Pact set to boost Thai-US ties

Thai digital economy to gain momentum

- SUCHIT LEESA-NGUANSUK

Industry leaders note that aligning with US priorities positions Thailand as a more attractive hub for AI investment.

Thailand's digital economy is expected to gain momentum through new trade initiatives under the US-Thailand framework for reciprocal trade and the development of the Asean Digital Economy Framework Agreement (DEFA).

Industry leaders said that aligning with US priorities positions Thailand as a more attractive hub for cloud service providers, technology infrastructure, and artificial intelligence (AI) investment.

However, they cautioned that while easing restrictions on US ownership in the Thai telecom sector could increase outlays, robust regulations are needed to prevent market dominance by large international telecom operators at the expense of local enterprises.

On Oct 26, the White House released a joint statement on the framework for the US-Thailand agreement on reciprocal trade. As part of the framework, both countries are to finalise commitments by Thailand to address barriers affecting digital trade, services and investment.

Thailand promises to refrain from imposing digital services taxes or measures that discriminate against US digital services or products, and to ensure the free transfer of data across trusted borders for the conduct of business.

Thailand will also ease foreign ownership restrictions in its telecom sector, and remove in-country processing requirements for all domestic retail electronic payment transactions for debit cards issued in Thailand.

ATTRACTING THE US

Supparat Singhara na Ayutthaya, general manager of DAMAC Digital, said the framework emphasises cooperation in supply chain resilience, investment security and strategic technologies, which will strengthen the policy backdrop for infrastructure like data centres.