.itsquareonline.com/Email: info@itsquareonline.com.Webmaster: webmaster@itsquareonline.com.4.5 Data IT Super Stores Company Limited.Address: 99 Rooms FC109, 4th Floor Zeer Rangsit Shopping Complex,Phaholyothin Road, Kukot, Lumlukka, Pathumthani, 12130, Thailand.Tel: (662)531-3333Fax: (662)523-8899.Website: http://www.data-it.co.th/index.html4.6 Power Buy Co., Ltd. (64 Branches)There are also key distribution areas where every The Mall and CentralDepartment store.Address: 919/555 South Tower 11 Floor, Silom Rd, Bangrak, Bangkok10500 ThailandTel. (662) 2069300 http://www.powerbuy.co.th/ 44
    • THAI MARKET FOR ICT PRODUCTS P a g e | 454.7 Tesco Lotus (439)There are also key distribution areas.Address: 629/1 Moo 10 Navamin Rd, Klongkum Bungkum Bangkok 10230Thailand.Tel. (662) 797-9000http://www.tescolotus.net4.8 Siam Makro (29 Branches)There are also key distribution areas. Contact address 3498 Floor 2 rd.Ladproa Rd. Klongjan, Bangkapi, Bangkok 10240Tel.(662) 723 1000,723 1000Fax.(622)375-2789E-mail: makrocrm@siammakro.co.thhttp://www.siammakro.co.th/contact.php4.9Home Pro (35 Branches)There are also key distribution areas. Contract address 96/27 Moo 9Bangkhen Aumphur Muang, Nonthaburi 11000Tel. (622) 832-1000http://www.homepro.co.th 45
    • THAI MARKET FOR ICT PRODUCTS P a g e | 465. Standards and regulationsStandardsIn the case of standards, it varies according to the products. Informationrelated to specific IT products and services can be obtained from:Thai Industrial Standards InstituteRama 6 Street, Ratchathewi, Bangkok 10400, ThailandTelephone: (662) 202 3301-4 Fax: (662) 202 3415E-mail: thaistan@tisi.go.thContact person: Khun Tinakon PongluxnaTel: (622)202 3467, 202 3474Email: tinakon@tisi.go.thSome of the standards related to the ICT sector in Thailand can beobtained from http://www.nectec.or.th/it-standards.Many of thesedocuments are in Thai. A) Register with Thai Customs DepartmentImporter/Agent in Thailand must complete registration with the ThaiCustoms Department (E –Import),Documents required before going through the E-Import process: - Submit company registration to the Customs. Foreign Direct Investors, who did not register their companies in the Kingdom, can still apply to the Customs provided they have done the Company Registration abroad. The registrations, however, must 46
    • THAI MARKET FOR ICT PRODUCTS P a g e | 47 be attested by a recognized Notary Public and the attestation must not over than 6 months. - Original and a copy of Company’s Bank Statement or Saving Account Book.Other related documents; - ID card or passport of company’s authorities. - Registration for Foreign Trader issued by Ministry of Commerce, etc B) ImportationWhen a shipment arrives in Thailand, importers are required to file a GoodsDeclaration and supporting documents for the imports with a Customsofficer at the port of entry.Document:The minimum documents required for the clearance of imports consists of: (1) Import Declaration (Electronic Document 91/1) (2) Bill of Lading (B/L) or Air Waybill (3) Invoice (Electronic Document) (4) Packing List (5) Import License (if applicable) (6) Certificates of Origin (if applicable) (7) other relevant documents such as catalogue, product specification, etc. 47
    • THAI MARKET FOR ICT PRODUCTS P a g e | 48 C) E-Import procedure to be done online using the Royal Thai Customs e-System Objective: For customs clearance1. Importer/Agent who are registered with the Thai Customs (and hence has registered with the e-service system) inputs invoice and Shipping/Cargo data into computer system at his/her office or through counter service. After that, data will be electronically transmitted to Customs.2. Custom officer manifest data e.g. Ship bill no., master Ship bill no., etc.3. Data is processed and examined by Customs system. In case the data is found “not match”, the system will inform importer/agent for making correction.4. If the data “matches”, the system will issue a Shipping/Cargo permit no. along with a Shipping/Cargo status (Green Line or Red Line) to be used for Shipping/Cargo inspection at Checking Post.5. When Ship/Airline arrives at the mentioned Port, the Importer officer will break down and keep in location, preparing for delivery.6. Importer/Agent contacts Shipping/Airline office for D/O documents (Delivery Order) to be used for D/O payment fee.7. Importer/Agent obtains Shipping/Cargo shipment at Port Authority of Thailand, along with a Shipping/Cargo permit document.8. At Customs Checking Post exit, importer/agent submits a shipping/cargo permit document and has a shipping/cargo shipment checked according to its status, green line or a red line 48
