International Merchandise Exchange & Exhibition (IMX), on Thursday signed a Letter of Intent (LOI) with Thailand’s Ministry of Commerce on strategic cooperation that will open access for 48,000 Thai SMEs to over one billion consumers in China.
IMX is a subsidiary of Chinese leading conglomerate King Wai Group (KWG) founded by Dr King Wai Chan.
In a press release issued on Thursday, the company said that under this strategic cooperation, Thai SMEs will benefit from IMX’s complete solution that integrate with bonded warehouse, merchandise exhibition, port services, custom clearing and sales channels both online and offline. The company operates four exhibition centers across China – Tianjin, Shanghai, Shenzhen and Chengdu. The Shanghai government has recognised IMX center as a 6+365 Permanent Exhibition and Trade Platform. At the same time, IMX's subsidiary kjt.com is the leading and one of the very first cross-border e-commerce platform in China.
The Chinese government is vigorously driving cross-border e-commerce, the kjt.com is the first cross-border e-commerce platform officially approved by the State Council since the establishment of the Shanghai Free Trade Zone.
With the group’s integrated cross-border trading platform, Thai products will have the potential to reach one billion people within two hours.
“King Wai Group operates according to the motto that ‘responsibility creates value, mission inspires people,” said Henry Chan, Vice Chairman, 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 in which we operate, including Thailand.”
Since the first China International Import Expo (CIIE) in November, China has opened up the market for foreign goods by further implementing policies and preferential tax benefits, and policies that facilitate cross-border trades, including increasing market access by further reduction in “negative list”; increasing cross-border e-commerce restriction from 2,000 yuan per transaction to 5,000 yuan per transaction.
Being recognised as an official Foreigners Service Point of the Shanghai Pilot Free Trade Zone for the CIIE, IMX provides the most efficient and effective platform with easy market access to benefit from the new policy and regulations from Chinese government. SMEs can benefit from this platform and lower tariff.
“Considering China’s Belt & Road Initiative (BRI), the simplified import rules and regulations, Chinese President Xi Jinping announced the government’s forecast that China would import $30 trillion (Bt980 trillion) worth of goods in the next 15 years, we believe huge opportunities are waiting for Thai business operators,” said Chan.
Chan noted Thai products are highly regarded in China. “Thailand has high quality products loved by Chinese people,” he said. “When we combine our pioneering cross border e-commerce and supply chain business model with Thailand’s great products and benefits from new China’s tax and trade policy, we are about to create value to the economy, support the transformation into Thailand 4.0 and facilitate Thailand GDP growth. Especially, IMX will help drive Thailand GDP up by facilitating export growth. We wish to thank Thailand’s Department of International Trade Promotion and Ministry of Commerce for the enhanced cooperation that will benefit people and businesses in both Thailand and China.”
According to the newly signed Letter of Intent, KWG will source high-quality products from Thailand with assistance from Department of International Trade Promotion (DITP) under Ministry of Commerce in facilitating this strategic cooperation.
This provides excellent opportunities for Thai SMEs, considering that Thailand’ s Internet economy is ranked No. 2 in Southeast Asia, worth US$12 billion in 2018 out of a regional total of US$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 innovative FTAX will provide an insight on taxes, allowing both Thai SMEs and Chinese buyers and sellers to make better strategic decision and planning.
Banjongjitt Angsusingh, Director-General of Department of International Trade Promotion, said the newly signed deal will give a welcome boost to sales of local products in China. “King Wai Group’s innovative cross border e-commerce platforms will increase Thai SMEs’ access to one of the world’s largest markets, China.”
“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,” Banjongjitt noted.