Product Market Study - Thailand’s Market for ICT (March 2011)
THAI MARKET FOR ICT PRODUCTS Page |1 PRODUCT MARKET STUDY THAILAND’S MARKET FOR INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) 1
THAI MARKET FOR ICT PRODUCTS Page |2 MATRADE BANGKOK March 2011TABLE OF CONTENTS1. Industry Overview Page 32. Industry Classification Page 233. ICT imports in Thailand Page 244. Distribution Channels Page 295. Standards and Regulations Page 356. Tariffs Page 397. Market Trends Page 398. Challenges Faced Page 459. Relevant Trade Fairs Page 4710. Relevant Trade Associations/Agencies Page 53Sources 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 60 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, is projected to grow at a CAGR of 12% over the 2010-2014 period. The total value of Thai domestic spending on IT products and services is expected to value at US$5.4billion in 2010 and US$8.7billion by 2014. In regards to IT infrastructure, the low fixed line broadband penetration (11 per cent in 2009) is compensated by the Kingdom’s high mobile telephone penetration, estimated at 97 per cent in 2009. In the capital, Bangkok, mobile telephone penetration is above 120 per cent. There are now five mobile companies operating in Thailand. The top three now control 98 per cent of the market. AIS, the Shin Corporation subsidiary, which operates the largest GSM network, has been the dominant player in the mobile market since the mid-1990s. The third mobile market entrant is TRUE Move (formally knows as TA-Orange). TRUE Move entered the mobile telephony market in 2001 in a joint venture with the European telecom giant Orange, and formed the company TA-Orange. The company now has a 12 per cent market share. True Move is a subsidiary company of True Corporation. 3
THAI MARKET FOR ICT PRODUCTS Page |4The 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 the Thailand’s largest Internetservice providers 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.Thailand’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 Regional Operating Headquarters incentives hasresulted in excellent opportunities for setting up ICT services and softwareheadquarter/competency centers and shared services. 4
THAI MARKET FOR ICT PRODUCTS Page |5 Table 1: Thailand ICT Market 2008 - 2009 and Outlook 2010Due to the massive economy recovery in 2010, a tremendous 7.2 percentof growth in Thailand’s ICT market in seen in 2010 with a total value ofUS$18.9 billion. Out of that, 64.2 per cent goes to communications, 14.8percent to computer hardware, 11.4 per cent to computer software and 9.6percent to computer services. Graph 1: Thailand ICT Market Share 2008 – 2010 2008 2009 2010 5
THAI MARKET FOR ICT PRODUCTS Page |6 Table 2: Fixed, Mobile and Internet UsageFrom 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 andWiMAX, and industry trends, such as software-as-a-service (SaaS), GreenIT and virtualization.Thai Smartphone market itself has grown up to 200 per cent in 2010,reaching almost 300 000 handsets in September and is expected to growuntil 800 000 handsets by December 2010. Not only that, the vast growth oftelecommunications is also driven by the e-commerce, internet and mobilebanking, cloud computers and broadband. 6
THAI MARKET FOR ICT PRODUCTS Page |7Currently the mobile phones market is growing rapidly with a total amountof 69 million mobile users in Thailand, while mobile broadband users hasgrown from 595 000 users in 2009 to 1.66 million in 2010. By 2014, mobileusers are expected to grow until 20 million.Internet users on the other hand take up a number of 17,486,400 by June2010 with 26.3 per cent penetration. Out of that 100,000 are on mobilephones Facebook. The rapid growth of social networking and web 2.0 hasindeed contribute to the mass development of ICT sector specificallycommunications market. Graph 2: Thailand Facebook Users - 2010 Graph 3: Facebook Age Distribution 7
THAI MARKET FOR ICT PRODUCTS Page |8 Table 3: ICT Market 2009 by SectorFrom the table above, out of the total of ICT market of US$17.8 billion in2009, 52.5 per cent of the ICT market are spent on Household or SmallOffices and Home Offices with a total of US$ 11.7 billion. Table 4: Computer Hardware Market by Sector 2009 IT Spending by Economic Sector in 2008 8
THAI MARKET FOR ICT PRODUCTS Page |9 Graph 4: Software Market 2006 – 2009 an Outlook 2010 HW Market Value in MB 2007 – 2009f Table 5: Software Market 2006 – 2009 an Outlook 2010 Table 6: Software Market by Sector 2009 9
THAI MARKET FOR ICT PRODUCTS P a g e | 10Enterprise 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 2010, Enterprise Software takes upalmost 85.5 per cent (US$ 1.8 billion) of the total value of computersoftware that values at US$ 2.2 billion. The sector that has most used ofcomputer software is the corporate and enterprise sector amounting to US$0.9 billion, 45.1 per cent of the total value. 10