    • THAI MARKET FOR ICT PRODUCTS P a g e | 49 Figure 14: Export-Import Procedure For further inquiry and information, E-mail : customs_clinic@customs.go.th Website: http://www.customsclinic.org/6. TariffsExports of ICT products and services are exempted from import tariff underthe Common Effective Preferential Tariff arrangement under ASEAN FreeTrade Agreement effective 01st January 2010.Other TaxesThailand imposes VAT (Value Added Tax) of 7 per cent for all productssold domestically. 49
    • THAI MARKET FOR ICT PRODUCTS P a g e | 507. Market trendsDrawing from the latest IDC research and internal brainstorming sessionsamongst IDCs regional and country analysts, the following are the top 10key ICT predictions in 2012 for Thailand. These trends are what IDCbelieves will have the biggest commercial impact on the Thailand ICTmarket.  Sustained spending in Thailand’s ICT industryDespite economic woes, IDC predicts that the overall ICT spending willcontinue to be on the upward trend in 2012. Growth in ICT spending will beseen across all ICT sectors (hardware, software, IT service and telecomservice market) with hardware once again leading the expansion. IDCexpects the total ICT spending in 2012 to post a YoY increase of 10.4%,reaching close to US$16.8 billion.  Mobile Data Services to lead Telecommunication spendingIDC expects mobile data to become the key growth factor for Thailand’stelecom services market in 2012, expanding by 15.5% YoY to reach USD$968 million in 2012. The growth will be mainly driven by multimediaservices such as mobile web browsing, mobile internet, VDO streaming,and e-mail services.  Consumerization: The New World OrderIDC’s latest forecasts show that Thailand‘s smart phone and media tabletmarket will gain traction in both consumer and enterprise markets from2012 onwards. Due to their powerful features as well as intuitive user 50
    • THAI MARKET FOR ICT PRODUCTS P a g e | 51interfaces, iOS and Android-based devices will continue to be embraced bythe market. Increasingly, Thai employees are bringing their own devices touse at work. As such, enterprises will have to adopt new solutions ortechnologies to manage and cater to the diverse nature of smart devices.The most popular solutions that IDC expects enterprises to adopt includeclient virtualization and cloud-based solutions. Enterprises will also bedeveloping non-virtualization solutions internally, utilizing non-virtualizationcommercial solutions, and using existing in-house solutions and newmanagement tools that cover multiple platforms.  Clear skies ahead for cloud computingDevelopments in cloud technologies and its related services have beenongoing since the debut of the cloud in 2010. In 2011, there was a wideadoption of cloud layers such as infrastructure-as-a-service (IAAS) andapplication-as-a-service (AaaS) among IT Services Providers (ITSP),Internet Service Providers (ISP), and datacenter service providers. Thesedevelopments have provided a strong foundation for cloud and its relatedtechnology and services in the country. In 2012, IDC expects cloudcomputing to attract more attention from enterprises such as the financialservices, telecommunication, manufacturing, and services sectors. IDCexpects that Cloud at IaaS layer will be the champion service among thecloud services category (the others are AaaS and PaaS). This is becausemost ITSP and SPs in telecommunication have invested and improved theircloud system infrastructure to cope with upcoming demands from themarket. 51
    • THAI MARKET FOR ICT PRODUCTS P a g e | 52  Knock the door please – May FTTx come in?Fiber to the telecom enclosure (FTTx) technology will become available tothe public in 2012. With investments in FTTx coming from the private andpublic sectors, the technology will become more popular in the comingyear. However, the adoption rate of FTTx will be largely dependent on thecoverage area and business capability of the telecom operators. The highend customer group will most likely be the first to adopt this service.  New Era of Personal Computing: Battle between smart devices and PCs continues in 2012For years, desktops and laptops have dominated the universe of personalcomputing. Now, emerging smart devices (smartphones and media tablets)are on the verge of overtaking desktops and laptops as the number onechoice for consumers, which marks the beginning of a new personalcomputing era. IDC maintains that PCs are still needed by both consumersand more importantly, enterprises. However, in 2012, shipments of smartdevices are expected to exceed those of PCs for the first time. IDCforecasts that the shipment of smart devices in 2012 will be 6.7 million unitscompared to only 4.1 million PC units.  Mobile Telecom Services Providers will actively expand Wi-Fi services for 3G offloadThe large mobile operators in Thailand started their trial 3G services inThailand in 2011. Due to fierce competition among operators on usage-based plans, some Telco bundled their Wi-Fi services with mobile datapackages in order to differentiate themselves from their rivals. However, 52
