The Challenges and Advantages of Export Business in Southeast Asia You Need to Know!

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The Challenges and Advantages of Export Business in Southeast Asia You Need to Know!

The digital revolution has drastically evolved the world of trading, causing all enterprises from retail, wholesale to export and import business to meet with new opportunities. There are numerous e-commerce platforms to choose from, allowing for rapid trading, lesser investment cost, and more. However, with greater benefits comes more challenges. 

In this article, AEC TRADE CENTER will explore the key challenges and advantages of doing export business, specifically in the Southeast Asia region.

The Challenges of Export Business

Whether you do wholesale business offline through a storefront or wholesale online through a modern platform, there will be constant challenges waiting to occur. Let’s study the “key” challenges your export business may face.

1. Difficulties Finding Potential Buyers

Exporting to foreign markets requires extensive planning and analysis. It is not simple to find buyers for your products since your business might not have marketing references in the new markets or countries. Also, there would be difficulties regarding cultural differences, as different countries uphold different mindsets and behavior. To illustrate, some products that appeal to Thai people may not be popular among consumers in China or Vietnam. Due to these, sales of certain product groups could be heavily hampered.   

2. The Import/Export Duties & Tariffs

There are export duties levied on certain products by the government. Apart from export duties, there are also import tariffs that impact the exports. Therefore, those factors will increase the total price of the product for the consumers who are looking to buy your product. If your target country increases the import tariffs, then it might affect the viability of your customers or retailers to buy your products.

3. Differing Product Standards in Different Countries

While general standards such as FDA (Food and Drug Administration) may apply for most goods in most countries in Southeast Asia including Thailand, some nations require additional standard certificates before the export business can deliver products in their countries. For instance, countries in the European Union (EU), require that certain products may need a CE marking and certification. While in China, various manufactured goods require China Compulsory Certification (CCC). For those dealing in the wholesale food business, there are strict regulations when it comes to the export of food and beverage products, which many businesses fail to meet for new markets. For instance, when it comes to spices, standards set by ASTA (American Spice Trade Association) are what is expected in most parts of the world. However, there’s also the FAQ (Fair Average Quality) standard that is also accepted in other parts. Apart from meeting the quality standards, businesses also need to pay attention to branding, labeling, and packaging right from the start.

The Advantages of Export Business

Now, let’s explore some of the key advantages of doing export business. Could the benefits outweigh the challenges?

1. Limitless Market Reach

Selling products in the local market will limit the profit and customer base. However, exporting products abroad would provide unlimited opportunities to showcase business talent and gain more profit, and this is especially beneficial for wholesale businesses. With today’s technology, wholesale businesses can export their products through online transactions and B2B platforms, along with the help of the advanced logistic systems of this era. While it may not be possible to export products to all nations across the world, entrepreneurs would see a significant difference in business growth when exporting to just two or three countries.

2. Foreign Markets Offer Higher Prices

Prices of most products exported to foreign countries often increase significantly, thus providing more profit gain for the business. This is because of the cost arbitrage (currency difference) between the two countries. Of course, this also depends on each country’s law, as well as the product categories. This is one of the major reasons why businesses should look to start exporting globally.

3. Government Benefits for Export Business

Exporting goods or services is one of the key activities that bring foreign currency into the country (GDP) and help create foreign currency reserves. This is why many governments provide a lot of incentives and benefits to exporters. Most governments provide a rebate in service tax, VAT (value-added tax) to exporters. For example, in India, the government announced cash incentives for the export of products in 38 categories. Furthermore, various banking institutions would offer special loan rates to exporters who present them with an interesting business plan.

Exporting business has its own challenges which entrepreneurs need to overcome, along with advantages that can significantly grow the business if done correctly. The advantages can be further elevated for exporters and wholesalers in the Southeast Asia region, with AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION. 

AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION stands as the largest, most comprehensive wholesale center which meets the demands of both buyers and sellers. Providing “PhenixBox,” the first and only omni channel wholesale website and application that supports offline and online trading for AEC TRADE CENTER wholesalers with convenience, safety, and 24 hours trading. The service is integrated with BEYOND EXHIBITION, a unique trade campaign that completely supports wholesale business and creates opportunities for Thai wholesalers to compete in the domestic and Southeast Asia markets.      

Wholesalers from overseas can browse quality goods in various categories from Thailand at the best prices that exporters can then export these quality products back to their market and gain profits. 

For more information, please visit


💻 Website: 

💻 PhenixBox: 

📩 Inbox:  

💬 Line: @aecpantip📞 : 061-416-6790, 065-950-5986

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