Chinese ecommerce giant JD.com is increasing its investment in supply chain infrastructure across Southeast Asia. The company plans to open three self-operated warehouses in Malaysia and Vietnam by mid-2025 and establish two shipping routes from China to the region.

This expansion supports JD.com’s goal to double its overseas warehousing capacity by 2025. The firm has introduced a “semi-managed overseas warehouse” program, allowing international merchants with local inventory to supply products directly to third-party sellers on its platform.

JD.com currently operates fulfillment centers in Malaysia, Singapore, Indonesia, Thailand, Vietnam, and the Philippines.

The company is also enhancing its logistics network through partnerships. In October 2023, JD.com and Hillhouse Capital acquired logistics assets in Singapore for S$350 million. A joint venture with Vietnam’s CMC Group plans to invest US$120 million to develop a green industrial cluster in northern Vietnam, which will include logistics infrastructure.

JD.com aims to promote 1,000 Chinese brands in Southeast Asia to improve brand perception and navigate trade barriers. However, the company faces competition from regional players such as Shopee and TikTok Shop, which have larger user bases.

Founder Richard Liu highlighted the need for local teams and compliance with regional regulations for the success of JD.com’s international operations. The company is also exploring stablecoin licenses in key markets to develop a compliant cross-border payment system.

🔗 Source: Baijing

🧠 Food for thought

1️⃣ JD.com applies its proven logistics-first model to Southeast Asia’s complex market

JD.com’s shift toward “localized infrastructure and brand expansion” in Southeast Asia builds on their successful Chinese business model, where logistics investments have been a key differentiator since 2004.

In China, JD distinguished itself from competitors like Alibaba by investing heavily in its own logistics infrastructure, enabling same-day delivery in major cities while competitors relied on outsourcing models 1.

This strategy now extends to Southeast Asia with concrete investments, including a S$350 million logistics asset acquisition in Singapore and a US$120 million joint venture in Vietnam to build green industrial clusters with core logistics infrastructure.

The company’s plan to open three new self-operated warehouses in Malaysia and Vietnam by mid-2025 directly addresses one of the region’s most significant e-commerce challenges: high logistical costs that create barriers to growth, especially in markets like Malaysia 2.

This infrastructure-focused approach aligns with industry experts’ recommendations that advanced logistics technologies and regional fulfillment centers are essential for improving last-mile delivery in Southeast Asia, where logistics inefficiencies currently lead to longer shipping times and higher costs 3.

2️⃣ Entering a fiercely competitive market dominated by established regional players

JD.com faces significant challenges breaking into Southeast Asia’s e-commerce market, which reached $114.6 billion in 2023 (15% growth from 2022) and is projected to nearly triple to $230 billion by 2026 4, 5.

Recent JD.com developments