DHL, a leading global logistics firm, has outlined its "strategy 2030" for Thailand by targeting electric vehicle (EV) manufacturing and spare parts service bases, and cross-border e-commerce, with a focus on its global supply chain diversification.
The strategy aims to position Thailand as a key regional hub as more businesses look to build supply chain resiliency in Asia-Pacific amid geographic tailwinds from pressures on global trade.
"DHL Group sets forth its strategy 2030 in accelerating sustainable growth that addresses changes in future global megatrends and capitalises on growth opportunities," said Herbert Vongpusanachai, managing director of DHL Express Thailand & head of Indochina.
DHL's Strategy 2030 addresses five key megatrends shaping Thailand's economic landscape, namely global trade, e-commerce, sustainability, digitalisation and the evolving workforce.
DHL also sees opportunities for Thailand in the following key growth initiatives, particularly with regard to geographic tailwinds.
DHL will build on its strong global footprint and local expertise to capitalise on geographic tailwinds. This addresses the shift in growth of trade lanes, diversification of global supply chains, and the needs of fast-growing companies around the world.
Mr Herbert said the company has identified opportunities for cross-border e-commerce from Thailand to Southeast Asia, intra-Asia and new markets in the Middle East.
"We see intra-Asia parcels increasing 6%," Mr Herbert said.
"Thailand's SMEs can seek export opportunities rather than wait for a flood of low cost foreign products to pressure their market," he added.
"Our network, spanning 220 countries and territories with dedicated air and ground infrastructure, positions Thailand as a key hub for global trade. We empower businesses of all sizes in Thailand to harness global opportunities while promoting a sustainable future through our trusted and effective solutions such as the GoGreen Plus service. We are ready to help connect the world to Thailand and open new markets for Thai businesses."
Thailand stands at the forefront of Southeast Asia when it comes to supply chain and logistics. With Thailand establishing itself as a key manufacturing hub for the automotive sector, particularly EVs, and the technology and manufacturing sectors, coupled with a huge domestic retail market, the company is very positive about the opportunities and is committed to supporting customers' growth and supply chain excellence in Thailand over the next few years, according to Steve Walker, chief executive of DHL Supply Chain Thailand Cluster, which provides warehouse facilities.
"We can leverage the strength of all DHL's businesses to bring raw materials in from wherever they come from worldwide to manufacturing in Thailand, bringing out finished goods and warehousing those finished goods for export or to be distributed domestically," he said.
Mr Walker says that while Vietnam and Indonesia have gained much attention for supply chain diversification, Thailand's strong manufacturing base in the automotive and electronics sector gives it an advantage.
Key markets such as the US, China, Japan and the European Union were the main drivers for the growth with the UK emerging as a promising market for Thai businesses.
DHL will introduce its first ever renewal energy warehouse in Thailand this year to support the needs of its customer with regard to sustainability. DHL is making significant investments in developing more sustainable warehouses and is also set to expand its EV fleet by 300% over the next three years.
"The recent launch of the DHL International Multimodal Hub at Suvarnabhumi Airport marks a transformative milestone in Thailand's logistics landscape. As Thailand positions itself as Asean's key EV manufacturing hub by 2025, our solutions, such as our integrated multimodal network, will help support the nation's ambitions," said Vincent Yong, managing director of DHL Global Forwarding Thailand.
DHL sees opportunities for Thailand as a key Southeast Asian destination for EV production. This is bolstered by the state's efforts to attract foreign manufacturers to establish local production bases.
DHL's extensive solutions across the EV supply chain will help Thailand achieve its goal of having EVs account for 30% of its vehicle production by 2030, said Mr Yong.
DHL eCommerce has deployed EVs on shuttle routes between depots in Bangkok and other urban areas. It plans to introduce electric linehaul trucks for short-distance routes in this year's second quarter. In addition, DHL eCommerce aims to convert 50% of its owned Bangkok last-mile fleet to EVs within two years.
"Thailand's e-commerce sector is on a strong growth trajectory with online sales only sharing 15% of total retail, and it continues to grow a double digits, said Kiattichai Pitpreecha, chief executive of DHL eCommerce, Southeast Asia.
According to the Thailand E-Commerce Association, the value of the e-commerce market is projected to grow from US$26.5 billion in 2023 to $32 billion this year, reflecting a growth rate of around 21% within two years.
