Thai Logistics Sector Attracts Over 39 Billion Baht in FDI, Majoring in Port Operations in August
Business
Thai Logistics Sector Attracts Nearly Half of August FDI
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Monday, October 14, 2024
Thailand’s logistics sector has emerged as a major hub for foreign direct investment (FDI) in August, attracting over 39 billion Thai Baht, primarily for port operations.
Foreign investments in the logistics field reached 39.283 billion Thai Baht, accounting for nearly half (47.64%) of FDI in August, mainly from China, the Netherlands, South Korea, Japan, and Hong Kong. Projects related to ports attracted 72.11% of the FDI in logistics.
The Trade Policy and Strategy Office reported that the total number of registered logistics entities in Thailand reached 44,007, but new business openings decreased by 16.4% year-over-year, while closure rates increased by 33.3%.
**Transportation and cargo handling sectors accounted for the highest proportion of newly established companies at 45.09%, with significant activities in road transport and freight forwarding.**
**Road transport made up 69.82% of the logistics sector’s total, with 28,343 registered companies. This area is expected to grow by an average of 2-3% annually between 2024 and 2026.**
The Ministry of Commerce reported a 7.0% increase in goods exports, reaching 261.8 billion Thai Baht. However, despite expanded air routes, air freight capacity remains insufficient.
The ministry noted that Thailand’s logistics industry is positioned for rapid growth and increased investment opportunities, mentioning recent port restrictions implemented by global competitors like Indonesia.
Thailand’s international trade continues to thrive, with total export value reaching $197.193 billion in the first eight months of 2024, while imports stood at $203.544 billion, a year-over-year increase of 4.2%.
Domestic consumption has also risen, driven by a 4% growth in private consumption and a slight rise of 0.3% in government spending during the second quarter. The number of visitors to Thailand surged by 12.55% in the first eight months of 2024, further boosting demand for road transport and domestic tourism services.
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Source: nationthailand
