ICT, Software and Electronics Industry in Thailand

Thailand’s Road to Better ICT and Software Industry

Thailand entered the early 1980s with an asset in the IT field in that a signifigant number of Thai professionals had gained Computer and IT experience either with the U.S. Military during the Vietnam War period or in U.S. Universities. From the later 1980s onward, the country has worked to build on this and develop a nationwide IT infrastructure that could serve the private sector and the government. As Thailand entered the new Millenium, dissatisfaction with the somewhat limited success of earlier efforts to take advantages of Thailand’s advantages in the IT and Software field grew. In 2002, Thailand established the Ministry of Information and Communication Technology (ICT), and gave the new Ministry the Mission to develop and support more comprehensive electronic processes for government, commerce, industry, business and education. This new ICT policy aims to incorporate IT into every aspect of Thai society and, ultimately, transform the economy and the nation.

(pictures above) Software Park Building and its departments chart- in 1997, Cabinet approves plan for National Electonic and Computer Technology Center (NECTEC) to start a “Software Park Thailand. Software Park Thailand has divided its operation into four integrated departments that allows acceleration of development in the Thai software industry.

Below is a timeline of Thailand’s road to a better ICT and Software industry, a more active government that utilizes and benefits from e-processes:

Year
Activities

1986
- Thailand establishes the National Electronics and Computer Technology Center (NECTEC) ( www.nectec.or.th) NECTEC is given the mission of transferring technology to Thai’s countrywide.

1987
- Nectec initiates the Interuniversity Network Project

1989
- The Thai government initiates the SchoolNet project to provide Internet access to every school in the country. Currently, 4,758 schools around Thailand access the Internet through SchoolNet.

1991
- To improve NECTEC, the government reorganizes the center under the National Science and Technology Development Agency (NSTDA, http://www.nstda.or.th). Both organizations reorganized to make cooperation between the government and private sector easier and more effective.

1991 - Nectec extends academic electronic mail network to Chulalongkorn University, Thammasat University, Kasetsart University, and Nectec, using scheduled dial-up lines and a mixture of UUCP (Unix-to-Unix copy) and MHSnet (Message Handling System network) protocols

1992
- NSTDA establishes National Information Technology Committees, which draw up two National Information Technology policies: IT 2000, a short-term policy for 1997 through 2001, and IT 2010, a long term policy for 2001 through 2009.

1992 - Chulalongkorn University acquires the first dedicated leased circuit for academic Internet connection (9,600 bps to UUNET, an Internet service provider in Virginia). The first set of Usenet news and FTP servers go on the air at Nectec under the names news.nectec.or.th and ftp.nectec.or.th.

1993
- To accommodate growing demands for bandwidth, Nectec starts its first 64-Kbps international leased circuit with UUNET. Chulalongkorn University acquires a 64-Kbps international circuit to UUNET.

1994
- On National Communications Day, Nectec and the Ministry of Transport and Communications demonstrate the first local 2-Mbps Internet links to the Queen Sirikit National Convention Center, with Internet video teleconferencing as the highlight of the demonstration. After a six-month feasibility study by a joint working group, the Communications Authority of Thailand (CAT) and the Telephone Organization of Thailand approve a Nectec proposal for a joint venture to commercialize the Internet in Thailand.

- Thailand creates the CIO position (chief information officer) in all government organizations and establishes required IT education and training for government officers and management.

1997
– Cabinet approves plan for NECTEC to start a “Software Park Thailand”

- Princess Maha Chakri Sirindhorn opens the Knowledge Distribution Network portion of the Kanchanapisek Network Project. Through this access network, people from all of Thailand’s 20 area codes can dial in to access number 1509 and use a PPP (point-to-point protocol) handshake for free access to the Kanchanapisek Network

1998
- Princess Maha Chakri Sirindhorn declares SchoolNet@1509 open. With this new access network, secondary schools across Thailand can use a local number to access the Internet free of charge. The service’s initial capacity is 1,500 schools nationwide.

May 1999
– NECTEC Software Park Commences operation with three thousand square meters at the Software Park Building. By 2003, Software Park Thailand houses 50 companies with 17 companies having international business links, employs over 560 workers that in return help generate around US $10 million per year in income for the domestic economy. Collaboration with major companies like IBM, Sun, HP and Oracle as well as major universities and Thai companies is well entrenched. Software Park Thailand is located on Chaeng Wattana Rd., Nonthaburi province.

1999 - The Internet in Thailand grows to more than 100 Mbps of international bandwidth, with KSC as the first ISP in Thailand providing a 34-Mbps link (simplex, satellite circuit).

