As technology advances rapidly and media consumption trends increase, particularly in digital content such as animation, games, films, TV shows, character cartoons, and e-Learning, the global digital content industry is experiencing significant growth, including in Thailand.
The Board of Investment (BOI) has designated the digital and creative industries as part of its strategic sectors to drive Thailand’s economy and promote investment. The five-year investment promotion strategy (2023-2027) aims to transform Thailand’s economy towards a new structure for long-term competitiveness. This strategy positions the digital and creative industries as key sectors where Thailand has the potential to become a regional investment hub.
Enhancing the Digital Economy and Creative Economy to Propel Thailand’s Economy
The five-year investment promotion strategy identifies digital and creative industries as one of the five strategic sectors that will drive economic growth. This strategy aims to make Thailand a central hub for technology and innovation investments in digital industries, as well as a leading center for creative industries such as design, fashion, lifestyle, film, digital content, games, and eSports.
The digital industry leverages digital technology combined with creativity, innovation, and cultural foundations to add value to products and services. These two industries are crucial for pushing forward the digital economy and the creative economy, which play significant roles in driving Thailand’s overall economic growth.
The BOI’s investment promotion policies cover comprehensive digital infrastructure, including content creation, service providers, and the development of an ecosystem conducive to business operations. These policies will boost investment in digital and creative industries within the country.
BOI’s Role in Promoting Investment in Digital and Creative Industries
- Digital Infrastructure Investment Promotion: This includes Data Centers, Cloud Services, Submarine Cables, Digital Parks, Incubation Centers, Maker Spaces, Fabrication Labs, Co-working Spaces, and Digital Technology Development Centers, as well as Smart City development.
- Software and Platform Development Promotion: This aims to provide digital services or digital content.
- Digital Technology for Efficiency Improvement: This involves using software, ERP systems, and other IT systems to enhance organizational efficiency or production lines, linking data with government online systems like National e-Payment, and applying AI, Machine Learning, Big Data, or Data Analytics.
- Smart Visa Measures: These measures are designed to attract digital experts and potential startups from abroad.
- Financial Support for Startups: This includes wage subsidies for employees from the Competitiveness Enhancement Fund.
‘Games’ as a Major Player in the Digital Content Market
The gaming industry significantly contributes to the digital content industry, accounting for 85% of the sector’s revenue, which reached over 34 billion baht in 2022. The industry continues to grow, supported by new technologies that enhance gaming experiences, shifting perceptions of gaming from mere entertainment to viable careers, and increasing support from both the public and private sectors.
The digital content industry currently employs around 5,000 people, primarily in game development companies. In recent years, there has been a rise in games developed by Thais for both iOS and Android platforms.
Businesses can qualify for BOI investment promotion simply by introducing new features or developing new games, or by hiring new employees. Besides the popular gaming industry, other sectors such as animation, computer graphics, visual graphics, character design, and emerging technologies like AR and VR are also expected to grow and further advance Thailand’s digital content industry.
Personnel are the Key
The digital content industry is currently a highly competitive market. Countries like the United States, China, Japan, and South Korea have a significant advantage due to their large consumer markets. Producing sufficient digital content for such markets incurs high personnel costs and requires extensive teams for outsourcing production. These countries often outsource to ASEAN nations like Thailand, Malaysia, and Vietnam.
Today, every country emphasizes the digital industry, where skilled personnel play a crucial role in driving its growth. With the quality of digital content skills being relatively similar worldwide, governments offer various incentives to attract talent from across the globe and encourage foreign investments into their own countries.
In addition to tax incentives promoting the digital content sector, the BOI also supports personnel training by collaborating with various institutions to develop skilled professionals. Additional benefits are provided to businesses because the BOI believe that companies themselves are the best trainers. Therefore, if a company incurs training expenses for employees, whether for upskilling or reskilling, they can request additional support from the BOI.
Supporting Thai Content Producers at All Levels
The digital content industry is a significant driver for the rapid growth of the Thai economy, with the potential to generate revenue and enhance the country’s soft power. Supporting this industry requires government policies, business investments, and consumer demand as critical components for its growth.
Since the beginning of 2023, the BOI has been promoting investments in the digital industry. However, the number of digital content businesses applying for investment support remains relatively low compared to the market size.
There may be a misconception among entrepreneurs that the BOI only supports large companies. In reality, the BOI provides benefits to SMEs and startups as well. They can use existing machinery or computers for production, and even companies with extensive content production can seek support if they have new products or develop new features for existing products. These new segments can request support to gain a competitive edge. The BOI is ready to support investments of all sizes to help Thailand become the digital and creative industry hub of ASEAN.
Leave a Reply