Despite the rapid development of e-commerce in Southeast Asia, the logistics sector in the region still faces numerous challenges. These are outlined below:

Firstly, the Southeast Asian logistics market is fragmented, and the geographical environments of various countries are complex. Southeast Asia is a diverse market composed of multiple countries, each with complex and dispersed geographical landscapes, posing significant challenges to logistics development.

For instance, Indonesia is an island nation consisting of over 17,000 islands, but many of these islands have small ports with limited cargo handling capabilities. Even within Indonesia, the numerous islands make last-mile delivery more time-consuming. Vietnam, on the other hand, is a long and narrow coastal country where two-thirds of its landmass is rural, and there are significant differences in infrastructure levels between rural and urban areas.

Secondly, logistics costs in Southeast Asia are relatively high. According to Rocket Equities, the complex geographical terrain and poor road, rail, and ferry networks in Southeast Asia pose significant difficulties for cross-border logistics and last-mile delivery, resulting in logistics operating costs accounting for approximately 60% of total costs. Compared to other more developed countries, where logistics costs as a percentage of GDP are around 8% in the United States, 9%-11% in Japan, and 13%-15% in China, Southeast Asian countries’ logistics costs as a percentage of GDP are about 25% higher than the world average. This means that one-quarter of Southeast Asia’s economic value is consumed by logistics.

Thirdly, logistics efficiency in Southeast Asia is relatively low. According to TMO’s “2023 Southeast Asian E-commerce Market Insights,” logistics infrastructure in Southeast Asia varies greatly, with some areas requiring more than a week for shipments to travel from one national hub to another. Statistics show that, using standard transportation methods, the average transportation time is 3-8 days in Indonesia and the Philippines, 5-6 days in Vietnam and Malaysia, and 2-5 days in Thailand. Additionally, traffic congestion in Southeast Asia hinders the improvement of logistics efficiency.

Fourthly, customs regulatory rules in Southeast Asia are complex. Customs regulations vary among Southeast Asian countries, and import tax systems are not uniform. Some countries have immature customs policies, which further increase the difficulty of import logistics. For example, many importers have complained about the lengthy customs clearance process in the Philippines. In some cases, due to inefficiencies, traditional manual operations, and low machine utilization, it can take up to 25 days for importers to complete customs clearance.

Lastly, Southeast Asian logistics relies heavily on manual operations. Although some large logistics companies have adopted machine sorting and established package tracking systems, many traditional logistics companies still depend on manual labor, resulting in lower logistics efficiency.