THAI MARKET FOR ICT PRODUCTS P a g e | 11 Table 7: Computer Services 2008 – 2009 and Outlook 2010 Graph 5: Computer Services Share 11
THAI MARKET FOR ICT PRODUCTS P a g e | 12 Table 8: Computer Services Market by Sector 2009Computer service on the other hand value at US$ 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. 12
THAI MARKET FOR ICT PRODUCTS P a g e | 13 Table 9: Communication 2008-2009 and Outlook 2010 2008 2009 2010 Table 10: Communication Equipment 2009 by Sector Table 11: Communication Services 2009 by Sector 13
THAI MARKET FOR ICT PRODUCTS P a g e | 14Communications Equipment- Wi-fi Mesh (roaming network equipment)- Security Equipment- Wireless N (Multiple SSID)- Mobile Internet Device for 3G & Wimax- iPhoneCommunications Services- Multimedia, Digital Content Mobile Interne- 3G, Wimax- Unified Communications/Unified Messaging- Video ConferenceSource: www.thaijavadev.comIn the communication market there are basically two types of market:communication equipment and communication services. Out of the total ofUS$ 12.1 billion in 2010, 64 per cent are communication services while theremaining 36 per cent is for communication equipment. From the big totalof Thai’s ICT market of US$ 18.9 billion in 2010, 64 percent are fromcommunication market making it the biggest ICT market in Thailand. 14
THAI MARKET FOR ICT PRODUCTS P a g e | 15ICT 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 2010 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. Hard disk drive exports alone for this period wereUS$2,550 million, exceeding the previous full year figure.“Besides, production of air conditioners and plastic pellets also increasedfrom external and domestic demand, respectively” according to the Bank ofThailand. 15
THAI MARKET FOR ICT PRODUCTS P a g e | 16Growth 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 those in theUnited States and the European Union. 16
THAI MARKET FOR ICT PRODUCTS P a g e | 17Thailand 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.Thailand ICT & IT Market Trends Source: SIPA, ATCI, NECTEC, Software Park Thailand, updated from Thailand ICT Market 2009 & Outlook 2010Agency (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 Export 17
THAI MARKET FOR ICT PRODUCTS P a g e | 18Promotion 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.Dynamic Software SectorMarket value of the Thai software sector in 2010 stood at US$ 2.16 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% of the market. Even so, steadygrowth 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. 18
THAI MARKET FOR ICT PRODUCTS P a g e | 19Among 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 Geomove, Neo Invention, Larn Gear, Phuket SoftwareFactory and ThaiQuest.Computer software has already expanded to a 16% share of sales inThailand’s entire ICT industry, which is valued at US$ 19.21 billion. Amongthe various sectors, enterprise software revenue totaled 58.07 billion baht,embedded software hit US$ 110.3 million and software maintenanceservices reached US$ 40.97 million in 2010, according to NECTEC figures.Spending on computer software in the country is mainly by privatecorporations, the government, and households or small home offices,which account for 29%, 28% and 7% 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. An occurrence inDecember 2010 demonstrates the tremendous progress achieved. Thatmonth a Thai software executive went on record as praising policeofficialsat the Economic and Cyber Crime Division for effective raids onpirated goods. 19
THAI MARKET FOR ICT PRODUCTS P a g e | 20Software 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 releases. By excelling both assubcontractors and original creators, Thai software and animationenterprises helped boost the country’s digital industry (animation andgames) to an estimated value of US$ 735.5 million in 2010.For 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.Thai 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. 20
THAI MARKET FOR ICT PRODUCTS P a g e | 21Data CentersWith an estimated value of US$ 183.1 million in 2010, up 16% from theprevious year based on NECTEC and SIPA figures, Thailand’s datacenters and disaster recovery centers sector is a rising star.By definition, data centers are high-integrity facilities that house the serversof many clients, generally storing them in the multiple- rack cabinets ofspecially designed rooms. Such centers, which can occupy one room of abuilding, several floors or even an entire building, provide services such asserver storage, data backup and security, and environmental control to helpensure 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 investment 21
