INTERNATIONAL Merchandise Exchange and Exhibition (IMX), a subsidiary of top Chinese conglomerate King Wai Group (KWG), signed a letter of intent (LoI) with Thailand’s Commerce Ministry to form a strategic partnership that will give 48,000 Thai SMEs immediate access to China’s one billion consumers.
The Chinese conglomerate was founded by King Wai Chan.
Under this cooperation, Thai SMEs will benefit from IMX’s first-of-its-kind solution that integrates bonded warehousing, merchandise exhibitions, port services, custom clearing and sales channels both online and offline.
IMX operates exhibition centres in Tianjin, Shanghai, Shenzhen and Chengdu, while its centre in Shanghai has been recognised by China as a permanent exhibition and trade platform.
IMX’s subsidiary kjt.com is also one of the very first cross-border e-commerce platforms in China. In its efforts to drive cross-border trade, the Chinese government has officially made kjt.com the first platform for e-commerce since the establishment of the Shanghai free-trade zone.
With IMX’s integrated trading platform, Thai products will have the potential to reach 1 billion people within two hours.
“King Wai Group follows the motto: ‘responsibility creates value, mission inspires people’,” said Henry Chan, vice chairman and group CEO of King Wai Group and president of IMX.
“In line with this vision, we are passionate about creating innovative solutions that empower people and businesses in the countries we operate, including Thailand.”
Since the first China International Import Expo (CIIE) was held in November, China has opened its market to foreign goods by implementing beneficial policies and offering preferential tax benefits.
It has also come up with policies that facilitate cross-border trade, such as increasing market access by cutting down the “negative list” and increasing cross-border e-commerce restrictions from 2,000 yuan (Bt9,500) per transaction to 5,000 yuan per transaction.
Recognised as a service point for foreigners in the Shanghai free trade zone, IMX became the first trading platform to benefit from China’s new policies and regulations.
According to the newly signed LoI, KWG will source high-quality products from Thailand with help from the Commerce Ministry’s Department of International Trade Promotion (DITP).
This will provide an excellent opportunity for Thai SMEs, considering that Thailand’s Internet economy is ranked No 2 in Southeast Asia, worth US$12 billion (Bt394 billion) in 2018 out of a regional total of $72 billion, according to a Google-Temasek report. The local Internet economy contributes 2.7 per cent of Thailand’s GDP.
In addition, IMX’s FTAX will provide an insight on taxes, allowing both Thai SMEs and Chinese buyers and sellers to make better decisions.
Banjongjitt Angsusingh, director-general of DITP, said the new deal will provide a welcome boost to the Thai economy.
“King Wai Group’s innovative cross border e-commerce platforms will increase Thai SMEs’ access to one of the world’s largest markets.
“This cooperation is a major tool to promote Thai products and services with Thailand’s Trust Mark, a symbol of quality. At the same time, this is a great opportunity for both parties to exchange knowledge and expertise that will boost trade collaboration between the two countries,” Banjongjit noted.