a few days ago The author had the opportunity to attend a brainstorming meeting on the draft of the 13th National Economic and Social Development Plan (2023-2027) among academics and educational institutions. The thirteenth plan consists of several milestones aimed at enabling the Thai economy to adapt in the face of new challenges. One of the key milestones is to make Thailand a strategic gateway for trade, investment and logistics. The important news of the region reminds me of the discussions between entrepreneurs, academics and analysts at the “Industry Transformation” forum organized by the Puey Ungphakorn Institute of Economic Research, Bank of Thailand. and the Office of the Science Promotion Board Research and Innovation (TSRI) since the first wave of COVID had just ended. The author would like to summarize the content and suggestions for Thai logistics. This may help Thai entrepreneurs not miss the train.
Go back in time before the COVID-19 crisis. In fact, the Thai logistics industry is highly competitive. especially from large foreign businesses which has taken market share of Thai businesses due to its expertise in supply chain management network strength Has a technology-driven and innovation-driven business model and willing to lose to expand market share This makes it difficult for Thai entrepreneurs with limited capital to compete with.
Later, when the COVID crisis Has affected the Thai logistics industry. Especially for the international transportation business that has been disrupted. Businesses related to domestic freight continued to grow well. especially online product trading business food delivery business Urgent parcel delivery business as we have seen each other already. and when looking ahead The logistics industry in Thailand has good growth prospects. Especially businesses related to e-commerce. according to consumer behavior that continues to change due to the COVID crisis This encourages online trading in the consumer goods sector to grow exponentially.
However, the main players in the e-commerce market are still foreign companies. Especially Chinese companies, while Thai operators can only act as last mile carriers and face constant price competition. Thai entrepreneurs can also meet challenges and seize opportunities for growth by:
1) Expand the market in the temperature-controlled warehouse business Especially the chilled and frozen group, which still has few foreign players, focusing on health products. High-quality food is becoming increasingly popular. (which must be accelerated before foreign companies become major players)
2) Expand the business into the group of businesses supporting the logistics industry, which at present, there are few in Thailand. especially technology service providers such as application developers or tech startups, which play an important role in driving the logistics industry to success; and
3) Maintain market share of traditional land transport Business-to-Business (B2B), in which Thai entrepreneurs in the Trucking Company group still hold more than 80% of the market share of this business group. Especially in the group of consumer products, agricultural products, industrial products by creating cooperation with foreign companies in the form of sub-contract or outsource domestic transportation. Especially B2B road transport that continues to grow. Thai entrepreneurs must adapt by developing the value of service (value-added service) and using technology to continuously upgrade to e-logistics.
And of course, the government needs to speed up to do many things at the same time that will make the strategic goals of logistics come true, namely 1) creating a business ecosystem (ecosystem) to create competitiveness. Dharma such as anti-dumping supervision, 2) supporting and cooperating with the private sector in technology development, especially access and analysis of startup big data, and 3) supporting access to funding sources and funding for potential Thai entrepreneurs. to improve efficiency and production processes, such as transformation loans, etc.
The author sincerely hopes that Thai logistics business will be able to adapt take on the challenge And do not miss out on opportunities in the era of e-commerce leaps and bounds in a timely manner!
Author : Supris Suwannik Puey Ungphakorn Institute of Economic Research
