Page 57 - FoodFocusThailand No.159 June 2019

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E-Commerce & Logistics:

The New Duo in 4.0 Era

The strengths of online commerce
and logistics are reciprocal. In 2018,
Thailand’s e-commerce sector grew
rapidly, expanding 14% year-on-
year to THB 3.2 trillion (Source:
ETDA), making Thailand the biggest
market in ASEAN. Consequently,
the country’s logistics sector also
benefits, especially in mail and
delivery services. In 2018, the sector
is valued more than THB 30,800
million, expanding 11.3% from THB
28,100 million in the previous year
(Source: KResearch), making the
competition even more intense.

The Strengths of Thai Logistics
System that Support E-Commerce
1.Thailand has an integrated road network that
is well maintained. The roads link to other countries
in the region, making it easy to conduct deliveries
for online merchandise through land transport from
Thailand to its neighbouring countries. (Source:
BOI)
2. Comparing to other countries in East Asia
and Southeast Asia, Thailand’s transportation
network development is as high as those of
Singapore. (Source: Fitch Solutions)
3. Since 2014, the Thai government approved
more than USD 51 billion budget for 21 land
transportation mega-projects (fiscal year 2015-
2022) (Source: BOI). This means the enhancement
of capacity and quality of transportation network in
Thailand, especially rail transportation, which will
reduce congestion and excess reliance on roads.
4. Recently, Thailand agreed to connect its
railway with China and Lao PDR. Ban Nong Ian-
Stung Bot Friendship Bridge (Aranyaprathet district,
Sa Kaeo province) is also opened, as well as a
new railway from Klong Luek to Poipet on April 22,
2019. The railway is Thailand’s 3 rail connection
rd
to its neighbouring countries (one links to Malaysia,
and another links to Lao PDR), and should boost
regional logistics network.

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