AI Boom Lifts Thailand's Digital Industry Confidence

Thailand's Digital Economy Promotion Office (DEPA) announced on August 11 that its Digital Industry Sentiment Index for the second quarter of 2025 rose to 48.4, up from 44.5 in the previous quarter. The survey covers five digital sectors: hardware and smart devices, software, digital services, digital content, and telecommunications. All sub-components improved, including profitability, production and order volumes, partnerships, employment, investment, and operating costs.

Acting DEPA Director Suphakorn Sittichai attributed the gains to data center investments, increased demand from major trading partners like the United States and China for electronic components and PCBs, baht depreciation supporting exports, and government economic stimulus that bolstered consumer spending. However, the sector faces headwinds from global oil and energy price volatility affecting shipping costs and rising production expenses for electronic components.

All five industry groups showed improved confidence: hardware and smart devices at 42.9, software at 51.1, digital services at 50.6, digital content at 46.8, and telecommunications at 50.0. Industry operators are calling on the government to extend tax incentives for hiring and skills development, accelerate high-growth sectors like gaming and digital content, expand e-commerce opportunities, and invest in shared infrastructure to reduce product development costs. The survey indicates confidence will likely rise further to 51.6 in the next quarter as government spending accelerates and stimulus measures take hold.