State-owned Cambodia Post plans to launch a new e-commerce company in a move to latch onto the growth of online transactions in the Kingdom and diversify its revenue streams, a company executive said yesterday.

The new company, Cambodia Post E-Solution, will strive to partner with e-commerce giants such as China’s Alibaba Group and act as the distribution arm for deliveries while facilitating payments.

“We have prepared all the necessary steps to launch our e-commerce service by the second half of this year,” Ork Bora, director general of Cambodia Post, said yesterday during the company’s annual meeting.

Besides trying to garner support from international e-commerce platforms, the new endeavour would also pursue state partnerships.

“We want support from government institutions, for instance Apsara Enterprise to be able to sell Angkor Wat tickets online,” he said.

Cambodia Post E-Solution will also provide e-banking services and online courier services, as well as facilitate payments to relevant government institutions such as the tax department, he added.

Cambodia Post’s revenue increased by 74 percent last year to $9.45 million, compared to $5.42 million in 2015, according its annual financial report. Net profit in 2016 reached $586,481, a massive 195 percent jump.

Chum Borey, founder of Roserb.com, an online shop that specialises in cosmetics and clothing, said that while a state-backed e-commerce company would increase competition in the nascent sector, it would provide more consumer confidence for those venturing into digital shopping.

“More big operators in the market will help to improve customers’ perception about shopping online through public awareness,” he said. “It will also help the e-commerce sector develop faster.”

So Phonnary, vice president of Acleda Bank, said e-commerce activity has steadily been increasing over the years as shoppers shift to digital ordering. The bank itself launched an e-commerce payment gateway in 2015 and has now partnered with 10 other payment platforms.

“Consumers are more educated and understand the benefits of e-commerce,” she said. “There is a lot of potential to run a professional e-commerce company in Cambodia.”