Thailand’s Strategic Position in ASEAN Supply Chains: Reshoring, Realignment, and Risk Management

Thailand is emerging as a key ASEAN logistics hub, strengthening infrastructure like Laem Chabang port, EEC development, and digital upgrades, boosting supply chain resilience amid evolving global disruptions.

Thailand’s Strategic Role in ASEAN Supply Chains

Amid ongoing global disruptions caused by COVID-19, geopolitical tensions, and rising costs in China, Thailand has established itself as a critical hub in ASEAN’s supply chain resilience. Its advantageous geographic position, advanced infrastructure, and business-friendly policies make it an ideal location for reshoring, nearshoring, and regional diversification efforts.

Evolving Logistics and Infrastructure

Thailand’s logistics sector continues to develop, centered around its key port, Laem Chabang, which handled 9.46 million TEUs in FY 2024, reflecting increased maritime trade. The nation’s port infrastructure is bolstered by Map Ta Phut, Sattahip, and the Land Bridge megaproject, designed to connect the Andaman Sea with the Gulf of Thailand and reduce reliance on the Strait of Malacca.

Foundations for Future Growth

The Eastern Economic Corridor (EEC), spanning Rayong, Chachoengsao, and Chonburi provinces, has become Thailand’s industrial hub, attracting 1.35 trillion baht ($37 billion) in investments. It features high-speed rail links, integrated warehouses, and expanded U-Tapao Airport, projecting robust growth. Additionally, a 115 billion baht infrastructure stimulus in early 2025 aims to upgrade roads, logistics hubs, and digital networks, strengthening supply chain resilience. Thailand’s automotive industry remains vital, contributing 10% of GDP and maintaining its position as ASEAN’s top auto producer, despite recent production declines due to global supply challenges.

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