FY2022 Budget: “Support Project for Participation in Reliable
Supply Chains among Volunteer Countries”
A Social Implementation Promotion Project for Electronic Trade
Transaction System

Final Report

March 2024

Public Consulting DivisionTable of Contents
1. Survey Policy

9

1.1 Background and Objectives

10

1.2 Survey Schedule11

1.3 Overall Survey Policy

13

1.4 Scope of Survey

14
16

2. International Trends, Trends in ASEAN, etc.
2.1 International Trends

17

2.2 ASEAN Trends

40

2.3 APEC Trends

60

3. Analysis of Current Status of 10 ASEAN Countries

71

3.1 Trade Transactions and Trade-related Data72

3.2 Status of Platform Development

79

3.3 Status of Infrastructure Development

97

3.4 Trends in Digitization and Standardization

99

3.5 Issues with Trade Procedures

102

3.6 Potential of Trade digitalization market

112

3.7 Stakeholder

114

3.8 Summary

118

Copyright © Mitsubishi Research Institute2

4. Estimation and analysis of Social Benefits120

4.1 Estimation of Social Benefits

121

4.2 Analysis of Social Benefits

124

4.３ Summary

128

5. Policy Recommendations and Roadmap Development

129

5.1 Principle of acceleration of trade digitalization

130

5.2 Policy Recommendations for ASEAN

131

5.3 Policy Recommendations

132

5.4 Roadmap

133

5.5 ASEAN-Japan cooperation

134

Copyright © Mitsubishi Research Institute3

Abbreviations
Item

Formal nameABACAPEC Business Advisory Council

ACDD

ASEAN Customs Declaration Document

ACTFA

ASEAN China Free Trade Agreement

ACIA

ASEAN Comprehensive Investment Agreement

ACRF

ASEAN Comprehensive Recovery Framework

ACTS

ASEAN Customs Transit System

ADB

Asian Development BankAEC

ASEAN Economic Community

AEM

ASEAN Economic Ministers

AFTA

ASEAN Free Trade Area

AJCEP

ASEAN Japan Comprehensive Economic
Partnership

AMEN

ASEAN Mentorship for Entrepreneurs Network

APEC

Asia Pacific Economic Cooperation

APSC

ASEAN Political Security Community

ASCC

ASEAN Socio Cultural Community

ASEAN

Association of Southeast Asian Nations

ASEAN PDPASEAN Personal Data Protection

ASEAN-BAC

ASEAN Business Advisory Council

Copyright © Mitsubishi Research Institute4

Abbreviations
Item

Formal nameASW

ASEAN Single Window

ASYCUDA

Automated System for Customs Data

ATFF

ASEAN Trade Facilitation Network

ATIGA

ASEAN Trade in Goods Agreement

ATISA

ASEAN Trade in Services AgreementAWSC

ASEAN Wide Self-Certification

B/LBill of Lading

CBNI

Capacity Building Needs Initiative

CBPR

Cross-Border Privacy Rules

CEPT

Common Effective Preferential Tariff

CPTPP

Comprehensive and Progressive Agreement forTrans-Pacific Partnership

CSAP

Consolidated Strategic Action Plan

DEFA

Digital Economy Framework AgreementDTSCWG

Digital Trade Standards and Commerce Working
Group

e-ah

Electronic Animal Health

EDI

Electronic Data Interchangee-fsElectronic Food Safety

EPA

Economic Partnership Agreement

Copyright © Mitsubishi Research Institute5Abbreviations
Item

Formal nameePhytoElectronic Phytosanitary Certificate

ERIA

Economic Research Institute for ASEAN and East Asia

ESCAP

Economic and Social Commission for Asia and thePacific

ETDA

Electronic Transactions Development Agency

FIATA

International Federation of Freight Forwarders
AssociationsFJCCIA

Federation of Japanese Chambers of Commerce andIndustry in ASEAN

FTAFree Trade Agreement

FTAAP

Free Trade Area of the Asia-Pacific

ICC

International Chamber of Commerce

IMDA

Infocomn Media Development Authority

IMF

International Monetary Fund

JAIFJapan-ASEAN Integration FundJETROJapan External Trade Organization

KTDDE

Key Trade Documents and Data Elements

L/C

Letter of Credit

LPCO

Licenses, Permits, Certificates, and Others

LPI

Logistics Performance Index

Copyright © Mitsubishi Research Institute6Abbreviations
Item

Formal name

MLETR

The Model Law on Electronic Transferable Records

MPAC

Master Plan on ASEAN Connectivity

MSME

Micro, Small and Medium Enterprises

MTR

Mid-Term Review

NDTP

National Digital Trade Platform

NSW

National Single Window

NTP

Networked Trade Platform

NTR

National Trade Repository

OECD

Organisation for Economic Co-operation and Development

PAA

The Pan-Asian E-Commerce Alliance

PPP

Public-Private Partnership

RCEP

Regional Comprehensive Economic Partnership

SME

Small Medium Enterprise

TFA

Trade Facilitation Agreement

TFI

Trade Facilitation Indicators

UN/CEFACT

United Nations Centre for Trade Facilitation andElectronic Business

Copyright © Mitsubishi Research Institute7

Abbreviations
Item

Formal name

UNCITRAL

United Nations Commission on International Trade
Law

UNCTAD

United Nations Conference on Trade andDevelopment

UNECE

United Nations Economic Commission for Europe

UNESCAPUNESCAP: United Nations Economic and Social
Commission for Asia and the Pacific

WG

Working Group

WTO

World Trade Organization

Copyright © Mitsubishi Research Institute8

Survey Policy
 1.1 Background and Objectives
 1.2 Survey Schedule 1.3 Overall Survey Policy
 1.4 Scope of Survey

Copyright © Mitsubishi Research Institute91. Survey Policy

1.1 Background and Objectives
 This study examines the deployment potential of digital trade platforms fromtechnical, economic, and policy perspectives for the purpose of making policy
recommendations to accelerate the social implementation of an ASEAN-wide digitaltrade platform.
Ana l y z e the current statu s of th e 10 AS E AN cou n tr i es i n th e lig h t o f in t e r n a t io n a l t r e n d s ( ①, ② )

B a s e d on an estimat io n of mar ket si z e an d soci al b e n e fi t s, a n a lyze im p a c t s t h r o u g h p o lic ym e a s ures and co nsider f i n al pol i cy r ecommen dati on s base d o n t h e r e su lt s o f a n a n a lysis o f t h e
c urre n t sit uat io n in the 10 ASE AN cou n tr i es (③, ④)

Analysis of social benefit andpolicy recommendations

Analysis of the current situation in the 10
ASEAN countries
Survey and assessment of1

Survey of international
trends2

the current situation in
the 10 ASEAN countries

Implications frominternational trends

Current status of the 10•

UN/CEFACT standardization•

ICC roadmap•

Data governance, etc.

1. Policy trends, legislation
and regulations (trade,
digital)
2. Infrastructure in place
3. Volume of tradetransactions, status ofdigitization (including
challenges and needs)
4. Governance Business
Model

ASEAN regional initiatives•

ASEAN E-commerce Agreement•

TradeTrust Framework, etc.

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute3

Estimation and analysis
of social benefit

Policy proposals

Impact analysis

Policy proposals

1. Estimates of market
size and social benefits

1.

ASEAN countries

2. Analysis of changes insocial benefits
associated with thestate of progress of
trade digitization

Figure . Process of the survey
10

4

Developing a roadmap(how a trade platform canbe developed within the
ASEAN region)

2. Challenges in realizing
the roadmap
3. Summary of
Recommendations

1. Survey Policy

1.2 Survey Schedule (1) This survey was conducted in advance of the ASEAN-Japan Economic Ministerial
Meeting in August and the ASEAN-Japan Economic Co-creation Forum as major
milestones. We proceeded with a process for building and testing hypotheses
through a combination of desktop surveys and online interviews.
 We had discussions with government officials from Thailand and Indonesia,
ASEAN-BAC, and others, and an interim report was developed. Based on theinterim report, a draft ASEAN roadmap for trade digitization was developed anddiscussed with ASEAN-BAC officials.
Desktop survey
Interviews, collection of case studies
ASEAN-Japan Economic Ministerial Meeting

Formulate and test
recommendations(hypotheses)

Interim report
Additional surveys and case studies
ASEAN-Japan Economic Co-creation Forum
Final report
Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute11

Based on the interim
report, verify
recommendations fromeach country

1. Survey Policy

1.2 Survey Schedule (2) The survey schedule is shown in the table below.
International Conference

Schedule

2023
5

6

7

Major milestones

8
5th(8/11)

2024
9

10

11

12

1

ASEAN-Japan
Economic Cocreation forum

AEMMETI

1. Survey plan and design (including initial
hypothesis)
2. Survey of international trends
Follow up on the latest trends

2-1. Survey of international trends

Follow up on the latest trends

2-2. Survey within the ASEAN region
3. Survey of 10 ASEAN countries
3-1. Infrastructure survey
3-2. Legal system survey
3-3. Market survey
3-4. Online interview
3-5. Interviews and meetings on overseas
travel (overseas travel)

Thailand and Indonesia

4. Analysis of social benefits
5. Policy recommendations
6. Report preparation
6-1. Report preparation (Interim report)
6-2. Report preparation (Final report)
Copyright © Mitsubishi Research Institute12

Philippines Thailand

Lao PDR1. Survey Policy

1.3 Overall Survey Policy
 Developing a digital trade platform will not only reduce the cost and time
involved in trade transactions, but consequently encourage the participation of
SMEs and others in trade and ensure the resilience of the supply chain bymaking procedures more transparent.
 We develop a roadmap for achieving domestic and international measures, andidentify areas of cooperation between ASEAN and Japan.
Reduce costs and time involved in trade transactions,Objectives

promote trade participation by SMEs, etc., and ensure
robustness by making procedures more transparent

Roadmap

Implementation
methodDevelop digital tradeStandardize electronic

Domestic measures (platform

platform (andtrade documents and data

development, incentives to increaseinterconnections)

items

users, etc.)
International measures (expansion of

Expand the number of system users (lower

platform interconnection,

installation costs, greater convenience)standardization of data items,
knowledge sharing, etc.)

