Thai logistics sector attracts nearly half of August FDI
Thailand's logistics sector emerged as a major hotspot for foreign direct investment (FDI) in August, attracting over 39 billion baht, mainly for port operations.
Foreign investment of 39.283 billion baht in logistics accounted for almost half (47.64%) of FDI in August and came predominantly from China, the Netherlands, South Korea, Japan, and Hong Kong. Port-related projects attracted 72.11% of logistics FDI.
The Office of Trade Policy and Strategy reported Thailand’s total number of registered logistics entities reached 44,007, though new business openings fell 16.4% year-on-year while closures rose 33.3%.
The transportation and goods handling sector accounted for the highest proportion of newly opened firms, at 45.09% of the total, with significant activity in road transportation and freight forwarding.
Road transport accounted for 69.82% of the total logistics sector, with 28,343 registered companies. This segment is projected to grow by an average of 2-3% per year between 2024 and 2026.
The Commerce Ministry reported a 7.0% growth in cargo exports, reaching 26.18 billion baht. However, it said air cargo capacity remains inadequate despite the expansion of air routes.
The ministry said that Thailand's logistics sector was poised for dynamic growth and increased investment opportunities, citing global competitors like Indonesia, which recently introduced port restrictions.
Thailand's international trade continued to flourish, with exports during the first eight months of 2024 valued at US$197.193 billion, while imports climbed to $203.544 billion – an increase of 4.2% compared to the previous year.
Domestic consumption also rose, driven by a 4% increase in private consumption and a modest 0.3% rise in government spending during the second quarter. The number of tourists visiting Thailand surged by 12.55% in the first eight months of 2024, further propelling demand for road transportation and domestic travel services.
