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TTHHAAIILLAANNDD PPrrooggrreessss RReeppoorrtt

Ministry of Information and Communication Technology

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SECTION I – GENERAL CONDITION UPDATE 1.1 Telecommunication Infrastructure

1.1.1 Government Information Network (GIN)

Ministry of Information and Communication Technology (MICT) is in the process of developing the Government Information Network (GIN) during 2006-2007. GIN intends to integrate the information network of all government agencies to the Ministerial Operation Centre (MOC) and Departmental Operation Centre (DOC), which will be linked to Prime Minister’s Operation Centre (PMOC). With GIN, government’s data and information can be managed more effectively and lead to the efficient decision making of Prime Minister.

GIN’s Conceptual Network Architecture Source: Ministry of Information and Communication Technology

2007 Members Progress Report：THAILAND

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This highly secured and reliable network has been developed using a cutting edge technology that can support several information formats. The service coverage of the network will be broadened throughout Thailand. The Ministry targets to connect information network of 274 government agencies in Bangkok and surrounding provinces in the first phase and extends to cover 235 government agencies in the second phase.

1.1.2 Thai Research and Education Network (ThaiREN)

Ministry of Information and Communication Technology (MICT) in cooperation with National Electronics and Computer Technology Center (NECTEC) and Commission of Higher Education have developed Thai Research and Education Network (ThaiREN) to connect together two well-established research oriented networks including University Network (Uninet) and Thai Social/Scientific Academic and Research Network (ThaiSarn).

Thai Research and Education Network (ThaiREN)

Source: National Electronics and Computer Technology Center

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ThaiREN, in addition, has also been connected to Trans-Eurasia Information Network Phase 2 (TEIN2) with network connection speed at 155 Mbps. The connection between these two networks will allow and encourage cooperative research among researchers in Asia Pacific.

TIEN2 Topology

Source: National Electronics and Computer Technology Center

The Ministry has made this network available to all universities and research institutes throughout Thailand since June 2006. The network has been extensively used. Sample applications of this network include Tele-Medicine, Distant Learning, Next Generation Network Testing (IPV 6), and Tele and Video Conferencing.

1.2 Legal Framework There has been a remarkable progress in the development of legal framework necessary

to support the uptake of e-commerce in Thailand. Following the effective enactment of

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Electronic Transaction Bill with an incorporation of Electronic Signature on April 3, 2002, Electronic Transaction Commission chaired by Minister of Information and Communication Technology was founded according to Article 102 of the Bill with below mandate:

− To make sound policy recommendations to the Cabinet regarding the promotion and development of e-commerce as well as resolutions for any hindrance occurred.

− To monitor the operation of e-commerce

− To propose the development of necessary royal decrees to support the enforcement of Electronic Transaction Bill

− To issue regulations relevant to the implementation of electronic signature

− To handle all other matters as indicated in Electronic Transaction Bill

Under Electronic Transaction Commission, several initiatives that provide critical foundation for the development of e-commerce have been carried out by the Sub-committee on Legal Infrastructure. Key initiatives include:

− The Royal Decree on Regulatory Practices in e-Government Implementation has been put forth and become effective since November 26, 2006. Supplementary regulation regarding the practical approach for secure e-government transactions has been drafted and awaited for approval.

− The draft Royal Decree on Electronic Fund Transfer was in principle approved by the Cabinet. It has been submitted to Office of the Council of the State for further consideration.

− The draft Royal Decree and Supplementary Regulation on Services Related to Electronic Certification were also issued. They have been submitted to Office of the Council of the State for further consideration.

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SECTION II – EDIFACT/ebXML/XML Based STANDARDS DEVELOPMENT

2.1 Thailand e-Government Interoperability Framework (TH e-GIF)

In response to the government’s directive in promoting cost-efficient exchange of information and linked-up services between applications of different platforms for citizens, Ministry of Information and Communication Technology has completed the preparation of Thailand e-Government Interoperability Framework. The framework aims to provide contractors commissioned to develop software solutions for government agencies with a set of guidelines that forms a basis of interoperability among applications in respect to process, data, and technical communication protocol.

