Alibaba Group Holding is expected to complete the construction of an e-commerce and logistics hub by 2019 in Thailand. This will take the online retailing giant close to the Southeast Asian economies and closer to its aim of working in the other markets instead of just the Chinese market.
Alibaba promises to provide a one-stop service in Thailand
In an emailed statement to China Daily, the e-commerce company said that the building of the park is on a “steady course” and it marks the long-term investment of Alibaba Group Holding in Thailand. In December, the Chinese internet firm promised under an agreement with the Thai government that it will help in developing the e-commerce sector of the country by providing training to individuals as well as small businesses. Also, the tech giant promised the Thai government that it will help in exploring ways to enhance the logistics capabilities of Thai businesses.
The hub, according to the internet giant, is designed to offer a one-stop service connecting manufacturers, service providers, logistic partners, and SMEs to complement its current investment in Lazada Group. Alibaba Group holds a large stake in the Lazada Group, which is a dominant regional e-commerce platform.
The statement of the internet giant further said, “We hope the park will empower Thailand’s innovative internet startups and boost the country’s technology ecosystem.” Alibaba and its subsidiary Lazada will – under the agreement – provide e-commerce training to over 30K Thai SMEs to assist them in nurturing software developers and access both international and domestic e-commerce platforms. In addition to this, the Chinese firm also vowed to advise “Thailand Post”- the postal service of the country – on logistics and shipping.
Alibaba could win in the cloud market: Report
The public cloud opportunity in China is very large and the e-commerce giant Alibaba Group Holding is positioned to win the cloud market. Also, AliCloud is an important asset of the online retailing giant that can grow into $65 billion-$70 billion in valuation over the next half decade.
Barrons is still bullish on the stock of the China-based e-commerce company and they think that the near-term is exceptionally strong for the online retail business. News site Barrons notes that they see significant long-term value in the collection of assets. The $130 price target – according to Barrons – is conservative but they have not yet rolled forward to estimates of next year. They reiterate a Buy rating.