More than half a dozen Taiwanese technology companies have made strong inroads into Thailand's burgeoning e-commerce market, which is emerging as a rising star in Southeast Asia.
Up to 10 Taiwanese firms are expected to enter the country's e-commerce race by the year-end, thanks to Thailand's potential economic growth and large population, said Jan Hung-Tze, chairman of the Taiwan Internet and E-Commerce Association (TIEA).
Most of them are seeking to expand their presence in music-streaming services and restaurant-booking mobile apps.
For instance, PChome Online Inc, Taiwan's largest online shopping service, and Taiwanese electronics firm Cal-Comp recently formed a 70:30 joint venture, PChome (Thailand) Co, with US$3 million in registered capital.
The two companies chose Thailand as their first country to expand their e-commerce business in Southeast Asia. The new venture will officially begin operations by September.
"Within the next six years, we believe the transaction value of Thailand's e-commerce market will account for 5% of total retail business transactions," Mr Jan said yesterday at the Taiwan-Thailand Internet Business Conference 2015, hosted by the TIEA and the Taiwan External Trade Development Council.
In 2013, Thailand's e-commerce accounted for only 0.2% of the total $90-billion retail business, compared with 9% in the US, China and Taiwan.
Mr Jan said Thailand's e-commerce has huge potential to grow, thanks to booming cross-border transactions in Asean.
He said PChome (Thailand) plans to launch a C2C marketplace, pchome.co.th, which will allow online merchants here to sell their products free of charge for three years.
After that, the company will charge a transaction fee of 1.5% of the product prices.
"We aim to have 5 million product items available on the website in the first year of operation," said Mr Jan.
Simon Shen, chief executive of New Kinpo Group, a global electronic manufacturer, said its subsidiary Cal-Comp foresees high opportunity in the e-commerce business in Thailand, beyond its core electronic manufacturing business.
Mr Shen added that Cal-Comp was considering investing in distribution and warehouse facilities in Thailand to support PChome (Thailand).