Thailand plans parcel delivery licences amid competition concerns
Existing and new parcel firms would need licences under Thailand’s draft postal law as officials examine competition and foreign ownership concerns.
- Thailand is proposing a new postal law that will require all parcel delivery operators, including existing companies, to apply for a license to operate.
- The legislation is driven by concerns about unfair competition, as the dominance of e-commerce platforms and aggressive pricing strategies are harming smaller, Thai-owned delivery firms.
- Regulators are specifically concerned about e-commerce platforms creating their own delivery subsidiaries that may receive preferential treatment, creating an unfair market advantage.
- As part of the new rules, officials are also considering regulations on company ownership, including a potential 51% Thai ownership requirement, to scrutinize foreign investment.
Thailand’s proposed postal law would require all parcel delivery operators to apply for licences, including existing firms, new businesses and newly established subsidiaries. Deputy Minister of Digital Economy and Society Boonthida Somchai is pressing ahead with the legislation amid concerns about unfair competition in the e-commerce delivery market.
Under the draft Postal Business Operations Act, existing parcel delivery operators would also have to apply for licences once the law takes effect. The new requirement would apply to their operations from that point onwards, without covering activities carried out beforehand, Nan explained in comments reported by Bangkok Biznews.
Thai delivery firms struggle as platform orders dominate
Two or three Thai-owned parcel delivery companies are facing serious difficulties, according to information received by Nan, who wants to advance the legislation as quickly as possible.
Most parcel delivery volume is concentrated on e-commerce platforms such as TikTok Shop, Nan noted. Although sellers can choose their delivery provider, price remains a decisive factor, making it difficult for Thai operators with limited capital to compete with better-funded rivals.
Thailand Post also faces cost constraints despite having a large base of regular customers, Nan explained. When the company is not available as a delivery option on platforms, it loses opportunities to increase parcel volumes and revenue. Deliveries through conventional channels also account for substantially less volume than platform-generated orders.
Platform delivery arrangements raise competition concerns
Nan highlighted the allocation of delivery work as another area requiring scrutiny. She cited an arrangement in which an e-commerce platform establishes a subsidiary to accept delivery orders before passing the work to other couriers and charging an additional margin.
Platform-affiliated delivery companies could receive more favourable terms, Nan added, making it necessary to consider rules that prevent unfair treatment of competitors.
“If you throw yourself into competing on price, eventually you will end up destroying yourself,” Nan warned.
Common minimum standards should apply to parcel operators, but identical delivery prices are not the objective, Nan stressed. Costs and service models differ, including standard deliveries, premium services and delivery within one day.
Conduct that may amount to unfair competition in parcel delivery could be referred to the Trade Competition Commission for consideration, according to Nan.
Thai and foreign ownership split remains undecided
A shareholding split of 51% Thai and 49% foreign ownership is one option Nan raised, but the proposal has not been finalised. Nan stressed that parcel delivery should not be reserved exclusively for Thai operators and suggested considering ownership rules similar to those used in other businesses.
Nan also wants shareholder structures and investment sources examined, particularly among companies receiving foreign capital. Questions remain about the identities of major shareholders and those providing investments of 3–4 billion baht, she noted.
Checks should establish whether Thai shareholders are genuine owners rather than nominees, Nan added. The proposed scrutiny would address nominee concerns of the kind currently being investigated by the Interior Ministry.
Postal bill awaits review before Cabinet submission
Nan has asked Thailand Post to revise approximately five or six aspects of the draft postal law. Although informed that the revisions are complete, Nan has not yet received the updated text for examination.
The proposed postal regulatory committee and licensing authority also require review, Nan noted. Thailand Post’s initial draft envisaged all committee members being chosen through a selection process similar to that used for the National Broadcasting and Telecommunications Commission, a structure Nan questioned.
Potential conflicts of interest and differences in administrative penalties are further concerns raised by Nan. Thailand Post is already subject to administrative penalties, whereas other parcel delivery operators are not covered by equivalent provisions.
Nan plans to submit the postal bill to the Cabinet if the Digital Economy and Society Ministry’s legal team raises no objections. The legislation must also undergo the required stakeholder consultation process.
