Modernization Aims to Enhance Postal and Logistics Services
The Thai government, through the Digital Economy and Society Ministry, has instructed Thailand Post to revise the outdated Postal Act of 1934.
This initiative aims to address the evolving postal and logistics service landscape and improve service quality.
Thailand Post President Dhanant Subhadrabandhu announced that a draft of the new legislation is expected to be ready next year.
The revised law, which will feature a new title to reflect business changes, is seen as crucial in reshaping the competitive landscape in Thailand's delivery services sector.
Competition has intensified in the local express delivery market since 2022, in part due to foreign players using below-cost pricing strategies, which Thailand Post views as 'predatory pricing'.
Despite significant losses, global logistics competitors have gained market share, impacting the service quality of parcel deliveries.
Currently, Thailand Post holds a 27% market share in domestic logistics, with foreign companies, particularly from China, controlling the remainder.
The revisions aim to regulate express delivery businesses, curb harmful pricing practices, and ensure quality service.
Without proper regulations, there is a risk of market monopolization that could harm consumers.
Beyond postal deliveries, Thailand Post supports communities by transporting essential goods like medicines and facilitating the sale of produce from farmers.
The renewed legislation is expected to boost service provider accountability.
As the express delivery market grows at an estimated annual rate of 11.2% from 2022 to 2024, maintaining high service standards becomes increasingly important.