Thai Times

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Monday, Jul 28, 2025

Thailand Positions Itself as a Regional E-Commerce Hub with Strategic Initiatives

Thailand Positions Itself as a Regional E-Commerce Hub with Strategic Initiatives

With a burgeoning market and investments in technology, Thailand is aiming to become a leading player in Southeast Asia's e-commerce sector.
Thailand's e-commerce sector is gaining momentum amidst a backdrop of robust growth across Asia, where online sales reached $2.3 trillion in the past year and are projected to expand over 10% annually through 2028. Experts attribute this growth to a combination of improving digital infrastructure, advancements in artificial intelligence (AI), and optimized logistics solutions.

Mike Li, the chief executive of UniEx Expo Pte, highlighted Thailand's strategic location in Southeast Asia as a pivotal factor that could bolster the nation's role as a critical hub for cross-border e-commerce.

Li's remarks came during the announcement of the Asia DigiCommerce Services Xpo, set to take place from June 11-13 at the Queen Sirikit National Convention Center, which will attract influential e-commerce entities to explore innovations and foster collaborative partnerships.

As part of Thailand's strategy, there is a concerted effort to enhance digital payment systems and leverage AI and blockchain technologies, laying the groundwork for the next phase of e-commerce evolution.

Ally Wang, secretary-general of the Shenzhen Cross-Border E-Commerce Supply Chain Service Association, identified three crucial transformations in the sector: a shift in logistics from merely serving as distribution channels to becoming strategic assets; a restructuring of online platforms into ecological engines influencing supply chains; and the deepening integration of technology as a core element of e-commerce operations.

Notably, platforms like TikTok Shop have emerged as significant players, demonstrating the power of live e-commerce to rapidly engage consumers.

Major tech firms, including Amazon and Microsoft, have also recognized the potential of Thailand's market, with substantial investments aimed at establishing regional data centers.

In parallel, the advancements in logistics are deemed vital.

Stephen Bao, chief operating officer of KEX Express (Thailand) Plc, indicated that the recent acquisition by S.F. Holding has integrated advanced logistics capabilities, promoting cross-border trade between China and Southeast Asia.

The growth of e-commerce has seen more Thai consumers using digital platforms for purchases, driven in part by the impacts of the COVID-19 pandemic.

SF's innovations, such as drone delivery trials and AI-powered route planning, are expected to enhance delivery efficiency, particularly benefiting local agricultural exports targeted at the Chinese market.

To facilitate further growth in cross-border e-commerce, Bao underscored the necessity for smoother customs processes, more bonded warehouses, and tax incentives to improve reliability and reduce delivery timelines.

The logistics landscape in Thailand is evolving, with calls for cohesive infrastructure development to support both domestic and cross-border e-commerce activities.

Nattapume Pavaratn, president of the Warehouse Silo and Cold Storage Business Association, emphasized the importance of multimodal transport solutions, including the high-speed rail connections, to create an integrated logistics model that can efficiently serve the e-commerce sector.

Additionally, he encouraged collaborative efforts among industry players to reduce inefficiencies and enhance service delivery.

The future of Thailand's e-commerce also hinges on the effective integration of AI technologies.

Kornpong Nualsanit of Alibaba.com noted that successful entry into the Thai market requires overcoming challenges, including language barriers and adapting to regulatory frameworks that are rapidly evolving in the region.

AI, as a transformative tool, is crucial for optimizing processes and enhancing customer engagement in the competitive online marketplace.

Lastly, as more consumers shift to online purchasing, there remains significant potential for growth, with online retail sales in Thailand accounting for approximately 11% of total retail sales, markedly below the global average.

Despite challenges such as high logistics costs and insufficient infrastructure, the momentum in Thailand's e-commerce sector indicates a promising trajectory in the coming years.
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