Adapting to Digital Delivery Needs

Thailand’s government is poised to submit a revised Postal Act to the cabinet in June 2025, aiming to enhance postal and parcel delivery standards in the digital era. Announced on June 17, 2025, the amendments address the rise of app-driven logistics, ensuring robust oversight while fostering a competitive environment for operators of all sizes.

Promoting Fair Competition

Registration Over Strict Licensing

Wisit Wisitsora-at, permanent secretary of the Ministry of Digital Economy and Society, emphasized that the amended law prioritizes registration rather than restrictive licensing to regulate services. This approach avoids burdening small operators with excessive costs, encouraging healthy competition while maintaining high standards for parcel safety and consumer accountability.

Elevating Service Standards

Focus on Safety and Reliability

The revised Postal Act seeks to improve service quality by setting minimum operational standards, such as secure parcel handling and clear consumer responsibilities. Previously overseen by the Consumer Protection Board, postal services now require specialized regulations to address the complexities of modern logistics, driven by the rapid growth of e-commerce and online delivery platforms.

Supporting Thailand Post’s Evolution

Opening Doors to Competition

The amendments will reshape Thailand Post’s operations, potentially allowing private competitors to enter markets traditionally dominated by the state-owned entity. Wisit noted that certain exclusive services may be liberalized, aligning Thailand Post’s business model with contemporary industry demands while preserving its role in providing essential social services.

Navigating Intense Market Competition

Foreign Players Shake Up Logistics

Thailand’s express delivery market has faced fierce competition since 2022, with foreign companies employing aggressive pricing strategies, according to Thailand Post president Dhanant Subhadrabandhu. These tactics have impacted service quality, prompting the need for updated regulations. The market, valued at 115 billion baht in 2024, handles 7-8 million parcels daily, fueled by e-commerce growth.

Thriving Delivery Sector

Key Players Report Strong Gains

Despite competitive pressures, Thailand’s parcel delivery market remains robust, with a projected 17-18% growth in 2024. Thailand Post leads, followed by Flash Express, J&T Express, and Kerry Express. J&T Express, for instance, saw a 37% revenue increase to 25.4 billion baht and a profit of 819 million baht in 2024, highlighting the sector’s profitability and resilience.

Future-Ready Postal Framework

Balancing Innovation and Regulation

The amended Postal Act reflects Thailand’s commitment to aligning its postal services with the digital economy’s demands. By avoiding complex licensing and focusing on operational standards, the law supports small businesses and online merchants while ensuring consumer trust. This forward-thinking approach positions Thailand’s logistics sector for sustained growth in a dynamic global market.

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