The document discusses Thailand's growing data center industry and how the country is positioning itself as a regional data destination. Key points: - Thailand's high internet penetration and digital government initiatives are driving demand for data centers and cloud services. The government's Thailand 4.0 development plan also aims to promote technology adoption. - Thailand has excellent infrastructure like internet speeds and a supportive legal framework for data protection and cybersecurity. It aims to provide equitable digital access for citizens. - The government's digital transformation initiatives have improved Thailand's global rankings for e-government. This is spearheading the private sector's digitalization and access to public data. - The COVID-19 pandemic increased online activity and accelerated Thailand's

1. Vol.
31
l
April
2021
DATA CENTERS &
CLOUD SERVICES
Becoming ASEAN’s
Data Destination

2. Unit: US$ (US$ = 31.50 as of 25 May 2021)
Note: Investment projects with foreign equity participation from more than one country are reported in the figures for both countries. Statistics on net
applicationsareadjustedwheneverapplicationsarereturnedtoapplicantsdue toinsufficientinformation. Formore details, please visitwww.boi.go.th
BOI NET APPLICATION
January – March 2021
FOREIGN INVESTMENT BY TARGET SECTORS
Total Investment
401 Projects
US$ 3,948.03 Million
Total Foreign
Investment
191 Projects
US$ 1,967.58 Million
Petrochemicals
& Chemicals
13 Projects l 186.28 M
Automotive
23 Projects l 237.93 M
Electronics
27 Projects l 463.36 M
Biotechnology
1 Projects l 0.53 M
Tourism
2 Projects l 259.39 M
Digital
25 Projects l 5.08 M
Medical
14 Project l 424.54 M
Automation
& Robotics
1 Projects l 0.09 M
Aerospace
1 Projects l 3.08 M
First S-Curve New S-Curve
Agriculture
& Food Processing
19 Projects l 134.47 M
FOREIGN INVESTMENT BY MAJOR ECONOMIES
Taiwan
13Projects
125.93 M
Japan
33Projects
460.31 M
RepublicofKorea
8Projects
332.76 M
China
37Projects
328.92M
Singapore
28Projects
326.47 M
HongKong
16Projects
119.07 M
Indonesia
3Projects
81.05M
Malaysia
5Projects
11.55M
India
7Projects
43.39M
THAILAND
Netherlands
14Projects
116.03 M
Germany
7Projects
7.81M
UnitedStates
9 Projects
104.19 M

3. Highlights
Competitive Infrastructure for Internet Users
14
Company Interview
NTT
18
Executive Talk
Advancing Thailand’s Digital-Government
15
Industry Focus
Pandemic BoostsDemandforData Centers
andCloudServices
10
Cover Story
Thailand’s Digital Transformation
Boosts Data Industry
04
Thai Economy At A Glance
21

4. THAILAND’S DIGITAL
TRANSFORMATION
BOOSTS DATA
INDUSTRY
The demand for data centers and
cloud technology in Thailand has
been underpinned by the country’s
high internet and mobile internet
penetration, with individuals and
consumers spending more time
online and companies adapting to
the new business norms of work-
from-home and the gig economy.
These changing behaviors have been
spurred by consumer confidence
in the country’s communications
infrastructure, 5G technology and
legal framework as well as the
government’s facilitation of the
digital economy.
At the corporate level, the data
center market has been driven by
companies’preferenceforhaving
carrier-neutral colocation data
center capacity for their network
andITservices,whilethegrowing
use of digital platforms in the
financial and telecommunication
industries as well as content and
digital media requirements have
also contributed to the rising
demand.
Looking ahead, the data center
industry is expected to continue
enjoying healthy demand with
more organizations adopting cloud
technology, big data and analytics,
and Internet of things colocations
as businesses look for more stable
and affordable resources for server
storage, data analytics and
connection. Indeed, the proliferation
oftechcompanies,ITserviceproviders
and e-commerce companies has
resultedinashifttowardshyperscale
colocation data centers.
Thailand 4.0 Drives
Demand for Colocations
A key prong of the “Thailand 4.0”
nationaldevelopmentplan,which
seeks to promote the adoption and
innovation of digital and automation
and robotics technology among
SMEs, manufacturing companies
and the service sector will underpin
the robustdemandfordata centers.
With its focus on ensuring Thailand
embraces the opportunities that
arise from digital technology to
improve its citizens’ quality of life,
the participation of all in political
governance and the country’s
economic competitiveness through
Enhancing the competitiveness of the local business environment and enabling a transparent
government to provide its citizens with equitable access to public services and their data by
utilizing the digital technology are central to Thailand’s national development plan, “Thailand
4.0”. The advancements made by Thailand in implementing its digital government policy will
spearheadthedigitalizationoftheprivatesectorandenhancetheaccessofbothcitizensand
businessestopublicsectordatato drivethe country’soverall economiccompetitiveness.
COVER
STORY
04 Thailand Investment Review

