{"id":1558,"date":"2019-03-22T01:19:27","date_gmt":"2019-03-21T18:19:27","guid":{"rendered":"https:\/\/capitalcambodia.com\/?p=1558"},"modified":"2019-03-22T05:04:36","modified_gmt":"2019-03-21T22:04:36","slug":"e-commerce-giant-alibaba-makes-cambodia-its-regional-logistics-hub","status":"publish","type":"post","link":"https:\/\/capitalcambodia.com\/e-commerce-giant-alibaba-makes-cambodia-its-regional-logistics-hub\/","title":{"rendered":"E-commerce giant Alibaba makes Cambodia its regional logistics hub"},"content":{"rendered":"<p><em>As the battle for the ASEAN e-commerce market heats up, Alibaba\u2019s logistics arm zeroes in on Cambodia<\/em><\/p>\n<p>Tech magnate Jack Ma\u2019s Alibaba Group Holding Ltd plans to make Cambodia its central logistics hub for the Greater Mekong region in four to five years. The logistics expansion is necessary as rival Chinese and US tech giants battle it out for the Southeast Asia e-commerce market.<\/p>\n<p>\u201cCambodia is a good location for a transfer hub because we can service competitive e-commerce markets in Vietnam, Thailand and Myanmar,\u201d Kevin Li, general manager for global delivery at Alibaba\u2019s transnational logistics platform Cainiao Smart Logistics Network Ltd, tells Capital Cambodia.<\/p>\n<p>\u201cAs the global parcel network manager for Alibaba, my mission is to set up the network of parcel transshipments from China to countries like Cambodia. I will be involved in the design and implementation of the global logistics network for Southeast Asia,\u201d Li explains.<\/p>\n<p>He adds that only Cambodia has bonded warehouses which enables it to store products from China and other countries, and transport the goods within the local market and to neighbouring countries.<\/p>\n<p>The e-commerce giant has been on an expansion mode in the past year following the acquisition of a controlling stake in Singapore-based e-commerce startup Lazada in 2016, and Tokopedia, an Indonesia-based e-commerce platform last December. This has made Alibaba one of the top three platforms in the region.<\/p>\n<p>In the Greater Mekong region of nearly 300 million population, Amazon.com Inc moved to Vietnam to partner with Vietnam E-commerce Association to make inroads into the market.<\/p>\n<p>Alibaba\u2019s major pivot towards Cambodia is critical for its global strategy.<\/p>\n<p>Li says the Chinese government\u2019s relationship with Cambodia has guaranteed Alibaba the resources and ease of regulations that are not found in neighbouring countries.<\/p>\n<p>\u201cChina\u2019s ties with the government is another factor behind this logistics (move). Cambodia is very close to China which makes doing business here easier when one has access to the central government,\u201d Li adds.<\/p>\n<p>In comparison, Vietnam and Thailand have strict customs and foreign business policies, and do not have economic zones and bonded warehouses.<\/p>\n<p>\u201cIt\u2019s very difficult to transfer foreign products and store it in those countries but the location here is good as it is in the centre of the Mekong region. That\u2019s why we feel Cambodia has strengths that Thailand and Vietnam can\u2019t compare with,\u201d he adds.<\/p>\n<p>Apart from regulatory advantages, the dollarisation of the Cambodian economy facilitates currency exchanges in US dollars and Chinese yuan, simplifying payment services compared to Vietnamese dong and Thai baht.<\/p>\n<p>\u201cWe also service other trading and e-commerce companies where they have a lot of money moving in and out of the country, so it is important that the location we are at has a good policy for money movement,\u201d Li says.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the battle for the ASEAN e-commerce market heats up, Alibaba\u2019s logistics arm zeroes in on Cambodia<\/p>\n","protected":false},"author":3,"featured_media":1567,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[3],"tags":[288,30,262,292],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - 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