    • THAI MARKET FOR ICT PRODUCTS P a g e | 53the objective of Wi-Fi network expansion in Thailand is not only to bettersupport users’ mobile data packages but also reduce the gap of coveragearea. IDC predicts that Wi-Fi service will gain momentum in 2012.Since the investment for Wi-Fi broadband network is costly, collaborationbetween mobile service operators and ISPs, which have already investedin such wireless network, is expected. This relationship will help mobileservice operators to lower their operating cost as well as enhance their 3Gservice performance. Meanwhile, ISPs will see their profits increasethrough the utilization of their existing wireless network capacity.  Business Continuity and Disaster Recovery will become top priorities for Enterprise ITBusiness continuity and disaster recovery (BC/DR) has been adopted inThailand for a while. However, with increased customer expectations for24x7 access to uninterrupted services as well as constant pressure tominimize security risks and manage uncertainties, BC/DR looks to takeflight in 2012.IDC advises enterprises to select BC/DR services providers that have well-built datacenter network infrastructure as well as the experience to handlethe task. IDC expects that most demand for BC/DR services will begenerated from the financial services, telecommunication, andmanufacturing sectors. 53
    • THAI MARKET FOR ICT PRODUCTS P a g e | 54  Customer Centricity: A new approach to collaborate with customersThe growth of IT investment and spending will likely be tepid in 2012 withcompanies cautiously prioritizing their spending in the areas that will reducecosts and more importantly, improve their ability to address customerdemand. Today’s customers have become more savvy and demanding asthey have a lot more choices available. Thus, it is vital that companiesbecome more customer-centric by offering better customer experience. Tobecome customer-centric, firms must look beyond traditional customerrelationship management (CRM) approaches and explore ways to obtainin-depth insights. IT tools can be adopted to capture and analyze customerdata from different sources to reach the ultimate goal of determining whatcustomers need.  Growing demand for big data analyticsBig data is the most discussed phrase in the IT business world today. Inrecent times, as a result of the rise and expansion of distinct sources(laptops, mobile devices, tablets social networks, real-time data stores,etc.) beyond just corporate transactions, there has been an explosivegrowth in data. Today, there are tools available that make it possible togenerate insights from vast quantity of data.In Thailand, social media is getting widely adopted by enterprises and thepublic sector is encouraging investments in analytics to comprehend onlinecommunity feedback and sentiments. IDC believes that big data analytics isa trend that Thailand enterprises cannot ignore. 54
    • THAI MARKET FOR ICT PRODUCTS P a g e | 55Figure 15: The development of social media in ThailandSource: www.thaijavadev.com 55
    • THAI MARKET FOR ICT PRODUCTS P a g e | 56 Trends and Competitive Environment Internet market trends The Internet penetration rate in Thailand is one of the highest in the region. In Bangkok, the increasing number of Broadband internet subscribers offer opportunities for online applications and content delivery. The expansion of applications provided over the IP Technology network, will offer opportunities for leveraging new services and applications at a lower cost delivered over Broadband Internet. IP technology allows flexibility and is cost effective for new applications developed, including IPTV, home monitoring and securities applications. In order to reduce the cost of business communications, VPN and VOIP applications are predicted to become more popular. Wireless Broadband technology is an alternative technology that is expected to capture potential mobile users of PDA phones. This will allow operators to offer high speed Internet access over smart phones together with customized applications. Figure 16: Social NetworkSource: www.thaijavadev.com 56
