A Guide to Expanding Your Business into Southeast Asia’s E-Commerce Market
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Southeast Asia (SEA) is one of the fastest-growing e-commerce regions globally—driven by rapid digital adoption, rising consumer spending, and stronger regional economic integration. For companies focused on business expansion, improving marketplace access, and scaling cross-border operations, understanding the landscape and having the right tools is essential.
This article outlines key markets, updated tax frameworks, and the crucial steps for expanding your business strategically and efficiently across SEA.
SEA Market Snapshot & Tax Rates (2025)
| Country | Corporate Tax / CIT | VAT / GST / SST | Notes | |
|---|---|---|---|---|
| Singapore |
17% (startups eligible for partial exemptions & 50% tax rebate capped at S$40K) |
GST 9% (since Jan 2024) |
Stable business environment, strong digital infrastructure |
|
| Vietnam |
— |
VAT 10% (temporarily reduced to 8% through end-2026) |
E-commerce platforms collect 5% VAT on sellers’ revenue |
|
| Philippines |
— |
VAT 12% |
Digital services by foreign platforms also subject to 12% VAT |
|
| Thailand |
0% for net profits ≤ THB 300,00015% for THB 300,001–3M20% for > THB 3M |
7% (exports zero-rated) |
Global minimum tax 15% surtax for large multinationals starting Jan 2025 |
|
| Cambodia |
0–20% progressive for small businesses20% for medium/large companies |
10% |
SEZ incentives available for exporters |
|
| Malaysia |
— |
Sales Tax 5–10% (non-essential/luxury goods)Services Tax expanded to rentals, financial, education, healthcare, beauty, construction |
Growing digital economy, strategic regional hub |
|
| Indonesia |
— |
VAT 12% (effective ~11% for most goods; 12% on luxury goods) |
Rapidly growing e-commerce market with Shopee dominance |
|
Why These Markets Matter for Growth
Here’s a comparison table highlighting the characteristics and e‑commerce potential of key Southeast Asian markets.
Insights:
- Diverse Economic Terrain – Countries like Singapore offer high infrastructure standards and ease of business; Vietnam and Thailand provide access to burgeoning markets and productive supply chains; the Philippines is digitally mature, offering multiple business opportunities, and Cambodia offers attractive SEZ policies for manufacturing-led export growth.
- Rising Middle Class & Digital Access – Across all these markets, urbanisation and internet/mobile penetration are fueling new consumer behaviours and e-commerce opportunities.
- Favourable Incentives – Several countries, especially Cambodia, offer tax breaks, VAT/import duty exemptions, and other investment incentives. This is key for SMEs and scaling exporters.
How to Enter Southeast Asia Effectively
1. Choose Your Market Entry Approach
- Use regional platforms such as Shopee, Lazada, or Tiki for cross-border e-commerce.
- Partner with distributors or establish operations in regional hubs like Singapore.
- Explore Cambodia’s SEZs for favourable tax structures.
2. Stay Tax-Compliant
Use the tax overview above to plan your expansion. VAT and SST rates (e.g., Vietnam’s 8%, Thailand’s 7%) are especially important for digital or cross-border sellers.
3. Streamline Payments & Currency Management
- Use spot contracts and FX tools to secure competitive rates.
- Enable fast international transfers to pay suppliers or receive funds.
- Monitor FX to protect profit margins when expanding your business across multiple currencies.
4. Adapt to Local Platforms & Customer Preferences
- Localise language, pricing, listings, and payment methods.
- Understand platform dynamics—especially if learning how to sell on Shopee or Lazada.
- Customise promotions for regional events.
5. Use Tech to Manage Growth
- Automate invoicing and multi-currency reconciliation.
- Integrate with ERPs and marketplaces for accurate financial flows.
WorldFirst: Enabling Growth in SEA
Expanding across SEA is much easier when your payments and FX are smooth.
WorldFirst partners with over 130 global marketplaces, allowing you to launch and start reaching new international customers in a fraction of the time.
Register for a World Account to access:
- Direct payments to suppliers and wholesalers from your World Account balance
- Real-time FX tools to protect your margins when you sell on international marketplaces.
- Seamless integrations with your marketplace access and accounting systems.
- Transparent fees and a single dashboard to track every incoming and outgoing payment.
- Lock in rates via spot contract or forward options.
- Access flexible FX services tailored to your business flow.
- Stay compliant in each market with real-time cross-border payment infrastructure.
Gain the flexibility you need when growing into new SEA markets, all from a single login. Register for a World Account today.
We have also condensed our 20 year market experience into one comprehensive guidebook available for download here: business expansion guide
One account to manage global payments
Pay your suppliers around the world. Collect payments for free in 20+ currencies. Convert when it suits you. All in one place.
References
- PwC. (2024). Singapore – Corporate taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/singapore/corporate/taxes-on-corporate-income - PwC. (2024). Singapore – Other taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/singapore/corporate/other-taxes - PwC. (2024). Vietnam – Corporate taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/vietnam/corporate/taxes-on-corporate-income - PwC. (2024). Vietnam – Other taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/vietnam/corporate/other-taxes - PwC. (2024). Philippines – Corporate taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/philippines/corporate/taxes-on-corporate-income - PwC. (2024). Philippines – Other taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/philippines/corporate/other-taxes - PwC. (2024). Thailand – Corporate taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/thailand/corporate/taxes-on-corporate-income - PwC. (2024). Thailand – Other taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/thailand/corporate/other-taxes - Reuters. (2023, Dec 27). Thailand to implement global minimum corporate tax rate from Jan 1.
https://www.reuters.com/markets/asia/thailand-implement-global-minimum-corporate-tax-rate-jan-1-2023-12-27 - Statrys. (2024). Corporate income tax in Thailand: Rates and rules explained.
https://statrys.com/guides/thailand/tax-system-and-rates/corporate-income-tax-thailand - Acclime Thailand. (2024). Thailand corporate income tax explained.
https://thailand.acclime.com/guides/corporate-income-tax/ - PwC. (2024). Cambodia – Corporate taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/cambodia/corporate/taxes-on-corporate-income - PwC. (2024). Cambodia – Other taxes. PwC Tax Summaries.
https://taxsummaries.pwc.com/cambodia/corporate/other-taxes - Trading Economics. (2024). Cambodia Sales Tax Rate – VAT.
https://tradingeconomics.com/cambodia/sales-tax-rate - Wikipedia. (n.d.). Special Economic Zones of Cambodia. https://en.wikipedia.org/wiki/Special_Economic_Zones_of_Cambodia
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