Achieve policy objectives by promoting digital
Results

trade platforms

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute13

Identifying
areas ofcooperation

1. Survey Policy

1.4 Scope of Survey (1) The project covers GtoG and BtoG, as well as BtoB trade procedures
and trade documents.
Transfer ofExport country
Insurance
Company

Physical shipment

Payment

documents/informationof goods

Import country

Confirming
Bank

Issuing bank

Shipping documents
L/C
Arrange payment
Shipping

Request to
Insurance
certificate

B

issue

Arrangeinsurance

payment

L/C

documents

Request to(e.g. B/L)

issue L/C

Payment

certificate

to

Sales

Exporteragreement

Certificate of Purchase order Invoice

Packing list

ImporteroriginB
Shipping
instruction

Exportterminal/
airport

Ship

B/L

goods

Freight
forwarder

Shipper

Importterminal/
airport

Goods

B/L

released

Freight
forwarder

Shipping
information

B
to

G

Exportdeclaration/per

Customs

mit

declaration/perm

ImportCustoms

ArrivalCustoms

Customs

clearance

noticeclearance

declaration/permit

declaration/
permit

it

G
to

G

Other
ministries

Importcustoms

Exportcustoms

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

14

Other
ministries

1. Survey Policy

1.4 Scope of Survey (2) The following three approaches should be considered and implemented
simultaneously to achieve the digitalization of trade procedures.
Establish and connect

A platforms

Establish digital trade platform and connect with National Single Window and other
other industry platforms, as well as trade partner’s platform

B Digitalize and standardize

Digitalize trade documents and standardize each data item in trade documents

C User acquisition

Expand the user base and increase transaction volume on digital trade platforms

Export country
Insurancecompany

Import country

Financial
institutions

Other
industrial
platforms

B

B
toFinancial
institutions

Other
industrial
platforms

B

Exporter

ImporterB

AC

Forwarders,custombrokers

Digital trade
platform

Forwarders,custombrokers

Digital trade
platformCB
toNational Single
WindowG

National Single
WindowG
toG

Relatedministries

Customs(Export country)

Customs(Export country)

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

15

Relatedministries

International Trends, Trends in
ASEAN, etc.
 2.1 International Trends
 2.2 ASEAN Trends
 2.3 APEC Trends

Copyright © Mitsubishi Research Institute162. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (1) ICC Initiatives
 With the adoption of the Digital Trade Principles at the G7 Digital Trade
Ministerial Meeting in 2021, activities by countries to develop laws related to
trade digitalization are accelerating. In addition, standardization organizations
such as the ICC are also stepping up their activities.

Status of studies in other countries

Discussion at G7

Country‐ G7 in 2022 will recognize UNCITRAL’s activities andexpress support for the dissemination of the Model

Progress

Singapore

New law on electronic transferable
records, including electronic B/Ls, tookeffect in March 2021.

UK

A revised bill was submitted in October
2022, and The Electronic Trade
Documents Act comes into force in
September 2023.

ThailandLaw revision was underway forcompletion by 2024; in April 2023, thecompany and the UK jointly prepared a
guidance document on law revision.

Law on Electronic Transferable Records (MLETR).
‐ Revision of the law in accordance with the MLETR is
expected to have a significant effect on tradefacilitation by digitizing negotiable documents,
improving transmission speed and security, reusing
data, and automating transactions through smart
contracts.
‐ Other countries are already in the process of revising
their national laws to comply with the MLETR. Japan isconsidering amending the law.

Source: https://www.meti.go.jp/press/2022/05/20220512004/20220512004-3.pdf viewed on 2023/12/26
https://www.piclub.or.jp/ja/news/37286 , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute172. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (1) ICC Initiatives
 The Digital Trade Roadmap v2 released by the ICC outlines step-by-step
activities to promote digital trade in the future by three entities: government,
ICC, and industry.

Update legal infrastructure
1

Require all trade documentation to bedigital2

Accept all digital import
documentation3

Prepare for new technologies
1

Develop and maintain an open set ofsmart industry contracts andautomated rules

2

Choose trade corridors and industries
with which to prioritize pilots

Promote electronic single window

Simplify bureaucracy

Industry

ICC

Government

Develop rules and standards

4

Appoint a single digital champion

3

Modernize digital rules and standards
for traditional trade finance5

Support the WTO ecommerce
agreement

4

Introduce new digital rules andstandards for trade finance

6

Work with regulators to reduce
capital allocation for trade finance5

Establish in a repository of bestpractice

Fulfill trade obligations

6

Build the Digital Standards Initiative

7

Customs bureaucracy

8

Food import safety

Increase collaboration with non-bankstakeholders

9

Data governance7

Participate in digital solutions
1

Documentation reform

2

Internal system updates

3

System Integration

Pilot new technologies
4

Participate in pilot projects

5

Deliver new solutions

Establish a forum to allow for industry
input into ongoing rules discussions

Source: ICC, https://iccmex.mx/comision/posturas-herramientas/icc-digitarl-trade-roadmappdf.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute18

2. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (1) ICC Initiatives
 In 2023, Key Trade Documents and Data Elements, an analysis of sevendocuments and data elements that are important for trade facilitation was
published as a result of working group discussions.

Seven documents#

English term
1

Warehouse receipts

2

Certificate of origin

3

Commercial invoice

4

Packing list

5Bill of lading

6

Customs/goods declaration

7

Insurance certificates

Source: https://www.meti.go.jp/press/2022/05/20220512004/20220512004-3.pdf viewed on 2023/12/26
https://www.piclub.or.jp/ja/news/37286 , viewed on 2023/5/18
Copyright © Mitsubishi Research Institute192. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (1) ICC Initiatives
 ICC DSI released the Key Trade Documents and Data Elements (KTDDE) in March
2023, and conducted data mapping work with several trade platforms and banks
in 2023 to expand the number of documents covered and to refine data items instages.
BATCH 1（7 documents）
May 2023

BATCH 2 (14 documents)
July-September 2023

BATCH 3（16 documents）
October-December 2023

Participating Companies and Demonstration Scope
Category

Digitaltrade
platform

Banks

Participating companies

Scope of data mapping

TradeWaltz

Mapping Commercial invoices and packing list data
items

XDC Trade Network, Yodaplus

Mapping bills of lading, commercial invoices, andcertificates of origin to Yodaplus datasets

SGTraDex

Mapping commercial invoices and bills of lading to
SGTradEx data dictionary

Decentralized Trade Network

Developments related to commercial invoices and otherdocumentation

Eight banks including Bank of America, Citibank,and HSBC

Data definition and mapping based on existing paper
data items

Eight banks including Bank of America, BNP
Paribas, and Scotiabank

Mapping data items in the E2E process forimport/export letters of credit

Nine banks including Citibank, Commerzbank,and TBA

Scrutinizing data needs in each process in supply chain
finance

Source; ICC DSI, From Analysis to Action: Proofs of Concept、viewed on 2023/12/20
Copyright © Mitsubishi Research Institute202. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (2) UNCITRAL MLETR
 The MLETR is an initiative to give legal effect to electronic data of securities suchas B/L.

Summary‐

The Model Law on Electronic Transferable Records (MLETR) aims to enable the legal use ofelectronic transferable records within and across national borders.

‐

The MLETR can apply the same legal force to electronic records as negotiable documents (bills of
lading, notes, etc.).

‐

It was adopted in 2017 by the United Nations Commission On International Trade Law.

E x pe c t e d effect s‐

The digitization of negotiable documents can improve transmission speed and security, reuse
data, and automate transactions through smart contracts, and is expected to have a significant
effect on trade facilitation.

Ben e f i t s of in t r od ucing b e /L‐

Increased speed and reduced administrative costs‐

Reduced risk of forgery and tampering‐

Easier collection of all shipments (thereby simplifying procedures for B/Ls to be combined, split,
and delivered outside of their scheduled landing locations, etc.)

Source: UNCITRAL 、https://uncitral.un.org/en/texts/ecommerce/modellaw/electronic_transferable_records 、viewed on 2023/12/26
ADB、 https://www.adb.org/sites/default/files/publication/932456/adb-brief-280-driving-digitalization-global-trade.pdf 、２０２３12/26
Copyright © Mitsubishi Research Institute212. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (2) UNCITRAL MLETR
 As of December 2023, eight countries had completed MLETR-compliant legislation.
Perspecti v e s o n M LE T R I m p le m e n t a t io n

S t a t u s o f ML ETR a d op t ion
Country

Adoption

Bahrain2018

Belize2021

Kiribati

2021

Paraguay

2021

Singapore

2021

United Arab Emirates

2021

Papua New Guinea

2022

United Kingdom

2023



- The MLETR requires that the electronic B/L
be functionally equivalent to the paper B/L.
Specifically, the following three points:①

Singularity (the rights on the B/L are not
duplicated and there is only one
identified)②

Control（Ability to dominate exclusively.）③

Integrity（Must not be tampered with anda record of changes must be kept）

T ech n i c a l n e u t r a lit y- T h e MLE T R d o e s n o t r e q u ir e t h e u se o f a
sp e cif ic t e c h n o lo g y o r m o d e l f o r a ne l ectr o n ic B / L, b u t o n ly a " r e lia b lem e th od " ( r e lia b ilit y) t o f u lf ill t h e
fu n ctio n s o f t h e e le c t r o n ic B / L.