THAI MARKET FOR ICT PRODUCTS P a g e | 22incentives. 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.In 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% of global energy. Green facilities such as this one show thatThailand’s information technology industry is doing its part to protect theenvironment.Prince of Songkla University has also launched a project to establish a datacenter 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. 22
THAI MARKET FOR ICT PRODUCTS P a g e | 23Thailand’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 Classification Most of the products/components covered in this report fall under Harmonized System Code 8471 – Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included. 23
THAI MARKET FOR ICT PRODUCTS P a g e | 31 17 GERMANY 4.35 3.05 0.55 1.13 -13.57 -29.85 -81.89 163.25 0.10 0.07 0.01 0.03 18 HUNGARY 0.07 0.09 0.08 0.38 -36.50 41.92 -9.99 375.54 0.00 0.00 0.00 0.01 19 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 0.01 20 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
THAI MARKET FOR ICT PRODUCTS P a g e | 324. Distribution channelsThe basic distribution channel is through computer wholesalers and distributors. Some of the establisheddistributors are as below:Table 17-19
THAI MARKET FOR ICT PRODUCTS P a g e | 34There are also key distribution areas where many small retailers are centered around, similar to Malaysia’sLow Yat Plaza.4.1 Pantip Plaza. (4 Branches)The flagship store is located at:604/3 Petchburi Rd, Rachatevi Bangkok 10400Tel: (662)256-0355
THAI MARKET FOR ICT PRODUCTS P a g e | 35Fax: (662) 256-0449E-mail: email@example.com IT CITYIT CITY Public Company Limited is a superstore, selling computers, peripherals and other related ITproducts (One Stop Shopping IT Products) under the trade name "IT CITY" which is a retail superstorechain, 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, TanonPetchburi, Rajthevee, Bangkok 10400, Thailand.Tel: 0-2656-5030-45Fax: 0-2656-5049Website: www.itcity.co.th4.2 Hardware HouseHardware House International is retail outlet specializing in consumer Audio/Visual/Consumer Electronics,computer equipment, IT and digital lifestyle products.It has 90 branches covering the Bangkok metropolitan area and distributed to IT centers in the provinces.Address: 33 / 4, 2nd Floor, Rama 9 Road.Huay Kwang, Bangkok 10310.
THAI MARKET FOR ICT PRODUCTS P a g e | 36Tel: (662) 685-8900Fax: (662) 685 8826Website: http://www.hwhinter.com/index.php4.3 IT SquareIT square supports 300 retailers specializing in IT products and services. Space overall than 120,000 squaremeters with convenient parking to 2,500 vehicles with the idea that. "Digital life at IT Square" is also a 9storey office building and approximately 15,000 square meters of space available with.Address: 333/100, Moo 4 Chaengwattana Road, Laksi, BangKhen, Bangkok, 10210, ThailandTel: 025760333Fax: 0-2576-0789.Website: http://www.itsquareonline.com/Email: firstname.lastname@example.org.Webmaster: email@example.com Data IT Super Stores Company Limited.Address: 99 Room 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.html
THAI MARKET FOR ICT PRODUCTS P a g e | 374.5 Power Buy Co., Ltd. (64 Branches)There are also key distribution areas where every The Mall and Central Department store.Address: 919/555 South Tower 11 Floor, Silom Rd, Bangrak, Bangkok 10500 ThailandTel. (662) 2069300http://www.powerbuy.co.th/4.6 Tesco Lotus (439)There are also key distribution areas.Address: 629/1 Moo 10 Navamin Rd, Klongkum Bungkum Bangkok 10230 Thailand.Tel. (662) 797-9000http://www.tescolotus.net4.7 Siam Makro (29 Branches)There are also key distribution areas. Contract address 3498 Floor 2 rd.Ladproa Rd. Klongjan, Bangkapi, Bangkok 10240Tel. (662) 723 1000,723 1000Fax.(622)375-2789E-mail: firstname.lastname@example.org://www.siammakro.co.th/contact.php
THAI MARKET FOR ICT PRODUCTS P a g e | 384.8 Home Pro (35 Branches)There are also key distribution areas. Contract address 96/27 Moo 9 Bangkhen Aumphur Muang, Nonthaburi11000Tel. (622) 832-1000http://www.homepro.co.th5. Standards and regulationsStandardsIn the case of standards, it varies according to the products. Information related to specific IT products andservices can be obtained from:Thai Industrial Standards InstituteRama 6 Street, Ratchathewi, Bangkok 10400,ThailandTelephone: (662) 202 3301-4 Fax: (662) 202 3415E-mail: email@example.comContact person: Khun Tinakon PongluxnaTel: (622)202 3467, 202 3474Email: firstname.lastname@example.orgSome of the standards related to the ICT sector in Thailand can be obtained from http://www.nectec.or.th/it-standards.Many of these documents are in Thai.
