Thailand Post ends talks with Chinese firm over joint venture
After year-long discussions, JV talks called off due to unmet benefit projections
Thailand Post, a state-run logistics enterprise, has terminated year-long negotiations with a Chinese logistics firm over a joint venture that failed to deliver anticipated benefits. The discussions aimed to boost Thailand Post’s logistics volume between the two markets, influenced by the prevalence of Chinese products in the local e-commerce sector.
Thailand Post President Dhanant Subhadrabandhu stated that the joint venture was intended to facilitate logistics services for goods moving between China and Thailand. Despite making progress on over half of the collaboration conditions, the venture was projected to offer insufficient benefits for Thailand Post.
Bangkok Post reported that the Chinese company was expected to establish a warehouse for the joint venture. However, Thailand Post did not receive the necessary privileges to provide logistics services for a strategic partnership, leading to the breakdown of talks.
Logistics accounts for 45% of Thailand Post’s total revenue, followed by the postal group at 33%, international service at 13%, retail business at 5%, with the remainder from other sources. Thailand Post holds a 32% market share in the national logistics sector, with foreign operators, particularly from China, dominating the remainder.
The state agency’s international delivery service is strengthened by a wide-reaching network that covers 205 destinations in 193 countries.
In similar news, Thai Commerce Minister Pichai Naripthaphan met with Bangladeshi Ambassador Fayaz Murshid Kazi on May 8 to discuss advancing free trade agreement (FTA) negotiations between their two nations.
Following a joint declaration of intent, senior officials will hold online discussions to define the scope and expectations, with the goal of formally initiating negotiations this year.
Thailand has also expressed its support for Bangladesh, as the current BIMSTEC chairman for 2025 and 2026, to revitalise and expedite FTA discussions within the conference, aligning with the Bangkok Vision 2030.
Thailand has proposed that Bangladesh host the sixth Joint Trade Committee (JTC) meeting later this year, which will be a crucial step for shaping trade and investment cooperation and formally announcing the Thailand-Bangladesh FTA negotiations.
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