A c t i v i t i e s of U NCITRA L

Functional equivalence with paper securities

U N C ITRAL ' s W G -I V : Ele ctr on i c Com m e r ce i s
c o ns i d ering , among o t her s, pr op osal s forl e g i s l ative wo rk o n t he u se an d au tom ati on
o f A I i n elect ro nic transacti on s.

Source: UNCITRAL 、https://uncitral.un.org/en/texts/ecommerce/modellaw/electronic_transferable_records 、viewed on 2023/12/26
UNCITRAL、https://uncitral.un.org/en/texts/ecommerce/modellaw/electronic_transferable_records/status、viewed on 2023/12/26
ADB、 https://www.adb.org/sites/default/files/publication/932456/adb-brief-280-driving-digitalization-global-trade.pdf 、viewed on ２０２３12/26
Copyright © Mitsubishi Research Institute222. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (3) UN/CEFACT UN/CEFACT has created a Common Data Dictionary (Core Components Library)
to provide definitions of terms that can be used commonly by all trade
stakeholders.
Common data dictionary‐ In order to ensure consistency among business processes that differ from industry to industry, acommon data dictionary (Core Components Library) was created in 2006 and has been continuously
added to and revised since then.
‐ By using this common data dictionary, a common
understanding of data handled in transactions with different
countries and industries can be achieved and smooth intercompany information linkage can be realized. This common
data dictionary defines XML schemas and is mainly intended
for use in electronic data interchange (EDI).
‐ Additions of data items and verification of conformance tothis common data dictionary are conducted biannually by the
UN/CEFACT, with the latest version as of July 13, 2023 being
the second update in 2022.

Source: JASTPRO, https://www.jastpro.org/files/libs/440/202103091654134418.pdf , viewed on 2023/12/26
UNECE, https://unece.org/trade/uncefact/unccl , viewed on 2023/12/26
UN/CEFACT, https://unece.org/sites/default/files/2023-05/Newcomers%20Session__40thCEFACT.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute23

2. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (3) UN/CEFACT UN/CEFACT aims to simplify and streamline trade practices based on the BuyShip-Pay Model, which shows a series of processes from order placement toshipment to payment. In particular, UN/CEFACT has focused on standardizing
data items used in trade, and has developed a number of standards to date.

Formulating a reference data model‐ As a comprehensive subset of the Common Data Dictionary and its associated code list, the Reference Data
Model was developed to provide accurate information for each field of activity.
‐ This reference data model covers the relevant document and information requirements for each field, including,for example, XSD schemas, UML diagrams, and HTML indexes.
Data model

Overview

Buy-Ship-Pay

A data model that can be used across countries and industries by defining the supply
chain reference data model and the multimodal reference data model in a moregeneralized form

Supply Chain

A data model on supply chains, a subset of which is already publicly available.

Multimodal
Transport

A data model specifically for multimodal transportation. The International Federation of
Freight Forwarders Associations (FIATA) used this data model to develop themultimodal eBL.

Source: JASTPRO, https://www.jastpro.org/files/libs/440/202103091654134418.pdf , viewed on 2023/12/26
UNECE, https://unece.org/trade/uncefact/unccl , viewed on 2023/12/26
UN/CEFACT, https://unece.org/sites/default/files/2023-05/Newcomers%20Session__40thCEFACT.pdf , viewed on 2023/12/26

Copyright © Mitsubishi Research Institute24

2. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (3) UN/CEFACT
 In 2022, the UN/CEFACT’s parent organizations, the United Nations Economic
Commission for Europe (UNECE), and the Federation of Freight Forwarders of
National Debt (FIATA), published a standard for multimodal transport bills of
lading (eB/L).


In t e rn ational org anizati on s su ch as ICC an d WT O al so r e f e r t o t h e d a t a it e m s d e f in e d b y
U N / C EF AC T.



O n t he o t her hand, t he r e i s a gap be tween UN /CE FACT st a n d a r d s a n d st a n d a r d s f o r
l i n k i ng co mmercial and l ogi sti cs d ata, as we l l as d ata u se d in t r a d e p r a c t ic e , a n d a t r a d e
f i na nce pro ject is curr e n tl y u n de r way to exami n e th i s issu e .

Documents that reference UN/CEFACT data items
Document-name
WTO-ICC Standards Toolkit for
Cross-border Paperless Trade

Overview
A document that maps existing referenced standard rules and comprehensively
describes information that must be complied with when conducting international trade.

WTO-WEF report: The Promise ofTradeTech: Policy approaches toharness trade digitalization

The document organizes the policy aspects of data reliability, the legal framework forelectronic transactions, and the interchangeability of data models.

EU Strategy for Sustainable andCircular Textile

The document addresses the impacts of textile products on the environment andclimate change, and proposes collaborative actions to change the way textile products
are produced and consumed as a whole.

EU Proposal for a Directive on
corporate sustainability due
diligence

Draft Directive on Corporate Sustainability Due Diligence. The objective is to promotesustainable and responsible corporate behavior and to embed human rights andenvironmental considerations in corporate operations and corporate governance.

DCSA announcement of theStandards for the Bill of Lading

A document published by the Digital Container Shipping Association (DCSA) thatprovides data and process standards for the issuance of shipping instructions (S/I)
and bills of lading (B/L).

Source: UN/CEFACT, https://unece.org/sites/default/files/2023-05/Newcomers%20Session__40thCEFACT.pdf , viewed on 2023/12/26
UNECE, https://unece.org/media/press/365715 viewed on 2023/12/26
Copyright © Mitsubishi Research Institute25

2. International Trends, Trends in ASEAN, etc.

2.1.1 Legal System (3) UN/CEFACT
 The 41st UN/CEFACT Forum was held in October 2023. TradeWaltz Inc. fromJapan provided a speaker at this forum. It presented the results of mapping
UN/CEFACT data sets and TradeWaltz data items in 2022, and made threerecommendations for UN/CEFACT.

Three proposals#

Contents

Proposal

1

In the UN/CEFACT definition, we could not find any
data items that are practically required for international
trade.

Make data items easily discoverable or add data needed
in international trade.

2

Negative effects are occurring by managing data items
in documents. (e.g., data is correct but documentation
is incorrect)

Define which data are used in which documents in theform of structured data as required for a trade, because
data fluctuations exist for each user.

3

The UN/CEFACT data definition lacks data types andwho, when, why of data.

Define from who-to-who, when, and why for eachelement (fix the business process and establish
definitions of data items), Establish data item
definitions.) Define data items in the light of system
rules (number of digits, number of characters, data type,validation rules, etc.)

Source: Prepared by Mitsubishi Research Institute, Inc. based on materials received from TradeWalts, Inc.

Copyright © Mitsubishi Research Institute26

2. International Trends, Trends in ASEAN, etc.

2.1.2 Global Measures to Address Supply Chain Risks
 The G7 Summit in Hiroshima in May 2023 set initiatives to build resilient
supply chains as a goal, and the Covid-19 pandemic and Russia's invasion of
Ukraine were cited as risks. There is also growing interest in decarbonizationand human rights issues.
Supply chain risks
Risks

Contents

Lack of supplier performance

Financial health of suppliers

Complexity of demand planning

Uncertainty in demand planning due to changes in behavior
patterns

International labor shortage

Lack of skilled labor, including human rights issues

Inflation

Deterioration of cash flow due to inflation

Unstable international economy

Concerns about economic recession after pandemic ends

Complex sanctions and rules

Impact of international economic sanctions

Geopolitical risk

Impact of Russia's invasion of Ukraine and China's zero-corona policy

Reputation risk

Lack of corporate governance and social responsibility

Natural disasters and climate change risks

Impacts of natural disasters and climate change

Cyber risk

Dangers of cyber attacks

Source: Moody's, https://www.moodysanalytics.com/articles/2022/the-top-10-supply-chain-risks-that-companies-face , viewed on 2023/12/26
JETRO, https://www.jetro.go.jp/ext_images/_Reports/01/e98672da58f93cd3/20220039rev2.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute27

2. International Trends, Trends in ASEAN, etc.

2.1.2 Global Measures to Address Supply Chain Risks
 There is also growing interest in decarbonization and human rights issues in
global supply chains, but No more than half of the companies are actually
implementing specific countermeasure.
Decarbonation‐ 66.4% of ASEAN companies recognized the issue of decarbonization in their supply chains as a business challenge.
‐ Only 35.9% of ASEAN companies are actually taking steps to decarbonize.
‐ Challenges to the initiatives include the fact that decarbonization does not directly lead to increased corporate value,
there is local price supremacy, and it is difficult to make a fundamental energy transition due to conditions in industrial
parks.

Human rights due diligence‐ 55.9% of ASEAN companies recognized human rights issues in the supply chain as a management issue.
‐ 22.2% of the companies actually conduct human rights due diligence.
‐ Implementation challenges include understanding the content of human rights, engaging senior management, identifying andassessing the negative impacts of business on human rights, and preventing and addressing high-priority human rights risks.

