Shenzhen-based 4PX Express, partially owned by Alibaba Group, and the United Nations Development Program (UNDP) yesterday signed a cost-sharing agreement to build up the ecommerce ecosystem in the Kingdom and improve cross-border logistics.
For in depth analysis of Cambodian Business, visit Capital Cambodia
Under the partnership, 4PX will provide $1.3 million that will be invested in initiatives to build the capacity of local SMEs in ecommerce, including training on Alibaba.com.
Nick Beresford, UNDP resident representative, said the initiative is in line with government efforts to boost the competitiveness of local SMEs.
“As Cambodia strives to strengthen its SME sector, a well-conducted digital transformation will help the Kingdom position itself to capture opportunities in the domestic and international markets,” he said.
Yue Li, 4PX Express CEO, said the rapid development of e-commerce in Asean is promising. More efficient cross-border logistics will enable Cambodia to gain more from Asean integration.
“This partnership builds on the strengths of both organizations, working with domestic and global stakeholders to gain efficiency and overcome bottlenecks.
“The ecosystem started by 4PX, UNDP, and partners will empower Cambodian consumers and allow them to buy and sell from merchants worldwide without difficulties, helping the country increase revenue from international trade,” he said.
“The ecosystem we are creating will reduce supply chain costs and expand the offer of products. It will facilitate the training of local e-sellers, create more job opportunities, and help Cambodian SMEs sell to China and the world,” he added.
Mr Yue said Cambodia faces two main challenges in the ecommerce sector – inefficient cross-border logistics and lack of access to global supply chains.
“To break past these barriers, we are nurturing the e-commerce ecosystem in Cambodia with our strategic partners, ShopRunBack, WorldBridge Group, and VCanBuy. We aim to tackle problems regarding the supply chain, payments, and cross-border logistics,” he added.
Mr Yue said 4PX now serves more than 300,000 e-sellers in China and around the world.
Sun Chanthol, the Minister of Public Works and Transport, who presided over the signing ceremony, said, “We hope that this public-private partnership will improve the e-commerce ecosystem and the logistics network, including facilitating cross-border shipments and establishing paperless systems,” he said.
“This agreement will build the capacity of local SMEs and allow them to showcase their products in the international market through Alibaba. It will help our businesspeople take advantage of opportunities in the international marketplace to sell their products and services and increase revenue,” he said.