Demand for cross-border shipping in Southeast Asia is growing sharply.

Cross-border road transport in ASEAN is projected to increase significantly thanks to economic recovery and the boom in e-commerce.

According to a 2022 report by Google, Temasek, and Bain & Company, Southeast Asia's leading digital economies accounted for $200 billion in total transaction value, a 20% increase from 2021. The Southeast Asian online economy is also on track to reach $1 trillion by 2030.

E-commerce in general, and cross-border commerce in particular, has shown strong growth in both Vietnam and other Southeast Asian countries in recent times. In particular, cross-border online transactions are increasingly demonstrating their important role in business and export strategies, helping to increase revenue and brand awareness in the market.

Furthermore, this sector is currently receiving significant government attention and support, with loosened trade restrictions and the implementation of new initiatives. For example, there is the ASEAN electronic transit customs system, which allows operators to move goods across borders using a single document.

They don't need to pay other taxes when goods enter or exit the country. Coupled with the Regional Comprehensive Economic Partnership and trade cooperation agreement, this promises to be a catalyst for the rapid development of cross-border e-commerce.

BEST Express staff in Thailand load goods from a bonded warehouse into containers for cross-border transport. Photo: BEST Express — BEST Express staff in Thailand load goods from a bonded warehouse into containers for cross-border transport. Photo: *BEST Express*

Despite its potential and ample room for growth, cross-border e-commerce still faces many challenges. To achieve sustainable development, in addition to high-quality products, businesses need to possess extensive knowledge of the global market. Simultaneously, they should connect with reputable cross-border shipping service providers to develop effective and appropriate long-term business strategies.

International shipping and logistics are crucial elements in online goods export. Logistics, in particular, plays a decisive role in shaping customer experience and satisfaction with a business.

Cross-border shipping services that integrate door-to-door delivery, such as BEST Express, make it easier for sellers to expand their businesses across multiple markets. (Image: BEST Express) — Cross-border shipping services that integrate door-to-door delivery, such as BEST Express, make it easier for sellers to expand their businesses across multiple markets. (Image: *BEST Express)*

Simultaneously, balancing costs, partner reputation, and ensuring safety throughout the transportation process also affect business efficiency. Logistics companies that offer multiple transportation methods such as road, sea, and air will have the capacity to handle parcels and legal issues in import and export more efficiently and quickly.

Finding the right shipping partner will help businesses optimize investment resources, reduce shipping costs, fulfill orders, and shorten shipping times. At the same time, it minimizes shipping risks and unwanted violations in target markets.

Recognizing the cross-border transportation needs of Southeast Asian businesses, many major logistics companies have invested in establishing service networks to meet their partners' demands. To date, ASEAN countries have formed the first dedicated road network providing international freight transportation services in the market.

Shipping companies can move goods back and forth more quickly between Singapore, Malaysia, Thailand, Vietnam, Myanmar, and China. Road transport services are not only faster but also more cost-effective than sea and air transport.

Foreign logistics corporations with strong financial resources, such as DHL Global Forwarding and BEST Inc., have invested in bonded warehouse systems and built service networks in China and Southeast Asian countries. These investments contribute to the completion of cross-border transportation networks, serving customers in the region.

In addition to investing in improving cross-border transportation routes, businesses are also building bonded warehouse systems for storing goods and deploying local personnel to support customs clearance procedures at border crossings. Their systematic investment also promises to provide a comprehensive range of services, facilitating easier connection and business development for businesses in the region.

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