Source: JETRO, https://www.jetro.go.jp/ext_images/_Reports/01/e98672da58f93cd3/20220039rev2.pdf , viewed on 2023/12/26

Copyright © Mitsubishi Research Institute28

2. International Trends, Trends in ASEAN, etc.

2.1.3 Data Distribution
 Discussions on data distribution are accelerating around the Gaia-X initiative.
 Gaia-X aims to build an infrastructure to support data distribution, while
ensuring data sovereignty and security, which has been studied andimplemented mainly in Germany and the EU since around 2016. In the use case,there is also a mechanism for data exchanges within supply chains.
Use case
Category

Project Name

Overview

Agriculture

Agdatahub

I t a i m s t o b u i l d a t r a c e a b l e a n d e n v i r o n m e n ta l l y s o u n d h e a l t h f o o d d a t asharing infrastructure.

Automotive
supply chain

Catena-X

The first open data ecosystem for the automotive industry, with end-toend data collaboration within the value chain in a secure environment.

Municipal
services

Elinor-X

A new data collaboration model is being demonstrated, with the goal of optimizing data
movements through data collaboration in both public and private sectors.

Transportationand tourism

Eona-X

It aims to provide an environment for promoting mobility, transportation, and tourism
use cases. The main focus will be on multimodal optimization to contribute to achieving
zero-emission goals.

Manufacturing(Industry 4.0)

EuProGigant

A project in the manufacturing industry aimed at "avoiding Self-Orchestration failuresin the value chain and building a learning ecosystem."

Mobility

Mobility Data
Space (MDS)

In the mobility sector, promote competition for user-friendly mobility on equal and fairterms by facilitating data exchanges between different actors, such as ride-sharing
services and public transportation operators.

Supply chain

SCSN

It aims to ensure fast, secure, and efficient data exchanges within the supply chain.

Structure-X

A project to enable data and services of existing cloud services and infrastructure
providers to be GAIA-X certified. The goal is to create an automated and independent
ecosystem with shared federated certification and labeling services using distributed
ledger technology.

Cloud service

Source: Gaia-X, https://gaia-x.eu/what-is-gaia-x/about-gaia-x/ , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute29

2. International Trends, Trends in ASEAN, etc.

2.1.3 Data Distribution
 One of the core components of Gaia-X is a technology called the IDS
connector.
 The IDS connector is a component that acts as a proxy for data sharing
between businesses, and is intended to maintain data sovereignty. The
architecture of the connector itself is only provided as a reference, andseveral organizations are working on its implementation.
Image of IDS connector usage
CA
Issue/Verify
Certificate
Authorization

DAPS
Connector
Authorization
Data Provider

Data Provider
Common protocol such as IDSCP2

CompanysystemAPI

IDS
Connector

Data search

IDS
Connector

BrokerCatalogAPI

CompanysystemData search

Source: NTT Data、https://www.nttdata.com/jp/ja/data-insight/2022/0415/ 、viewed on 2023/12/21
International Data Spaces Association、 https://internationaldataspaces.org/wp-content/uploads/dlm_uploads/IDSA-Position-Paper-GAIA-X-and-IDS.pdf 、viewed on
2023/12/21
Copyright © Mitsubishi Research Institute302. International Trends, Trends in ASEAN, etc.

2.1.4 Capacity Building Each international organization conducts analyses to promote electronic crossborder trade and widely publishes the reports and information obtained.
Furthermore, they have established evaluation frameworks and criteria, so thatcountries can properly assess the progress of electronic trade within theircountries.
 In the area of capacity building, ESCAP has engaged in capacity building
activities to promote the digitization of trade since 2020, such as providing
technical assistance and training to researchers in each country, and organizing
workshops to provide forums for stakeholders in each country to discuss policy
formulation based on case studies.
 ESCAP has also been active within consultative bodies: since 2015, ESCAP has
convened four intergovernmental steering groups to deepen the facilitation ofcross-border paperless trade.
 In 2022, the first meeting of the Standing Committee on the Framework
Agreement on Facilitating Cross-border Paperless Trade in the Asia-PacificRegion was held to discuss an action plan for implementing the frameworkagreement.

Copyright © Mitsubishi Research Institute312. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(1) Summary
 A list of initiatives is as follows
MeasureInitiative

ESCAP

OECD

Analysis andinformation

ESCAP-OECD Initiative on Digital Trade Regulatory
Analysis●●

Digital and Sustainable Trade Facilitation: A Global
Report●Legal and technical readiness checklists●

Readiness assessments for cross-border paperless
trade

●

WTO

UNCTAD

eTrade Readiness Assessments (eT Readies)●eT Ready Implementation Support Mechanism (ISM)●

eTrade for All●

Measuring digital trade●

Trade Facility Indicator●

Progress on implementation commitments bymembers

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute

32

●

●

2. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(1) Summary
 A list of initiatives is as follows
MeasureCapacitybuilding

Meeting
structure

Initiative

ESCAP

Capacity Building Workshop - Navigating theDigital Trade Law Landscape●

Regional Digital Trade Regulatory
Integration Initiative in Asia-Pacific●First session of the Standing Committee ofthe Framework Agreement on Facilitation of
Cross-border Paperless Trade in Asia andthe Pacific●Interim Intergovernmental Steering Groupon Cross-border Paperless Trade
Facilitation●

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute

33

OECD

WTO

UNCTAD2. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(2) Analysis and Information Sharing
 Each international organization conducts analyses to promote electronic crossborder trade and widely publishes the reports and information obtained.
Furthermore, they have established evaluation frameworks and criteria so thateach country can properly assess the progress of its own electronic trade. It is
hoped that these activities will promote the efficiency of overall digital tradeand its widespread use.
Initiative

Implementing
entityOverview

eTrade Readiness
Assessments (eT
Readies

UNCTAD

Beginning in 2017, the report identifies key obstacles and opportunities for e-commerce
development in 29 countries. Many countries have made significant progress in
implementing the eT Readies recommendations.

eT Ready
Implementation
Support Mechanism(ISM)

UNCTAD

Established in 2020; through the ISM, regular implementation reviews are conducted tobuild national capacity for effective implementation based on the principles of country
ownership, inclusiveness, and results-based management.
The first implementation review in 2020 captured progress in 13 eT Ready beneficiary
countries, which further promoted capacity building, knowledge sharing, and stakeholder
engagement activities, and contributed to raising the visibility of e-commerce in nationaland regional development agendas.

eTrade for All

UNCTAD

Through the eTrade for All online platform, launched in April 2017, the eTrade for All
program helps developing and donor countries navigate e-commerce aid supply and demand,learn about trends and best practices, and increase visibility into the initiatives andresources of various partners The company is also a member of the eTrade for All online
platform.
It focuses on seven major policy areas of particular relevance to the development of ecommerce. These are: (1) e-commerce readiness assessment and strategy development, (2)information and communication technology infrastructure and services, (3) trade logistics
and trade facilitation, (4) payment solutions for e-commerce, (5) legal and regulatory
framework, (6) e-commerce skills development, and (7) access to financing.

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute342. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(2) Analysis and Information Sharing(cont.)
Initiative

Implementing
entityOverview

ESCAP-OECD Initiativeon Digital Trade
Regulatory Analysis

ESCAP/OECD（Jointinitiative）

Policymakers and analysts in Asia and the Pacific region have developed atool to compare, benchmark, and formulate evidence-based policy
strategies to be used to promote cooperation and harmonization of digitaltrade-related regulatory frameworks for the more inclusive andsustainable development of the region.

Digital and Sustainable
Trade Facilitation Global Report

ESCAP

It reviews the progress of trade facilitation reforms in 144 countries. The
analysis is based on 58 trade facilitation measures categorized into fourgroups: general trade facilitation, digital trade facilitation, sustainable
trade facilitation, and other trade facilitation. It aims to help countries
and development partners take a proactive approach to trade facilitation,better understand and monitor progress, support evidence-based public
policies, share best practices, and identify new capacity building andtechnical assistance needs.

Legal and technicalreadiness checklists

ESCAP

A legal and technical readiness checklist developed to support theimplementation of a framework agreement to facilitate paperless trade in
the Asia-Pacific region.

Readiness assessments
for cross-border
paperless trade

ESCAP

Based on the legal and technical readiness checklist described above, thepaperless trade readiness assessment will allow countries to conduct a
self-assessment of their legal and technical readiness and to makerecommendations and individual action plans for the digitization of tradeon that basis.

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute352. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(2) Analysis and Information Sharing(cont.)
Initiative

Implementing
entityOverview

Measuring digital trade

OECD/WTO/IM
F(Joint
initiative)

A Handbook (the 2020 edition is the most recent) is to be prepared to: (1)provide a conceptual framework for defining digital trade, on which
national initiatives can aim; and (2) provide a mechanism for bringing
together and sharing national and international activities to measure
digital trade and its dimensions, which can be used to identify and develop
best practices. The objective is to provide a mechanism for bringing
together and sharing existing activities.

Trade Facility IndicatorOECD

The OECD’s Trade Facilitation Index (TFI), which was launched in 2013
and is updated every two years, assesses overall border procedures inmore than 160 countries and territories. Countries can use their TFI to
identify their strengths and challenges in trade facilitation, prioritize
actions, and make technical assistance and capacity building moretargeted and progressive. Each TFI consists of specific and rigorous
variables related to actual trade-related policies and regulations and theirimplementation.

Progress on
implementationcommitments by member
states

WTO

Indicators will be established to visualize the status of TFAs up to
implementation (Implementation). Developed countries are required toreport their implementation status by dividing TFA items into categories A,
B, and C, in order of ease-of-implementation (used as the trade facilitation
implementation rate in Trade White Paper 2021). (In the White Paper on
Trade 2021, these indicators will be used as the trade facilitation
implementation rate.)

