Chinese e-commerce giant Alibaba Group is said to be in talks with the Thai and the Malaysian governments, seeking the best location and conditions to set up a regional distribution and logistics hub for South East Asia.
In response to last week’s media reports saying that the group would set up the centre in Malaysia, Thailand’s Industry Minister Uttama Savanayana insisted that Alibaba is still interested in establishing its regional logistics hub in Thailand and it will finalise its investment plan by the end of this year.
“Thailand is the best location for developing the regional distribution and logistics system as it connects to Cambodia, Laos, Myanmar, Vietnam and Malaysia,”
he said, adding that “Thailand’s consumer market is larger than Malaysia’s, and we are forming a free-trade zone for product distribution to our neighbouring countries.”
The Chinese conglomerate has expanded its business empire outside China aggressively. It acquired the significant stakes in SingPost’s unit Quantium Solutions International, an end-to-end e-commerce warehouses and logistics services provider in Asia Pacific, in July 2015.
Nine months after the acquisition, Alibaba took a $1-billion control stake in Singapore-based e-commerce platform Lazada, underlining its determination to be a significant player in the Southeast Asia.
Alibaba’s entry makes the competition in e-commerce business fiercer especially for existing e-commerce service providers like Ninja Van, aCommerce and the logistic giant DHL.
Southeast Asia’s appetite for online shopping has increased continuously in line with a smartphone penetration and is forecasted to surge from 175 million units in 2015 to 230 million units this year.
According to eMarketer’s report, e-commerce revenues in six largest markets in Southeast Asia would reach $14 billion in 2016, around 40 per cent up from $10.5 billion in 2015.
The post Alibaba in talks to form logistics hub to strenghten its e-commerce biz in SEA appeared first on DealStreetAsia.
DEALSTREETASIA Pte. Ltd. is a news and intelligence platform providing reports on investments, mergers, acquisitions, private equity, venture capital, investment banking and the business of startups across the Asian region.
Alibaba confirms $13bn listing in Hong Kong
Alibaba will offer 500 million shares at a maximum of HK$188 apiece, the company said. The number eight is considered auspicious in China.
Chinese technology giant Alibaba on Friday confirmed plans to list in Hong Kong in what it called a $13 billion vote of confidence in the turbulent city’s markets and a step forward in its plans to go global.(more…)
E-commerce in ASEAN: Digital technology and players
The 50 most-funded e-commerce start-ups in ASEAN have raised $12.6 billion as of July 2019, with most of the funding raised in the last two years
E-commerce has been the most dynamic segment of the Internet economy in ASEAN over the past three years. The value of e-commerce rose four-fold, from $5.5 billion in 2015 to more than $23 billion in 2018.(more…)
Southeast Asia’s internet economy hits $100 billion
The two pacesetters in the region are Indonesia and Vietnam, which lead the pack with growth rates in excess of 40% a year.
The internet economies in Malaysia, Thailand, Singapore and the Philippines are growing by between 20% and 30% annually, with no signs of slowing down, according to Google and Temasek multi-year research program.(more…)
APRIL International Care opens up TeleHEALTH service to address Coronavirus worries
The TeleHEALTH service means policyholders do not have to leave their home or workplace to “see” a doctor, with a...
Thailand rolls out New Investment Measures to Boost Economy
The new definition of qualified applicants now includes businesses that have not previously received BOI promotion privileges as long as...
Thailand among top five countries for salary hikes
Thailand is among the top five economies in the world to see real salary increases and is likely to see...