    • THAI MARKET FOR ICT PRODUCTS P a g e | 57 Source: www.thaijavadev.comMobile Market TrendsThe penetration rate for mobiles in Thailand was approximately 105 percent in year 2010, and growing as a very strong rate. Mobile-to-mobile non-voice services are an emerging new business opportunity for operatorsallowing them to increase revenue by providing customized products. Toprevenue for non-voice services is through SMS, Calling Melody, GPRS anddownload services from portals.Video ring tones are another emerging trend for non-voice services in thefuture. This service is expected to be a top seller for multimedia service inthe next 3 to 4 years.The emergence of 3G technologies will impact on the wireless Internetbroadband provided by mobile companies in Thailand. Mobility featureswith new wireless applications will be one of the key drivers of the market.Mass customization of wireless applications for mass consumers segmentis the area for potential growth.M-Commerce services in Thailand have mostly been provided to thefinancial sector. Mobile payment and confirmation are the most common 57
    • THAI MARKET FOR ICT PRODUCTS P a g e | 58services available. The application for financial transactions will depend onthe network infrastructure and security issues.Thailand is one of the leading medical tourism destinations in South EastAsian region. The industry is driven by private hospitals particularly inBangkok and major tourist cities in Thailand. Private hospitals in Thailandhave adopted relatively sophisticated technology in order to improve thequality of its service as medical tourism in Thailand is expected to growstrongly in the coming years.The business opportunities in medical tourism for Malaysian companies inThailand are in the following areas: • State-of-the-art technology and medical innovation i.e. Virtual medical technology; • Healthcare Business Solutions, i.e. Hospital portal, relationship management, work flow and document management. Bumrungrad hospital for example has implemented the hospital information management system to deploy electronic medical records and digital radiology; and • Emergency Services i.e. managing and designing the emergency services. 58
    • THAI MARKET FOR ICT PRODUCTS P a g e | 59Figure 17: Computing Cycle Figure 18: Computing Growth Driver Figure 18: Computing Growth Driver 59
    • THAI MARKET FOR ICT PRODUCTS P a g e | 60 Source: www.thaijavadev.com Figure 19: Global Unit ShipmentCloud ComputerCloud Computing is Internet-based computing, whereby shared resources,software, and information are provided to computers and other devices ondemand, like the electricity grid. Figure 20: Cloud Computing 60
    • THAI MARKET FOR ICT PRODUCTS P a g e | 61Web 2.0 concentrate on the private user and clouds are descendents ofdata centers which services the enterprise. Web 2.0 also promotes SaaSand needs massive scaling technologies. User centric Web 2.0 companies(Twitter, Slide share) are relying on Cloud Services.8. ChallengesIt is estimated that the ICT market in Thailand will continue to grow at 5-10per cent in 2012. The positive factors, which will drive ICT growth in 2012,are a stable political situation and rapid adoption of tablet devices, whichramps up Internet usage. The computer services cluster is expected to bethe fastest growing area. The opportunities for Malaysian companies areavailable provided they are able to manage some of the inherent problemsexistent in Thailand’s ICT sector. In the case of services sub-sector, thecountry faces the problem of high staff turnover, which consequently addsto the personnel costs. The fact that it is also difficult to find skilledmanpower with English speaking competency adds to the costs.For Malaysian companies which want to set up operations in Thailand, itbasically needs to do joint-ventures with Thai-companies as underThailand’s Foreign Business Act, all companies in Thailand with someexceptions (e.g if they are under the BOI’s program) should be at least 51per cent Thai-owned. 61
