BCI in August slumped to 92.5 from 93.2 in July, according to the FTI. One of the key factors behind the decline in confidence was the frequent downpours during the month, causing flooding in a number of manufacturing areas.

“This had caused the total sales of Thai manufacturers to decrease, leading to a fall in the BCI”, says Montri Mahaplerkpong, vice chairman of the FTI.

Another factor was the rising cost of production due to higher oil prices, interest rates and most importantly, appreciation of the baht, among others. There were worries that the baht was appreciating in value, causing the prices of Thai exports to increase , thus, damaging export sales. Hence, representatives of the FTI would like the government to implement necessary measures to balance the value of the baht with other currencies in the region, says Montri.

“However, if we look back to the past 5 to 6 months, the BCI were always above 90”, he says. This indicates that the manufacturing industry in Thailand has been relatively healthy and is expected to grow in the next three months.

Meanwhile, prospects for the automobile manufacturing industry remain promising. The production of 1-tonne pickup trucks reached 101,864 trucks in August , a 0.15 per cent rise from the same month last year, while the output of pickup trucks from January to August this year totalled 813,136 trucks, increasing 10.92 per cent from the same period last year.

The rise in production and sales of pickup trucks mirrors the state of the country’s economy, says Surapong Paisitpatnapong, vice chairman and spokesman of the Automotive Club of the FTI.

Prospects of the cement industry is also promising , despite a 2 per cent reduction in total transactions in the first half , according to Siva Mahasandana, chairman of FTI’s Cement Industry Club.

“We expect the total transactions to grow by 3 per cent in the next three months”, he says.

“Growth in the cement industry mirrors that of the construction industry. Given that there is a clear government policy to invest in Thailand’s infrastructure both in Bangkok and in the Eastern Economic Corridor as well as an increase in mega projects in the private sector, the cement industry is likely to strengthen in the second half of this year,” Siva said.

Bill Lan, chief national broadband network strategist at Huawei Technologies Co, said on Wednesday that infrastructure sharing would enable telecom operators to drive in the fast lane on the deployment of broadband infrastructure.

“Construction cost is a major issue that makes broadband infrastructure investment less attractive for telcos,” he said.

It is estimated that 70 per cent of broadband investment will be spent on right-of-way (ROW) expenditure, site acquisition and civil engineering.

According to the executive, Thailand sets a good example, thanks to the aerial fibre being deployed on electricity poles, which has saved 80 per cent of construction costs and 40 per cent of deployment time over the past few years.

“In most developing countries, public and private ROW acquisition is an annoying issue for operators who want to deploy or upgrade their broadband infrastructures,” he said.

The process involves multiple management authorities, complicated administrative procedure and diverse acquisition fees – including an administration fee, usage fee, environmental restoration fee – which not only slow down the approval time but also make ROW acquisition more costly, he added.

“Today, the development of broadband infrastructure is facing a variety of challenges, especially in terms of ROW acquisition, high construction cost and the difficulty of home connection,” he said.

At the event, Lan stressed the importance of broadband connection, as ICT reshapes the society and accelerates socio-economic transformation.

“It is difficult for us to imagine a time without broadband network and Internet applications. However, we still have a long way to go to make our digital vision a reality,” he said.

He pointed out that the government should set policies and regulatory measures to remove the “last mile” monopolisation, so that every operator could fairly and easily access and deploy fibre to each household.

Lan recommended three approaches for the government to take to address challenges in digital transformation through collaborative broadband construction. First, operators should be entitled to access public ROW free of charge or by a reasonable one-time expense. Second, infrastructure sharing and joint construction policies should be put in place. Cross-ministerial collaboration to specify the common use of public infrastructure should be well functioning and promote the sharing of existing poles and ducts. Finally, regulation on in-building infrastructure sharing and fibre pre-deployment from the home should be enforced.

He said construction codes and technical standards for the design and deployment of in-building optical cables should be put in place. The exclusive access agreements between property management agencies and service providers should be prohibited to avoid the monopolisation of in-building facilities. Residences that have built optical fibre should be open to all operators at a fee-on-cost basis.

“Regulatory policy is for sure the most important measure to foster the development of broadband infrastructure so the digital society can be function well and the digital economy can quickly take off,” he said.

Lan said the government should treat broadband infrastructure as critical to social and economic prosperity in line with how transport, water and power networks are treated. Public infrastructure construction projects must be laid with fibre optical cables or should provide underground ducts to ensure the installation of broadband infrastructure. A visible infrastructure database should be set up, and the lease price of municipal and utility infrastructure should be regulated to minimise broadband service delivery cost.

He pledged that Huawei would play an “extremely active” role in sharing its knowledge, solutions and experience to face the challenges together with Myanmar.