2001
– A report by the United Nations Development Program (UNDP) notes that Thailand’s development of human IT resources in 2001 was 66th out of 162 countries (Fundamental Plan for Information and Communication Technology of Thailand)

2002
– The Thai government announces new ICT policies (Fundamental Plan for Information and Communication Technology of Thailand , www.mict.go.th .)   This new Plan sets out for the ICT Ministry five key development goals: e-government, e-commerce, e-industry, e-education, and e-society.

2002 – CIO Magazine rates Thailand as a “rookie” in its buyer’s guide to offshore outsourcing. Geopolitical risk rated low, infrastruction/communications: Fair. Solid infrastructure. English Proficiency Poor, but notes that in Thailand there is a “decent supply of customer-service-oriented, low-cost tech talent along with government support make Thailand attractive. “ In terms of Quality Initiatives: At least eight companies have reached minimum CMM certification; 3,780 ISO 9000 certificates. Size of Industry 195,000 developers. Area of expertise: Application development, application maintenance.

2002 – The Telephone Organization of Thailand (TOT) and the Communications Authority of Thailand (CAT) both registered as private companies. Both are set to list on the Stock Exchange of Thailand (SET) in 2004 and 50% of each of the two companies shares will be sold to the public.

2003
– As part of e-government initiative, Thai government launches e-procurement for some government equipment. Government claims that this has yielded savings greater than 15% through the end of 2003 on items procured in this manner. E-Government policies are as follows:

• The Multi-Application Smart ID Card project is a joint project between the Ministry of Information and Communication Technology and the Ministry of Interior. The card will be the main mechanism in promoting e-government as it can be used for personal identification and dealings both with the government and the private and public sector.

• e-Procurement plans to utilize electronic process for all government procurements, increasing their efficiency, achieving savings and making the system more transparent.

• The Government Data Exchange will improve government management based on the idea that an organization’s effective management depends on effective data exchange.

• The National Spatial Data Infrastructure plans to promote the use Geographic Information System to the government’s strategic management of domestic resources.

• Software for Back Office will address the interoperability of software applications throughout the government. This project will make applications such as office automation, accounting and other common user software compatible.

• The e-Government Institute, will provide continuing education and training for all government officers so that they can work efficiently in the e-government environment.

2003 – ICT Ministry and Government Savings Bank initiate loan program for low-cost computers which are priced less than 20,000 Baht (US$472).

2003 – Khon Kaen’s E-Saan Software Park, a cooperative effort between Khon Kaen University and the Sweedish-Thai Chamber of Commerce, established. Park initially focuses on object-oriented and wireless software.

2003 – Thailand and India’s Centre for Development for Advanced Computing sign agreement to cooperate to develop human resources.

2003 – Software Industry Promotion Agency (SIPA) established. SIPA Brach office opened in Chiang Mai.

2003 – Phuket designated as area for software development. ICT Minister Dr. Surapong Suebwonglee announces plan to target a one day visa and work permit process for IT experts. Announces plans to boost Phuket’s telecommunications by combining the networks of the Communications Authority of Thailand (CAT) and the Telephone Organization of Thailand. CAT will also set up a gateway connecting the island direct to the outside world, instead of via Bangkok. The cost of this is estimated at 100 million baht. Minister Surapong also announces the establishment of a Phuket Learning Consortium to help academic Institutes better cooperates in IT Training. Also announces establishment of a Phuket software park with discounted telecommunications services.

2004
– There are now thought to be 200 IT firms located in Phuket. A number of international companies have set up businesses in Phuket to produce short-range wireless network (Bluetooth) devices and medical equipment. Dr. Pongsak Kerdvongbundit, President of SIPA Phuket announces plans to help Phuket turn into an IT city by supporting software industry development to reach a target value of 160 billion baht over the next five years. Also, for Phuket to turn out up to 600 IT-literate workers a year after 2007 in four areas: software enterprise development, animation and multimedia, mobile phone and game applications, and embedded systems. Finally, Dr. Pongsak announced plans to expand the IT industry into the neighboring provinces of Phang Nga and Krabi.

2004 – IT growth rate reaches 11.8% and is worth some 86 billion Baht (US$2.2 billion). IDC projects in May 2004 that Thailand’s IT market will grow faster than Indonesia, Malaysia and Singapore in 2004 and 2005 and says that IT services in Thailand is a “massive opportunity”. IDC predicts that Thai IT services will surpass 20.5 billion baht in 2004, a growth over 2003 of over 16% while by 2008 the services market in Thailand is projected to be over 36.5 billion, approaching 30% of total IT spending. (Source. Bangkok Post, May 5, 2004.) IDC said the overall spending in the Asia Pacific region excluding Japan in 2004 is forecast to be US$88 billion, of which Thailand’s US$2.2 billion represents just 2.5 percent, but by 2007 a sustained compound annual growth rate of 10.1 percent is expected to make the Thai market worth US $ 3 billion .

2004 – Thailand’s National Telecommunications Commission (NTC) near to starting work. The list of 14 potential candidates has already reached the Senate for the Senate to choose seven members.

