Abstract:
This study aims to explore current situations of logistics business in border trade zones of Chiang Rai province, Thailand and to identify factors affecting their investment decision making. This is to provide the investment promotion guide of logistics business in these areas. Semi-structure interview with 19 key informants the logistics business owners, the custom officer, the mayor, and the chairman of Chiang Rai chamber of commerce was conducted. Survey data were then collected by using questionnaires among 72 logistics business owners. The data were analyzed by using descriptive statics correlation analysis and multivariate regression analysis.
Results of this study showed that the performances of the logistics business in these areas were at a satisfactory level and had grown steadily. The owners had been likely to expand their businesses to Chiang Khong district where had been in the most readiness for the logistics business. Chiang San where goods can be shipped by a barge is the alternative area for the logistics business owners expansions of their businesses. Meanwhile Mae Sai is also the important area for the border trade. The logistics business owners had been dealt with many limitations which had included differences of trade regulations in each GMS country, various trade barriers, inequitable cross border fees, and political instability of trade partner countries. Apart from these limitations, Thai government has continuously facilitated and supported the logistics business in order to help them transport goods more conveniently and fast. The investment promotion guide of logistics business in border zones of Chiang Rai province is as follows. First, the government should revise existing policies for, and rules and regulations on the investments in the border zones and formulate the new ones, for example harmonizing policies for and regulations on international trade. They should develop and share the same electronic database and system, establish skill development organization, encourage business owners to access information about the benefits from the investments in the border zones, and develop the infrastructures as well as neighboring countries. Second, the government and the private organizations should promote the areas to be ready for being the cross-border trade zone. Business owners should increase their abilities to be in readiness for upgrading their local businesses to international ones and for being more competitive.