Thailand is Set to be ASEANs Logistics Hub: Comprehensive Industry Overview by Solidiance
Summary
The distribution of raw materials, goods, and labor will also increase significantly - boosting the demand for logistics services throughout the supply chain.The AEC is expected to bring various benefits for ASEANs logistics industries in terms of legal aspects and others such as simplified and harmonized customs procedures, improved road network, reduced tariffs/free trade agreement.Malaysia is currently the biggest yet also the slowest growing market for cross-border, and therefore providing more potential for growth within Laos, Myanmar and Cambodia in the light of the upcoming AEC by 2015.Another trend seen in the market is the increasing potential for long haul truck usage indicated by the high value of cross border trade between Thailand and its neighbors, providing opportunities for relevant businesses throughout the supply chain.Thailand’s total border trade value in 2013 is estimated to record over 1 trillion baht, a jump from 770 billion baht in 2010.Thailand Cross-border Transportation Modes and OpportunitiesRoad has been the major transportation mode for the past years, and this trend is expected to last in the next years due to continuing investments on roads, spurring growth of demands for trucks and other commercial vehicles.