Reported by:

Christopher W. Runckel, a former senior US diplomat who served in many counties in Asia, is a graduate of the University of Oregon and Lewis and Clark Law School. He served as Deputy General Counsel of President Gerald Ford’s Presidential Clemency Board. Mr. Runckel is the principal and founder of Runckel & Associates, a Portland, Oregon based consulting company that assists businesses expand business opportunities in Asia. (www.business-in-asia.com)

Until April of 1999, Mr. Runckel was Minister-Counselor of the US Embassy in Beijing, China. Mr. Runckel lived and worked in Thailand for over six years. He was the first permanently assigned U.S. diplomat to return to Vietnam after the Vietnam War. In 1997, he was awarded the U.S. Department of States highest award for service, the Distinguished Honor Award, for his contribution to improving U.S.-Vietnam relations. Mr. Runckel is one of only two non-Ambassadors to receive this award in the 200-year history of the U.S. diplomatic service.

Back to ICT Main Page

Copyright, 2005 © Runckel & Associates
Terms of use

Search our Website by Topics

About Us | Contact Us

www www.Business-in-asia.com

www.Business-in-Asia.com

Year	Activities
1986	- Thailand establishes the National Electronics and Computer Technology Center (NECTEC) ( www.nectec.or.th) NECTEC is given the mission of transferring technology to Thai’s countrywide.
1987	- Nectec initiates the Interuniversity Network Project
1989	- The Thai government initiates the SchoolNet project to provide Internet access to every school in the country. Currently, 4,758 schools around Thailand access the Internet through SchoolNet.
1991	- To improve NECTEC, the government reorganizes the center under the National Science and Technology Development Agency (NSTDA, http://www.nstda.or.th). Both organizations reorganized to make cooperation between the government and private sector easier and more effective. 1991 - Nectec extends academic electronic mail network to Chulalongkorn University, Thammasat University, Kasetsart University, and Nectec, using scheduled dial-up lines and a mixture of UUCP (Unix-to-Unix copy) and MHSnet (Message Handling System network) protocols
1992	- NSTDA establishes National Information Technology Committees, which draw up two National Information Technology policies: IT 2000, a short-term policy for 1997 through 2001, and IT 2010, a long term policy for 2001 through 2009. 1992 - Chulalongkorn University acquires the first dedicated leased circuit for academic Internet connection (9,600 bps to UUNET, an Internet service provider in Virginia). The first set of Usenet news and FTP servers go on the air at Nectec under the names news.nectec.or.th and ftp.nectec.or.th.
1993	- To accommodate growing demands for bandwidth, Nectec starts its first 64-Kbps international leased circuit with UUNET. Chulalongkorn University acquires a 64-Kbps international circuit to UUNET.
1994	- On National Communications Day, Nectec and the Ministry of Transport and Communications demonstrate the first local 2-Mbps Internet links to the Queen Sirikit National Convention Center, with Internet video teleconferencing as the highlight of the demonstration. After a six-month feasibility study by a joint working group, the Communications Authority of Thailand (CAT) and the Telephone Organization of Thailand approve a Nectec proposal for a joint venture to commercialize the Internet in Thailand. - Thailand creates the CIO position (chief information officer) in all government organizations and establishes required IT education and training for government officers and management.
1997	– Cabinet approves plan for NECTEC to start a “Software Park Thailand” - Princess Maha Chakri Sirindhorn opens the Knowledge Distribution Network portion of the Kanchanapisek Network Project. Through this access network, people from all of Thailand’s 20 area codes can dial in to access number 1509 and use a PPP (point-to-point protocol) handshake for free access to the Kanchanapisek Network
1998	- Princess Maha Chakri Sirindhorn declares SchoolNet@1509 open. With this new access network, secondary schools across Thailand can use a local number to access the Internet free of charge. The service’s initial capacity is 1,500 schools nationwide.
May 1999	– NECTEC Software Park Commences operation with three thousand square meters at the Software Park Building. By 2003, Software Park Thailand houses 50 companies with 17 companies having international business links, employs over 560 workers that in return help generate around US $10 million per year in income for the domestic economy. Collaboration with major companies like IBM, Sun, HP and Oracle as well as major universities and Thai companies is well entrenched. Software Park Thailand is located on Chaeng Wattana Rd., Nonthaburi province. 1999 - The Internet in Thailand grows to more than 100 Mbps of international bandwidth, with KSC as the first ISP in Thailand providing a 34-Mbps link (simplex, satellite circuit).
2001	– A report by the United Nations Development Program (UNDP) notes that Thailand’s development of human IT resources in 2001 was 66th out of 162 countries (Fundamental Plan for Information and Communication Technology of Thailand)