5. COVER
STORY
Thailand Investment Review 05
initiatives such as the Smart City
Development project, big data
platform and analytics for agricultural,
education and healthcare policies
and investment in digital
infrastructure, Thailand 4.0 is set
to lend to further demand in this
segment.
In order to make internet access
more equitable for its citizens,
the Thai government launched
the “Village Broadband Internet”
scheme in 2017 as a flagship
digitalinfrastructuredevelopment
project to expand the country’s
high-speed internet network
throughout the nation, enabling
Thai people who live in remote
areas to access broadband or
high-speed Internet. At present,
all of Thailand’s 74,987 villages
are able to access high-speed
internet networks, which allow
userstoaccessthegovernment’s
e-services on health care and
online government, as well as
e-commerce, e-business and
e-banking applications.
Earlier this year, the Thai
government designated the internet
as part of the country’s basic
infrastructure while also pledging
to lower the cost of internet
services and enable low-income
earners to access the service
free-of charge under a plan to
use digital technology to foster
equality and help people adversely
impacted by the fallout from
COVID-19.
In a bid to strengthen the
legislation framework of the
country’s digital age, the Thai
parliament promulgated the
Personal Data Protection Act B.E.
2562 (A.D. 2019) which set out the
guidelines for businesses on the
management of sensitive areas
including access to consumers’
personal data and data storage
protocols, the assignment of
data logs, and the prevention of
unauthorized access. With the
effective date postponed by exactly
12 months to June 1, 2022 due
to the pandemic, businesses are
required by law to ensure they
are fully prepared when it comes
into effect.
In terms of external security
threats, the Cyber Security Act
B.E. 2562 (A.D. 2019) has also
encouraged government agencies
and businesses to move toward
investmentincybersecuritymeasures
to ward off cyber-attacks.
Thailand is witnessing explosive
growth in carrier-neutral colocation
data center services from the
arrival of new players as well as
thecapacityexpansionofexisting
providers. Thailand currently houses
a total of 18 colocation data centers1
with approximately 400,000 sqft
of multi-tenant data centre (MTDC)
operational space in 2019.2
Of the country’s 18 colocation
centers, 16 are in the capital city
of Bangkok and its surrounding
area, while the other 2 are located
attheEasternEconomicCorridor,
the country’s pilot special economic
zonewhichofferstheadvantages
of being located just 30 kilometers
from undersea cables yet 100
metersabovesealevel3,guaranteeing
high-quality infrastructure such as
power and water supply.
With its competitiveness in
ICT, the strength of its basic
infrastructure, its skilled workforce,
the support from its public sector
and its strategically advantageous
location, Thailand is well positioned
to become an important destination
for colocation datacenters that
serve the demand of businesses
operating within the Association of
SoutheastAsian Nations(ASEAN).
Digital Government
Spearheads Data
Revolution
The Thai government’s digital
government policy, reinforced by the
Digital Government Administration
and Services Law B.E. 2262 (A.D.
2019),hassetfourobjectiveswith
the aim of enhancing how the
public sector works for the people,
including social and economic
equitability, the enhancement of
economic competitiveness, ensuring
government transparency and
improving people participation.
The policy is comprised of four
strategies: 1) delivering end-to-end
digital services to the citizens,
2) improving the ease of doing
business via digital technology,
Photo
by
Johnson
Wang
on
Unsplash

6. COVER
STORY
06 Thailand Investment Review
utilizing this service in December
2020. The country also recorded
the highest number of transactions
through mobile banking and financial
transaction apps in 2020, possibly
thanks to the government’s digital
co-payment scheme as part of its
relief package for people affected
by the pandemic.
Intermsofinfrastructure,Thailand
has a world-class internet speed,
offering the world’s fastest fixed
internet connection at 308.35
megabits per second and the
second fastest mobile internet
connection in Southeast Asia
afterSingaporeat51.75megabits
per second as of January 2021.
BOI Promoting the Digital
Ecosystem
Tofurtherstrengthentheecosystem
of the digital industry, Thailand’s
Board of Investment (BOI) is currently
promoting the digital industry
through tax and non-tax incentives,
with a focus on three groups,
namely software development,
digital infrastructure and digital
ecosystem supporting businesses.
The tax incentives are:
Software Development:
5-8-yearCITexemptionfordigital
services, enterprise software,
digital content, high value-added
software except for e-commerce
Digital Infrastructure:
8-yearCITexemptionforsubmarine
cables, data centers and cloud
services
Digital Ecosystem Supported
Business:
5-8-year CIT exemption for
makerspaces or fabrication
laboratories (Fab Labs), digital
parks, innovation incubators except
for co-working space
3) offering open data platforms and
4) promoting people participation
inthepolicymakingprocess.This
framework also aligns with the
ASEAN Digital Masterplan 2025.
The Digital Government
Development Agency (DGA)4,
entrusted by the law to move the
digital government implementation
forward, has accelerated the digital
government architecture among
government agencies in the
wake of the COVID-19 pandemic.
Among the key measures are
the acceleration of the Thailand
Government Information Exchange,
acentraldatabaseofgovernment
agencies designed to reduce the
documentation burden on the
private sector, improve efficiency
by eliminating redundancy, and
promote the use of Digital ID
including digital signatures among
government agencies. Another
important initiative is the creation
of a government data catalog
to enable the private sector to
access the public sector’s data
more efficiently.
The DGA is also accelerating
the development of the Government
Data Exchange to create an
integrated platform of government
databasesoverthenexttwoyears
by standardizing data exchange
guidelines among government
agencies.
As a result of the digital
government implementation, Thailand
has moved up the rankings of the
United Nations’ e-Government
Development Index 2020 to 57th
place out of 193 countries from
its previous ranking of 68th in 2019,
again placing it as the 3rd highest
ranked country in ASEAN, after
Singapore and Malaysia.5
Pandemic Spurs
Digital Way of Life
As people increasingly logged on
to manage ever more aspects of
theirdailylifeinanefforttoovercome
the challenges posed by the
COVID-19 pandemic in 2020,
the “Global Digital Report 20216”
confirms the remarkable trends of
Thai citizens’ engagement in the
digital world. Indeed, the almost
9 hours that Thai internet users
spent in front of a screen each
daywasnotonlyabovetheglobal
average but also the 9th highest
in the world.
Thailand was ranked third in
the world for ecommerce adoption
with84%ofthecountry’sinternet
users having bought something
online over the previous month,
trailing only Indonesia and the UK,
and comfortably above the global
average of 77%. The country was
also ranked fifth for using QR codes
with 60% of its internet users

7. COVER
STORY
Thailand Investment Review 07
Philippines
Brazil
Colombia
South
Africa
Argentina
Malaysia
Mexico
Indonesia
Thailand
Taiwan
Singapore
Turkey
Russia
Saudi
Arabia
Egypt
Israel
Romania
U.A.E.
Portugal
Hong
Kong
U.S.A.
Worldwide
Vietnam
Poland
New
Zealand
India
Ireland
Canada
U.K.
Italy
Thailand
Singapore
Hong
Kong
Romania
Switzerland
Denmark
France
U.S.A
South
Korea
Spain
Sweden
China
Canada
Japan
Taiwan
New
Zealand
1portugal
Netherlands
U.A.E.
Israel
Poland
Germany
Belgium
Ireland
Worldwide
Malaysia
U.K.
Russia
Saudi
Arabia
Brazil
Jan 2021:
Daily Times Spent Using The Internet
Average amount of time (in hours and minutes) that internet users aged 16 to 64 spend using the internet
each day on any device
Jan 2021:
Average Fixed Internet Connection Speeds
The average download speed of fixed internet connections, in megabits per second (MBPS)
Source: Global Digital Report 2021, We Are Social and Hootsuite