Thailand e-Government Interoperability Framework comprises of two major parts. While the first part deals with managerial aspect of applications integration and development, the second part provides a set of common rules that guides different phases of application development from the elicitation business requirements in terms of process and information to the derivation of XML Schema from information model. The common rules are based on internationally-accepted standards. They include:

− UN/CEFACT’s Modeling Methodology for an analysis and modeling of process and information requirements

− UN/CEFACT Recommendation No. 34 on Data Rationalization and Standardization for International trade as a guideline for aligning data elements used within and across information domain

− UN/CEFACT Core Components Technical Specification (ISO 15000-5) for the construction of information model

− UN/CEFACT XML Naming and Design Rules for transforming CCTS-based information model to XML schema

Technical specifications including communication protocol and security measure required to ensure secure and interoperable exchange of information as well as organizational mechanisms for the management of Thailand e-Government Interoperability Standard have also been attached to the latter part.

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SECTION III – eBusiness/eCommerce Related PROJECT UPDATES

3.1 Thailand Single Window e-Logistics Recognized as a means to promote trade efficiency and national competitiveness, Single

Window e-Logistics has been prioritized as one of the national agenda since 2003. Several projects have been initiated and implemented to affirm Thailand’s commitment in accomplishing the ASEAN Agreement and Protocol to Establish and Implement ASEAN Single Window by 2008.

3.1.1 Royal Thai Customs

Royal Thai Customs was designated by the Cabinet as a lead agency responsible for coordinating with relevant public and private agencies to ensure the establishment of National Single Window and with other stakeholders in ASEAN to make possible a virtual environment for ASEAN Single Window.

As an organizational mechanism to push forward the development of National Single Window, Royal Thai Customs formed a special working group consisting of representatives from controlling government agencies, port/airport operators, banks and, IT service providers. Two sub-working groups have been operating under this special working group. While one works on the streamlining of business process and the alignment of data requirements, another works on technical communication protocol as well as related security issue.

Possible Business Scenario of License/Permit and Declaration Integration

Source: Institute for Information Technology Innovation, Kasetsart University

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The integration of license/permit and customs declaration information is a current area of emphasis. Different phases of implementation were defined according to organizational and technical readiness of participating agencies. The exchange of electronic messages will be based on HTTPS protocol through ebMS 2.0-compliant ebXML Message Handler (MSH). To ensure secure transactions, security module with an incorporation of digital signature will be implemented. Respective data requirements have already been identified. Relevant XML schemas have also been designed and developed.

Conceptual Framework of Documents Exchange between Thailand and the Philippines

Source: Royal Thai Customs

Under ASEAN Single Window framework, Royal Thai Customs in collaboration with Department of Foreign Trade and the Philippines’ Bureau of Customs initiated a pathfinder project to study the feasibility of information exchange using an electronic message handler that was compliant with ebMS 2.0 specifications. Two messages in agreed XML format including Customs Declaration and Preferential Certificate of Origin for Intra-ASEAN Trade (ASEAN CEPT Form D) were successfully exchanged and integrated with respective back-end systems.

Besides driving the establishment of interoperable Single Window, Royal Thai Customs has been working to migrate Customs automation system for import and export cargo processing from EDI to XML. The newly developed e-Export system facilitates the administration of export procedure from cargo declaration to cargo clearance. EDI service for export cargo processing has already been cut off since July 1, 2007.

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3.1.2 Ministry of Transport

Working towards National Integrated Single Window e-Logistics, Ministry of Transport recognize the need to improve its administration of procedural and documentary requirements to facilitate international transportation of goods. This ongoing 1-year project covers:

− The simplification of related business processes

− The harmonization of data definitions and regulatory/business names against those provided in WCO Data Set and United Nations Trade Data Elements Directory to establish Transport Standardized Data Set

− The development of information model for relevant electronic messages based on UNeDocs and XML schema according to UN/CEFACT XML Naming and Design Rules

− The pilot implementation of Transport Single Window e-Logistics

3.1.3 Ministry of Information and Communication Technology

Ministry of Information and Communication Technology has commissioned the study of possible investment and operational models for Thailand’s Single Window e-Logistics. The model will be based on the framework put forward in Technical Guide of ASEAN Single Window and National Single Windows Implementation. The study is expected to finish by the end of August 2007.

