Cross-border shipping demand in Southeast Asia is increasing sharply

Cross-border road transport in ASEAN is forecast to increase sharply thanks to economic recovery and e-commerce boom.

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

E-commerce in general and cross-border e-commerce in particular have shown strong growth in Vietnam and Southeast Asian countries in recent times. In particular, cross-border online transactions have gradually shown an important role in business and export strategies, helping to increase revenue and brand popularity in the market.

In addition, this sector is currently receiving attention from the government, which has supported, eased trade restrictions, and implemented new initiatives. For example, there is the ASEAN transit e-customs system, which allows operators to move goods across borders using a single document.

They do not need to pay other taxes when goods enter or leave the country. Along with that, the Regional Comprehensive Economic Partnership Agreement and trade cooperation promise to be a lever to promote and support the rapid development of cross-border e-commerce.

BEST Express staff in Thailand work to move goods from a bonded warehouse into a container for cross-border transport. Photo: BEST Express — BEST Express staff in Thailand work to move goods from a bonded warehouse into a container for cross-border transport. Photo: *BEST Express*

Although it is a potential field with much room for development, cross-border e-commerce still faces many challenges. To achieve sustainable development, in addition to good products, businesses need to equip themselves with extensive knowledge of the world market situation. At the same time, they should also connect with reputable cross-border shipping service providers to have a long-term, effective and appropriate business development strategy.

International shipping and logistics are important factors in exporting goods online. In particular, logistics plays a decisive role in shaping customer experience and satisfaction with the business.

Cross-border shipping service providers with integrated door-to-door delivery like BEST Express make it easy for sellers to grow their business in multiple markets. Photo: BEST Express — Cross-border shipping service providers with integrated door-to-door delivery like BEST Express make it easy for sellers to grow their business in multiple markets. Photo: *BEST Express*

At the same time, balancing costs, partner reputation, and ensuring safety throughout the transportation process also affects business efficiency. Logistics units that provide multiple modes of transportation such as road, sea, and air will have the capacity to handle parcels and legal issues in import and export more effectively and quickly.

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

Grasping the cross-border transportation needs of Southeast Asian businesses, many logistics giants have invested in establishing service networks to meet the needs of partners. To date, ASEAN countries have formed the first road network specializing in providing international freight transportation services on the market.

Shipping companies can move goods more quickly between Singapore, Malaysia, Thailand, Vietnam, Myanmar and China. Road freight is not only faster but also cheaper than sea and air freight.

Foreign logistics corporations 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 completing the cross-border transportation network, serving customers in the region.

Not only investing in completing cross-border transportation routes, businesses also build bonded warehouse systems to store goods and arrange local staff to support customs clearance procedures at border gates. Their thorough investment also promises to bring a comprehensive range of services, creating conditions for businesses in the region to easily connect and develop their business.

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