8. Thailand
U.S.A
Austria
Denmark
New
Zealand
U.K.
Israel
Sweden
Brazil
Indonesia
France
China
Saudi
Arabia
Malaysia
Portugal
Netherlands
Philippines
Belgium
U.A.E.
Ireland
Spain
Germany
Mexico
Turkey
Poland
Italy
Colombia
Egypt
Russia
Argentina
Worldwide
Thailand
Malaysia
Poland
Germany
Austria
Taiwan
U.S.A
Philippines
Italy
Singapore
South
Korea
Spain
Vietnam
Ireland
China
Saudi
Arabia
Worldwide
India
Mexico
Netherlands
Brazil
Turkey
Austraua
Belgium
Switzerland
France
Hong
Kong
Japan
Sweden
Canada
Jan 2021:
Broadband Connections vs. All Connections
3G, 4G, and 5G mobile connections as a percentage of total mobile connections*
Jan 2021:
Ecommerce Adoption
Percentage of internet users aged 16 to 64 who bought something online via any device in the past month
Source: Global Digital Report 2021, We Are Social and Hootsuite
08 Thailand Investment Review
COVER
STORY

9. Thailand
South
Africa
Poland
Ireland
Brazil
Singapore
Malaysia
Sweden
South
Korea
U.K.
Israel
Hong
Kong
Netherlands
Spain
Canada
New
Zealand
Kenya
Mexico
Romania
Taiwan
Australa
Russia
Argentina
Turkey
Nigeria
Austria
Belgium
Saudi
Arabia
Switzerland
Colombia
Denmark
France
U.S.A
Philippines
Italy
Vietnam
Indonesia
Worldwide
Jan 2021:
Use of Banking And Financial Services Apps
Percentage of internet users aged 16 to 64 who say they use mobile banking or financial services apps
each month
Jan 2021:
Use of Mobile Payment Services
Percentage of internet users aged 16 to 64 who have used a mobile payment service (e.g. Apple pay,
samsung pay) in the past month
Source: Global Digital Report 2021, We Are Social and Hootsuite
Thailand Investment Review 09
COVER
STORY
Hong
Kong
Thailand
Taiwan
Saudi
Arabia
Singapore
India
Brazil
Denmark
Poland
China
Vietnam
U.A.E.
Worldwide
Switzerland
Kenya
Philippines
Germany
South
Korea
Malaysia
Austria
Indonesia
Russia
U.S.A
Spain
U.K.
Mexico
Ireland
Austraua
Japan
South
Africa

10. INDUSTRY
FOCUS
PANDEMIC BOOSTS DEMAND
FOR DATA CENTERS AND
CLOUD SERVICES
Mobile applications and online
platforms have proven extremely
useful in helping the government
communicateanddeliverservices
duringthepandemic,withpeople
registering for vaccinations, and
the Ministry of Public Health and
hospitals connecting their databases
through an integrated backend
system. Government agencies and
businesses also effectively adopted
work-from-home measures, while
the spending of Thai consumers
on e-commerce, ride hailing, and
fooddeliveryservicesfurtherbolstered
the demand.
High Internet
Penetration a Boon
As lockdown restrictions also
led consumers to stay at home
and spend more time on mobile
devices or computers, a growth
was recorded in the purchase of
goods and services online.
According to the Global Digital
Report 2021, released by We Are
Social in collaboration with Hootsuite,
70% of Thailand’s population were
internet users in 2020, an increase
of 7% from the previous year.
With some 99% of the country’s
population owning a smart phone
device, Thai people also spend
an average of 8 hours and 44
minutes on the internet each day.
The report showed that Thailand
was ranked third in the world for
productpurchasesmadethrough
e-commerce, with 84% of the
country’spopulationmakingsuch
transactions, placing Thailand
behind only Indonesia and the
United Kingdom but above the
global average of 77%.
Thailand was ranked fifth
globally for using QR codes, with a
60% penetration of the country’s
internet users in December 2020.
According to the report, Thailand
also recorded the highest number
of transactions through mobile
banking and financial transaction
apps in 2020, possibly due to the
government’s digital co-payment
scheme as part of a relief package
forpeopleaffectedbythepandemic.
Meanwhile, e-Conomy SEA
2020, report jointly conducted
by Google, Temasek and Bain &
Company1, estimated a significant
number of Thais tried new digital
services in 2020 when 30% of all
digital service consumers were new,
with 95% of these new consumers
intending to continue their behavior
post-pandemic. The research also
estimated Thailand’s internet
economy to be valued at US $18
billion in 2020, having grown by
7% year-on-year and predicted
to reach US $53 billion in 2025.
Mobilebankingisalsopopular
among Thai consumers with many
bankshavingpromotedtheironline
banking services. The Bank of
Thailand has also launched a
cashless society campaign as
part of a policy to save costs
for concerned parties and the
economyaswhole.Thiscontributed
to a jump in financial transactions
online which forced commercial
and state-owned banks to expand
their service capacity.
Government Uses
Online Tools for Services
Apart from the private sector,
governmentagenciesalsocontributed
to the growth of cloud and data
center markets as government
agencies adopted online services
underthee-governmentpolicy.The
government has also implemented
many relief packages since 2020
when the pandemic hit Thailand
hard.
These measures include, for
example, the co-payment of goods
and services, cash-handouts for
The COVID-19 pandemic has accelerated digital adaptation among Thai organizations and
citizens as they increasingly turn to online tools for healthcare, remote working and business
transactions. The trend has driven a demand for data centers and cloud services which has
been underpinned by changes to the global business environment and compliance with new
legislationaimedatimproving theefficiencyandsecurityofThailand’sdigital economy.
10 Thailand Investment Review