    • THAI MARKET FOR ICT PRODUCTS P a g e | 62In terms of competition, the possibility of getting Government contractsdirectly is remote. It has to be done through Thai-companies. That willinvolve creative contractual arrangements. Thai Government is alsopromoting local developers and as such currently there is a growing pool ofhome-grown technologies and products which are winning market shareamong Thai consumers who are not too brand-conscious – which isprobably Malaysian suppliers key target group for retail products withMalaysian brands that does not have strong existing brand.Apart from preparing for the new economy, development guidelines mustaim at enhancing the competitiveness of the agricultural and industrialsectors through information technology. In other words, informationtechnology must support both the old and the new economies, with the goalof developing knowledge- based economy that can completely fosterholistic development.Therefore, the economy under a Knowledge-Based Society rests largely ona system of producing, distributing and utilizing “information andknowledge,” where knowledge and technology play a crucial role in drivingproductivity and economic prosperity.The influence of Information Technology on development is apparent. Forexample, computer technology has increased the efficiency of production,administration and the quality of education. Telecommunicationstechnology and the Internet have created economic values and activities. 62
    • THAI MARKET FOR ICT PRODUCTS P a g e | 63Information Technology also serves as a key component in upgrading livingstandards and creating employment opportunities.IT potential, which includes high processing speeds and greater computingcapacity of microchips, the rapid and continued expansion of the Internetworld- wide, together with other economic and social values resulting frominformation technology, have forced countries around the world to try tomake more expansive use of IT, so as to enhance economic competitive-ness and raise living standards.Moreover, there are many challenges awaiting Thailand in the process ofdeveloping information technology for its economy and society: - The application of IT as a tool in the creation of readiness and strength for administrative decentralization or, in other words, to strengthen local administrative organizations. - To meet educational needs of Thai youths. Following the drafting of the Constitution and the National Education Act 1999), along with the stipulation of 9-year compulsory education and 12-years of free education, the demand for education took a sharp leap. - Lessons from the economic crisis clearly point out that the country needs to undertake significant industrial restructuring in order to maintain its international competitiveness with regard to IT device 63
    • THAI MARKET FOR ICT PRODUCTS P a g e | 64 manufacturing industries and the application of information technology to other industries. - In addition, Thailand has both an agricultural and an industrial society. The information-based society and knowledge-based society can directly and indirectly benefit the other two societies.9. Relevant trade fairs Office Automation Network & Stationary Fair 2011 (OAS & IT Fair) Details: Telephone cabinet branches IP Phone Closed-Circuit Televisions (CCTVs) Photocopy Machine Finger Scan Time Recorder etc. , Computer & Network Solution; such as Computer hardware and external devices Printers Networking systems. Date: 24-27 Feb. 2010 10.00-19.00 hrs. Place: Hall 5 IMPACT Muang Thong Thani Organizer: Trade and Public 121 Creation Ltd.,Parts Address: 19/285 Jomtong RD.12 Bang Koe Jomtong Bangkok 10150 Tel: (662) 876 0880-1 Mobile: (66 82) 455 9642 Fax: (662) 876 0942 E-mail: 121creation@officeautoguide.com Website: www.officeautoguide.com 64
    • THAI MARKET FOR ICT PRODUCTS P a g e | 65Thailands Paradise Fair 2011Details: World wide IT & Media FairDate: 14-22 May 2010 10.30-21.00 hrs.Place: Hall 1-8 IMPACT Exhibition and Convention Center 99 Popular Road, Banmai Subdistrict, Pakkred District, Nonthaburi 11120, ThailandOrganizer: Union Pan Exhibitions Co., Ltd.Address: 33 Soi Ramkhamhaeng 24 Yak 24, Ramkhamhaeng rd,Huamark Bangkok Thailand 10240Tel: (662) 314 0855, (662) 719 0408Fax: (662) 319 8387E-mail: unionpan@yahoo.comWebsite: www.unionpan.comThailand Mobile Expo 2011Details: The Exposition of the new innovation from various mobile brands, accessories and related devices.Date: 3 - 6 February, 2011Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110Organizer: M Vision Co.,Ltd.Address: 1225 Soi Sri Brurapa3, Khongjan, Bnagkapi, Bangkok 10240Tel: (662) 734 7707-9 Fax: (662) 734 7710E-mail: info@thailandmobileexpo.comWebsite: http://www.thailandmobileexpo.com/ 65
    • THAI MARKET FOR ICT PRODUCTS P a g e | 66COMMART Thailand 2011Details: Right IT Products & Solutions for SMEs & ProfessionalDate: 17 - 20 March, 2011Place: Queen Sirikit National Convention Center 60 NewRachadapisek Road, Klongtoey, Bangkok 10110Organizer: A.R.Information & Publication Co.,ltd.Address: 99/16-20 Ratchadapisek rd.,Din-Daeng,Bangkok 10320Tel: (662) 642 3400 ext 3414Fax: (662) 641 2331E-mail: webmaster@arip.co.thWebsite: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/ 66
