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05/03/2002: Thais have edge in China

Developments in the Thai logistics industry will benefit local firms looking to operate in China, said David Edwards, the managing director of Logistics Bureau Asia.

"Thai firms that are going through the process of developing both infrastructure and standardisation systems to support their supply chains have hands-on knowledge of what it takes to put these processes in place, and both the short and long-term benefits of doing so," Mr Edwards said.

China's rapid legal and social changes would create huge opportunities for retailers, with the number of outlets growing by 3% to 5% a year.

Mr Edwards said around 80% of new outlets were less than 20 square metres, offering huge potential for retail industry consolidation and a move to more retail chains, in turn putting pressure on logistics and supply chains because of insufficient infrastructure.

"The evolution of the retail sector in China is following a pattern that was clearly demonstrated in Thailand," he said.

China's entry to the World Trade Organisation would lead to the deregulation of the logistics industry in three to five years.