Janio Bi-Weekly News Round-up | January 2019

A curation of the latest news in e-commerce, logistics, and tech in Southeast Asia and beyond.

Throughout January, China’s giants continue to invest in logistics hubs, Thailand is optimistic about its digital expansion, and Indonesia raise taxes on e-commerce businesses.

China’s Bid to Grow its Logistics Industry

China is looking to build 150 smart logistics hubs by 2025¹, according to a joint press release by National Development and Reform Commission and Ministry of Transport. While major port cities like Shenzhen, Shanghai, and Guangzhou are one of these areas where the logistics hubs are being developed, China is looking inwards to cities like Xi’an and Zhengzhou. These inland cities will serve as land bridges between China and Europe. While this is good news for both China and Europe’s market, this development may pose a challenge to Singapore’s dominance over maritime trade.

JD. com opens smart delivery stations ahead of CES² in Changsha and Hohhot, coinciding with its showcase in CES 2019. These stations act as bases for JD. com’s autonomous delivery robots, strengthening the company’s delivery capabilities within 5 km of the stations. Aside from the deployment of autonomous vehicles, JD. com is also showcasing its delivery drones in CES. These drones will aid in delivering consumer goods and medical supplies to hard-to-reach rural areas in China.

Thailand’s Development in the Digital Economy

Alibaba Group and WHA are expected to announce plans³ for a joint e-commerce investment plan. WHA Corporation, a Thailand SET-listed company, being granted special economic zones by an ad hoc committee of the Eastern Economic Corridor (EEC). The companies will be developing in Chachoengsao’s Bang Pakong district for special e-commerce activities to develop the country’s e-commerce and logistics industries.

Thailand 4.0 to be showcased at upcoming Dubai Expo 2020⁴. In a bid to woo the world, Thailand’s exhibition will showcase the country’s transformation into a smart nation by revealing the country’s digital innovations. It also hopes to promote its lifestyle and business opportunities with the pavilion’s “Mobility for the Future” theme.

Indonesia Raises Tax Collection at E-commerce Platforms

Indonesia cracks down on e-commerce to raise tax collection⁵, requiring sellers and online platforms to share their data with the authorities. From April 2019, all operators of online marketplaces like Tokopedia, Blibli, and Bukalapak, will have to detail each seller’s turnover and report this to the government. Most of its tax laws will then bring e-commerce sellers in line with requirements for conventional brick-and-mortar retailers.

That’s all for this news round-up! If you’d like to find out more about how we can solve your SEA e-commerce cross-border delivery needs, come and have a conversation with us.