Chinese logistics and delivery company Best Inc Thailand has budgeted 5 billion baht to invest in Thailand during 2018-20 as it seeks to enter the red ocean industry of parcel delivery services in Southeast Asia.
The local unit is the business arm of New York-listed Best Inc, which is based in Hangzhou, China.
Best offers logistics solutions in 16 countries, including China, Thailand, Australia, Germany, the US, Japan and South Korea.
In Thailand, Best rolled out parcel delivery services last year. It chose the country as its 15th market for the service to capitalise on the growing e-commerce trend.
Johnny Chou, founder and chairman of Best Inc, said the firm aims to provide a superior delivery experience to Thai consumers and merchants with supply chain services in Thailand and Southeast Asia.
"Thailand is a strong location as the centre of the region," Mr Chou said. "The local market has dynamic growth in e-commerce transactions every year, offering high potential to justify our massive investment."
Best has roughly 500 service locations in Thailand and plans to expand to 2,200 locations in 2019.
The Best Express delivery business unit is situated close to Suvarnabhumi airport and spans 10,000 square metres.
Mr Chou said the government is keen on promoting Thailand's logistics and e-commerce industries, as well as the digital economy, which should benefit companies that provide parcel delivery services.
These services remain a red ocean industry in Thailand, dominated by state-owned Thailand Post. Other players include Hong Kong's Kerry Express and Thailand's Nim Express.
"We hope to contribute to the advancement of e-commerce and the digital economy in this region," Mr Chou said.
Best's vision is to leverage cutting-edge technology and innovation to provide Thai consumers and companies with affordable and quality logistics services.
Mr Chou expects Best to be a top-three operator in parcel delivery services in Thailand by 2021.
Best ships roughly 100,000 parcels a day, expecting to reach 150,000 daily by 2021.
Mr Chou said Best hopes to form a venture with Alibaba Group to expand its business presence globally.
"We are in talks with Alibaba regarding further details," he said.