Business
11:58, 24-Aug-2017
JD.com, Thai retailer Central in talks for $500 million e-commerce JV
["china","other","Thailand"]
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China's JD.com Inc is in advanced talks with Thailand’s Central Group to launch an e-commerce joint venture in Thailand with a planned total investment of 500 million US dollars, Reuters reported on Wednesday.
The venture will help China’s second largest e-commerce retailer expand its overseas business beyond Indonesia and boost its presence in Southeast Asia where rivals Alibaba Group Holding and Amazon are ramping up competition with new services, such as a quick delivery service in Singapore.
A sign of China's e-commerce company JD.com is seen at CES (Consumer Electronics Show) Asia 2016 in Shanghai, on May 12, 2016. /Reuters Photo
A sign of China's e-commerce company JD.com is seen at CES (Consumer Electronics Show) Asia 2016 in Shanghai, on May 12, 2016. /Reuters Photo
Currently, JD.com's overseas investments are mainly based in Indonesia, which include an e-commerce platform and travel start-up Traveloka.
JD.com CEO Richard Liu told media that the company is planning to enter the Thai market later this year in order to use Thailand as a hub of service for other countries in the region, like Vietnam, Malaysia and Singapore, and even beyond.
According to Reuters, the joint venture with Central Group, owned by the billionaire Chirathivat family, Thailand's third-richest, will focus on e-commerce and finance sectors.
An employee works at a JD.com logistic center in Langfang, Hebei Province. JD.com plans to enter the Thai market later this year and use Thailand as a hub of service for other countries in the region such as Vietnam and Malaysia. /Reuters Photo
An employee works at a JD.com logistic center in Langfang, Hebei Province. JD.com plans to enter the Thai market later this year and use Thailand as a hub of service for other countries in the region such as Vietnam and Malaysia. /Reuters Photo
The deal has yet to be finalized as the companies are unable to agree on ownership terms, Reuters said.
Valued at 900 US million dollars, Thailand’s e-commerce market is expected to grow by 29 percent over the next 10 years, according to a report from Google and Temasek published in 2016.
The report also pointed out that the e-commerce market in Southeast Asia will grow 16-fold to 88 billion US dollars by 2025.
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