11. INDUSTRY
FOCUS
lower income groups, and a state
welfare card scheme, all of which
require huge data traffic as millions
ofpeopleareeligibleforreceiving
state assistance.
The government requires people
to register online and then provides
financial assistanceviaapplications.
Promising Market
of Colocations
Ontopofthegrowinguseofonline
platforms significantly driving the
demand for data centers and
cloud services, the trend of Thai
businesses preferring to migrate
to cloud solutions and data center
colocations as opposed to building
on-premise data centers will also
boost the demand in the industry.
This trend comes into play
when the Thai public and private
sector move forward the advancement
of digital transformation through
the use of big data and analytics,
AI and machine learning.
According to a study by ST
Telemedia Global Data Centers2,
Thailand’s datacenter market is
growing at the compound annual
growth rate of 16% during 2016
to 2022 in terms of operational
square feet. In terms of demand,
themarketisgrowingconsistently
at the compound annual growth
rate of 14% during 2016 to 2022.
The outlook for the digital
economy and technological
innovations in Thailand indicate
ample room for more investment in
datacentersandcloudplatforms,
especially from hyperscalers who
provide the speed, scalability,
global reach and agility.
The report also identified
how financial businesses and
telecommunications are the
majority buyers of multi-tenant
data centers. However, a change
does seem to be taking place in
the Thai market, with tech companies
andITserviceprovidersspringing
up over the last several years
to become important buyers of
colocation space, along with
e-commerce companies and over-
the-top (OTT) media companies.
Kasikorn Research Center
estimates that Thailand’s cloud
solution business was worth US$
523 million in 2020, up 20% from
the previous year and building on
the 22% year-on-year growth in
2019.
The surge in the demand for
cloudservicesinThailandin2019
was attributed to an increase is
businesses’ dependency on online
platforms. Financial institutions,
energy companies and food delivery
businesses were among those
making the largest contributions
to the growth of cloud services in
2019.
KResearch forecast cloud
business to grow by more than
8 % to US$ 570 million in 2021
in line with the ongoing uptake of
digital tools.
The reasonable cost of could
services in Thailand also allows
SMEs to access the services,
increasing their competitive edges.
As a result, the IT capacity of
SMEs no longer falls far behind
that of large corporations.
As Thai businesses take on
the challenge of offering a better
service to their customers or end-
users who have higher expectations,
they are increasingly expected
to adopt big data and analytics
to help them differentiate their
productsandservicesfromthose
of competitors.
For example, restaurant
operators can use big data to
advise customers on special
dishes which match their tastes,
and they can also calculate
precise-waiting times for food
deliveries.
Thailand’s booming data
center and cloud service market
has already attracted significant
investment, with more backers
expected to invest in new data
centers in the country over the
coming year.
Thailand Investment Review 11

12. INDUSTRY
FOCUS
12 Thailand Investment Review
GMV(US$_B)persector
Thailand’s E-Commerce Outlook
Surge in e-Commerce offsets contraction in Travel
CAGR
Source:“e-Conomy,SEA2020”byGoogle,TemasekandBain&Company
Source: Bolliger and Company (Thailand)
Thailand’s Digital Development for the Economy
and Society Strategy (2018-2022)
-12%
45%
20%
15%
2015 2019 2020 2025
2015 2019 2020 2025
Online Media
Transport & Food
0.4
1.3 1.1
7
1 3 4
7
81%
21%
-47%
31%
1
2015 2019 2020 2025
2015 2019 2020 2025
e-Commerce
Online Travel
5
9
24
3
7
4
15
Economic Growth:
DigitalSMEs/DigitalManufacturing /
Digital Agriculture/ Digital Services/
DigitalTechnologyandContentIndustry
Infrastructure Development:
DigitalInfrastructure / Smart City
Digital Society:
DigitalWorkforceandDigitalSkill
Digital Trust:
DigitalLaw&Standard/CyberSecurity
Quality Society:
Digital Community /
Digital Learning & Knowledge /
Digital Health
E-Government:
Government Transformation for
Public Services and Operations

13. INDUSTRY
FOCUS
Thailand Investment Review 13
5-8-year
CIT
Exemption
Software Development
1 for digital services, enterprise
software, digital content, high
value-added software except
fore-commerce
5-8-year
CIT
Exemption
Digital Ecosystem Supported Business
3for makerspaces or fabrication
laboratories (Fab Labs), digital
parks, innovation incubators
except for co-working space
8-year
CIT
Exemption
Digital Infrastructure
2for submarine cables, data
centersandcloud services
BOI’s Incentives
for the Digital Industry
Thailand’s
Data Center Map
Thailand’s Submarine
Cable Map
Source: Thailand Board of Investment
19
5
18
55
32
38
Source: www.datacentermap.com
Source: www.submarinecablemap.com
Thailand
(number)
Cambodia
Thailand
Malaysia
Singapore
Indonesia
Vietnam

