The government is being urged to support positioning the country as an Asean logistics hub and preparing businesses for the transition to smart and green industries.
Suwit Ratanachinda, president of the Thai Logistics Service Provider Federation, said the federation wants the new government to come up with a serious policy to push Thailand to become a logistics hub in Asean, noting that Thailand is well prepared in terms of geographic location and infrastructure, with airports and roads that can connect to Laos, Cambodia and Myanmar.
Moreover, the high-speed railway connection between Laos and China will shorten the duration to reach Central Asia from 60 days to only 15-16 days and also connect to Europe.
"The challenge for Thailand's logistics industry is how to adapt to the changes in the global market where the direction is heading towards smart and green logistics, utilising technology and digital platforms to develop management systems and reduce costs through the use of the national single window," said Mr Suwit.
He said private companies also want government support by reducing value-added tax from 7% to zero, similar to Singapore.
Another important point is to include logistics entrepreneurs under the Customs Act so they can directly communicate with the Customs Department, thereby reducing the complicated process through shipping firms.
Furthermore, there should be policies to facilitate cross-border trade, he said.
The government should also come up with measures to support the transition from diesel trucks to electric vehicles and encourage investment in digital and robotic warehouse systems to keep up with global changes.
Thailand's logistics industry this year is estimated to be worth 1.2 trillion baht, which is similar to the past two years, he said.
However, the value is likely to be lower than that because of a reduction in freight costs, for example, the cost of containers decreased from US$5,000 during the Covid-19 period to $1,000 now, Mr Suwit added.
Currently, there are around 34,000 logistics entrepreneurs in Thailand.
Phusit Ratanakul Sereroengrit, director-general of the International Trade Promotion Department, said the overall logistics costs in Thailand account for about 14% of GDP, which is considered relatively high.
Thailand needs to reduce this amount to be more competitive, as logistics costs typically represent 10% or less of GDP in developed countries.
Mr Phusit said his department is committed to developing the potential of logistics service providers and expanding their networks across various sectors from manufacturing, services and exports to ensure that they retain a strong competitive edge amid challenges caused by the ever-changing global economic and social circumstances.
To showcase Thailand's potential as Asean's logistics hub, the department has collaborated with RX Tradex and the private sector to organise the Tilog-Logistix 2023 exhibition under the theme of "Smart and Green Logistics for a Sustainable Tomorrow".
This event provides participants with access to new technologies, knowledge, business networks and opportunities.
Tilog-Logistix 2023 is scheduled to take place from Aug 17-19, at Hall 98, Bitec. The exhibition will feature products and services from more than 415 brands representing 25 countries.