2002	– The Thai government announces new ICT policies (Fundamental Plan for Information and Communication Technology of Thailand , www.mict.go.th .) This new Plan sets out for the ICT Ministry five key development goals: e-government, e-commerce, e-industry, e-education, and e-society. 2002 – CIO Magazine rates Thailand as a “rookie” in its buyer’s guide to offshore outsourcing. Geopolitical risk rated low, infrastruction/communications: Fair. Solid infrastructure. English Proficiency Poor, but notes that in Thailand there is a “decent supply of customer-service-oriented, low-cost tech talent along with government support make Thailand attractive. “ In terms of Quality Initiatives: At least eight companies have reached minimum CMM certification; 3,780 ISO 9000 certificates. Size of Industry 195,000 developers. Area of expertise: Application development, application maintenance. 2002 – The Telephone Organization of Thailand (TOT) and the Communications Authority of Thailand (CAT) both registered as private companies. Both are set to list on the Stock Exchange of Thailand (SET) in 2004 and 50% of each of the two companies shares will be sold to the public.
2003	– As part of e-government initiative, Thai government launches e-procurement for some government equipment. Government claims that this has yielded savings greater than 15% through the end of 2003 on items procured in this manner. E-Government policies are as follows: • The Multi-Application Smart ID Card project is a joint project between the Ministry of Information and Communication Technology and the Ministry of Interior. The card will be the main mechanism in promoting e-government as it can be used for personal identification and dealings both with the government and the private and public sector. • e-Procurement plans to utilize electronic process for all government procurements, increasing their efficiency, achieving savings and making the system more transparent. • The Government Data Exchange will improve government management based on the idea that an organization’s effective management depends on effective data exchange. • The National Spatial Data Infrastructure plans to promote the use Geographic Information System to the government’s strategic management of domestic resources. • Software for Back Office will address the interoperability of software applications throughout the government. This project will make applications such as office automation, accounting and other common user software compatible. • The e-Government Institute, will provide continuing education and training for all government officers so that they can work efficiently in the e-government environment. 2003 – ICT Ministry and Government Savings Bank initiate loan program for low-cost computers which are priced less than 20,000 Baht (US$472). 2003 – Khon Kaen’s E-Saan Software Park, a cooperative effort between Khon Kaen University and the Sweedish-Thai Chamber of Commerce, established. Park initially focuses on object-oriented and wireless software. 2003 – Thailand and India’s Centre for Development for Advanced Computing sign agreement to cooperate to develop human resources. 2003 – Software Industry Promotion Agency (SIPA) established. SIPA Brach office opened in Chiang Mai. 2003 – Phuket designated as area for software development. ICT Minister Dr. Surapong Suebwonglee announces plan to target a one day visa and work permit process for IT experts. Announces plans to boost Phuket’s telecommunications by combining the networks of the Communications Authority of Thailand (CAT) and the Telephone Organization of Thailand. CAT will also set up a gateway connecting the island direct to the outside world, instead of via Bangkok. The cost of this is estimated at 100 million baht. Minister Surapong also announces the establishment of a Phuket Learning Consortium to help academic Institutes better cooperates in IT Training. Also announces establishment of a Phuket software park with discounted telecommunications services.
2004	– There are now thought to be 200 IT firms located in Phuket. A number of international companies have set up businesses in Phuket to produce short-range wireless network (Bluetooth) devices and medical equipment. Dr. Pongsak Kerdvongbundit, President of SIPA Phuket announces plans to help Phuket turn into an IT city by supporting software industry development to reach a target value of 160 billion baht over the next five years. Also, for Phuket to turn out up to 600 IT-literate workers a year after 2007 in four areas: software enterprise development, animation and multimedia, mobile phone and game applications, and embedded systems. Finally, Dr. Pongsak announced plans to expand the IT industry into the neighboring provinces of Phang Nga and Krabi. 2004 – IT growth rate reaches 11.8% and is worth some 86 billion Baht (US$2.2 billion). IDC projects in May 2004 that Thailand’s IT market will grow faster than Indonesia, Malaysia and Singapore in 2004 and 2005 and says that IT services in Thailand is a “massive opportunity”. IDC predicts that Thai IT services will surpass 20.5 billion baht in 2004, a growth over 2003 of over 16% while by 2008 the services market in Thailand is projected to be over 36.5 billion, approaching 30% of total IT spending. (Source. Bangkok Post, May 5, 2004.) IDC said the overall spending in the Asia Pacific region excluding Japan in 2004 is forecast to be US$88 billion, of which Thailand’s US$2.2 billion represents just 2.5 percent, but by 2007 a sustained compound annual growth rate of 10.1 percent is expected to make the Thai market worth US $ 3 billion . 2004 – Thailand’s National Telecommunications Commission (NTC) near to starting work. The list of 14 potential candidates has already reached the Senate for the Senate to choose seven members.