14. HIGHLIGHTS
COMPETITIVE
INFRASTRUCTURE
FOR INTERNET
USERS
Looking in more detail at data from
the Speedtest Global Index™1
during2020,Thailandhaswitnessed
significant improvement in fixed
broadband internet speeds over
the past couple of years, as the
penetration of fiber-to-the-home
(FTTH)continuestogrowstrongly
in major metropolitan areas. The
survey also showed that Thailand
managed the challenges of
increased traffic driven by the
pandemic comparatively well,
climbing from a ninth-place position
for mean fixed broadband speed
in January 2020 to third place
in December 2020. Singapore
and Hong Kong held on to first
and second place, respectively,
throughout the year.
In this digital age, internet
speed has kept up with demand in
Thailand where the mean download
speed over fixed broadband during
2020 was 166.81 Mbps, ranking
the country second fastest among
ASEAN member states. Singapore
claimed first place with a mean
download speed of 214.39 Mbps
over fixed broadband during the
same period.
This improvement of the
country’s internet speed is a
result of the high penetration of
WiFiinternetaswellascontinued
investment in fixed broadband,
which facilitates the transition
from cable to fiber optic internet.
Thailand currently has 10
international internet gateways,
11 internet exchange points, and
more than 200 Internet Service
Providers (ISP). As the basis of
this operating infrastructure, the
country is connected to 13
submarine cable networks with 3
landing stations.
It is also worth noting that
Thailand is connected to the AAE-1
internationalsubmarinecable,which
is one of the world’s most important
and newest cables connecting
countries from East Asia to Europe.
CAT is also connected with 6
international submarine cable
systems capable of delivering
54-terabit-per-second transmission
speeds. These include the FLAG
(Fiber-OpticLinkAroundtheGlobe),
the SEA-ME-WE 3 (Southeast
Asia-Middle East- Western Europe
3), the TIS (Thailand-Indonesia-
Singapore), the SEA-ME-WE 4
(Southeast Asia - Middle East -
Western Europe 4), the AAG
(Asia-America Gateway) and APG
(Asia Pacific Gateway) cable
systems.
In February of 2020, the digital
industry and The Thai government
joined forces to roll out fifth-
generation mobile phone services,
generating more than US$ 3 billion
from the auction of 5G licenses.
The 5G technology network is seen
asabackboneofSmartCityprojects
and the high-tech production lines
of the Eastern Economic Corridor
(EEC) development project.
A 5G pilot project has been
launched in Rayong’s Ban Chang
Municipality in March this year.
Equipped with 5G infrastructure,
Ban Chang Municipality is expected
to become Thailand’s first progressive
Smart City to attract workers in
hi-tech industries, namely industrial
robots, biology and biological
chemistry,digital,medical,aviation,
logistics and agriculture.
14 Thailand Investment Review
As a result of continued investment, Thailand currently has
the leading internet infrastructure in ASEAN. Underlining this
claim, speedtest.net reported that Thailand had the world’s
third fastest average download speed for fixed broadband
accessinDecember2020.

15. Thailand Investment Review 15
EXECUTIVE
TALK
Advancing Thailand’s
Digital-Government
TheintroductionofThailand’sDigitalGovernmentAdministration
and Services Act B.E. 2562 (A.D. 2019) was a watershed
event that paves the way for the public services and data
governance provided by government agencies to undergo
a transformation that will benefit the Thai people. Under
an operational framework effective from 2019 to 2024,
the law requires government agencies to overhaul their
standardization of data, consolidate their data with other
government agencies, and allow more access to their data
by Thais with the aims of improving the efficiency of how
the government delivers public services, boosting the
country’s economic competitiveness, and enhancing the
transparency of government agencies.
Charged with spearheading the
implementation of the digital
government policy among the
government agencies, the Digital
Government Development Agency
(DGA)1 isfocusingitsattentiononsix
areas, namely education, medicine
and healthcare, agriculture, l access
to social welfare, government
transparency and the development
of small and medium-sized
enterprises.
Digital governmentdevelopment
is widely regarded as a policy
designed to address many of the
problems Thailand is facing, such
as rapid changes in the global
economy, environmental concerns,
and the need to increase citizens’
participation in politics. Dr. Monsak
Socharoentum, Vice President for
Data Solutions and Chief Data
OfficeratDGA,explainstheimpacts
of the DGA’s work on Thailand’s
economic development.
What is the DGA’s
framework for driving
the development of
digital government?
The DGA is tasked with promoting
digital government development
through front-end portals, back-
endplatformsandthegovernment’s
digital foundation. The front-end
portals, which is where the users
interact with the government’s
digital data services, are comprised
of the citizen portal, foreigner portal,
business portal and open data
portals, comprehensively covering
the government’s service deliveries
across all sectors.
For the back-end platforms,
the focus is on common platforms,
for example, digital I.D. for state
agencies to develop services that
Dr. Monsak Socharoentum
DGA
Thailandisundergoingamajortransformation
ledbythedigitalgovernmentdevelopment
policy.Inthisregard,theThaigovernment
isspearheadingthedigitaltransformationof
theprivatesector,astheyhavetotransform
to catchupwithstateagencies.

16. 16 Thailand Investment Review
will reduce redundant work and
costs for services to the citizens.
The DGA has also developed
back-officesoftwarepackagesto
be used by government agencies
with their databases to optimize
their operation costs.
Lastly, foundation development
consists of hard and soft foundations.
The hard foundation is the
“Government Data Center and
CloudService”2 whichwasdeveloped
by the Ministry of Digital Economy
and Society as the central cloud
center for all Thai government
agencies and which also provides
Big Data and Analytics and know-
how training for government
agency staff. The soft foundation
is related to data standardization
and data integration protocols so
that data among state agencies
can be exchanged and transferred
toenableThaigovernmentagencies
to have a more collaborative working
platform. Overall, these are the
infrastructure developments for
the Thai government’s digital
transformation which will improve
its economic competitiveness.
How will the development
of the digital government
create opportunities in
the data center and
cloud industry?
The digital government policy will
result in huge investment by the
government in the data center
and cloud industry. The Digital
Government Administration and
Services Act requires all Thai
government agencies to transform
themselves towards digitalization,
meaning they will digitalize their
databases and enhance the digital
services they provide to the
citizens, including their back
office. This will create a very strong
demand for cloud computing and
data center connectivity from the
government on top of the demand
from the private sector. On the
supply side, the Thai government
is providing tax and non-tax
incentives. Data centers and the
cloud industry will also benefit
from Thailand’s ease of doing
business.
What do you foresee for
Thailand’s data center
and cloud industry over
the next 3-5 years?
Many state agencies are creating
big data projects which use
government-based domains. As
oneexample,“FarmerONE”contains
data related to all individual farmers
in Thailand, and the government
can then use these data for their
analysis on how to help the farmers
and design agricultural policy.
There are also many other big data
projects in Thailand’s important
development areas, for example,
healthcare, financial data as well
as hydrology-related data. These
are examples of four big data
projects that are under development
in Thailand and will grow over the
short term.
What is Thailand’s
most important
competitive advantage
in the industry?
Aside from the growing demand,
reliable laws and regulations are
essentialforattractinginvestment.

