Thailand risks losing regional market with 180 million consumers: forum
The government has to move fast to strengthen Thailand’s digital connectivity throughout mainland Southeast Asia or risk losing a market with 180 million consumers to Chinese-owned e-commerce platforms, experts in digital trade told a forum earlier this week.
Cambodia, Laos, Myanmar, and Vietnam offer great potential for Thai entrepreneurs, said Wimon Punkong, director of research at the Institute for Trade and Development.
Thai products are popular with consumers in all four countries and e-commerce can create a borderless market for trading them, Wimon said.
However, hurdles abound. These include unstable digital infrastructure, poor logistics, and complex regulations that make it difficult for Thai businesses, particularly small and medium-sized enterprises (SMEs), to connect directly with consumers throughout the region.
The Thai government should take the lead by proposing a regional working group to find ways for companies in each country to connect with e-marketplaces in neighboring countries, Wimon said.
This could begin with cross-border e-payments under the Asean Payment Connectivity concept, he added.
The Thai government should also improve the digital literacy of Thai entrepreneurs and ensure they have the digital tools necessary to compete. It should improve one-stop services for imports and exports, strengthen online databases, and create a national digital trade platform, Wimon said.
Although e-commerce has grown dramatically in mainland Southeast Asia, most e-commerce platforms are run by companies from outside the region, primarily Chinese-owned companies.
As a result, Thailand risks losing this market of 180 million consumers to competitors from outside the region.
Wimon made the comments at Wednesday’s forum "Unlocking Trade for CLMVT". The acronym refers to the five countries that comprise mainland Southeast Asia: Cambodia, Laos, Myanmar, Vietnam and Thailand.
Several of the institute’s studies on ways to increase trade in mainland Southeast Asia were presented at the forum, including one focusing on digital trade that included research by Lao and Vietnamese experts.
Wimon said the research aims to find strategies for developing cross-border e-commerce that benefits Thailand as well as neighbouring countries.
