ITD, FTI, and CMU’s CIC Support the Establishment of Fulfillment Centers along Economic Corridors to Penetrate the Chinese Market via the CBEC Mechanism
The International Institute for Trade and Development (Public Organization) (ITD), in collaboration with the China Intelligence Center (CIC) of the College of Arts, Media and Technology, Chiang Mai University, and the Federation of Thai Industries (FTI) – ASEAN and Logistics, organized a workshop seminar to gather feedback on “The Dimension of Border Trade and Logistics for Developing the Potential of SMEs to Utilize Cross-Border E-Commerce (CBEC) for the Chinese Market.” The seminar, held at the Kamolmas Meeting Room, The Sukosol Hotel, Bangkok, on September 12, 2024, was attended by over 70 participants from government agencies, the private sector, and academia.
This workshop seminar is of paramount importance in promoting and supporting Thai SMEs to expand their market reach to China. Since China opened its borders, the Chinese government has supported the entry of foreign goods into its market. China has increasingly relaxed trade regulations and established more distribution centers, leading to the rapid growth of trade through the CBEC channel, which boasts high transaction values. To encourage Thai SMEs to engage in trade via the CBEC channel, it is crucial to focus on developing the transport and logistics system to ensure low transportation costs, along with a standardized tracking system and warehouse management to efficiently deliver goods to end consumers.
The key recommendations gathered from the brainstorming session are:
- Driving the operational mechanism in the form of Special Economic Zones (SEZs) on the Northern Economic Corridor (NEC) and Northeastern Economic Corridor (NeEC), similar to the Eastern Economic Corridor (EEC), would serve as a mechanism to attract more Chinese capital investment or joint ventures into both corridors.
- Strategically placing Fulfillment Centers either in Chiang Khong District, Chiang Rai Province, or in the areas of Nong Khai or Udon Thani Provinces, is deemed essential to push these two areas to become the CBEC hub between China and ASEAN.
- Building a workforce with knowledge and skills on new trade platforms to support international trade in the CBEC format is a policy recommendation from the workshop participants.
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