lmprove competitiveness ahead of AEC, logistics providers told

       The Commerce Ministry is asking Thai logistics providers to improve their competitiveness, in order to ensure business growth following service liberalisation under the Asean Economic Community.
       Trade Negotiations Department director-general Nuntawan Sakuntanaga said the liberalisation of logistics, particularly air transport, would be opened further next year. Thai exporters should ensure they are efficient enough to compete with foreign players from other Asean countries.
       The AEC will see a free flow of trade and investment by 2015 Asean will open the logistics sector wider for members starting next year. Other sectors to be further liberalised are healthcare, telecommunications and tourism.
       Asean investors will be allowed to hold a maximum 70-per-cent stake in each of these types of service businesses within the grouping by 2015. They can own 49 per cent now, rising to 51 per cent next year.
       However, the percentage of shareholding will also be subject to the internal foreign-business laws of each individual nation.
       Logistics costs amount to 18 per cent of the Kingdom's gross domestic product: 8 per cent from transportation costs, 7 per cent from product weight, 2 per cent from operating costs and 1 per cent from warehouse costs.
       However, liberalisation will not only improve Thai providers' competitiveness, but also help lower Thai exporters' costs, said Nuntawan.
       To ensure local logistic providers can compete with foreign investors, they must act quickly to improve their efficiency and lower operating costs, Nuntawan said.
       The government will design projects to help logistics providers develop their competitiveness. A special committee for logistics development has been set up and is chaired by Deputy Commerce Minister Alongkorn Ponlaboot, with improving competitiveness a major goal.
       Investors from Japan, the United States, Singapore, Australia, Germany and China have to date owned many logistics and related businesses in the Kingdom. These include port services for international trading, packaging services, third-party logistics and express delivery service.
       Only regular mail services are reserved for Thais under the country's postal laws.