Thailand Post bullish on new alliance
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Thailand Post bullish on new alliance

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Mr Dhanant, pictured at the office of Vietnam Post in Hanoi, displays a box of one of the Vietnamese retail goods that will be sold.
Mr Dhanant, pictured at the office of Vietnam Post in Hanoi, displays a box of one of the Vietnamese retail goods that will be sold.

Thailand Post is forging the development of a cross border e-commerce economy with Vietnam and Indonesia through its regional alliance model and an integrated platform to boost the volume of Thai e-commerce.

Thailand Post recently signed an agreement with Vietnam Post and Indonesia Post (Pos Indonesia), alongside two strategic advisors, Paytech, a registered Vietnamese company, and Kota, a Singapore-registered company, to jointly establish the Regional Asean Post Alliance (RAPA) and RAPA Shop platform.

The platform is slated to be officially launched in early 2025.

Dhanant Subhadrabandhu, chief executive of Thailand Post, said the partnership will strengthen Asean economic integration.

The alliance focuses on four key areas: cross-border e-commerce partnerships connecting online and offline systems, a unified logistics model, QR code development for convenient transactions, and the expansion of Asean e-commerce to serve as a central hub for global markets.

The tie-up is also to bolster e-commerce among the three nations involved in the partnership by offering end-to-end solutions for the distribution of Thai and Vietnamese products through the integrated platforms' RAPA Shop.

The initiative also falls under the Asean Postal Framework (ASEANPOST).

"Both Vietnam and Indonesia present a highly promising economic landscape, with emerging markets in sectors such as automotive, electronics, consumer goods and, particularly, retail and e-commerce," Mr Dhanant added.

He said Vietnamese consumers spend around US$1 billion monthly on online channels, while foreign platforms are entering the Vietnamese market.

Vietnam ranks among the world's top 10 fastest-growing e-commerce markets.

"Thailand Post sees an opportunity to expand business, support Thai entrepreneurs in international trade and reinforce the company's goal to become a 'trusted sustainable Asean brand'," Mr Dhanant said.

Under the RAPA pact, each party will select targeted e-commerce products to be promoted and categorise them within the RAPA Shop platform.

The platform will be linked with major local e-commerce platforms such as ThailandPostMart in Thailand. It aims to boost popular products with full-service postal delivery.

Potential exports to Vietnam include coffee, tourism products, processed foods, beverages, electronics, automotive parts, health and beauty products, and pet supplies.

Mr Dhanant said via partnering with Vietnam Post, both Thailand Post and Vietnam Post can leverage their physical and digital networks to enhance postal services under the ASEANPOST framework, which includes special reciprocal rates for postal services, parcels and EMS, through three main transport routes.

For air transport, Thailand Post offers air shipping between Thailand and Vietnam to Hanoi and Ho Chi Minh City via Thai Airways.

For ground transport, Thailand Post previously exchanged parcels with Vietnam via the Aranyaprathet-Phnom Penh-Ho Chi Minh route.

This service was suspended in 2020 due to the Covid-19 pandemic and the Thai-Cambodian border closure. In 2024, Thailand Post resumed cross-border parcel exchanges with Cambodia, with plans to extend it via Cambodia to Vietnam.

For rail transport, Thailand Post is exploring the possibility of rail transport with Lao Post, Vietnam Post and relevant authorities, focusing on the Thailand-Laos-Vietnam route.

Key routes include R12, connecting Nakhon Phanom to the Vung Ang economic zone in Vietnam. The construction of this is expected to begin by late 2024 and it is slated to open by 2028.

Apart from boosting the capability of the e-commerce sector of each country in the partnership, Nguyen Kien Cuong, vice-president of Vietnam Post, said the alliance would involve the development of new logistics and supply chain partnerships, including warehousing integration, advanced transport tech for expedited shipping and knowledge exchange among the three countries.

Mr Dhanant, along with Thailand Post's management, visited Vietnam Post and its management in Hanoi on Nov 14 to update the partnership.

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