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28 Jun 2017

Thai Economy

Regional E-Commerce Logistics HubImportant Steps for Thailand toward Opportunities in the Digital Era (Current Issue No. 2853)

Amid our transition into the digital era, wherein businesses are embracing technical changes at exceptional speed, one of the more remarkable features of this new era is ‘e-commerce' that acts as an intermediary between buyers and sellers within an immense e-marketplace. Of all the existing platforms, B2B e-commerce's role seems set to rise, given enhancements to digital technologies that assist in finding trade partners with the best answers to particular business needs, weaving them together into globally extensive e-commerce supply chains.

An e-commerce supply chain may include an e-marketplace, e-payment system and logistics solutions. These marketplaces and payment systems entail complex processing systems, driven by highly advanced technologies. At present, the market leaders in these two segments are China and the US. But the logistics systems differ, in the sense that businesses in their regions capitalize on specific geographic advantages to gain better market access for offering their services.

Thailand should consider becoming part of global e-commerce supply chains. Initially, the goal would be to gain a position as an e-commerce logistics hub for continental ASEAN states, being geographic neighbors connected by basic infrastructure and facilitations such as customs procedures. Such efforts are suggested based on our strength as a regional bridge and logistics hub.

If Thailand succeeds in attracting investments toward the e-commerce ecosystems needed to become the continental ASEAN e-commerce logistics hub,KResearch views that our exports to the CLMV would realize higher growth, especially our e-commerce marketed items. In 2020, our cross-border e-commerce exports may grow to 9.3-15.4 percent of all our exports to the CLMV, and contribute to full-year overall export growth of 6.3-7.4 percent, thus beating the current norm of 4.8 percent, with USD400-700 million higher value than the norm at USD26.79 billion.

Thai Economy