InfoQuest (March 22, 2022) - Mr. Ronnarong Phoolpipat, Director-General of the Office of Policy and Strategic Trade (TPSO) announced that the number of newly registered logistics companies with the Department of Business Development (DBD) reached 444 in January, up 39.6 percent year on year. These new logistics enterprises are mainly engaged in transportation and cargo loading and unloading business, land cargo transport business, and freight forwarding business.
Currently, there are 1,276 companies in the transportation and storage management services business, most of which are concentrated in Bangkok (46 percent), Samut Prakan Province and other neighboring areas (20 percent), and the Eastern Economic Corridor (11 percent). There are relatively fewer enterprises engaged in warehousing business in the border region.
Given the great development potential of the warehousing business, new start-ups should seize the opportunity. Operators should first consider the location of business to reduce the transportation cost, and also use various technologies to meet the growing demands and modernize the industry.
Thailand's total trade volume in January reached 1.51 trillion baht, up 27.7 percent year on year, among which the trade volume in goods by ship, air, land, and railway is 66.5 percent, 23.0 percent, 10.4 percent, and 0.1 percent, respectively.
Mr. Ronnarong Phoolpipat added that the Regional Comprehensive Economic Partnership (RCEP), effective as of January 1, 2022, has become one of the most important driving forces to promote Thailand's exports. According to the RCEP, the import tariffs are further reduced compared with other existing free trade agreements (FTA); express and perishable products can be cleared within 6 hours, and general goods within 48 hours. RCEP member countries have promised a greater openness in areas such as transport services.
At the same time, Thailand has also further opened its market to RCEP member states and allowed investment in the transport service industry.
Foreign investment in Thailand will benefit Thailand, which is an integral part of the global value chain. In addition, the development of e-commerce is conducive to further expanding trade and investment in logistics and related industries.
As trade with RCEP member countries increases, it is important to continue to promote the development of the logistics sector and make preparations for linking the China-Laos railway. The government also needs to speed up infrastructure construction and vigorously promote the application of information technology to reduce logistics costs and improve transport efficiency at home and abroad.
Source: InfoQuest, by Phnl/Papatson Ongphichetmetha/Kasamarporn Kittisamphan, translated by Xinhua Silk Road
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