Logistics Development Plan 2023-2027 pushes Thailand to become a trade gateway to the ASEAN region

Logistics development

Ms. Rachada Dhnadirek, deputy government spokeswoman, revealed that the Cabinet meeting resolved to approve the action plan for the development of Thailand’s logistics system 2023-2027, which aims to make the logistics system an important mechanism to push Thailand to become an important trade gateway in the subregion and region.

Driven through 5 logistics development approaches as follows:

1. Develop transportation infrastructure and facilities such as:

– Creating a comprehensive transportation and logistics network between ports, railways, roads and airports, connecting economic areas, industrial areas and important border checkpoints.

– Develop logistics service centers and improve important border checkpoints.

– Management of infrastructure and logistics service centers

– Promote the utilization of advances in digital technology.

2. Raise standards and increase the value of the supply chain, such as:

– Develop logistics management and agricultural supply chains.

– Develop an ecosystem that is appropriate for the growth of industrial entrepreneurs.

– Environmentally friendly operations

3. Development of customs procedures, related import-export processes and facilitation of international transportation, such as:

– Develop data linkages and utilize the National Single Window (NSW) system.

– Developing electronic logistics processes

– Developing facilitation of cross-border and cross-border freight transport.

– Accelerate cooperation development and resolve obstacles in international freight transport.

– Improve and develop laws and regulations related to international transportation and logistics.

4. Develop the potential of Logistics Service Providers: LSPs such as

– Strengthen the potential of logistics service providers

– Elevate Thai logistics service providers to the international stage

5. Promote research and development of innovation, human resource development and logistics monitoring, such as:

– Promote research and apply research results to develop modern logistics technology and innovation within the country.

– Promote investment in industries that use technology and innovation to develop logistics.

– Develop logistics personnel

– Monitor and evaluate logistics development results

For the success goals under the draft action plan, they include:

1. The proportion of freight transport costs to GDP has decreased to 5% per year (2021 is 6.4%).

2. The proportion of inventory cost to GDP has decreased to 5% per year (2021 is 6.4%).

3. The logistics efficiency index ranking in the customs formalities is ranked 25th or a score of not less than 3.20.
(2018 ranked 31st with a score of 3.14 points)

4. LPI ranking in terms of performance of LSPs in both the public and business sectors is ranked 25th or a score of at least 3.60.
(2018, ranked 32nd with a score of 3.41 points)

In terms of the overall logistics development situation in 2021, Thailand’s logistics cost to GDP ratio was 13.8% of GDP, down from the previous year’s ratio of 14.0% of GDP, in line with the recovery of domestic economic activities, driven by economic stimulus measures and tourism, along with the recovery of the global economy. In 2022, logistics costs are expected to improve, with Thailand’s logistics cost ratio expected to decrease to 12.9 – 13.3% of GDP.

Ms. Rachada also said that the Cabinet also resolved to review the Cabinet resolution on October 16, 2018, regarding the results of the 1/2018 meeting of the National Freight and Service Management System Development Committee (NFS) to assign the Customs Department to be responsible for the management and development of the NSW system and to define the scope of duties of the National Telecom Public Company Limited appropriately.

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Source of information: Royal Thai Government

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