Since the term of reference for National Single Window development will also be part of project deliverable, a sound understanding of information flow along export and import process is essential. The process and information flow of exporting and importing pre-defined products are being captured, modeled and analyzed using UN/CEFACT’s Modeling Methodology.

3.1.4 Other Government Agencies

Department of Foreign Trade and several government agencies under the auspices of Ministry of Agriculture and Cooperatives are now offering an online service for export/import license/permit/certificate application.

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Government Agencies Examples of Online Application

Department of Foreign Trade − Certificate of Origin

− Certificate of Origin with Preferential Treatment

− Import and export license of general and some specific cargo for commercial and non-commercial purpose

Department of Livestock Development − Health Certificate

− License for import, export, pass animals and/or animal remains through Thailand

Department of Fisheries − Health Certificate

Department of Industrial Works − Import and export license of hazardous substances

3.2 Supply Chain Management and Traceability System for Jasmine Rice

The Software Industry Promotion Agency (SIPA) has worked with several organizations including the National Electronics and Computer Technology Centre, RFID Cluster under Thailand Embedded Systems Association and universities to implement a pilot project to showcase the use of ICT to facilitate information exchange between a rice mill, an agricultural cooperative and a logistics service provider, and thus improve efficiency of logistics processes for Thai jasmine rice.

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Conceptual Model of ERP/Logistics for Thai Jasmine Rice Showcase

Source: Software Industry Promotion Agency

The EDI-based project was conducted in three north-eastern provinces where approximately 1.5 million tonnes of the rice are produced annually which is equivalent to 27 percent of Thailand's total production. RFID in addition has also been attached to each pallet of rice to allow the traceability of its movement from origin through to the destination. The project achieved satisfactory outcome. The concept will therefore be applied to other agricultural products.

3.3 National Interbank Transaction Management Exchange (ITMX)

Following a roadmap for Thai Payment System proposed in 2001 and a successful proof-of-concept implementation of XML/ebXML based payment system led by the Bank of Thailand in collaboration with Thai Bankers’ Association, the National Electronics and Computer Technology Center, and Institute for Information Technology Innovation in 2004, “National ITMX Co., Ltd.” was founded in July 2005 with shares being held by local commercial banks. The company has been operating under the supervision of the Bank’s

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Payment System Committee with its prime objectives as follow:

− To establish an ebXML-based national gateway for electronic payment transactions that can be initiated from multiple channels such as ATMs, counters, Internet, and mobile phones across banking systems

− To eliminate the need for individual banks and financial institutions to upgrade and maintain their own payment system

− To support the growth of e-Business.

Having its first actual operation launched in April 2007, National ITMX is set to manage over 1.5 million transactions per day and projected to grow 15 percent annually over the next several years. Key features include:

− Payment transfer services both within and across borders for single payments and bulk payments

− Switching services for interbank payments for both domestic and international transactions

− Mechanisms for financial and operational risk control through Liability Manager

− Comprehensive processing recovery and full-fledged disaster recovery

National ITMX’s Conceptual Model

Source: Bank of Thailand

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Currently, the provision of services in the first phase is limited to SMART Debit, SMART Credit, Credit Settlement, Fee distribution, and Bilateral Risk Settlement. According to national ITMX implementation plan, the provision of services will be extended to include ATM Pool and other low-value channels as well as single high-value transaction via Real Time Gross Settlement (RTGS) in its second and third phase respectively.

3.4 E-Revenue The Revenue Department has upgraded its system to provide a higher level of service

excellence. Web services technology has been applied to improve its operational collaboration with other regulatory agencies such as Customs Department, Excise Department, Land Department, Ministry of Commerce, and Ministry of interior, Social Security Office, and Securities and Exchange Commission of Thailand.

Collaborative e-Revenue

Source: Revenue Department

Various applications including Tax Identification Number system (TIN), Transaction Control Log system (TCL), e-Supervision system, e-Tax Delinquency system, e-Audit and Investigation system, as well as e-Canvassing and Tracking of Non-compliant Businesses has been developed to enable core functions of Revenue Department to be performed more efficiently and productively.