The International Institute for Trade and Development (ITD) plans to propose a strategic initiative to the Ministry of Commerce, focusing on cross-border e-commerce (CBEC) to aid small and medium-sized enterprises (SMEs) in expanding their exports to the Chinese market. This move aims to provide SMEs with new opportunities to enhance their presence in China through CBEC channels.
Wimon Punkong, Deputy Executive Director (academic) of ITD, highlighted that the institute collaborates with numerous partners to disseminate findings from a project aimed at bolstering SMEs’ capabilities in utilising CBEC for the Chinese market.
According to these findings, CBEC presents a significant opportunity for SMEs to penetrate the Chinese market more effectively.
Collaborators in this initiative include the China Intelligence Centre, the College of Arts, Media and Technology at Chiang Mai University, and the Federation of Thai Industries‘ (FTI) ASEAN and logistics division.
The study conducted reveals that in 2023, China’s CBEC imports totalled 548.3 billion yuan (approximately 2.7 trillion baht) (US$75 billion), with expectations for a double-digit growth rate in 2024. The imports primarily consist of branded products, personal care items, snacks, cosmetics, food supplements, fashion goods, and handicrafts.
Over 1,500 Harmonised System (HS) codes on the positive list are eligible for importation via CBEC pilot zones across China. These products benefit from reduced customs duties and a 70% VAT rate, along with waived import licences, simplifying the import process.
Thai SMEs can take advantage of the CBEC channel to access the Chinese market more efficiently compared to traditional trade, stated Wimon.
Chinese market
He further identified high-potential products for this channel, including fresh fruits, processed agricultural products, processed foods, health foods, future foods, and high-value items such as jewellery, accessories, cultural products, and soft power-related products.
The FTI’s ASEAN and logistics division supports utilising road and rail transport routes for CBEC to bolster Thailand’s position as a CBEC hub for China-ASEAN trade. They propose establishing CBEC fulfilment centres in the Northern Economic Corridor and Northeastern Economic Corridor provinces.
Potential sites include Chiang Khong district in Chiang Rai, located 220 kilometres from China, as well as Nong Khai, Udon Thani, Nakhon Phanom, and Mukdahan, all connected to China via the R3A, Laos-China Railway, and R12 and R9 routes.
The adoption of the Chinese model for CBEC pilot zones is recommended, with Chiang Khong showing the most promise. Initially, it could function as a showroom and warehouse, with an estimated initial investment of 10 million baht (US$293,255) in 2025 through public-private partnerships, including the involvement of the Customs Department.
SMEs intending to sell via Chinese CBEC platforms would need express logistics to ensure delivery within seven days, an improvement over the current schedule, reported Bangkok Post.
Additionally, the Bank of Thailand and the Chinese government need to engage in discussions regarding baht-yuan transactions for essential products.
The story Thai SMEs to boost exports to China via e-commerce as seen on Thaiger News.
