Thailand Post is launching a major expansion of its cross-border trading and e-commerce services for Indochina to become a leading regional player by year-end.
The state postal enterprise hopes parcel delivery service crossing the Cambodian and Laotian borders to reach Chinese consumers has a bright future, acting president Smorn Terdthampiboon said.
"We'll be ready to enter Asean Economic Community {AEC) markets following a comprehensive organisational restructuring and effectiveness enhancement schemes," she said.
Thailand Post joined a meeting with the Universal Postal Union to create competitive interconnected delivery services in the region, particularly to work closely with Cambodia Post and Lao Post due to their huge market potential.
Ms Smorn said Thailand Post expected its parcel delivery service revenue to account for half its revenue in 2016, up from 48% in 2015, helped by greater business opportunities stemming from the AEC.
Thailand Post reported consolidated 10-month revenue of 18.7 billion baht for a net profit of 2.2 billion.
"We expect consolidated revenue of 22 billion baht for all of 2015, with a profit of 2.4 billion," she said.
The state enterprise projects a profit of 2.7 billion baht on revenue of 24 billion this year.
Logistics arm Thailand Post Distribution was established in 2014 with registered capital of 350 million baht to provide logistics solutions throughout Indochina.
Ms Smorn said the state postal enterprise wanted to promote Thailand as a regional logistics hub in Indochina over the next three years.
Thailand Post Distribution focuses on providing logistics service for medical and pharmaceutical businesses, e-commerce and home shopping, banking and financial institutions, multinational companies and border traders.
The logistics market in Thailand accounts for 15-17% of GDP and is growing in emerging industries, especially e-commerce.
"Thailand's e-commerce market has witnessed at least 20% annual growth in recent years, helping our express delivery service to enjoy 15% expansion," she said.