Speaking about the digital economy and society at the exhibition’s kick-off at Impact Muang Thong Thani, Prime Minister Prayut Chan-o-cha praised digital technology as a tool for supporting work, and its emergence as an integral part of daily life.

The government recognises the need for Thailand to accelerate the use of digital technology as a key mechanism for the development of the country to achieve stability, wealth and sustainable development, General Prayut said.

“Digital technology has been playing an important role in strengthening in the 20-year national strategy to address the challenges and the increasing opportunities throughout the country,” he said. “Therefore, we are preparing Thai people with digital skills, increasing digital capacity and increasing international competitiveness.”

He also said that government has accelerated the move to a digital economy through large-scale government projects such as Smart City, Coding Thailand, Digital Transformation and Digital Park Thailand that aim to evolve Thailand as the regional leader in developing digital innovations. The government also aims to develop 30 smart cities nationwide in 2022, he added.

Pichet Durongkaveroj, minister of Digital Economy and a Society, praised the exhibition’s footprint of 60,000 square metres and around 400 booths, and its expected 250,000 visitors. The event is also a collaboration of over 100 governments along with private sector and international partners from 12 countries.

It offers eight main sector-based zones – cloud computing innovation, the development of information and communications technology (ICT) infrastructure, the exploitation of dimension of big data changes, future technologies including emerging technology and innovations, blockchain, new education systems, smart cities and youth competition in digital technology. The exhibition, under the aegis of the Digital Economy Promotion Agency (DEPA), continues until September 23.

The campaign redefines the role as an industry’s partner for success. Tapping into the growing opportunities from the country’s economic development landscape and the expansion of Asia market, TCEB is committed to promoting Thailand’s position as a hub of Asean MICE.

Nichapa Yoswee, vice president of TCEB, said that Asia has been a fast-growing market for Thailand’s MICE industry supported by growth rates of MICE travellers from Asean and Cambodia, Laos, Myanmar and Vietnam which increased 35 per cent and 100 per cent respectively.

A growth of travellers from India and Indonesia which are predicted at 11.3 per cent and 8.7 per cent respectively.

There are also a rising number of events from new sectors such as health and wellness, robotic innovations and start-ups.

“In this ever-changing world transformation is fundamental and inevitable, especially for business landscape. Capital is no longer a crucial part to drive business success but also abilities to broaden fresh perspective and being adaptive,” Nichapa said. “Thailand welcomes business events with centric resources of knowledge, creativity and culture, enhanced with professional-driven mindset.

“Business events are now opportunities for getting valuable experiences, inclusive collaboration and sustainably grow together,” Nichapa added.

For the 2018-19 fiscal year, TCEB estimated that Thailand would welcome 1.4 million overseas business travellers, generating Bt130 billion in revenue.

Thailand will host the second Thai-Sri Lanka FTA negotiations from today until Friday. The first meeting was hosted by the Sri Lankan government in July when the two countries discussed brief outlines of the FTA, Auramon said.

“In the second meeting from September 19-21, we will start discussing the details of the FTA,” she said.

“We will discuss issues concerning market opening, trade in services, and further economic cooperation between the two countries.

“We will create seven working panels to evaluate and discuss different issues within the FTA,” she said, adding, “For example, the first panel will work on trade in goods between Thailand and Sri Lanka and will focus on negotiating tariff reduction. Meanwhile, the second panel will work on the ‘rule of origin’, a criterion that determines which types of goods are eligible for tariff reduction under the FTA.”

Sri Lanka is Thailand’s fourth-largest trading partner in South Asia. Thai-Sri Lankan trade was valued at $319.6 million from January to July this year, with Thailand enjoying a large trade surplus with the island nation, according to the Department of Trade Negotiations. Thai imports were worth $47.9 million while exports were valued at $271.7 million. She said the prospects for Thai-Sri Lankan trade were promising, as the total trade value had increased by 6.7 per cent compared to the same

period last year. Apart from opening markets to boost trade in goods, Thailand will also place emphasis on trade in services as Thai investors have a growing interest to invest in Sri Lanka’s tourism industry, according to Auramon.

Various Thai international hotel brands have already invested and established themselves in Sri Lanka such as the Dusit Thani, Central, Minor Hotel and Amari groups, she said.

“We are not only looking to lower tariff for Thai goods entering Sri Lanka in this FTA negotiation but investment and trade in services are also top priorities for Thailand in negotiating an FTA,” she said.

“Thai investors are already investing in Sri Lanka without the FTA, hence, with the FTA, issues such as investing in established businesses, cooperation negotiations and buying Sri Lankan stocks will become more convenient.

