Cross-border road transport in ASEAN is forecasted to increase sharply thanks to the economic recovery and boom in e-commerce.
According to a report by Google, Temasek and Bain & Company in 20022, Southeast Asia's leading digital economies account for $200 billion in total transaction value, up 20% from 2021. Southeast Asia's online economy is also on track to reach $1.000 trillion by 2030.
E-commerce in general and the cross-border segment in recent years have shown strong growth in both Vietnam and Southeast Asian countries. In particular, cross-border online transactions gradually show an important role in business and export strategies, helping to increase revenue and popularity of brands in the market.
In addition, this sector is now also being focused by the government, supporting, easing trade restrictions, implementing new initiatives. For example, there is an e-customs system for ASEAN transit, which allows operators to move goods across borders with a single document.
They do not need to pay other taxes when the goods enter or exit. Along with that is the Regional Comprehensive Economic Partnership Agreement and trade cooperation, promising to be a lever to promote and support the rapid development of cross-border e-commerce.
BEST Express staff in Thailand manipulating goods from bonded warehouses into containers for cross-border transportation. Image: BEST Express
Despite being a potential field with a lot of room for development, cross-border e-commerce still has many challenges. To achieve sustainable development, in addition to good products, businesses need to be equipped with extensive knowledge of the world market situation. At the same time, they should also connect with reputable cross-border transport service providers to have a suitable, effective and long-term business development strategy.
International freight and logistics are one of the important factors in exporting goods online. In particular, logistics plays a decisive role in shaping customer experience and satisfaction about businesses.
Cross-border shipping service providers with integrated door-to-door delivery such as BEST Express help sellers easily develop business in many markets. Image: BEST Express
At the same time, balancing costs, partner reputation, and ensuring safety throughout the transportation process also affect business performance. Logistics units that provide many modes of transportation such as land, sea, and air will have the ability to handle parcels and legal issues in import and export more efficiently and quickly.
Finding the right shipping partner will help businesses optimize their investment resources, reduce shipping costs, complete orders, shorten shipping times, etc. At the same time, transportation risks as well as unwanted violations in target markets are also minimized.
Grasping the cross-border transportation needs of Southeast Asian businesses, many logistics "big guys" have invested in establishing service networks to meet the needs of partners. Up to now, ASEAN countries have formed the first road network specializing in providing international freight services in the market.
Shipping businesses can move goods back and forth more quickly between Singapore, Malaysia, Thailand, Vietnam, Myanmar and China. The trucking service is not only faster but also cuts costs compared to sea and air.
Foreign logistics groups with strong financial potential such as DHL Global Forwarding, 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 the cross-border transportation network, serving customers in the region.
Not only investing in completing cross-border transport routes, businesses also build a system of bonded warehouses to store goods, arrange a team of native staff to assist in carrying out customs clearance procedures at border gates. Their methodical investment also promises to bring a comprehensive service portfolio, creating conditions for businesses in the region to easily connect and develop their business.
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