Thailand’s logistics industry is making a push to position the country as an ASEAN logistics hub, urging the government to support this initiative.
Highlighting Thailand’s advantageous geographic location and well-developed infrastructure, including airports and roads that connect to neighboring countries, the Thai Logistics Service Provider Federation said the recently established high-speed railway connection between Laos and China has significantly shortened the duration of reaching Central Asia, making Thailand an attractive logistics gateway to the region and even Europe.
The federation noted, however, that the industry faces challenges in adapting to the global market’s shift toward smart and green logistics. It calls for government support, including VAT reduction, similar to Singapore, and including logistics entrepreneurs under the Customs Act to facilitate direct communication with the Customs Department. The agency added that policy measures to facilitate cross-border trade, promote the transition from diesel trucks to electric vehicles, and encourage investments in digital and robotic warehouse systems should also be sought.
Thailand’s logistics industry is estimated to be worth 1.2 trillion baht this year, but reduced freight costs have impacted its value. The government aims to reduce overall logistics costs, which currently account for about 14% of GDP, to enhance competitiveness, as developed countries typically have logistics costs at 10% or lower of their GDP.
To showcase Thailand’s potential as an ASEAN logistics hub, the International Trade Promotion Department is collaborating with private entities to organize the Tilog-Logistix 2023 exhibition, focusing on “Smart and Green Logistics for a Sustainable Tomorrow.” The event aims to provide participants with access to new technologies, knowledge, and business networks and is scheduled to take place from August 17-19 at Hall 98, Bitec, featuring products and services from more than 415 brands representing 25 countries. (NNT)
