Thai Logistics Boom: Trade Jumps 11.1% But Border Closures Spark Concern

 

Overall international trade value sees strong growth in September 2025; however, monitoring agencies flag a near 30% rise in business exits along the Cambodian border.

Thailand's trade logistics sector recorded a surge in international trade value during September 2025, although the expansion was accompanied by worrying signs of distress among specific businesses operating near the Cambodian border.

 

The Office of Trade Policy and Strategy (OTP) reported that the total value of Thailand's international trade reached 1,972.7 billion baht, marking a robust increase of 11.1% compared to the same period the previous year.

 

The overall logistics sector continues to grow, with the cumulative number of registered juristic entities reaching 47,075. 

 

 

In September, 338 new businesses were registered—a rise of 10.5% year-on-year. 

 

The fastest-growing sub-sector was Freight Transport and Handling (including passenger transport), which saw 208 new registrations, an increase of 45.5%.

 

Total investment in the logistics sector reached 22.1 billion Baht, with foreign capital accounting for 4.5 billion baht (20.5%).

 

The top five sources of foreign investment were:

 

Rank          Country/Territory          Value (Million Baht)   

1                   Hong Kong                      1,665.0

2                       China                             531.7

3                       Curaçao                         442.9

4                      Singapore                        253.0

5                      Netherlands                      184.1

 

 

The sub-sector attracting the majority of foreign funds was Port Facility Operation Activities (excluding cargo handling), which alone accounted for 85% of foreign logistics investment.

 

Despite the positive headline figures, monitoring agencies have flagged an alarming trend of business closures in the border regions.

 

From May to September 2025, logistics business closures in the seven provinces bordering Cambodia (including Trat, Sa Kaeo, and Ubon Ratchathani) increased by 29.4% compared to the same period last year.

 

The group causing the most concern in these border areas is Non-Government Postal and Parcel Services, which saw a national closure rate increase of 25% year-on-year.

 

The OTP suggests that postal and parcel service operators in the affected border provinces should urgently review their strategies. 

 

Recommendations include:

Service Adaptation: Modifying logistics models to serve nearby urban areas and adjacent provinces to mitigate local downturns.

 

Inter-Provincial Focus: Expanding services to focus on freight transport between other provinces.

 

Tourism Support: Capitalising on the upcoming high season by developing tourist transfer packages, possibly in partnership with hotels and tour agencies.