The logistics industry in Thailand is entering a new growth cycle. Despite new supply entering the market, strong demand—especially in the Eastern Economic Corridor (EEC)—is fueling expansion. With rising trade volumes, foreign investment, and large government projects, the Thailand Logistics Sector Dynamics show both resilience and long-term opportunity.
Market Size and Economic Role
Thailand’s logistics sector is one of the most important service industries in the country. In 2024, the freight and logistics market was valued at USD 50.16 billion. By 2033, it is projected to reach USD 72.19 billion, growing at a CAGR of 6.26%.
This sector contributes about 5% of Thailand’s GDP and has proven its strength by generating USD 12.2 billion in economic output in just the first half of 2021. With trade expanding and supply chains shifting across Asia, logistics remains a central driver of the Thai economy.
Foreign Investment Rises in Thailand Logistics Sector Dynamics
Investor interest in Thai logistics has been strong. In July 2025, the sector attracted 2.56 billion baht in foreign investment, representing 14.83% of all investment. Major investors include China and Singapore, reflecting regional confidence in Thailand’s logistics ecosystem.
But the real growth engine lies in the EEC, which has become a magnet for global companies. In the first four months of 2025 alone, the EEC attracted THB 31.36 billion in investment, a 40% increase year-on-year. This amount accounted for more than half (54%) of Thailand’s total FDI, cementing the corridor’s leading role in the logistics story.
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Cross-Border Trade Fuels Growth
Thailand’s strategic location in Southeast Asia makes it a natural hub for trade. In 2024, the country recorded 1.8 trillion baht in cross-border trade, a 6.1% increase year-on-year. The government now targets 2 trillion baht annually by 2027, a goal supported by new trade routes and logistics infrastructure.
This trade growth strengthens demand for modern warehouses, distribution hubs, and transport networks—particularly in the EEC, which connects Thailand to key regional markets.
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Eastern Economic Corridor: The Core Driver of Thailand Logistics Sector Dynamics
The EEC is at the heart of Thailand’s logistics expansion. It is not only attracting global investors but also driving large-scale government projects. Bangkok has outlined a THB 1.35 trillion (USD 44 billion) plan to transform the EEC into a financial and industrial powerhouse by 2037. The plan aims to create 200,000 new jobs and generate THB 2 trillion in economic contribution.
For logistics, the EEC is already a hotspot. Leased warehouse space in the corridor is projected to grow 9.3% year-on-year. At the same time, land prices are soaring. In Rayong province, a key EEC location, prices surged 43.5% in Q1 2025 compared to the previous year.
This demand has absorbed the new supply quickly. Even as developers add warehouses and industrial space, vacancy rates have declined, showing the depth of demand. Much of this is supported by the China+1 policy, as manufacturers shift production from China into Southeast Asia.
Thailand Logistics Sector Dynamics: Outlook
Looking ahead, the outlook for the Thailand Logistics Sector Dynamics is positive. Market size is set to expand, the EEC continues to attract heavy investment, and government policies are aligned with growth. Even with rising supply, demand in the EEC is strong enough to sustain low vacancy rates and higher land values. Cross-border trade targets add another layer of long-term stability, while foreign capital continues to flow into the sector. Thailand is on track to strengthen its role as a regional logistics hub, with the EEC leading the transformation.