“Sri Lanka presents a good trading opportunity for Thailand because it is beginning to open up its economy to foreign investors. Hence, if Thailand enters as one of the early investors in Sri Lanka, it may get tariff reduction benefits in the future when it comes to trading,” Auramon said.

“Furthermore, Sri Lanka currently has FTAs with India, Pakistan and Singapore and is also a part of China’s Belt and Road Initiative. Therefore, Sri Lanka can also be a pathway for Thailand to enter the Indian market,” she said. Thailand’s main exports to Sri Lanka are dried fish, rubber and automobile parts while Thailand imports jewellery, gold and plant products from Sri Lanka. Thailand aims to increase bilateral trade to $1.5 billion by 2020.

There are many reasons and data behind the confidence of success, a seminar was told yesterday.

The rising number of registered EVs, the development of a locally made EVs, as well as research and development of some EV parts are indications that it could have a major role in Thai society, said Amonrat Kaewpradap, a committee member of the Electric Vehicle Association of Thailand (EVAT), at a panel discussion yesterday titled “The future of Electric Vehicle in Thailand”.

The discussion was held as part of the Delta Future Industry Summit, organised by Delta Electronics (Thailand), as a venue for exchanging innovative ideas for a sustainable future.

Amornrat said the number of EVs in use in Thailand was gradually increasing, leading to the continuous growth of infrastructure of charging stations.

“More stations will boost the confidence for consumers in using EVs and so far, there are 500 charging stations in the country, she said.

She pointed out that the accumulated number of EV registrations in Thailand for Battery Electric Vehicles [BEV] and Plug-in Hybrid Electric Vehicles (PHEV) sharply increased from 2016 to 2017.

In 2016, there were 80,194 registrations but the number surged to 102,700 in 2017, or an increase of 20,000 units.

Incentives will bring down price

Another indication is the higher imports of EVs, she said, adding that more BEV motorcycles were sold these days, pointing to its popularity.

Moreover, EV manufacturers are hiking production amid increasing demand from buyers.

Also, educational institutions have launched development projects for EV battery, motors and the structure of a light-weight car.

She believes the price of EVs could come down in the future as the government will support its usage with incentives.

Jumpote Himacharoen, director of research and development, Metropolitan Electricity Authority [MEA], said the power agency would provide sufficient electricity to serve the targeted number of EVs.

MEA has recently launched an online application on the locations of EV charging stations for the convenience of drivers.

In a separate panel discussion titled “A Decade into the Future: Predictions for Thai Cities”, participants said smart cities would be the cornerstone of the country’s future urban landscape, with significant investment from the government and private sector.

Pansak Siriruchatapong, the vice minister of the Ministry of Digital Economy and Society, said the government would expand its smart city project to three more provinces – Chon Buri, Rayong and Chaochengsao – on the Eastern Economic Corridor this year.

Currently, Phuket, Chiang Mai, Khon Kaen and Bangkok are the cities earmarked for the pilot programme.

“Within the next five years, Thailand will develop smart cities in all 77 provinces,” he said.

He added the two factors driving the development of smart cities are the engagement of community and local government and the connectivity and sharing information with technology solutions.

However, Piyapan Tayanithi, Bangkok Bank’s executive vice president, warned that smart or high-technology is a double-edged sword, and back-up measures were needed in the event of malfunctions.

Piyapan cited an incident late last month when banks’ electronic money transfers, withdrawals and payment services crashed for several hours.

The banks attributed the cause to heavy interbank money transfers at the end of the month at large banks.

“Simplicity or convenience of a group of people could come along with difficulty or complexity for another group [of people],” he said.

Hsieh Shen-yen, president of Delta Electronics (Thailand)

Hsieh Shen-yen, president of Delta Electronics (Thailand), said: “We are currently witnessing the decline of old technologies such as gasoline cars and the gradual shift to smarter, cleaner technologies to power our lives and manage our cities.

“But the shift to the future will only gain real momentum when the public and private sectors work together and get serious about action for climate change and managing urbanisation,” he said.

Soe Thein, director-general of Posts and Telecommunications Department, said Myanmar would soon try to enact the new laws that are much needed for development of its telecom industry.

“Now we are redrafting the Postal Law and drafting the Myanmar Independent Regulator Law. A cybersecurity law is under consideration to enforce legal penalties for cybercrimes, which are threatening people’s lives,” he said.

Currently, the industry is being regulated by three laws – the Telecoms law, the Electronic transaction law and the Computer science development law. The universal service strategy has been developed to complement the laws.

According to the official, Myanmar’s telecommunications sector has improved a lot thanks to its landmark reforms that began in 2013.