17. Thailand Investment Review 17
EXECUTIVE
TALK
In 2019, Thailand introduced four
digital acts which include the
Personal Data Protection Act,
Electronic Transactions Act, Digital
Government Administration and
Services Act, and Cyber Security
Act. In effect, these acts require
the public and private sector to
invest in security systems, data
protection systems and personal
data protection. Local organizations
are required to conduct analysis
on data protection compliance,
security measures, physical and
technical measures and also the
administrative measures. Through
the Cyber Security Act, in particular,
the critical information infrastructure
must meet the standard for security
from now on to prevent cyberattacks.
Meanwhile the Personal Data
Protection Act focuses on the
standard with which organizations
must comply when dealing with
personal data. This adjustment will
require a very high standard for
cloud computing services and
data center services with good
datamanagement.TheElectronic
Transactions Act stipulates that
digital evidence is officially accepted
for electric transactions in Thailand.
This regulatory framework will
promoteasignificantadvantagefor
data center and cloud computing
in Thailand.
Where do you see
Thailand’s positioning
in the industry over
the next 3-5 years?
Thailand is undergoing a major
transformation led by the digital
government development policy.
In this regard, the Thai government
is spearheading the digital
transformation of the private
sector, as they have to transform
to catch up with state agencies.
Thailand also has four main
acts related to the data and
digital industries. On top of that,
Thailand will benefit from its
strategic geographical location.
The country will also benefit
from significant investment in
infrastructuresuchashigh-speed
trains, seaports and airports
linking Thailand to ASEAN and
China’sBeltandRoadareas.This
willincreaseinvestors’appetitein
Thailand.

18. 18 Thailand Investment Review
COMPANY
INTERVIEW
INTERVIEW WITH
Mr Sutas Kongdumrongkiat,
CEO, NTT Thailand and Cambodia, Laos and Myanmar
“ Thailand has geographical
advantages over other
countries in ASEAN.
Aside from having large
corporations located in
Thailand and localdemand
for data services via
the social and consumer
market, Thailand is one of
the most successful
countries in terms of
using digital and mobile
technology to drive these
services for theconsumers.
Mobile banking and
e-commerce have been
successful, while
the government’s initiative
to develop the EEC, with
the target of bringing in
more investment and new
technology, also makes
Thailand attractive.”
Mr Sutas Kongdumrongkiat
CEO, NTT Thailand and Cambodia,
Laos and Myanmar
Thailand’s
Thriving Data
and Cloud
Market
The fast-growing demand for
data centers in Thailand reflects
the increasingly vigorous use of
digitaltechnologyintheKingdom,
such as IoT, cloud computing,
big data and analytics, as well as
people’snewonlinehabitsduring
the pandemic, with all of this coming on the back of the government’s
rollout of 5G technology. One of the leading markets in this field,
Singapore has announced an indefinite suspension on the opening of
new colocation centers because of its land space limitations, leaving
Thailand free to become the most promising destination for luring
investment to the industry. Thailand’s rising prominence in this respect
is in line with the government’s target of establishing the country
as the digital hub of ASEAN. Mr Sutas Kongdumrongkiat, CEO of
NTT Thailand who also oversees operations in Cambodia, Laos and
Myanmar, explains why global technology companies are placing their
trust in Thailand to offer the most attractive ecosystem for data center
services in ASEAN.
What is NTT’s vision for its operations in Thailand?
NTTisoneofthegloballeadersinICTtechnologyandservices.Having
had a presence in Thailand for more than six decades, the services
offeredbyNTTnowcoverthreekeyareas.Thefirstoneisourofferingof
the ICT infrastructure for data centers, network connectivity and cloud
computing, via our global data centers in Thailand—one in the Eastern
EconomicCorridor(EEC)andtheotherintheBang-naareaofBangkok.
The second area is technology services, through which we provide our
customerswithservicesusinganyITtechnology,includingnetworking,
communication collaboration, security and digital applications. In
this area, we have been working with multi-vendors who are leaders
in global technology. The last area of services is our management
solutions. We help our customers to run their own IT operations. We

19. Thailand Investment Review 19
have about one thousand people
in Thailand currently providing the
technology and managed services
that help customers to run their
own IT, cloud computing and
applications by drawing on our
high level of skill in these areas.
We provide local customers with
a comprehensive range of ICT
services covering infrastructure,
technologyandmanagedservices.
What opportunities
does NTT Thailand
foresee arising in
thedatacenterandcloud
business in Thailand?
There are a few factors that have
been supporting the growth of the
data center and cloud business
over the last few years. The
COVID-19 pandemic makes
everyone need to work from
home and also run applications
from anywhere. This generates
high demand for cloud and data
center services, which grew
significantly last year. Next is the
investment. Customers may find
it very difficult to invest in their
own assets amid an economic
crisis, so they are now looking
to leverage cloud and data
center services to host their IT
infrastructure and services instead
ofincurringtheirownhugecapital
expenditure.
Thencomesnewtechnology
like digital applications together
with the cloud, which helps users
to get data from the corporation
itself, social media platforms and
data sites at huge scale.
These three key factors have
stimulated the high demand for
data centers. In Thailand, we
have seen high growth across
business sectors, from SMEs to
large corporations. There is also
a trend in the government to use
more data centers and cloud
services. We have experienced
rising demand in the last two
years and it will continue to grow
in the next three years.
What do you think is
Thailand’s key
competitive advantage
in the data market
and cloud services?
Thailand has geographical
advantages over other countries
in ASEAN. Aside from having
large corporations located in
Thailand and local demand for
data services via the social and
consumer market, Thailand is
one of the most successful
countries in terms of using digital
and mobile technology to drive
theseservicesfortheconsumers.
Mobilebankingande-commerce
have been successful, while the
government’s initiative to develop
the EEC, with the target of bringing
in more investment and new
technology, also makes Thailand
attractive. More new businesses
and the manufacture of new
technology will lead to higher
demand for high-end data centers,
cloud services and ICT infrastructure
servicestohelpthesebusinesses
run their factories efficiently. However,
thereareafewkeyareasthatneed
to be addressed. The first one
is the government’s promotions
and direction for driving the
data center business to expand
beyond local markets. Currently,
we have quite a strong supply of
the data centers built in Thailand
and the Board of Investment
Thailand (BOI) has provided support
programswithtaxincentives. NTT
is one of the data centers under
the program. We are currently
building an approximately three
thousand plus square meter data
center in Amata Industrial Estate
located in the EEC. The Thai
government is trying to draw in
the large IT corporations that will
host their services in Thailand
and help us to expand our market
tomultinationalcustomersoutside
Thailand. The second part is
government spending. The
government has already tried to
implement a digital government,
foster e-citizens and invest in
the EEC. The government has to
spendmoreontheseinvestments
compared to other countries in
ASEAN.