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute362. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(3) Capacity Building ESCAP developed capacity-building activities to promote the digitization of
trade starting in 2020, such as provision of technical assistance and training toresearchers in each country, and organizing workshops to provide forums forstakeholders in each country to discuss policy formulation based on casestudies.
Initiative

Implementing
entityOverview

Capacity Building
Workshop - Navigating
the Digital Trade Law
LandscapeESCAP

The meeting, held in Bangkok on December 14, 2022, discussed ways
to support digital trade law reform in the early stages of cross-border
trade digitization. Regional and country examples and illustrative policy
options based on them were provided to show how ESCAP and
UNCITRAL can support the development of an efficient and effective
legal environment.

Regional Digital Trade
Regulatory Integration
Initiative in Asia-PacificRegionESCAP

ESCAP provided technical assistance and training to researchers invarious countries to collect data and information on digital traderelated regulations beginning in 2020. In the future, database-based
capacity building assistance will be provided to Least Developed
Countries (LDCs) and Middle Income Countries (MICs) in the AsiaPacific region upon request to help them understand gaps in theircurrent regulatory infrastructure, implications for addressing digitaltrade, and potential commitments in regulatory cooperation.

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute372. International Trends, Trends in ASEAN, etc.

Reference: Initiatives of International Organizations(4) Meeting Structure Since 2015, ESCAP has convened four intergovernmental steering groups todeepen the facilitation of cross-border paperless trade; in 2022, the firstmeeting of the Standing Committee on the Framework Agreement on Facilitationof Cross-border Paperless Trade in the Asia-Pacific Region discussed an action
plan for implementing the framework agreement.

Initiative

Implementing
entityOverview

First session of theStanding Committee ofthe Framework
Agreement on Facilitationof Cross-border
Paperless Trade in Asiaand the Pacific

ESCAP

The first meeting of the Standing Committee of the Framework
Agreement to Promote Cross-Border Paperless Trade in the AsiaPacific Region was held in Bangkok and online from December 12 to 15,
2022, marking the beginning of the implementation of the Convention
since it entered into force in 2021. During the meeting, an action planfor implementing the framework agreement was discussed inaccordance with Article 12 of the agreement.

InterimIntergovernmental
Steering Group on Crossborder Paperless Trade
Facilitation

ESCAP

A total of seven meetings were held from 2015 to April 2022, primarilyto: (i) further refine the draft regional arrangement on the facilitationof cross-border paperless trade as a potential intergovernmental
agreement; and (ii) to implement substantive provisions of the draft
regional arrangement on the facilitation of cross-border paperlesstrade The objective was to develop a draft roadmap.
*It became invalidated as the Framework Agreement on Facilitation of
Cross-Border Paperless Trade in Asia and the Pacific (CPTA) enteredinto force in April 2022

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute382. International Trends, Trends in ASEAN, etc.

2.1.5 Summary(International Trends)
Summary:
 Digitization of trade documents is being promoted internationally bypromoting the MLTER and standardizing data items. From the perspective ofsupply chains, responses to global supply chain risks and data distribution are
now being considered.
ViewpointStandardization ofdata items in legal
and tradedocuments

Global measures toaddress supply
chain risks
Data distribution

Outlook

Adoption of the UNCITRAL Model Law in 2017 gave legal effect to electronic records for negotiable
documents (bills of lading (B/L), notes, etc.) and accelerated discussions on electronic bills of lading.
Seven countries, including Singapore, have adopted the Model Law, and the International Chamber ofCommerce (ICC) is actively promoting it.



The ICC has established a Digital Roadmap to provide policy recommendations to governments for thedigitization of trade.



As for data standards in global logistics, the UN CEFACT standard EDI is in widespread use. Discussions
are in progress at ICC, UN CEFACT, and other organizations regarding the standardization of data items
for trade documents in commercial distribution channels.



Due to increasing risks in global supply chains (e.g., environmental, human rights, logistics disruptions
due to the novel coronavirus and international conflicts), it has also become an important agenda item toaddress new social values such as human rights and sustainability.



For data distribution, Gaia-X and Catena-X in Europe have established standard rules, integrated
infrastructure, and common use cases for data sharing. (There is also a use case for supply chains.)

Trade digitization requires an increased awareness among stakeholders involved in international trade,mainly through capacity building by the United Nations Economic Societies for Asia and the Pacific(UNESCAP), which has established various meeting bodies with a view to facilitating cross-bordertransborder logistics.

Capacity building

Copyright © Mitsubishi Research Institute392. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (1) Overview of policy in ASEAN
 Within the ASEAN region, the ASEAN Economic Community (AEC) was establishedin 2015. Based on the AEC Blueprint 2025, which was subsequently issued, there
is a growing movement toward electronic trade transactions.
2015

2017

2016

2018
Inauguration of AEC
AEC Blueprint 2025

Integrated
Strategic Action
Plan

ASEAN Trade
Facilitation
Framework
Connectivity
Master Plan 2025

Strategic Action
Plan for Trade
Facilitation

Signing of the ASEAN

2019

Electronic Commerce Agreement

2020
Issuance of ASEAN Electronic
Commerce Agreement

ASEAN Comprehensive Recovery Framework
Completed implementation of ASW in 10 ASEAN countries

42nd ASEAN Summit
2022

2023

2021

DEFA(Tentative)
2025

Blue ・・・ Documents and statements
Green ・・・Agreements and events

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute402. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (2) History of AEC
 A major vision, trade facilitation framework, and action plan have beendeveloped since 2015.
Year

EventsContents

2015

Launch of ASEAN Economic Community (AEC)

An organization formed to promote economic development
within the ASEAN region through a deepening of items in the
Economic Partnership Agreement2015

Launch of ASEAN Community Vision 2025 and
AEC Blueprint 2025

Five strategic objectives and 30 key areas are presented. Oneof these includes a trade facilitation strategy and expansionof coverage of the ASEAN Single Window.

2016

Adoption of ASEAN Trade Facilitation
Framework (ATFF)

Scope is defined as: a) customs and transportation facilitation,b) transparency of trade regulations and procedures, c)standards and conformity, and d) private sector engagement
and business facilitation.

2016

Announcement of ASEAN Connectivity Master
Plan 2025

Successor document to the existing ASEAN Connectivity
Master Plan

2017

AEC 2025 Integrated Strategic Action Plan
(CSAP)

Action Plan for realizing AEC Blueprint 2025

2017

Adoption of AEC2025 Strategic Action Plan
for Trade Facilitation at the ASEAN Economic
Ministers Meeting (AEM)

Action plan described in the ATFF article. It aims, among otherthings, to reduce trade transaction costs by 10% by 2020.

Source: JETRO, https://www.jetro.go.jp/biz/areareports/2021/66d71da1cefb6879.html , viewed on 2023/12/26
METI, https://www.meti.go.jp/meti_lib/report/2020FY/000680.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute412. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (2) History of AEC (Trade
Digitalization)
 In the past five years, efforts have been made to digitalize trade, including
adoption of ASEAN Electronic Commerce Agreement and ACRF, and completion of
implementation of ASW.
 At the 42nd ASEAN Summit in 2023, a declaration on improving intra-regional
payment connectivity and promoting local currency transactions was announced.
Year

EventsContents

2019

ASEAN Agreement on Electronic Commercecomes into force.

Countries sign agreement on paperless trade, personal dataprotection, and other agreements regarding business
transactions using electronic media.

2020

Adoption of the ASEAN Comprehensive
Recovery Framework (ACRF)

It defines priority areas to be addressed in order to recoverfrom the social and economic damage caused by the Covid-19
pandemic. The framework includes the establishment of a
National Digital Trade Platform in each member state as an
initiative.

2020

Ten ASEAN countries complete
implementation of ASEAN Single Window(ASW)

Electronic forms for certificates of origin are now available.

2021

ASEAN Agreement on Electronic Commercecomes into force.

Agreement on electronic commerce, including paperless tradeand protection of personal information, comes into force.

Source: JETRO, https://www.jetro.go.jp/biz/areareports/2021/66d71da1cefb6879.html , viewed on 2023/12/26
METI, https://www.meti.go.jp/meti_lib/report/2020FY/000680.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute422. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (3) Initiative Relationships... Strategy... Action plan
AEC Blueprint 2025 (2015)
Enhancement of ATIGA (2010)

Specializing in trade

Expansion of AWS coveragefacilitationSimplification of rules of origin



AFAFGIT (2000) Operational Promotion



e-commerce

Integrated Strategic Action

ASEAN Trade Facilitation
Framework: ATFF (2016)
Strengthening ATIGA’s activities



Realization of AEC (tradefacilitation)
Strategic Action Plan forSpecializing in

Plan: CSAP (2017)

Trade Facilitation (2017)

e-commerce

ASEAN Electronic Commerce
HigherPartially involved

targetwith AEC

than AEC

Agreement (2021)
Realization of AEC (electroniccommerce)
Work Plan for the Realization of

ASEAN Comprehensive Recovery

Electronic Commerce Agreements

Framework: ACRF (2020)(2021)


Recovery from Covid-19



AEC/APSC/ASCC cross-cutting
initiatives

ACRF Realization Plan (2020)

ASEAN Connectivity Master Plan:MPAC (2016)High-level goals for strategies within the ASEAN RegionPartially AEC related (updated version of existing document)

Action plans are also encompassed

Source: Compiled by Mitsubishi Research Institute, Inc. from various websites.
Copyright © Mitsubishi Research Institute432. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (4) AEC Blueprint 2025
 The AEC blueprint 2025 was adopted at the 27th Summit in November 2015
and consists of five strategic objectives and 30 key areas. The specific action
plan and timeline are described in the Consolidated Strategic Action Plan
(CSAP), which entered into force in 2017.
AEC Blueprint 2025

Blue ... Fields concerning trade digitalization#

Strategic goal

Main fields

1

Highly integrated
economy(1) Trade in goods, (2) trade in services, (3) investment climate, (4) financial
integration, financial inclusion, and financial stability, (5) facilitating movement ofskilled workers and commercial visitors, and (6) strengthening participation in global
value chains.

