DHL SEES NEW OPPORTUNITIES IN THAILAND AMID SUPPLY CHAIN DIVERSIFICATION

DHL announced that it strengthened its commitment to Thailand through its Strategy 2030 – Accelerate Sustainable Growth, with opportunities to position Thailand as a key regional hub as more businesses look to build supply chain resiliency in Asia Pacific.

 

Thailand hosts all four DHL divisions.

 

Meanwhile, DHL's Strategy 2030 focuses on five major trends affecting Thailand's economy: global trade, e-commerce, sustainability, digitalization, and evolving workforce.

 

While these industry changes present new challenges, DHL noted opportunities for Thailand in key growth initiatives, including geographic footprint, new energy, and e-commerce.

 

DHL said it will build on its strong global footprint and local expertise to capitalize on geographic tailwinds. This addresses the profound shift in the growth of trade lanes, diversification of global supply chains, and the needs of fast-growing companies around the world.

 

"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," the logistics giant said, noting that exports expanded by 5.4% throughout 2024, the highest annual figure in the nation's economic history.

 

Key markets such as the United States, China, Japan, and the European Union were the main drivers for the growth, with the United Kingdom emerging as a promising market for Thai businesses.

 

DHL said it also sees opportunities for Thailand as a key Southeast Asia destination for EV production, bolstered by the government's efforts to attract foreign manufacturers to establish local production bases.

 

In terms of e-commerce, the sector is experiencing rapid expansion in Thailand. DHL noted that according to the Thailand E-Commerce Association, the market value is projected to grow from US$26.5 billion in 2023 to US$32 billion in 2025, reflecting an approximate 21% increase over two years, translating to a compound annual growth rate (CAGR) of about 10%.

 

DHL also reaffirmed its long-standing commitment to Thailand with its expansive footprint and continued investment in infrastructure and capabilities. It currently employs more than 9,300 people across the four divisions.

 

DHL Supply Chain currently manages over 678,000 sqm of warehouse space across more than 70 facilities, including those in the Eastern Economic Corridor. It added that through its extensive transport network, the company efficiently handles approximately 4,800 vehicle loads daily.

 

The logistics giant noted that it is set to expand its electric vehicle fleet by 300% over the next three years.

 

DHL Express operates an aviation and ground network encompassing one regional hub at Suvarnabhumi Airport, 15 service centers, and 131 owned and partnered service points, all facilitating international door-to-door express deliveries. The network supports 85 dedicated flights weekly.

 

DHL Global Forwarding has seven offices and three warehouses totaling 8,480 sqm across Thailand. It serves more than 2,000 customers.

 

"The new DHL International Multimodal Hub marks a significant investment in strengthening Thailand's position as a regional trade center," DHL said in the announcement.

 

It noted that the facility streamlines shipping processes by enabling seamless transitions between different modes of transport and simplifying customs procedures at a single location. This facility also offers valuable connectivity for landlocked neighbors like Laos, providing diverse transportation options.

 

DHL eCommerce's extensive nationwide delivery network – comprising 151 last-mile depots, over 2,000 vehicles, and 230 service points – ensures full market coverage, with up to 97% next-day delivery service.

 

"Thailand's e-commerce sector is on a strong growth trajectory. We are actively shaping its future by enhancing quality standards and driving digital innovation," said Kiattichai Pitpreecha, CEO of DHL eCommerce, Southeast Asia.

 

"By integrating our nationwide delivery network with cutting-edge technology and sustainable logistics solutions, we empower Thai businesses of all sizes and sectors, whether B2B or B2C, to thrive in the digital economy," he added.

 

Vincent Yong, managing director of DHL Global Forwarding Thailand, said 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," he said.

 

"Thailand stands at the forefront of Southeast Asia's digital transformation in supply chain and logistics. With Thailand establishing itself as a key manufacturing hub for the automotive, technology, and manufacturing sectors, coupled with a huge domestic retail market, we are very positive about the opportunities," said Steve Walker, CEO of DHL Supply Chain Thailand Cluster.