20. 14 Thailand Investment Review
COMPANY
INTERVIEW
How competitive is
Thailand to compete
with other ASEAN
countries that are
already successful in
attracting FDI ?
Thailand’s infrastructure is one of
the best in the region. We already
have good infrastructures in terms of
theelectricitysupply,transportation
modes and IT connectivity. We
havethechancetodevelopthese
toahighlevelwithoutanydifficulties.
Once we set a clearer direction for
attracting investment, then local
and overseas investors will be
ready to invest. Thailand launched
its 5G late but we have moved
forward fast, and 5G will be one
of the key parts of the country’s
infrastructureinthefuture,helping
Thailand to be more advanced
than other countries. For the IT
connectivity, we have the potential
to expand and become the regional
hub. NTT leveraged Amata to
build our data center in order to
increase our competitive edge.
Regarding skills, we now have
the IT infrastructure to serve
the local needs, but with EEC
expansion, it generates the need
to expand and advance the local
skilled workforce. We need a
collaboration between the
government, educational institutions
andtheprivatesector.NTTisworking
closely with many educational
institutionsincludingKingMongkut’s
Institute of Technology Ladkrabang
(KMITL) and trying to generate
the skill resource to align with the
needs in this technology sector
and in the EEC area, especially
the skills needed by Japanese
investors. Currently, we are providing
support with building the curriculum
of KOSEN-KMITL. NTT has also
committedtobepartoftheproject
to help them to develop the skills
that will bring in more resources
and will help us to deliver services
to the large corporations investing
in the EEC. When we look at a
more advanced level and regional
customerswholooktouseThailand
as their center, we would need
both sides to bring in investment.
Andweshouldletthemultinational
companies help us to produce
a skilled workforce. We need to
step up our efforts.
How do you think
the pandemic would
affect the trend or
the growth of the digital
industry in Thailand?
The technology sector, or ICT
sector, is one of the few sectors
that have fared well in this last
year.TheimpactsfromCOVID-19
were felts across the economy,
with some sectors being heavily
affected in a very negative way,
like tourism or hotels. The ICT
sector has benefited from this
situation. It may also be adversely
impacted in the short term but in
the long term, the potential from
the new way of doing business is
significant. Working from home
generates greater consumption
of mobile services and more
connectivity. The corporations need
to support their people, run their
businesses,orservicethecustomers
from anywhere, so it generates
the demand for data centers and
cloud services. Looking to the
future, this situation will become
be permanent. Regarding local
industries, they need to rethink the
way they run their businesses to
meet the changing environment
and to protect themselves in any
serious situation which might arise.
The transformation has been
happening throughout all industries,
whether digital transformation
or business transformation. Thai
manufacturing companies needs
to do more with the Internet of
Things (IoT), 5G and the cloud to
help them run their businesses
efficiently with more automation
and less risk from this kind of
situation. For retail business
operators, they need to reach
their customers more effectively
online. Hospitals need to employ
ICT technology to help them
treat patients effectively. These
industries will have to change in
a significant way. The challenge
is how we can make it happen
faster. Thai industries must be
competitive in both local and
regional markets.

21. Thailand Investment Review 15
THAI ECONOMY At A Glance
Key Economic Figures
GDP (2020*)
US$ 506.4 Billion
GDP per Capita (2020*)
US$ 7,328.2 / Year
Dec 2020*
Unemployment
1.5%
Average 2020*
Headline Inflation
-0.85%
Note: *Estimated value l Source: NESDC
(Data as of March 2021)
Note: *Estimated value
Source: NESDC
Source:NationalStatisticalOffice,
MinistryofCommerce Source:MinistryofLabour
MinimumWage
THB313-336
US$Approximate
US$9.98-10.71
Market Profile
(2019)
Population
66.56
Million
GDP Growth
-6.1%
2020 2021*f
2.5-3.5%
Investment Growth
-4.8%
2020 2021*f
5.7%
Export Value of Goods Growth
-6.6%
2020 2021*f
5.8%
THB 31.50 THB 44.85 THB 38.68 THB 29.20
(100 Yen)
THB 4.97
Source: Bank of Thailand
Exchange Rates
(As of 25 May 2021)
Tax Rate
Corporate Income Tax: 0 - 20%
Personal Income Tax: 5 - 35%
VAT: 7%
Witholding Tax: 1 - 15%
Source: the Revenue Department
(As of May 2021)
15%
13 %
10 %
5 %
4.5%
4.3%
3.1%
3.1%
3.1%
2.8%
Share
12,146
10,730
7,940
4,104
3,690
3,503
2,570
2,570
2,530
2,299
Value
(US$ million)
Top 10 Export Markets (January - March 2021)
Rank
United States
China
Japan
Vietnam
Malaysia
Australia
Hong Kong
Indonesia
India
Singapore
Export Figures
Export value (USD million)
Jan - Dec 2019 : 246,268.8
Jan - Dec 2020 : 231,468.4
Jan - April 2021 : 81,413
Source: Ministry of Commerce
Top 10 Exports
Goods / Products
3.03%
2.99%
2.96%
2.87%
2.74%
11.69%
7.77%
6.01%
4.04%
3.31%
Share
2,468
2,432
2,410
2,340
2,231
9,518
6,325
4,894
3,291
2,696
Value
(US$ million)
6. IntegratedCircuits
7. Machinery andParts
8. AirConditionersandParts
9. Jewelry Products
10. RefinedFuel
1. VehiclesandParts
2. ComputersandParts
3. Rubber Products
4. PlasticPellets
5. ChemicalProducts
Source: World Economic Forum
Source: Ministry of Commerce
Source: IMD
Source: World Bank
Global Competitiveness
2018:38th 2019:40th
Ease of Doing Business
2019:27th 2020:21st
World Digital Competitiveness
2019:40th 2020:39th
International
Competitiveness