    • THAI MARKET FOR ICT PRODUCTS P a g e | 67COMMART XGEN Thailand 2011Details: The grand cutting-edge IT products trade fair, is back bypopular demand.Date: 19 - 22 May, 2011Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110Organizer: A.R.Information & Publication Co.,ltd.Address: 99/16-20 Ratchadapisek rd.,Din-Daeng,Bangkok 10320Tel: (662) 642 3400 ext 3414Fax: (662) 641 2331E-mail: webmaster@arip.co.thWebsite: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/ 67
    • THAI MARKET FOR ICT PRODUCTS P a g e | 68COMMART COMTECH Thailand 2011Details: Right IT Products & Solutions for SMEs & Professional ConDate: 2-6 Nov, 2011Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110Organizer: A.R.Information & Publication Co., ltd.Address: 99/16-20 Ratchadapisek rd., Din-Daeng, Bangkok 10320Tel: (662) 642 3400 ext 3414Fax: (662) 641 2331E-mail: webmaster@arip.co.thWebsite: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/ 68
    • THAI MARKET FOR ICT PRODUCTS P a g e | 69Manufacturing Expo 2011Details: This one-and-only event will allow you to discover the latest machinery and technologies for key industries with supporting elements (such as automotive, electronics, plastic, mold & die), learn extraordinary knowledge, meet your peers and new business partners while obtaining excellent networking opportunities.Date: 23 - 26 Jun 2010Place: Bangkok International Trade & Exhibition Centre (BITEC) 88Bangna-Trad Road (Km.1), Bangna, Bangkok 10260 ThailandOrganizer: Reed TradexAddress: 32nd fl., Sathorn Nakorn Tower 100/68-69 North Sathon Road, Silom, Bangrak, Bangkok 10500 ThailandTel: (662) 686 7299Fax: (662) 686 7288E-mail: rtdx@reedtradex.co.thWebsite: http://www.manufacturing-expo.com http:// www.reedtradex.com 69
    • THAI MARKET FOR ICT PRODUCTS P a g e | 70INTERSEC Thailand 2011Details: International Trade Fair for Security and SafetyDate: 30 Jun – 2 July 2011Place: Bangkok International Trade & Exhibition Centre (BITEC) 88 Bangna-Trad Road (Km.1), Bangna, Bangkok 10260 ThailandOrganizer: Messe Frankfurt (HK) Ltd.Address: 3506 China Resources Building 26 Harbour Road, Wanchai, Hong KongTel: (852) 2802 7728, (852) 2238 9955Fax: (852) 2598 8771E-mail: intersec@hongkong.messefrankfurt.comWebsite: www.intersec-thailand.com 70
    • THAI MARKET FOR ICT PRODUCTS P a g e | 71Thailand Game Show 2011Details: THE COMPETITIONS will be divided into various zones which are Game Shows & Competitions. there are the Game Challenge zone, TGS Co play Contest zone, the 4th Comp Gamer Awards and special game concertDate: 7 – 9 January 2011 10.00-20.00 hrs.Place: Queen Sirikit National Convention Center 60 New Rachadapisek Road, Klongtoey, Bangkok 10110Organizer: Show No Limit Co., Ltd.Address: 87/88 6th Floor Modern Town Building Soi Sukhumvit 63 (Ekamai) Sukhumvit Road Wattana Bangkok, Thailand 10110Tel: (662) 665 6991 ext. 104, (662) 392 7766Fax: (662) 392 7766 ext.22E-mail: info@shownolimit.comWebsite: http://www.tgs.in.th 71
    • THAI MARKET FOR ICT PRODUCTS P a g e | 7210. Relevant Trade Associations/AgenciesThe Association of Thai Computer IndustryAddress: 6F. Phyathai Plaza Bldg., 128 Phyathai rd., Rajthevi,Bangkok 10400Tel: (662) 216 5862, 216 5991-2Fax: (662) 216 5867Email: info@atci.or.thWebsite: www.atci.or.thThai Animation and Computer Graphics AssociationAddress: 128/61 Payathai Plaza Bldg., 6th Fl., Rajtavee Road, Bangkok 10400Tel: (662)216 5860Fax: (662)216 5847E-mail: admin@computerthai.org, wan999th@yahoo.comWebsite: www.computerthai.org 72
    • THAI MARKET FOR ICT PRODUCTS P a g e | 73Software Industry Promotion Agency (SIPA)Address: The Government Complex Commemorating His Majesty The Kings 80th Birthday Anniversary, 5th December, B.E. 2550(2007)120 Moo 3, The Government Complex (Building B), 9th Floor Chaengwattana Road, Thungsonghong, Laksi, Bangkok 10210, ThailandTel: (662)141 7100Fax: (662)143 8051Website: www.sipa.or.thAssociation of Thai Software Industry (ATSI)Address: 5F. Software Park Bldg., 99/30 Moo 4, Chaengwattana rd, Pakkret, Klongkleua, Nonthaburi 11120Tel: (662) 583 9992Fax: (662) 962 1349Email: info@atsi.or.thWebsite: www.atsi.or.thNational Electronics and Computer Technology Canter (NECTECH)Address: 112 Phahon Yothin Rd., Klong 1, Klong Luang, Pathumthani 12120, Thailand Tel: (662)-564-6900 ext 2335 – 2340 Email: info@nectec.or.thWebsite: www.nectech.or.thi 73