Thailand is one of top three countries in region at a stage of development to incorporate 4th industrial revolution (4IR) technologies.
Oil and gas, chemicals and utilities are the top three industries adopting 4IR in the country.
Naveen Menon, Cisco’s president for Asean, said that manufacturing is a core driver of economic growth for the region, contributing about US$60 billion (Bt192 billion) or around 21 per cent, to the region’s 2018 gross domestic product. He expected it to double to $1.4 trillion by 2028.
Asean has about $250 billion to $275 billion in incremental value at stake by 2028, a 35-40 per cent increase in manufacturing value addition (MVA) from gains in productivity and unlocking additional revenue stream such as new products and quality improvements by embracing 4IR technologies.
He added that Thailand is one of the top three countries behind Singapore and Malaysia at a stage of development for 4IR readiness in the areas of technology and innovation, human capital, global trade investment, institutional framework such as government policy and support, sustainable resources and environment.
However, there are five key technologies that help the manufacturing sector adopt and transform into 4IR: Internet of Things, artificial intelligence, 3D printing, advanced robotics and wearable augmented reality and virtual reality.
“The rise of 4IR technologies poses a major threat to Asean manufacturing and its growth potential. Manufacturers’ low cost competitive advantage is being eroded as competitors in advanced economies use new technologies to achieve significant improvements in cost, speed, quality and sustainability,” said Menon.
Vatsun Thirapatarapong, managing director for Thailand and Indochina at Cisco, said that Thailand’s manufacturing sector could see an incremental growth of $50 billion over the next decade by embracing fourth industrial revolution technologies. Oil and Gas, chemicals and utility are the top three industries that are ready to adopt 4IR.