22. BOI OVERSEAS OFFICES
Los Angeles
Thailand Board of Investment,
Los Angeles Office
Royal Thai Consulate-General,
611NorthLarchmontBoulevard,
3rdFloor
Los Angeles CA 90004, USA
Tel: +1 323 960-1199
Fax: +1 323 960-1190
E-mail : boila@boi.go.th
New York
Thailand Board of Investment,
New York Office
7 World Trade Center
250 Greenwich Street, Suite 34F
New York, NY 10007, USA
Tel: +1 212 422 9009
Fax: +1 212 422 9119
E-mail: nyc@boi.go.th
Stockholm
Thailand Board of Investment,
Stockholm Office
Stureplan 4C, 4th Floor
114 35 Stockholm, Sweden
Tel: +46 8 463 1158, +46 8 463 1174
Fax: +46 8 463 1160
stockholm@boi.go.th
Frankfurt
Thailand Board of Investment,
Frankfurt Office
Investment Section,
RoyalThaiConsulate-General
Bethmannstr.58,5.0G 60311
Frankfurt am Main
Federal Republic of Germany
Tel: +49 (069) 92 91 230
Fax: +49 (069) 92 91 2320
Email: fra@boi.go.th
Paris
Thailand Board of Investment,
Paris Office
8 Rue Greuze 75116 Paris, France
Tel: 33(0)1 56 90 26 00-01
Fax: 33(0) 1 56 90 26 02
E-mail: par@boi.go.th
Mumbai
Thailand Board of Investment,
Mumbai Office
Royal Thai Consulate-General
12th Floor, Express Towers,
Barrister Rajni Patel Marg, Nariman Point
Mumbai 400021, India
Tel: +91-22-2204-1589
+91-22-2204-1590
Fax: +91-22-2282-1525
Email: mumbai@boi.go.th
Osaka
Thailand Board of Investment,
Osaka Office
Royal Thai Consulate-General
Bangkok Bank Building, 7th Floor
1-9-16 Kyutaro-Machi, Chuo-ku
Osaka 541-0056, Japan
Tel: (81-6) 6271-1395
Fax: (81-6) 6271-1394
E-mail: osaka@boi.go.th
Tokyo
Thailand Board of Investment,
Tokyo Office
8th Floor, Fukuda Building West,
2-11-3 Akasaka, Minato-ku,
Tokyo 107-0052 Japan
Tel: +81 3 3582 1806
Fax: 81 3 3589 5176
E-Mail: tyo@boi.go.th
Seoul
Thailand Board of Investment,
Seoul Office
#1804,18th floor,KoryoDaeyeongakCenter,
97 Toegye-ro, Jung-gu, Seoul, 100-706,
Republic of Korea
Tel: (+82)2 319 9998
Fax: (+82)2 319 9997
E-mail: seoul@boi.go.th
Taipei
Thailand Board of Investment,
Taipei Office
Taipei World Trade Center Room:3E40
No.5 Xinyi Rd., Sec.5, Taipei110
Taiwan R.O.C.
Tel: (886)-2-2345-6663
FAX: (886) 2-2345-9223
E-mail: taipei@boi.go.th
Guangzhou
ThailandBoardofInvestment,
GuangzhouOffice
RoyalThaiConsulate-General
No.36YouheRoad,HaizhuDistrict,
Guangzhou510310P.R.China
Tel: +86-20-8385-8988ext.220-225,
+86-20-8387-7770 (Direct Line)
Fax: +86-20-8387-2700
E-mail:guangzhou@boi.go.th
Shanghai
ThailandBoardofInvestment,
ShanghaiOffice
RoyalThaiConsulate General,No.18,
WanshanRoad, ChangningDistrict,
Shanghai 200336,P.R.China
Tel: +86-21-5260-9876,
+86-21-5260-9877
Fax: +86-21-5260-9873
Email:shanghai@boi.go.th
Beijing
Thailand Board of Investment,
Beijing Office
No.21Guanghua Road,
ChaoyangDistrict,Beijing,
P.R. China 100600
Tel: +86 10 85318755-57,
+86 10 85318753
Fax: +86 10 85318758
E-mail: beijing@boi.go.th
Sydney
Thailand Board of Investment,
Sydney Office
Suite101,Level1,234 George Street,
Sydney, NSW 2000, Australia
Tel: +61 2 9252 4884
E-mail: sydney@boi.go.th
Jakarta
Thailand Board of Investment,
Jakarta Office
Royal Thai Embassy,
Jl. DR Ide Anak Agung Gde Agung
Kav. E3.3No.3(Lot8.8),
KawasanMega Kuningan,
Jakarta 12950, Indonesia
Email: jkt@boi.go.th
Hanoi
Thailand Board of Investment,
Hanoi Office
26 Phan Boi Chau Str., Hoan Kiem,
Hanoi, Vietnam
Tel: (84) 24 3823 5092-4
Email: hanoi@boi.go.th
ABOUT BOI
TheOfficeoftheBoardofInvestment(BOI)istheprinciplegovermentagency
thatoperatesunder the Prime Minister’s Office for the purpose of encouraging
investment in Thailand. WeattheBOIserve as the professional contact points
for investors, providing them with useful investment information and services.
We offer business support and investment incentive to foreign investors in
Thailand, including tax and non-tax incentives. A few non-tax incentives include
granting land ownership to foreigners and facilitating visas and work permits.
Besides serving the needs of overseas investors, we also offer consultation
servicestoThaiinvestorswhoareinterestedininvestmentopportunitiesabroad.
Jakarta
Beijing
Shanghai
Seoul
Tokyo
Osaka
Taipei
Guangzhou
Hanoi
Head Office, Office Of The Board Of Investment
555Vibhavadi-RangsitRoad.,Chatuchak,Bangkok10900,Thailand
Tel: (+66) 2553 8111 Fax: (+66) 2553 8315 Email: head@boi.go.th
www.boi.go.th