2

Competitive, innovative,
dynamic ASEAN(1) Effective competition policy, (2) consumer protection, (3) strengthening IPR
cooperation, (4) productivity growth, innovation, R&D, etc., (5) tax cooperation; (6)governance, (7) efficient, effective, and consistent regulation, (8) sustainable economic
development, and (9) global megatrends, new issues related to trade.

3

Connectivity cooperationand sectoral cooperation(1) Transportation, (2) information and communication technology (ICT), (3) ecommerce, (4) energy, (5) food, agriculture, and forestry, (6) tourism, (7) healthcare,(8) mineral resources, and (9) science and technology

4Strong, inclusive, peopleoriented, peoplecentered ASEAN(1) Strengthening SMEs, (2) strengthening the role of the private sector, (3) publicprivate partnerships (PPP), (4) reducing disparities, and (5) stakeholders' contributions
to activities toward regional integration

5

Global ASEAN(1) Improving economic partnership agreements with countries in the region andstrengthening economic partnerships with dialog countries that have not yet signed
agreements.

Source: Permanent Mission of Japan to ASEAN, https://www.asean.emb-japan.go.jp/asean2025/asean2025_blueprint-aec.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute44

2. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends(4) AEC Blueprint 2025 Mid-term Evaluation
 The ASEAN Economic Ministers (AEM) and AEC released an interim evaluationof AEC Blueprint 2025 in April 2021. The evaluation system (subjective
evaluation based on each country's self-assessment), which had been
considered problematic in the past, has been reviewed and a more neutral
evaluation has been conducted from multiple information sources.
AEC Blueprint 2025 Mid-term evaluation (excerpts in relevant areas)# Strategic goal
1

Highly integrated
economy...

3 Connectivity,
cooperation and sectoral
cooperation...

Major achievements

Status Implementation of ASEAN Trade Facilitation Framework (ATFF)
and Trade Facilitation Agreement
 Simplification of Certificate of Origin (Form D) and the ASEANWide Accident Waiver System (AWSC)
 Replacement of Form D by ASW
 ASEAN Comprehensive Recovery Framework (ACRF)
 ASEAN Settlement Policy Framework for Immediate Crossborder Settlement, etc.

Completed: 60.3%.
In progress: 32.1%.
Not implemented:
6.8%.

 Creation of the ASEAN E-Commerce Coordinating Committee
 ASEAN Digital Integration Framework Signing of the ASEAN Electronic Commerce Agreement
 ASEAN Framework for Personal Data Protection
 ASEAN Digital Master Plan 2025

Completed: 52.0%.
In progress: 34.9%.
Not implemented:
10.8%.

Source: Permanent Mission of Japan to ASEAN, https://www.asean.emb-japan.go.jp/asean2025/asean2025_blueprint-aec.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute45

2. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends(5) ASEAN Comprehensive Recovery Framework (ACRF)
 The ASEAN Comprehensive Recovery Framework was adopted at the 37th
Summit in November 2020 as a comprehensive exit strategy from the pandemiccrisis.
ASEAN Comprehensive Recovery Framework# Strategy

Blue ... Fields concerning trade digitalization

Main contents

1

Highlyintegrated
economy Building and maintaining current health promotion and healthmeasures; maintain and strengthen essential health services
 Equal access to vaccines and enhanced safety Capacity building of medical personnel
 Strengthening public health service capacity, including
emergency food safety and nutrition

2

Competitive,
innovative,
dynamic
ASEAN

 Strengthening social protection and social welfare, especiallyfor vulnerable groups
 Strengthening food security, food safety, and nutrition

 Human resource development, strengthening labor
policies in response to the new normal
 Gender equality in the process of infectious disease
response and recovery, and human rights protection fora strong community.

3

Connectivity,
cooperationand sectoral
cooperation

 Continued market opening to expand trade and investment
 Strengthening supply chain connectivity and resilience,
promoting trade in the new normal
 Reduction of non-tariff barriers, digitalization of trade
documents and procedures, and transportation and regional
connectivity

 Strengthening support for recovery in the sectors mostaffected by the pandemic (tourism, micro, small andmedium enterprises) Strengthening PPPs for regional connectivity
 Early entry into force of the Regional Comprehensive
Economic Partnership (RCEP) Agreement

4

ASEAN isstrong,inclusive,
peopleoriented,
and peoplecentered Responding to the 4th Industrial Revolution
 Promoting e-commerce and the digital economy, egovernment and e-services
 Promoting financial inclusion through digital financial
services and intra-regional payment connectivity

 Providing digital platforms and digital technology andfintech for SMEs DX
 Information and communication technology (ICT) in
education
 Improving and strengthening legal framework,
institutional capacity, data governance, andcybersecurity

5

GlobalASEAN

 Promoting sustainable development in all aspects
 Transitioning to sustainable energy, building green
infrastructure, and addressing basic infrastructure gaps

 High value-added industries, increased agricultural
productivity, and better management of disaster risk
 Promoting sustainable and responsible investment andsustainable financeSource: JETRO, https://www.jetro.go.jp/biz/areareports/2021/66d71da1cefb6879.html , viewed 2023/12/26
Copyright © Mitsubishi Research Institute46

2. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (6) ASEAN Commerce Agreement
 The ASEAN Agreement on E-Commerce entered into force in 2021. The agreement
aims to facilitate e-commerce in the ASEAN region, ensure the credibility of ecommerce, and promote inclusive growth and reduce economic disparities in theregion.
Scope of coverage
#

Item

1

ICT infrastructure2

Education and technical competency

3

Online consumer protection

4

E-commerce law regulatory framework

5

Electronic transaction security (Online privacy
protection)

6

Electronic payments and electronic settlements

7

Trade facilitation

8Intellectual property rights

9Competitive power

10

Cyber security

11

Logistics for e-commerce facilitation

Features‐ It does not include the non-imposition of tariffs on electronictransfers and the prohibition of source code disclosure
requirements as stipulated in CPTPP and the EU-EPA.
‐ The agreement also provides for a wide range of areas related
to e-commerce [Article 9 Electronic Settlement], [Article 10
Logistics], [Article 11 Strengthening Relationships with
Stakeholders], and other areas not covered by CPTPP and the
EU-EPA, such as electronic settlement, logistics, andstrengthening relationships with stakeholders.
‐ It provides that the two obligations of electronic authorizationand electronic signature (Article 7(2)) and online consumer
protection (Article 7(3)(b)) are exempted for Cambodia, Lao
PDR, and Myanmar, the latter member states, for five years
from coming into force.
‐ The Federation of Japanese Chambers of Commerce andIndustry of ASEAN (FJCCIA) and JETRO have submitted
requests and proposals with the aim of enabling Japan-based
companies in ASEAN to benefit from the ASEAN E-Commerce
Agreement in 2022.

Source: JETRO, https://www.jetro.go.jp/biznews/2019/04/1dd3d95f7b6c134c.html , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute47

2. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends (7) DEFA Research for a Digital Economy Framework Agreement (DEFA) was formallyapproved at the 55th ASEAN Economic Ministers’ Meeting in August 2023, andnegotiations among economic ministers began in September.
 Discussions are underway with the aim of concluding negotiations for DEFA in
2025.
Overview of DEFA
Item

Contents

Objective

Strengthen capacities of businesses and stakeholders across ASEAN by accelerating trade growth,enhancing interchangeability, creating a secure online environment, and increasing participation of
micro, small and medium enterprises (MSMEs)

History

October 2021: In the Bandar Seri Begawan Declaration, the parties agreed to begin studies toward
conclusion of DEFA.
August 2023: ASEAN Economic Ministers Meeting formally approved research on DEFA
September 2023: At the 23rd AEC Council Meeting, the AEC agreed to begin negotiations for DEFA.
2025 (Tentative): Conclusion of DEFA

Phase

1.
2.
3.

Expected
benefits

By 2030, the economy is expected to grow by approximately USD 300 billion to USD 1 trillion throughthe use of digital technology, and the application of DEFA could increase this to USD 2 trillion

Scope ofagreement

Digital trade and cross-border electronic commerce (EC), payments and electronic invoicing, digital ID
and authentication, online safety and cybersecurity, cross-border data flow, data protection, etc.

Recovery (2021-2025)
Acceleration (2022-2024)
Transformation (2025)

Source: JETRO, https://www.jetro.go.jp/biznews/2019/04/1dd3d95f7b6c134c.html , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute48

2. International Trends, Trends in ASEAN, etc.

2.2.1 Policy Trends(8) Initiatives within the ASEAN Region
 Several initiatives, as well as ASW, have been launched in the ASEAN region,
and activities are underway to promote economic integration within the ASEAN
region.
...Four legal frameworks that serve as key parts in advancing the goals of the AEC

Initiative (English term)

Date ofagreement

Contents

ASEAN Trade in Services
Agreement (ATISA) October 2020

‐ Comprehensive service sector agreements. Establishes
specific disciplines such as national treatment.

