(Last updated: 5 Oct 2011)

Trends and opportunities

ICT business opportunities

The key 'hot sectors' in the Thai market are:

• G, WiMAX technology and applications
• Cloud computing / Software as a Service (SaaS)
• E-health
• Financial sector IT applications
• Mobile applications (business/entertainment applications)
• Open source software
• Wireless and broadband technology/applications

Why is this market attractive for Australian companies?

• Total value of ICT market in 2010 was reported at A$19.8 billion  with a 7.26 per cent growth rate where communications market had the highest market share of 65 per cent followed by computer hardware and computer software.
• Total value of IT market excluding data communication equipment was reported at A$7.1 billion with a 10.5 per cent growth rate.
• Computer services had the highest growth in the IT market, increased from 18.8 per cent in 2009 to 20.2 per cent in 2010. This area still claims the highest share of the IT market - increased from 11.2 per cent to 18.8 per cent in 2009 and estimated at 20.2 per cent in 2010.
• Thai-developed software applications have not been popular or well accepted by local users. This presents strong opportunities for foreign software.
• Mobile subscriptions are reaching 70 million, almost 80 per cent of which are pre-paid. Operators are focusing on value-add services and increased usage as opposed to signing up additional customers.
• Most of Thailand’s telecommunications equipment and related products are supplied by foreign manufacturers.
• Investment in 3G and WiMAX will stimulate the communications market this year, both in terms of investment and consumption.

Marketing your products and services

Top tips to be successful in Thailand:

For your business dealings to be successful in Thailand, you need some basic understanding of the Thai culture. An appreciation of this can go a long way to cement your relationship with prospective Thai business partners.

• Relationships with business contacts are considered more important than doing business in Thailand. Social engagements play an important role in developing trust. Get to know your business contacts socially.
• Communicate face to face as much as possible, with use of the phone as a second option. Email is generally not so effective as it requires a written response.
• Thais are reluctant to say no or offer a negative opinion. It is seen as too direct and may cause offence. Problems can occur, for example, if they don’t understand what has been said the answer is invariably “yes”. Make sure you do not get the wrong message.
• Hierarchy and seniority are important and senior officials and business people will normally expect to meet Australian representatives in similar positions and not their juniors.
• Thais respond well to bargaining and negotiating and business acumen may be judged by your ability to bargain and reach a fair deal. You will be expected to offer a special deal to your business partner so don’t start at your bottom line. Or, have a range supplementary services you can offer for free. Appear generous in this regard.

How does doing business in Thailand differ from Australia and what do Australian companies need to do in approaching this market?

• Thai market is very price sensitive so be prepared to negotiate and know your bottom price.
• Reference sites are very important especially in the similar markets.
• Local representation is a vital key to success.
• Business is built upon trust and relationship.

Links and industry contacts

Government, business and trade resources for Thailand

Ministry of Information and Communication – www.mict.go.th
Software Industry Promotion Agency – www.sipa.or.th
The National Science and Technology Development Agency (NSTDA) – www.nstda.or.th
Thailand Software Park – www.swpark.or.th
Association of Thai Software Industry – www.atsi.or.th
Association of Thai Computer Industry – www.atci.or.th
Telecommunication Accociation of Thailand – www.tct.or.th

Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.