Chinese logistics firms accelerate layout in Southeast Asia

Parcels are sorted automatically at a terminal of courier service provider SF Express in north China's Tianjin, Nov. 9, 2022. (Xinhua/Sun Fanyue)

Eleven Chinese logistics enterprises such as SF Express, J&T, and BEST Logistics have pumped more than 10 billion U.S. dollars of investment in Southeast Asia in recent years, reported Global Times.

The e-commerce boom in Southeast Asia, resulting in high demand for express delivery service, is one of the main factors luring Chinese investment. According to a report jointly released by Google, Temasek and Bain & Company last month, e-commerce in Southeast Asia, which has 460 million internet users, is projected to grow from 129 billion U.S. dollars in 2022 to 211 billion U.S. dollars in 2025.

Another factor driving up Chinese logistics firms' investment in the region is expanding China-ASEAN trade. In the first 10 months of 2022, ASEAN remained China's largest trading partner. Its total trade with China rose 15.8 percent year on year to 5.26 trillion yuan, accounting for 15.2 percent of China's total foreign trade, data from the General Administration of Customs showed.

Most of the Chinese logistics companies investing in Southeast Asia have abundant capital. Besides cross-border operation, Chinese firms have also started developing local logistic business in the region. These are the advantages of Chinese logistics enterprises, said Dongdong, owner of a Franchisee of J&T in Thailand.