A decent shift towards a digital economy can boost competitiveness across almost all the sectors in Thailand. New avenues for businesses and opportunities to access markets worldwide become more prominent. Also, it provides new devices to deal with the existing development and social problems. But of course, it does come with challenge, from complex internet-specific issues, policymakers, to development impacts, to global digital divide.
However, the digital economy is not restricted to the information and communication technologies (ICTs). In fact, the biggest economic impact hails from supply chains and digitalization of process in all sectors of the economy worldwide. And it can affect processes in the procurement, coordination across networks, outbound logistics, customer relations, and production.
Adopting digitalization in MNEs can modify international production in different ways. Say for instance, 3D printing may generate smaller investments in a number of countries. Big data might lead to fewer but larger production. Additionally, digital technologies are speeding up servicification while potentially multiplying foreign affiliate activities in service and contracting services. Simultaneously, importance of technology as well as intellectual property can lead to reshoring of overseas contracting activity.
If you are considering to invest in the digital sector, then you must know that it has implications for policies and institutions to promote and facilitate the investment. Also, there is much significance for the regulations governing investor behavior. Thus investment regulations that are blueprinted for the physical economy needs to be reviewed under the new digital business models.
Many traditional industries are majorly affected by digitalization, including media and finance, and retail. Also, digital MNEs are crossing industry boundaries while disrupting the other highly regulated industries.
However, the Thai government is working to accelerate digital development. Having said that, this needs to emphasize on investment in the local digital content in order to increase demand.
