doing ict business in thailand

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Doing ICT BusinessIn Thailand

Dr. Thanachart NumnondaDirectorSoftware Park Thailand14 May 2012

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Thailand ICT Information

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Thailand Positioning

Rank 27: World Competitiveness Index (IMD)

Rank 10: Economic Competitiveness (IMD)

Rank 50: IT Industry Competitiveness Index 2011 (EIU)

Rank 92:E-Government Development 2012 (UN)

Rank 7: Global Services Location Index 2011 ( AT Kearney)

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IT Industry Competitiveness 2011

Source: EIU2011

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IT Industry Competitiveness 2011

Source: EIU2011

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Internet Usage in Thailand

18,310,000 Internet users; 27.4% Penetration [NECTEC, Dec 2011]

Average Download Speed 6.5 Mbps; Upload Speed 1.5 Mbps; Avg cost $3.72 per Mbps [Net Index, 2012]

Broadband Subscription 3.39 Million users [Reuters, Q4 2011]

14,235,700 Facebook users [Mar 2012]

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Internet Usage in Thailand

Source: TrueHits Statistic

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Mobile Usage in Thailand

Mobile penetration rate in Thailand was estimated at 107.86% over a population estimate of around 66.7 million. [MNO Directory,Mar 2011]

AIS 31.2 Million Subscribers, DTAC 21.6 Million and True Move 17.2 Million [Q4, 2010]

Smartphone usage in 2010 is 18% and expect to grow to 60-65% in 2015 [Frost & Sullivan]

Fixed Line 9.1 Million [Mar 2012]

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e-Commerce in Thailand

e-Commerce usage in Thailand in 2011-2012 is estimated to be at 67%

and M-Commerce is at 37%: One of the top growing country in Asia

[Frost & Sullivan]

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Thailand ICT Market

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ICT Market Survey

Value in Million Baht

Source: NECTEC; April 2012

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ICT Market Survey

Source: NECTEC; April 2012

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Personal Computers(Units)

Source: NECTEC; April 2012

2011 (units)

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Devices sold in Thailand 2011 is follows: Tablet 480,000 units; Desktop 1,320,000 units and Notebook 2,020,000 units. In 2012; The number of

Tablets sold in Thailand is expected to be 2.5 million units.

[NECTEC; Apr 2012]

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Communication Equipments 2011

Source: NECTEC; April 2012

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Mobile Handset

Source: NECTEC; April 2012

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Communication Services 2011

Source: NECTEC; April 2012

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Software Market Survey

Value in Million Baht

Source: TDRI, SIPA; April 2012

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Thai Software Export

Million Baht

Source: TDRI, SIPA; April 2012

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Thailand ICT

Companies & Manpower

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IT Companies in Thailand

Source: NECTEC, SIPA ; 2009

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Software Companies in Thailand

Total 1,200 - 1,300 companies

100% Thai company 79.8%

Located in Bangkok and nearby 75.4%

Source: NECTEC, SIPA ; 2009

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Computer Hardware Companies in Thailand

Source: NECTEC, SIPA ; 2009

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IT Manpower in Thailand

Source: NECTEC, SIPA ; 2009

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Technical Position in Software Industry %

Survey from 139 samplesSource: NECTEC, SIPA ; 2009

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Technical Position in Hardware Industry

Survey from 139 samples

Source: NECTEC, SIPA ; 2009

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Technical Employee in Hardware Industry

Source: NECTEC, SIPA ; 2009

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Thai IT Salary Survey 2012

Monthly Salary in BahtSource: NECTEC, SIPA ; 2009

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IT Graduate in 2007

Source: Office of the higher education commission ; 2009

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Sample IT International Programs

Computer Engineering at Chulalongkorn University, Kasetsart University, Assumption University, King Mongkut's University of Technology Thonburi.

Computer Science at Sirindhorn Institute, Mahidol University, KMITL.

Information Technology at Mahidol University

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Thailand Telecom / e-Goverment

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Telecommunication in Thailand

3 main private operators: AIS, DTAC, True

2 government operators: TOT and CAT

Telecom Regulator: National Broadcasting and Telecommunications Commission (NBTC)

NBTC has approved the draft of the 2012-2016 telecom master plan.

NBTC intends to auction the 3G-2 1GHz licences within Q3 2012.

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ICT 2020 Framework

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Thailand ICT 2020 Strategies

Broadband infrastructure to allow access to information via broadband Internet for about 95 per cent of Thailand's population by 2020.

Developing ICT human capital and general IT literacy.

Aims for a domestic ICT industry that represents at least 6.5 per cent of GDP by 2015, increasing to 7 per cent by 2020

Developing ICT for good governance and smart government.

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Thailand ICT 2020 Strategies

Developing and applying ICT in order to lift the productivity of manufacturing and agricultural industries.

Developing ICT for "life-long learning".

Developing ICT for a green economy and society.

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Smart Thailand

Smart Network– Smart Thailand scheme with planned budget of THB

80 billion to expand a fibre-optic broadband network nationwide.

Smart Government– Smart – Education– Smart - Health – Smart – Government– Smart - Agriculture

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Investment in Thailand

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BOI Investment Services

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Privileges

Maximum privilege regardless of location:

– Exemption of import duty on machinery

– 8 years corporate tax income exemption.

Source: Board of Investment (www.boi.go.th)

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Specific Conditions for Promoted Activity

All revenue related from developed software under BOI project such as ASP (application service provider) could be counted for corporate tax exemption

10 million baht investment capital project must obtain CMM or other international software standards which certified by SIPA

Project must include software development process as specified or approved by SIPA

Source: Board of Investment (www.boi.go.th)

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Software Investment

Foreign Investment between 1996-2007 is 462 projects; total value is 4,950 million baht.

About 30 companies per year.

Mostly come from Japan, USA.

Example:

– Thompson Reuters

– Osellus Asia Pacific

– Hyro Consulting (Thailand)

Source: Board of Investment (www.boi.go.th)

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Gartner: Thailand is one of the top 30 locations for offshore services in 2010

The 10 criteria were: language, government support, labor pool, infrastructure, educational system,

cost, political and economic environment, cultural compatibility, global and legal maturity,

and data and intellectual property security and privacy.

Source : Gartner Dec 2010

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Global Services Location Index 2011

Source : AT Kearney Feb 2011

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CMMI

Software Park has initiative to promote CMM/CMMI since 2002.

Current, there are 52 CMMI companies in Thailand. [March, 2012]

Highest number in ASEAN

Level 2: 16 companies, Level 3: 33 companies and Level 5: 3 companies,

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ICT Bodies

Ministry of Information Communications and Technology (www.mict.go.th)

Office of National Broadcasting and Telecommunications Commission (www.nbtc.go.th)

Software Industry Promotion Agency (SIPA)

(www.sipa.or.th)

Software Park Thailand (www.swpark.or.th)

National Electronic & Computer Technology Center (NECTEC) (www.nectec.or.th)

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ICT Association

The Association of Thai ICT industry (ATCI)

(www.atci.or.th)

Association of Thai Software Industry (ATSI)

(www.atsi.or.th)

Thai Software Export Promotion Association (TSEP) (tsep.or.th)

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Thank you

thanachart@swpark.or.thwww.swpark.or.thwww.facebook.com/softwareparkthailandwww.slideshare.net/softwarepark