THAI MARKET FOR ICT PRODUCTS P a g e | 39A) Register with Thai Customs DepartmentImporter/Agent in Thailand must complete registration with the Thai Customs 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 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, etcB) ImportationWhen a shipment arrives in Thailand, importers are required to file a Goods Declaration and supportingdocuments for the imports with a Customs officer at the port of entry.Document:
THAI MARKET FOR ICT PRODUCTS P a g e | 40The 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.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.
THAI MARKET FOR ICT PRODUCTS P a g e | 416. 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 lineFor further inquiry and information,E-mail : email@example.comWebsite: http://www.customsclinic.org/
THAI MARKET FOR ICT PRODUCTS P a g e | 436. TariffsExports of ICT products and services are exempted from import tariff under the Common EffectivePreferential Tariff arrangement under ASEAN Free Trade Agreement effective 01st January 2010.Other TaxesThailand imposes VAT (Value Added Tax) of 7 per cent for all products sold domestically.7. Market trendsSource: www.thaijavadev.com 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.
THAI MARKET FOR ICT PRODUCTS P a g e | 44 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.Source: www.thaijavadev.com
THAI MARKET FOR ICT PRODUCTS P a g e | 45 Source: www.thaijavadev.comMobile Market TrendsThe penetration rate for mobiles in Thailand was approximately 93.7 per cent in year 2008, and growing as avery strong rate. Mobile-to-mobile non-voice services are an emerging new business opportunity foroperators allowing them to increase revenue by providing customized products. Top revenue for non-voiceservices is through SMS, Calling Melody, GPRS and download services from portals.Video ring tones are another emerging trend for non-voice services in the future. This service is expected tobe a top seller for multimedia service in the next 3 to 4 years.
THAI MARKET FOR ICT PRODUCTS P a g e | 46The emergence of 3G technologies will impact on the wireless Internet broadband provided by mobilecompanies in Thailand. Mobility features with new wireless applications will be one of the key drivers of themarket. Mass customization of wireless applications for mass consumers segment is the area for potentialgrowth.M-Commerce services in Thailand have mostly been provided to the financial sector. Mobile payment andconfirmation are the most common services available. The application for financial transactions will dependon the network infrastructure and security issues.Thailand is one of the leading medical tourism destinations in South East Asian region. The industry is drivenby private hospitals particularly in Bangkok and major tourist cities in Thailand. Private hospitals in Thailandhave adopted relatively sophisticated technology in order to improve the quality of its service as medicaltourism in Thailand is expected to grow strongly in the coming years.The business opportunities in medical tourism for Malaysian companies in Thailand are in the followingareas: • 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.
THAI MARKET FOR ICT PRODUCTS P a g e | 48 Source: www.thaijavadev.comCloud ComputerCloud Computing is Internet-based computing, whereby shared resources, software, and information areprovided to computers and other devices on demand, like the electricity grid.
THAI MARKET FOR ICT PRODUCTS P a g e | 49Source: www.thaijavadev.comWeb 2,0 concentrate on the private user and clouds are decscendents of data centers which services theenterprise. Web 2.0 also promotes SaaS and needs massive scaling technologies. User centric Web 2.0companies (Twitter, Slideshare) are relying on Cloud Services.
