Southeast Asia is a region along the Belt and Road, and is also an important region for China to carry out economic and trade cooperation.
According to the trade data of the Belt and Road, the trade volume between China and Southeast Asia in recent years has approached 500 billion US dollars, which is nearly half of the total trade volume between China and other countries along the Belt and Road. In terms of exports, China’s export trade volume to Southeast Asia is the largest, accounting for nearly half of the total trade volume.
China is the largest source of imports in Southeast Asia, accounting for 21% of the global share. Southeast Asia mainly imports daily consumer goods from China, including a large number of intermediate products. China’s largest trading partner in Southeast Asia is Vietnam, and the trade volume between China and Vietnam accounts for 24% of China’s total trade in Southeast Asia.
Although China is the largest importer in Southeast Asia, the import situation of different countries in Southeast Asia from China varies greatly.
16.4.3 E-commerce development in major Southeast Asian countries
It is estimated that by 2025, the e-commerce market size in Southeast Asia will reach 87.8 billion US dollars.
1. Indonesia
With nearly 160 million Internet users, Indonesia is one of the important smartphone markets in Asia. Data from 2018 shows that Indonesia’s revenue in the e-commerce market reached US$9.2 billion. As people’s online consumption habits continue to deepen, it is expected that by 2025, Indonesia’s e-commerce market will generate sales of US$47 billion, ranking second only to China and India, with great market growth potential.
According to statistics, there were about 27 million online shoppers in Indonesia in 2018, and it is expected that by 2025, 41 million Indonesians will be active on e-commerce platforms.
In terms of imports, Indonesia’s main product importing countries are China, Singapore, Japan, Malaysia and South Korea. China has the largest import trade volume, with a total value of imported products of US$32.1 billion, which is greater than the sum of Japan, Malaysia and South Korea.
The Indonesian Investment Coordinating Agency (BKPM) once said at a media conference that the rapid development of Indonesia’s e-commerce industry in recent years is mainly due to Chinese cross-border investors. As the largest economy in Asia, China’s e-commerce and technology companies are becoming more mature, and Indonesia and China are neighbors in terms of geographical location.
In addition to the global mainstream e-commerce platforms, Indonesia’s popular local e-commerce platforms include Lazada ID, Blibi, Elevenia, Blanja, etc.
2. Singapore
According to relevant survey reports, Singaporeans are more inclined to buy foreign products online. In Singapore, more than half of e-commerce transactions are cross-border transactions, which is higher than that of China, Japan and South Korea.
In recent years, the number of people who use e-commerce platforms to buy products has increased by more than 5% each year, and the average personal spending on e-commerce has also increased year by year. The average spending of Singaporeans on e-commerce is US$180, which is far higher than the global average
According to global surveys, Singapore is far higher than the global average speed and ranks among the top ten in the world. Singapore’s mobile network has wide coverage and fast speed, and the network has penetrated into all aspects of users’ lives. Therefore, Singaporean consumers are more inclined to use online e-commerce platforms for daily shopping, and online shopping has gradually become the preferred shopping method for Singaporeans.
Online transaction data shows that the largest category of e-commerce transactions in Singapore is toys and handicrafts, with a market turnover of US$1.153 billion in 2018. The second largest category is electronic digital products, with a market turnover of US$1.032 billion in 2018. The third is fashion, with a market turnover of US$883 million in 2018.
In addition to the global mainstream e-commerce platforms, the e-commerce platforms with high usage rates in Singapore include Qoo10 SG, Lazada SG, Zalora SG, etc.
3. Thailand
Thailand is the second largest economy in Southeast Asia and one of the regions with the largest number of Internet users in the region. The country has a population of nearly 70 million, of which 57 million are Internet users, accounting for 81% of the total population. The continued growth of the Internet user base has made Thailand an ideal environment for the development of the e-commerce market. In 2018, the value of Thailand’s e-commerce market was US$3.65 billion. According to the data of continuous growth in previous years, it is expected to reach US$6.01 billion in 2022.
In Thailand, the category with the largest e-commerce transaction volume is electronic digital products, with an annual transaction volume of US$1.404 billion. Toys and handicrafts are the second largest category. Then there are fashion, home furnishings, food, personal care products, etc. In the past two years, Thailand’s online game and mobile game industries have emerged and are expected to achieve strong growth in the next few years.
In addition to mainstream e-commerce platforms, Thailand’s local e-commerce platforms include Lazada TH, Shopee TH, Central, etc.