Thailand Strengthens Role as Southeast Asia’s Logistics Hub

Jul 2025

Thailand is advancing its position as a logistics hub in Southeast Asia, supported by increased cross-border trade, e-commerce growth, and infrastructure development. In 2024, cross-border trade reached a record USD 47.6 billion, a 6.1% increase from the previous year. The government aims to raise this figure to USD 53 billion annually by 2027.

Rising e-commerce demand is reshaping logistics services. About 70% of Thai consumers prefer online shopping, well above the global average of 55.8%. Thailand’s e-commerce market is projected to grow from USD 26 billion in 2024 to USD 60 billion by 2030. Businesses are investing in automation, route optimization, and real-time tracking to meet evolving customer expectations.

Infrastructure investment is also key to Thailand’s logistics development. Projects such as the Eastern Economic Corridor and the China-Laos-Thailand high-speed rail aim to improve regional connectivity. The Eastern Economic Corridor includes airport expansions, smart city projects, and digital infrastructure upgrades to enhance transport and trade efficiency.

Thailand’s digital transformation in logistics is helping companies build more resilient supply chains. Adoption of artificial intelligence, data analytics, and the Internet of Things is improving visibility, reducing costs, and increasing service levels. According to McKinsey, AI-enabled supply chains can lower logistics costs by 15%, reduce inventory by 35%, and improve service by 65%.

Despite global uncertainties, including new US tariffs and market volatility, Thailand’s investments in logistics and digital tools offer businesses opportunities to strengthen competitiveness and support regional trade growth.

(Source: FedEx)

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