Thailand after entering the free trade of logistics service:

Thailand after entering the free trade of logistics service:

Hub or Colony of Other Countries?

 

 

The trend of transportation and logistics is upward and the competition is high in 2512. Local logistics service providers are be prepared for the fee trade with their revised strategies in price and service quality.

 

The free trade in logistics in ASEAN which is to be implemented by 2013 will inevitably affect the capability of Thai service providers which mostly are SMEs and still need some financial and managerial support.

 

According to Mr. Yoo Chienyuenyongpong, chairman of Land Transportation Federation of Thailand, it is doubtful that the free trade in transportation and logistics is a threat or an opportunity. Therefore Thai providers should be prepared and ready for the free trade and the competition with international service providers. They should improve their managerial efficiency and service quality. It is also a good time if they would like to expand their markets and customer base in an international level. 

 

Moreover in his view the government should take action as well with its strategies to support both service providers and customers strengthening their business. Related regulations should be set up in order to endorse all sectors. The government should be a leader who pave the way to the international market and bring the great opportunity to Thai service providers and business runners.

Highly competitive market in logistics industry

 

Mr. Yoo mentioned that the trend of transportation in 2012 is upward with high competition. The free trade in logistics industry will boost the competition in transportation especially the land one. The use of Nakorn Panom bridge in 2011 and Chiang Khong in 2012 will certainly accommodate the business opportunity from Thailand to Southern China. However it is as well the opportunity for international logistics providers to join the market share.

In Thailand it is likely that the competition is getting much fiercer. Small and medium sized providers have to adjust themselves by gaining some more knowledge, improving their service quality and upgrading their standardized capability to compete with their business counterparts.

In his view the service standard is the key factor. IT system should be modernized to support the services. Staff should be developed in terms of knowledge and language.

According to Mr. Yoo, for land transport Thailand is the most capable however it is still second to Malaysia. In Malaysia the logistics companies are big in size and in quality. Most of them are congregated. This is an important problem for Thai providers as they have to think of how to congregate and provide systematized quality service. 

Even though land transport in Thailand is much cheaper comparing to other international countries now the cheapest cost is not an issue. Quality service does matter. To be ready for the free trade Thai logistics providers need improving their delivery standard with the support of the government.

               

 

 

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