Sweet Deal: Alibaba helps Thai companies reach Chinese online shoppers

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03:07

Let's now go to southeast Asia. Among the benefits of the Belt & Road Initiative, e-commerce is bringing Thailand's agricultural products to the massive online market of China. China's Alibaba - and the Thai government - have signed a deal to sell Thai produce in China. CGTN's Martin Lowe looks at how Alibaba's e-commerce platforms have created a new life-line for Thai farmers.

MARTIN LOWE CHIANG RAI, THAILAND "I'm Martin Lowe in the longan fruit fields of northern Thailand – a crop that's set to reach new markets thanks to a deal signed with China under Belt & Road."

It's harvest time in the longan fields - a sweet-tasting fruit grown extensively in north and east Thailand. One of the biggest customers for the crop is China, already buying 300 million US dollars worth a year.

Now, sales in the traditional marketplace are to be boosted by selling an extra 10,000 tonnes of Thai longan in China, online … through Alibaba's T-mall retail website.

It's part of a Belt and Road initiative to help Thai growers reach new markets. This farmer says selling online will bring more international demand.

BOONTAN SUTTA LONGAN FARMER "Many farmers in this area are already growing more longan than they did before. If they have extra land, they are turning it over to longan."

The deal follows an Alibaba promotion of Thai durian. Eighty thousand durians were snapped up in the first minute alone – and fruit worth two million dollars was sold in just three days.

MARTIN LOWE CHIANG RAI, THAILAND "This scheme's one of a number between Alibaba and Thailand to develop this country's digital economy. Alibaba will also provide training to Thai SMEs, that's small and medium enterprises, on how to maximize the online marketplace and will help Thailand establish a National E-Commerce Platform."

Alibaba is investing 320 million dollars to create a digital hub in Thailand to link Thai producers to international customers.

Meanwhile, China's on track to become the world's biggest consumer - with a prosperous middle-class of 300 million people.

GUAN MU FORMER CHINESE AMBASSADOR TO THAILAND "Within five years, China expects to import eight to 10 trillion dollars worth of goods - from Thailand that will include tropical fruit such as longan, durian and rambutan."

Profit from food exports is growing so quickly that many Thai farmers are abandoning low-value crops like rubber, and switching to fruit. It's expected new ways of selling – such as these online deals under Belt and Road – will greatly contribute to Thailand's prosperity. Martin Lowe, CGTN, Chiang Rai, Thailand.