E-COMMERCE  /  TECH & INNOVATION

By Sasathorn Phaspinyo | June 13, 2025

As Thailand positions itself as a leading logistics hub in Southeast Asia, businesses are gaining access to new growth opportunities. Backed by rising cross-border trade, logistics innovation, and infrastructure investment, the country is transforming its supply chain landscape.

• Thailand is targeting 2 trillion baht in cross-border trade annually by 2027, reinforcing its role as a regional logistics hub.
• E-commerce growth and digital adoption are driving logistics innovation, with nearly 70% of Thai consumers preferring online shopping over traditional retail.
• Major investments in freight and infrastructure – such as the Eastern Economic Corridor and high-speed rail – are enhancing regional connectivity and business potential.

Thailand is rapidly emerging as a leading logistics hub in Southeast Asia. By August 2024, nearly half of all foreign direct investment in Thailand flowed into the logistics sector. In a further sign of its growing competitiveness, Thailand climbed to 9th place in the 2025 Agility Emerging Markets Logistics Index.

This momentum is supported by positive shifts in trade. In 2024, Thailand achieved a record 1.8 trillion baht in cross-border trade – a 6.1% year-on-year increase that exceeded government expectations. Looking ahead, the country is targeting 2 trillion baht in annual trade by 2027, underscoring the logistics sector’s critical role in sustaining long-term economic growth.

Navigating a shifting trade landscape

However, global trade dynamics are shifting. Volatile markets, geopolitical uncertainty, and new US tariffs pose risks to supply chains and Thailand’s economic outlook. These challenges add complexity to the country’s evolving logistics landscape.

Yet, Thailand’s position as a regional logistics hub continues to present new opportunities in at least three key areas. For businesses, understanding these trends is essential to building resilience and maintaining competitiveness.

1. E-commerce surge spurs logistics innovation

Thailand’s booming e-commerce market is a major driver of logistics innovation. According to the e-Conomy SEA 2024 report by Google, Bain, and Temasek, Thailand remains the second-largest e-commerce market in Southeast Asia. Its gross merchandise value is projected to grow from USD 26 billion in 2024 to USD 60 billion by 2030.

A highly digital consumer base is accelerating this growth – more than 91% of the population is online, and nearly 70% prefer e-commerce over traditional retail, significantly higher than the global average of 55.8%.

As more consumers shop online, expectations for a seamless experience continue to rise. From checkout to last-mile delivery, buyers want speed, convenience, and easy returns. To keep up, companies must prioritize logistics optimization – automating order fulfillment, optimizing delivery routes, enabling real-time tracking, and offering flexible shipping options.

At FedEx, we’ve seen how our digital solutions like the cloud-based FedEx Ship Manager and FedEx International Connect Plus help e-tailers boost efficiency, customer satisfaction, and competitiveness in a fast-moving market.

2. Infrastructure investments power regional connectivity

Thailand is investing heavily in its freight and logistics infrastructure, improving connectivity and creating new business opportunities. Major infrastructure projects are underway, including airport expansions, new ports, and a strategic land bridge to improve trade flows. One of the most ambitious developments – the 873km China-Laos-Thailand high-speed rail – will further boost trade with China.

At the heart of this transformation is the Eastern Economic Corridor (EEC) Development Plan, which aims to turn eastern Thailand into a high-tech industrial zone. Key initiatives include expanding U-Tapao Airport, creating Eastern Aviation City, and building a high-speed rail line linking three major airports. These upgrades, along with smart city initiatives and digital infrastructure improvements, are building a future-ready logistics hub.

FedEx is also contributing to this growth by expanding its Laem Chabang facility to 4,900 square meters and adding advanced material handling and sortation technology. A 4,560sqm warehouse supports multi-modal transport and customized freight solutions, providing greater capacity and flexibility across industries like automotive, semiconductors, and electronics.

3. Logistics digital transformation strengthens supply chains

To thrive in today’s unpredictable environment, businesses need resilient, agile, and efficient supply chains. From changing consumer behavior to global disruptions, digital readiness is essential.

Digitalization and automation are essential to meeting these evolving demands. Technologies like AI, data analytics, and the Internet of Things improve supply chain visibility, streamline operations, and enable smarter decision-making. Predictive analytics and real-time tracking further help businesses anticipate disruptions, reduce risk, and enable rapid response.

According to McKinsey & Company, early adopters of AI-powered supply chains are reducing logistics costs by 15%, optimizing inventory by 35%, and boosting service levels by 65%. FedEx leverages data to develop innovative tools that give businesses greater control. For example, our FedEx Surround monitoring and intervention solution enables proactive shipment management using near-real-time data, helping companies respond quickly to unexpected events.

Positioning for long-term success

As Thailand cements its role as a regional trade and logistics hub, businesses must adapt to keep pace with the industry. Despite global challenges, advancements in Thailand’s freight and infrastructure as well as digital technologies are creating new momentum in cross-border trade.

By embracing logistics innovation, investing in logistics digital transformation, and capitalizing on emerging infrastructure, companies can build resilient supply chains and seize new market opportunities. FedEx remains committed to supporting Thai businesses through this pivotal transition, helping drive the country's vision of regional leadership in logistics.

***

Ready to grow with FedEx? Discover smart, scalable solutions to help your business navigate cross-border trade, enhance delivery speed, and stay competitive.