“In 2012, there was only one telecom operator and it cost more than US$1,000 (Bt32,000) to buy a mobile SIM card in Myanmar. Today, a SIM costs less than $1 and people have several options from four telcos,” he said.

Before the reforms, the telephone density was only 13 per cent of the population and the international bandwidth was only 30 billion Gigabits per second (Gbps). Only one international gateway, a single international submarine cable, two cross-border fibre cables with China and Thailand, a national fibre backbone of 7,600 kilometres and some 3,000 sites served less than 2 million data users.

Now, the telephone density has improved to 103.25 per cent of the population, with over 70 per cent smartphone usage.

Four telecom operators have covered over 90 per cent of the population and nearly 60 per cent of geographical coverage with a combined fibre of 68,000 kilometres and 16,000 sites.

The international bandwidth has improved to 445.3 billion Gbps thanks to the increase in cross-border fibre with China, Thailand, India and Laos as well as six international gateways and three international submarine cables. The number of data users has significantly risen to 46.8 million, nearly 91 per cent of Myanmar’s population, according the statistics publicised at the event.

Despite the impressive growth, Myanmar’s telecom sector still has a long way to go because challenges remain, said the official.

“Although quick reform has resulted through successful liberalisation, an access gap still exists especially in rural areas. Affordability issues of the rural population still needs to be addressed,” he said.

Soe Thein said the entry of Mytel, the fourth telecom operator, is sparking a new level of price competition. Regulatory focus will be on sustainable competition and promoting rural uptake, he added.

“Mobile operators and fixed wireless providers are entering into a new chapter of price competition. Differentiation will become a key challenge for ISPs,” he said.

The official said the data market’s growth needs to be accompanied by app and content development to support the agenda for digital economy.

“We will try to connect the remaining unconnected people as soon as possible by enforcing QoS (quality of service) and taking care of customer issues. We will also develop an open access framework and improve coordination on implementation as well as an appropriate framework for vibrant but sustainable competition,” he said.

The department has conducted a series of public and industry discussions with stakeholders in the process of drafting rules and other regulatory frameworks. It also sought input from the public and industry players in the development of Myanmar’s telecom reforms.

“We are committed to holding public consultations in all the major rule-making processes,” he said.

“Our job is to let Thai people know that they have the opportunity to export to other Asean countries with tax incentives under the Afta agreement,” said Adul Chotinisakorn, director-general of the Department of Foreign Trade at the Ministry of Commerce.

Adul said if businesses export without certification that their goods are from Thailand, they will not be eligible for tariff reduction under Afta.

The department aims to get the message out to Thai businesses that if they want to export to other Asean countries and benefit from the Afta tax incentive, they will need a certificate of origin.

There are many types of certificates of origin, but the one used for intra-Asean trade is called “Form D”, he explained.

The total value of Thai exports that have benefited from the Afta tax incentive has increased from US$19.46 billion (Bt634.1 billion) in 2015 to $23.8 billion (Bt775.5 billion) in 2017.

However, the total value of exports that would have been eligible for the Afta tax incentive in 2017 was worth $37.76 billion (Bt1.23 trillion), according to the Department of Foreign Trade. This figure shows a large number of businesses in Thailand that were eligible to exercise their Afta rights did not do so, Adul said.

The Department of Foreign Trade is promoting greater trade between Thailand and other Asean countries through the Young Entrepreneur Network Development (YEN-D) Programme.

“Business matching alone will not suffice to promote long-term business relationships between countries. No matter how good the roads and bridges are, it is of no use if there is no sense of community or close connectivity between investors of different countries,” Adul said.

The YEN-D programme is meant to facilitate the development of close friendship and ties between entrepreneurs and investors in Cambodia, Laos, Myanmar, Vietnam and Thailand (CLMVT) in order to foster healthy and long-term trade and investments between Thailand and its Asean neighbours, Adul explained. In the first season in 2015, 30 entrepreneurs from Thailand and 30 entrepreneurs from a neighbouring country were selected to enter the YEN-D programme together, participating in group activities and project competitions with each group containing members from both countries, he said.

“Within just four days of the programme, entrepreneurs from both countries had become close friends as they cooperated in group projects and group activities,” Adul said.

The process was then repeated until entrepreneurs from each neighbouring country got the opportunity to join the YEN-D programme along with Thai entrepreneurs, from Thailand-Laos, Thailand-Cambodia and Thailand-Myanmar. In the first season, up to 240 entrepreneurs from Thailand and neighbouring Asean countries participated, he said.

The programme now has four seasons, with up to 1,200 entrepreneurs in the YEN-D network, Adul says.

“In the past four years, the YEN-D programme has generated up to Bt3 billion in investment and trading value,” he said.