Thailand's Logistics Sector Dominates August FDI
In August, Thailand's logistics sector attracted 39.283 billion baht in foreign direct investment, with the majority coming from China and other countries, focused on port projects. Despite a rise in investment, new logistics businesses decreased while closures increased. The road transport segment, leading the sector, is expected to grow by 2-3% annually from 2024 to 2026. The Commerce Ministry reported a 7.0% growth in cargo exports but highlighted limits in air cargo capacity, stressing growth potential amidst global competition.
In August, Thailand's logistics sector attracted 39.283 billion baht in foreign direct investment (FDI), comprising 47.64% of the nation's FDI.
The majority of these investments came from China, the Netherlands, South Korea, Japan, and Hong Kong, with port-related projects receiving 72.11% of the logistics FDI.
The Office of Trade Policy and Strategy highlighted that despite these investments, new logistics business openings fell by 16.4% year-on-year, while closures increased by 33.3%.
Notably, transportation and goods handling accounted for 45.09% of newly opened logistics firms, with road transportation leading the sector at 69.82%, represented by 28,343 registered companies.
This segment is expected to grow by 2-3% per year from 2024 to 2026.
The Commerce Ministry reported a 7.0% growth in cargo exports, reaching 26.18 billion baht.
However, it noted a shortfall in air cargo capacity despite route expansions.
The ministry emphasized the prospects for growth and investment, noting challenges from competitors like Indonesia, which has imposed port restrictions.
The majority of these investments came from China, the Netherlands, South Korea, Japan, and Hong Kong, with port-related projects receiving 72.11% of the logistics FDI.
The Office of Trade Policy and Strategy highlighted that despite these investments, new logistics business openings fell by 16.4% year-on-year, while closures increased by 33.3%.
Notably, transportation and goods handling accounted for 45.09% of newly opened logistics firms, with road transportation leading the sector at 69.82%, represented by 28,343 registered companies.
This segment is expected to grow by 2-3% per year from 2024 to 2026.
The Commerce Ministry reported a 7.0% growth in cargo exports, reaching 26.18 billion baht.
However, it noted a shortfall in air cargo capacity despite route expansions.
The ministry emphasized the prospects for growth and investment, noting challenges from competitors like Indonesia, which has imposed port restrictions.
