Thailand’s logistics industry has emerged as a significant magnet for foreign direct investment (FDI), attracting more than 39 billion baht in August 2024, according to the latest figures from the Office of Trade Policy and Strategy. The bulk of the investment was directed towards port operations, marking the logistics sector as a key driver of foreign interest in Thailand’s economy.
Foreign investment in the logistics sector totaled 39.283 billion baht for the month, accounting for nearly half (47.64%) of all FDI in Thailand during August. A significant portion of this capital came from major global investors, including China, the Netherlands, South Korea, Japan, and Hong Kong. Port-related projects attracted 72.11% of the total logistics FDI, underscoring Thailand’s strategic importance as a transportation hub in Southeast Asia.
Thailand’s logistics sector is thriving, with 44,007 registered businesses as of August, though the landscape is shifting. While the overall number of newly registered logistics firms fell by 16.4% year-on-year, business closures increased by 33.3%, suggesting a competitive and evolving market. Despite these trends, road transport continues to dominate the sector, accounting for 69.82% of logistics activities, with 28,343 companies operating in the field. This segment is projected to grow at a steady rate of 2-3% annually between 2024 and 2026, driven by rising demand for road transportation and freight forwarding services.
Cargo exports from Thailand saw a healthy 7.0% growth, reaching a value of 26.18 billion baht. However, the Commerce Ministry pointed out that air cargo capacity remains a challenge, with the expansion of air routes lagging behind rising demand. This constraint could impact future growth in sectors reliant on rapid air freight.
Thailand’s robust international trade performance continued through the first eight months of 2024, with exports valued at US$197.193 billion and imports climbing to $203.544 billion, a 4.2% increase from the previous year. The country’s domestic consumption also rose, bolstered by a 4% increase in private sector spending and a slight uptick in government expenditure during the second quarter.
Tourism, a vital contributor to Thailand’s economy, surged in 2024, with visitor numbers rising by 12.55% in the first eight months. This surge has intensified demand for road transportation and domestic travel services, further fueling the logistics sector’s growth.
With Thailand positioning itself as a regional logistics hub, particularly in port operations, the sector is poised for dynamic expansion. Global competitors, such as Indonesia, which has recently introduced port restrictions, could further enhance Thailand’s appeal as an investment destination in the logistics and transportation sectors.
