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With the Implementation of Regional Transport Agreement, Focus on Cross-border Transport Services Likely to Drive Growth
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Thailand always enjoyed a robust economy until the political crisis during 2013–2014. During this time, the economy was badly hit and resulted in negative growth. A lot of investments and expansion in the industrial sector were put on hold due to the uncertainty of the economy. The crisis also affected the export market in 2013. However, significant growth was observed in 2014 with exports increasing, whereas imports reduced significantly. Again, in 2015, there was a decline in exports due to slow global economic recovery and the depreciation of the currency of trading partners. Most export goods experienced a decline, except for machinery.Thailand, with its central location in mainland Southeast Asia and the Greater Mekong sub-region, has potential to be a key logistics hub for companies setting up manufacturing bases in Indochina. With the implementation of the ASEAN Economic Community (AEC), further trade and service liberalization is expected to help boost demand for integrated logistics services and fuel the growth of cross-border trade. In addition, as the Thai Baht continues to strengthen, the Thai government plans to reduce the cost of production by improving overall logistics cost to remain competitive among ASEAN members. Thailand’s transportation and storage sector is expected to grow at a faster pace with the disbursement of logistics infrastructure projects valued at $18 billion since end-2015.This research service provides insights into the developments of the Thailand logistics industry, key freight activities, and key drivers and restraints. It also discusses the impact of AEC and Trans-Pacific Partnership (TPP) on the industry and the new opportunities expected to arise in the near future. The study answers the following key questions:· What are the prevailing trends in Thailand’s logistics industry and what will it look like in the years to come?· What is Thailand’s logistics industry performance in terms of freight volume?· What are the key freight activities?· What are the key growth drivers?· What are the issues and challenges faced by market participants?· What are the areas of improvement and what can be done?· How will the Trans-Pacific Partnership (TPP) affect the logistics companies in Thailand?· What are the potential impacts of the TPP agreement on Thailand sectors? (The industries covered are automotive, electrical and electronics, and medical tourism)· What growth opportunities are expected to arise in the near future that will enable market participants to gain market share?
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