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Economic Integration of ASEAN Countries Fosters New Logistics Expansion Plans in Thailand Finds Frost & Sullivan - The logistics industry stands to benefit from the country’s rise as the regional trade and service hub - Frost.com
Economic Integration of ASEAN Countries Fosters New Logistics Expansion Plans in Thailand Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Bangkok, Thailand, 2015/12/17 - The logistics industry stands to benefit from the country’s rise as the regional trade and service hub - Frost.com.

   
 
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Along with trade expansion and foreign capital inflows that are quickening the pace of Thailand’s economic growth, the logistics industry in the country too is establishing itself as a crucial contributor to national competitiveness. The evolution of the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) within the region and the impact of free trade agreements on key manufacturing markets outside the region are the two distinct forces shaping the nation’s logistics landscape.

New analysis from Frost & Sullivan, Executive Analysis of Thailand Logistics Industry, finds that the market earned revenues of US$71.7 billion in 2014 and estimates this to reach US$96.5 billion in 2019.

“Government plans to position Thailand as the trade and service hub of the Greater Mekong sub-region and as the gateway to Asia are opening up opportunities in the logistics and transport industry,” saidFrost & Sullivan Automotive and Transportation Senior Consultant Jeff Tan. “Thailand's road transport plays a key role in connecting the landlocked countries of Indochina.”

Increasing foreign direct investment in Myanmar, Cambodia and Laos will support cross-border trucking activities and accelerate road network development in Thailand. Modernisation programs, including basic infrastructure improvements, new equipment installations, and security and hardware upgrades are underway in the country’s two key ports. In addition, current policy focus on high-tech manufacturing will support growth in air services.

While new leadership is driving advancements in overall logistic capabilities, global uncertainties such as stagnation in the Eurozone and Japan pose a threat to Thailand’s export outlook and could derail transportation and logistics projects. Possible delays in government spending and failure to invest optimally in logistics infrastructure can hamper freight movement and lower Thailand’s productivity.

“Restructuring the supply chain and logistics framework to capitalize on industrial agglomeration will facilitate efficient logistics management,” suggested Tan. “Moving forward, developing a holistic strategy encompassing network coverage, infrastructure setup, human resources and service quality will enable logistics service providers to strengthen their foothold in Thailand’s logistics industry.”

Executive Analysis of Thailand Logistics Industry is a Market Insight that is part of the Transportation & Logistics Growth Partnership Service program. This research provides insights into the regional developments, new trends, drivers and restraints that will impact industry volume in Thailand and the various market scenarios likely to develop in the course of the coming year. The study also details the implications of the AEC and the new opportunities that are expected to transform the logistics landscape of Thailand.

About Frost & Sullivan
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Executive Analysis of Thailand Logistics Industry / 9AB2

Contact: Melissa Tan - Corporate Communications Asia Pacific
P: +65 6890 0926 / F: +65 6890 0999 - E: melissa.tan[.]frost.com.

 
 
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Economic Integration of ASEAN Countries Fosters New Logistics Expansion Plans in Thailand Finds Frost & Sullivan

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Frost & Sullivan | Thailand Logistics Indust
Publisher Contact: Donna Jeremiah / Carrie Low - Frost.com 
+61(02) 8247 8927 / +603 6204 5910 djeremiah[.]frost.com / carrie.low[.]frost.com
 
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