THAI MARKET FOR ICT PRODUCTS P a g e | 508. ChallengesIt is estimated that the ICT market in 2011 will grow at slightly over 5 per cent. The computer services clusteris expected to be the fastest growing area. The opportunities for Malaysian companies are available providedthey are able to manage some of the inherent problems existent in Thailand’s ICT sector. In the case ofservices sub-sector, the country faces the problem of high staff turnover, which consequently adds to thepersonnel costs. The fact that it is also difficult to find skilled manpower with English speaking competencyadds to the costs.For Malaysian companies which want to set up operations in Thailand, it basically needs to do joint-ventureswith Thai-companies as under Thailand’s Foreign Business Act, all companies in Thailand with someexceptions (e.g if they are under the BOI’s programme) should be at least 51 per cent Thai-owned.In terms of competition, the possibility of getting Government contracts directly is remote. It has to be donethrough Thai-companies. That will involve creative contractual arrangements. Thai Government is alsopromoting local developers and as such currently there is a growing pool of home-grown technologies andproducts which are winning market share among Thai consumers who are not too brand-conscious – whichis probably Malaysian suppliers key target group for retail products with Malaysian brands that does not havestrong existing brand.Apart from preparing for the new economy, development guidelines must aim at enhancing thecompetitiveness of the agricultural and industrial sectors through information technology. In other words,information technology must support both the old and the new economies, with the goal of developing aknowledge- based economy that can completely foster holistic development.
THAI MARKET FOR ICT PRODUCTS P a g e | 51Therefore, the economy under a Knowledge-Based Society rests largely on a system of producing,distributing and utilizing “information and knowledge,” where knowledge and technology play a crucial role indriving productivity and economic prosperity.The influence of Information Technology on development is apparent. For example, computer technologyhas increased the efficiency of production, admin- istration and the quality of education. Telecommunicationstechnology and the Internet have created economic values and activities. Information Technology alsoserves as a key component in upgrading living stan- dards and creating employment opportunities.IT potential, which includes high processing speeds and greater computing capacity of microchips, the rapidand continued expansion of the Internet world- wide, together with other economic and social valuesresulting from information technology, have forced countries around the world to try to make more expansiveuse of IT, so as to enhance economic competitive- ness and raise living standards.Moreover, there are many challenges awaiting Thailand in the process of developing information technologyfor 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.
THAI MARKET FOR ICT PRODUCTS P a g e | 52 - 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 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
THAI MARKET FOR ICT PRODUCTS P a g e | 53E-mail: firstname.lastname@example.orgWebsite: www.officeautoguide.comThailands 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: email@example.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 10240
THAI MARKET FOR ICT PRODUCTS P a g e | 54Tel: (662) 734 7707-9Fax: (662) 734 7710E-mail: firstname.lastname@example.orgWebsite: http://www.thailandmobileexpo.com/COMMART THAILAND 2011Details: Right IT Products & Solutions for SMEs & ProfessionalDate: 17 - 20 March, 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: email@example.comWebsite: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/
THAI MARKET FOR ICT PRODUCTS P a g e | 55COMMART XGEN THAILAND 2011Details: The grand cutting-edge IT products trade fair, is back by popular 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: firstname.lastname@example.orgWebsite: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/
THAI MARKET FOR ICT PRODUCTS P a g e | 56COMMART 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: email@example.comWebsite: http://www.commartthailand.com http://www.arip.co.th/ http://www.ar.co.th/Manufacturing 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.
THAI MARKET FOR ICT PRODUCTS P a g e | 57Date: 23 - 26 Jun 2010Place: Bangkok International Trade & Exhibition Centre (BITEC) 88 Bangna-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: firstname.lastname@example.orgWebsite: http://www.manufacturing-expo.com http:// www.reedtradex.comINTERSEC 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 Thailand
THAI MARKET FOR ICT PRODUCTS P a g e | 58Organizer: 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: email@example.comWebsite: www.intersec-thailand.comThailand 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 7766
THAI MARKET FOR ICT PRODUCTS P a g e | 59Fax: (662) 392 7766 ext.22E-mail: firstname.lastname@example.orgWebsite: http://www.tgs.in.th10. 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: email@example.comWebsite: 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: firstname.lastname@example.org, email@example.comWebsite: www.computerthai.org
THAI MARKET FOR ICT PRODUCTS P a g e | 60Software 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: firstname.lastname@example.orgWebsite: www.atsi.or.thNational Electronics and Computer Technology Canter (NECTECH)Address: 112 Phahon Yothin Rd., Klong 1, Klong Luang, Pathumthani 12120, ThailandTel: (662)-564-6900 ext 2335 – 2340Email: email@example.comWebsite: www.nectech.or.th