Thailand's Digital Economy Poised for Notable Expansion Amid Global Tech Influence
The DES Ministry anticipates a significant growth in digital GDP, driven by increasing investment in cloud computing and robust export potential.
Thailand is witnessing a transformative shift in its economic landscape as the Digital Economy and Society (DES) Ministry forecasts an impressive 5.7% growth in the nation’s digital GDP this year.
This marks a considerable uplift when compared to Thailand’s overall GDP growth, projected at 2.6% by the National Economic and Social Development Council.
The digital sector’s expansion underscores its growing importance within the broader economic framework.
The DES Ministry’s forecast aligns with a broader governmental strategy to transition to a digital-first approach, propelling both public and private sectors towards embracing futuristic technologies.
This has been further facilitated by strategic investments in cloud computing services and data centres, which form the backbone of modern digital infrastructures.
Notably, the value of Thailand's digital economy is expected to reach a substantial 4.44 trillion baht this year, cementing its role as a critical economic driver.
Private sector investment in digital technologies is also on the rise, with a predicted growth of 2.8% year-on-year.
Government investments exhibit a more substantial leap, projected to increase by 4.5% following a recovery from a previously negative baseline.
The surge in investment is echoed in the consumption spheres; private consumption within the digital industry is set to outpace national consumption growth, with an expected expansion of 5.6% compared to 4.8% nationally.
Government consumption of digital products is anticipated to grow by a notable 11.4%, bolstered by swift budget disbursements.
Meanwhile, the digital industry’s substantial export potential is becoming increasingly evident.
Forecasts suggest digital exports might grow by 17.2% in 2024, significantly higher than the previous year's 5.1% increase.
This robust growth trajectory mirrors broader national export trends, which are projected to expand by 6.1%.
Parallel to the export boom, imports of digital goods and services are projected to rise by 9.0%, a marked increase from 3% in 2023.
The DES Ministry acknowledges that this interplay of rising exports and imports highlights Thailand's dependency on imported digital goods and media content, reflecting global supply chain dynamics.
In the manufacturing sector, digital GDP is projected to expand by 5.71% this year, a significant shift from the previous year's 2.75% growth.
Industries leading this digital growth include digital content, with a remarkable 12.6% growth, and telecommunications, growing at 10%.
Collectively, these industries are driving approximately 80% of the digital GDP growth, revealing noteworthy advancements in telecommunications, digital services, and hardware sectors.
DES Minister Prasert Jantararuangtong emphasized the strategic impact of the government’s Cloud First policy, which has attracted substantial foreign investment from tech behemoths such as Google and Microsoft.
These companies have collectively invested over 100 billion baht into artificial intelligence and data centres in Thailand this year alone.
Not resting on recent successes, the minister hinted at further investments exceeding 100 billion baht from other major tech companies expected next year, which promises to fortify Thailand’s position in the global tech arena.
This marks a considerable uplift when compared to Thailand’s overall GDP growth, projected at 2.6% by the National Economic and Social Development Council.
The digital sector’s expansion underscores its growing importance within the broader economic framework.
The DES Ministry’s forecast aligns with a broader governmental strategy to transition to a digital-first approach, propelling both public and private sectors towards embracing futuristic technologies.
This has been further facilitated by strategic investments in cloud computing services and data centres, which form the backbone of modern digital infrastructures.
Notably, the value of Thailand's digital economy is expected to reach a substantial 4.44 trillion baht this year, cementing its role as a critical economic driver.
Private sector investment in digital technologies is also on the rise, with a predicted growth of 2.8% year-on-year.
Government investments exhibit a more substantial leap, projected to increase by 4.5% following a recovery from a previously negative baseline.
The surge in investment is echoed in the consumption spheres; private consumption within the digital industry is set to outpace national consumption growth, with an expected expansion of 5.6% compared to 4.8% nationally.
Government consumption of digital products is anticipated to grow by a notable 11.4%, bolstered by swift budget disbursements.
Meanwhile, the digital industry’s substantial export potential is becoming increasingly evident.
Forecasts suggest digital exports might grow by 17.2% in 2024, significantly higher than the previous year's 5.1% increase.
This robust growth trajectory mirrors broader national export trends, which are projected to expand by 6.1%.
Parallel to the export boom, imports of digital goods and services are projected to rise by 9.0%, a marked increase from 3% in 2023.
The DES Ministry acknowledges that this interplay of rising exports and imports highlights Thailand's dependency on imported digital goods and media content, reflecting global supply chain dynamics.
In the manufacturing sector, digital GDP is projected to expand by 5.71% this year, a significant shift from the previous year's 2.75% growth.
Industries leading this digital growth include digital content, with a remarkable 12.6% growth, and telecommunications, growing at 10%.
Collectively, these industries are driving approximately 80% of the digital GDP growth, revealing noteworthy advancements in telecommunications, digital services, and hardware sectors.
DES Minister Prasert Jantararuangtong emphasized the strategic impact of the government’s Cloud First policy, which has attracted substantial foreign investment from tech behemoths such as Google and Microsoft.
These companies have collectively invested over 100 billion baht into artificial intelligence and data centres in Thailand this year alone.
Not resting on recent successes, the minister hinted at further investments exceeding 100 billion baht from other major tech companies expected next year, which promises to fortify Thailand’s position in the global tech arena.