ASEAN Trade in Goods
Agreement (ATIGA)

 February 2009

‐ Basic Agreement on the Free Movement of Goods

ASEAN Comprehensive
Investment Agreement(ACIA)

 February 2009

‐ Agreement aimed at liberalization and facilitation, as well as
investment protection.

ASEAN e-commerce
Agreement January 2019

‐ Facilitate e-commerce in the ASEAN region andensure the reliability of e-commerce transactions

ASEAN-Wide SelfCertification (AWSC)

 September
2020‐ A system that allows only certified exporters to prove
accidental origin.

 August 2021

‐ This system is intended to improve the efficiency of landtransportation. It eliminates the need for truck transshipment
between countries that are connected by land.
‐ This system has been introduced in seven countries: Thailand,
Malaysia, Singapore, Cambodia, Laos, Myanmar, and Vietnam.

ASEAN Customs Transit
System (ACTS)

Source: ASEAN , http://www.world-economic-review.jp/impact/article2356.html , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute49

2. International Trends, Trends in ASEAN, etc.

2.2.2 ASEAN Single Window (1) Overview
 The ASEAN Single Window (ASW) was introduced to facilitate G2G tradetransactions; connection to the National Single Window (NSW) of ASEAN
countries was completed in 2020.
Background‐ The ASW connects and integrates the National Single Window (NSW) of each ASEAN Member States (AMS) and handles
exchanges of ASEAN Customs Declaration Document (ACDD), e-Phyto certificate, etc.
‐ Decided to be introduced at the ASEAN Summit in 2003; promoted by AWSSC.
‐ In 2018, ATIGA e-Form D was launched for exchanges among some of the ASEAN Member States (AMS). At the end of
2019, all 10 AMS had joined ASW. In 2021, exchanges of ACDD were started among AMS.

Effects of introduction‐ Accumulated Cost reduction USD 400 million (as of April 2023)‐ Transportation time reduced by four days (on average)

Source: APEC (ASEAN Secretariat), ASEAN Single Window (2021), http://mddb.apec.org/Documents/2021/CTI/TF-WKSP3/21_cti_tf_wksp3_006.pdf, viewed on 2023/12/23
US Mission to ASEAN, ASEAN Single Window Symposium (Press Release on April 5, 2023), Targets Expanded Trade, Learning from Trader Survey Findings,
https://asean.usmission.gov/press-release-asean-single-window-symposium/, viewed on 2023/12/23
ASEAN, ASEAN Single Window, https://asean.org/our-communities/economic-community/asean-single-window/, viewed on 2023/12/23

Copyright © Mitsubishi Research Institute502. International Trends, Trends in ASEAN, etc.

2.2.2 ASEAN Single Window (1) Overview
 NSW in each country connects to ASW through the ASW gateway to send andreceive subject documents on the network.

e-ATIGA Form D- e-ATIGA Form D refers to certificate of origin under the ASEAN Trade in Goods Agreement, which connects eachcountry's NSW to ASW via ASW GW to handle this document electronically- Importers who transact using the electronic form are entitled to preferential import duty treatment.

Source:Compiled by Mitsubishi Research Institute, Inc. from various websites

Source: Singapore Customs、 https://www.customs.gov.sg/files/businesses/asw-infograhic-myanmar-lao.pdf 、2023/12/23閲覧
USAID、 https://asean.usmission.gov/press-release-asean-single-window-symposium/ 、2023/12/23閲覧

Copyright © Mitsubishi Research Institute512. International Trends, Trends in ASEAN, etc.

2.2.2 ASEAN Single Window (2) Scope of Documents
 Provides an overview of documents handled by ASW.
Document title(English)Contents

e-ATIGA Form D‐ Refers to a certificate of origin (Form-D) used to enjoy preferential tariff rates in the ASEAN
Free Trade Area (AFTA) under the ASEAN Trade in Goods Agreement (ATIGA).
‐ Introduced in nine countries from January 2020. Laos, which had been lagging behind,officially introduced the system in August 2020, and the system is now in operation in 10
countries.

ASEAN Customs
Declaration Document(ACDD)‐ A system whereby ASEAN Member States (AMS) communicate 15 specific items from thecontents of export declarations as prior information from the exporting country's customs to
the importing country's customs, with the consent of the parties involved, in order to enablerisk management by the importing country's customs, smooth examination of import customs
declarations, and consequently the prompt issuance of customs clearances.
‐ At the August 2023 AEM meeting, it was confirmed that nine ASEAN countries, excluding
Laos, have implemented this initiative.

Electronic
Phytosanitary
Certificate (ePhyto)‐ A phytosanitary certificate (Phyto) is a document issued by the phytosanitary authority ofthe exporting country to certify that exported agricultural products meet the requirementsof the importing country, such as the absence of pests and diseases.
‐ In January 2021, a workshop was held with the goal of bringing the data structure of e-Phyto
certificates in line with the latest international standards.

Electronic Animal
Health (e-AH)‐ A certificate used for trade in animals and animal products. Under consideration for
introduction.

Electronic Food
Safety (e-FS)‐ A certificate used in the food trade. Under consideration for introduction

Source: ASEAN Single Window, https://asw.asean.org/index.php/news/item/malaysia-and-thailand-start-exchanging-the-asean-customs- declaration-document-acdd ,viewed on 2023/12/26

Copyright © Mitsubishi Research Institute52

2. International Trends, Trends in ASEAN, etc.

2.2.3 International Cooperation(1) Free Trade Agreements (FTAs)
 The following is a list of free trade agreements that are relevant to ASEAN. In
accordance with the China-ASEAN Free Trade Agreement, China and ASEAN are
working on the electronic exchange of certificates of origin. Electronic
exchange of certificates of origin is also possible in Japan and Indonesia.
Abbreviation

Formal nameTimeline

Participating nations

Contents

RCEP

East Asia Regional
Comprehensive
EconomicPartnership

October 2020 Signature
Effective January 2022 (10countries)

10 ASEAN countries,
Japan, China, Korea,
Australia, and New
Zealand

In addition to eliminating tariffs, theagreement also includes rules of origin,trade facilitation, and e-commerce
arrangements.

CPTPP(TPP11)

Comprehensive
and Progressive
Agreement on
Trans-PacificPartnership

February 2016 Signatures (12countries)
US withdrawal in January 2017
March 2018 Signatures (11 countries)
Effective December 2018

Brunei, Singapore,
Vietnam, Malaysia,
Canada, Chile, Mexico,
New Zealand, Peru,
Japan, and Australia

A huge trading economy that accounts for
12.1% of the world's GDP; membership of
the United Kingdom was ratified in 2023.

ATIGA

ASEAN Trade inGoods Agreement

February 2009 Signatures
Effective August 2010
March 2022 Negotiations for review
begin.

The 10 ASEANCountries

A single set of rules that were not includedin the AFTA-CEPT Agreement that enteredinto force in 1993. Related to efforts tocomputerize certificates of origin.

ACFTA

ASEAN-China Free
Trade Agreement

Protocol of Changes signed in
November 2015
Effective August 2019

The 10 ASEAN
countries, China

The Comprehensive Economic Cooperation
Framework Agreement between ASEAN and
China is the largest of its kind.

AJCEP

ASEAN-Japan
EconomicPartnership
Agreement

Signed in April 2008
Entered into force December 2008
(5 countries)

The 10 ASEAN
countries, JapanFirst multilateral FTA for Japan; first FTA
with Cambodia, Laos, and Myanmar.

Under consideration

21 APEC participating
countries/regions(from ASEAN: Brunei,Indonesia, Malaysia,
Singapore, Thailand,
and Vietnam)

A free trade area initiative led by APEC,
proposed as an umbrella for CPTPP and
RCEP.

FTAPP

Asia-Pacific Free
Trade Area

*CPTPP is the official name, and TPP11 is the common name used to emphasize the 11 countries after the withdrawal of the United States.
Source: Compiled by Mitsubishi Research Institute, from various sources
Copyright © Mitsubishi Research Institute53

2. International Trends, Trends in ASEAN, etc.

2.2.3 International Cooperation(2) TradeTrust Framework Singapore, at the initiative of the Infocomm Media Development Authority(IMDA), has developed the TradeTrust Framework, an interoperable frameworkthat provides proof of authenticity, provenance, and ownership of documents
used in digital trade.
 Developed to meet the requirements of the MLETR adopted in Singapore in 2021,
it is an innovative mechanism that includes legal and institutional developmentin its system requirements.
TradeTrust Framework
Item

Contents

Development
history

2019: MOU signed by IMDA, Maritime and Port Authority, Shipowners Association of Singapore, andCustoms; development begins
2021: Pilot project in collaboration with IMDA, the Monetary Authority of Singapore (MAS), and private
operators

Functional
overview

1. Legal harmonization:
Ensure international legal validity by complying with the MLETR
2. Standards development:
Develop an international standard to which TradeTrust should adhere
3. Accreditation structure:
Certify solutions that meet legal requirements
4. Open source (Software component):
Equipped with an open source software suite that can be linked to the TradeTrust network

Usage fee

No charge (but a small fee is charged for blockchain usage)

User

Shipping lines, shippers/receivers, logistics service providers, financial institutions, government authorities

Usage Image

Used as a middleware service, connected to the company's internal systems. The authenticity of documents
is ensured by the Ethereum blockchain, which improves the reliability of electronic trade documents.

