China-Philippines Relations: Chinese tech footprint growing in Philippines

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02:18

MK Bertulfo and her husband Jim left their office jobs a few years ago and started freelancing online for a Canadian company. Having to work nights and from home changed their lifestyle, including how they shop.

MK BERTULFO ONLINE SHOPPER "Since then, we've been spending most of our time at home. We rarely have time to go out to malls or to the market, so everything we can buy online, we buy online – from that computer behind me to gadgets and our clothes."

Their preferred online marketplace, Lazada – Southeast Asia's version of Alibaba, quite literally, as the Chinese company has acquired a 90 percent stake in Lazada.

BARNABY LO LAGUNA, PHILIPPINES "Lazada started its business in the Philippines in 2012, but in just a matter of six years' time, it has been able to expand significantly. I mean, look at this – a 54,000 square meter warehouse. And this is just one out of three warehouses Lazada now has in the country."

CARLOS BARRERA, COO LAZADA PHILIPPINES "An investor like Alibaba, it's definitely not only an investor but a partner, we are part of the holding. So they were very excited about the numbers but for them I would say that was second priority. The main priority was the potential – what is really the amazing prospect that this market has."

Google and Temasek predict the Philippines' e-commerce market to be worth close to 10 billion dollars by 2025, up from just half a billion in 2015. According to Lazada's 29-year-old Chief Operating Officer Carlos Barrera, the success of the company's latest 11/11 sale or what's known in China as Singles' Day sale, is a testament to that potential.

CARLOS BARRERA, COO LAZADA PHILIPPINES "I think it's also a way to validate what we're trying to do and to show our partners that this is only the beginning and what we are telling them is actually happening."

Alibaba isn't just investing in e-commerce in the Philippines, however; it's also bought shares in Mynt, a local e-wallet provider. Tencent and China Telecom are also in talks with their respective Philippine partners for what could be multi-billion dollar investments.

Barnaby Lo, CGTN, Manila.