Source: IMDA, https://www.imda.gov.sg/how-we-can-help/international-trade-and-logistics/tradetrust, viewed on 2023/12/26
WTO, https://www.wto.org/english/res_e/reser_e/pres_loh.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute54

2. International Trends, Trends in ASEAN, etc.

2.2.４ ASEAN-BAC (1) The following is a list of ASEAN-BAC legacy projects * carried out from 2015 to2022.
*T h e A S E A N B u s i n e s s A d v i s o r y C o u n c i l ( A S E A N - B A C ) w a s e s t a b l i s h e d a t t h e 2 0 0 1 A S E A N S u m m i t w i t h a m a n d a t e t oprovide feedback and guidance from the private sector to advance efforts toward ASEAN economic integration. During
the ASEAN Presidency, it launched the Legacy Project and is promoting that initiative in each country.

Year

Country

Legacy projectContents

Relationship with project

2015

Malaysia

ASEAN Financial Inclusion
Solutions（AFIS)

Promotion of fintech solutions (cross-border,
financial inclusion)

－

2016

Laos

Laos Logistics Link

Development of rail and transport networks
in China and Thailand－(Related as physicalinfrastructure)

2017

Philippines

ASEAN Mentorship for
Entrepreneurs Network（AMEN)

Provision of mentorship programs forentrepreneurs in the ASEAN region

2018

Singapore

SGConnect

Development of super ports (logistics hubs
and related procedural efficiencies). Expand
Singapore's know-how to Vietnam and other
ASEAN countries.

：Improved efficiencyof physicalinfrastructure andtrade procedures

2019

ThailandEnhancement of Digital
Trade Connectivity

Facilitating digital trade linkages：Linkage with thisproject

２０２０Vietnam

Digital Startups Towards
ASEAN Resilience andSustainability

Promotion of startups (sustainability andresilience enhancement)－(Project is being
rebuilt)

２０２１

Brunei*1

AKREDI

Demonstration of blockchain-based
quarantine certificates：Considering
digitization of trade2022

Cambodia

ASEAN A.C.T: Addressing
Challenges Together

Consideration of synergies with current
legacy projects－：Capacity building*1. The 2023 Borneo Business Roundtable focused on Brunei as a trade and investment initiative to revitalize Borneo‘s economy through the Dagang Borneo. The projectis underway.
ASEAN BAC、 https://asean-bac.org/index.php/legacy-project/ 、viewed on 2023/12/26
Copyright © Mitsubishi Research Institute55

2. International Trends, Trends in ASEAN, etc.

2.2.４ ASEAN-BAC (2) Indonesia set eight legacy projects for the ASEAN chairmanship in 2023.
＃

Legacy projectContents

Relationship with project1

ASEAN QR CodeEstablishment and promotion of uniform QR code
standards to enable cross-border payments by SMEs
(and citizens who use them).

－

2Marketplace Lending
Platform

Development of a financing platform for SMEs－

3

Wiki Entrepreneur

Establishment of a network to connect small businessentrepreneurs with each other－

4

ASEAN Net Zero Hub

Establishment of a platform for sharing knowledge andbest practices among stakeholders－：For indirect purposes,
it has a relationship）

5

Carbon Center of
Excellence

Establishment of a platform for stakeholders to shareknowledge and best practices (climate change goals)－：For indirect purposes,
it has a relationship）

6

ASEAN One Shot
Campaign

A prevention program aimed at expanding the scope ofroutine immunizations (assuming Covid-19) and providing
a permanent solution－

7

Inclusive Closed-loop
Model for Agricultural
Products

Establishment of an inclusive model with the cooperationof stakeholders involved in agricultural products andmarketing.

－

8

ASEAN Business Entity

Provision of incentives to stimulate investment in the
ASEAN region：
Agenda set under thepriority of trade andinvestment

ASEAN BAC、 https://asean-bac.org/index.php/legacy-project/ 、viewed on 2023/12/16
Copyright © Mitsubishi Research Institute56

2. International Trends, Trends in ASEAN, etc.

2.2.４ ASEAN-BAC (3) The following is an overview of interviews with ASEAN-BAC legacy projectstakeholders in each country.
＃

Country

Legacy projectInterview date1

Philippines

ASEAN Mentorship for
Entrepreneurs Network（AMEN)

July 2023,
November
2023

AMEN is executing a Phase 2 project, which is supportedby the Japan-ASEAN Integration Fund (JAIF). In thisproject, capacity building to import/export businesses(SMEs) is available, and there is strong interest in working
with this project for Phase 3 after 2024.

2

Singapore

SGConnect

June 2023

Technical cooperation, investment, and investment fromSingapore in each country to realize the ASEAN Smart
Logistics Network and develop logistics parks. Interested
in attracting Japanese and other foreign companies
through investment relations.

3

Brunei

AKREDI,
Dagan Borneo

July 2023,
December2023

In 2021, a blockchain-based quarantine certificate
demonstration called AKREDI was implemented; in 2023,
with the initiative of Dagan Borneo, implementation of adigital trade platform was under consideration. There isalso strong interest in this project.

4

ThailandEnhancement of Digital
Trade Connectivity

August 2023
, October2023

A task force was set up at ASEAN-BAC to promote trade
digitization in each country, and representatives(companies) from each country were selected. The aim is
to conduct multilateral demonstrations while also utilizing
the APEC framework, etc.

5Indonesia

Related legacy projects

June 2023
August 2023

Indonesia has established eight legacy projects, and it iscommonly recognized that they are related to trade andinvestment priorities, etc. 8/7 was supportive of thisinitiative, and expressed interest in demonstration
projects to understand the benefits for Indonesia.

Source: Compiled by Mitsubishi Research Institute, based on interviews.
Copyright © Mitsubishi Research Institute57

Overview of interview

2. International Trends, Trends in ASEAN, etc.

2.2.４ ASEAN-BAC (４) The ASEAN Initiative for enhancing trade connectivity and the ASEAN-BAC
Legacy Project are closely related to trade digitization activities in the region.
Promoting trade digitalization will be possible through collaboration with theASEAN-BAC Legacy Project, which is closely related to this project.
ASEAN-BAC
Legacy project

Export country
InsurancecompanyB
toB

Financial
institutions

ASEAN Business
entity: Indonesia

Import country
Other
industry
platform

Other
industrial
platform

ASEAN Business
entity: Indonesia

AKREDI etc.

Exporter
ASEAN Mentorship for
Entrepreneurs Network(AMEN): Philippines

Forwarder,
custombrokerASEAN
initiatives

Importer

Digital Trade
Connect:
Thailand

Digital trade
platform

Financial
institutions

ASEAN Mentorship for
Entrepreneurs Network(AMEN): Philippines

Digital trade
platform

Forwarder,
custombroker

SGConnect:
SingaporeB
toNational Single
ASEAN Single Window
WindowG
G
toG

Relatedministries

Exportcustoms(ASW)

ASEAN Trade
Repository (ATR)

ASEAN Customs andTransit System(ACTS)

ASEAN Solutions for
Investments, Service
and Trade (ASSIST)

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute58

National Single
Window

Importcustoms

Relatedministries

2. International Trends, Trends in ASEAN, etc.

2.2.5 Summary(ASEAN Trends）
Summary: ASEAN countries are promoting moves toward electronic trade transactions,such as the ASEAN Single Window based on the AEC, but limited in the BtoB
area.
 International cooperation activities are centered on electronic exchanges ofcertificates of origin in line with FTAs.
 Linkage with ASEAN-BAC Legacy Project could be one measure to promotetrade digitalization.
Viewpoint

OutlookWithin the ASEAN region, the ASEAN Economic Community (AEC) was established in2015. Based on the AEC Blueprint 2025 issued in 2017, moves toward electronic tradetransactions are being promoted.

Development of national single windows in each country has run its course. The ASEAN
Single Window (ASW) has also been introduced, contributing to the revitalization oft r a d e t h r o u g h t h e u s e o f i n t r a - r e g i o n a l t r a d e a g r e e m e n ts , a s w e l l a s t o t h e f a c i l i t a t i o nof trade procedures and cost reduction.
Documents handled by ASW include certificates of origin, quarantine certificates, andcustoms declaration documents. On the other hand, mutual compatibility withcountries outside the ASEAN region is an issue.

PolicyNational
SingleWindow and
ASEAN
SingleWindow

International
cooperation
initiatives
ASEAN-BAC

Within the ASEAN region, each country is pursuing free trade agreements. A
mechanism that allows exchanges of certificates of origin, ASW promotes applicationof the agreements.
IMDA in Singapore is promoting the TradeTrust Framework and is attempting topromote the transfer of records as a tamper-resistant open source using blockchain ina manner that meets the MLETR requirements.
A trade digitization initiative of Thailand has been launched in the ASEAN-BAC Legacy
Project, and trade digitization is becoming a key agenda item in other related ASEANBAC initiatives.

Source: Compiled by Mitsubishi Research Institute, Inc. from various publicly available information.
Copyright © Mitsubishi Research Institute592. International Trends, Trends in ASEAN, etc.

2.3.1 Policy Trends (1) Overview of APEC APEC was launched in 1989 as a framework for economic integration andeconomic cooperation in the Asia-Pacific region. Currently, 21 countries andregions are participating in APEC, with seven countries from ASEAN: Brunei,Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
 APEC established the Trade and Investment Committee, which is working toliberalize and facilitate trade and investment.
Overview of APEC

Subcommittee/Expert meeting‐ A framework for economic cooperation involving 21
countries and regions (economies) in the Asia-Pacificregion.
(Launched as a ministerial meeting in 1989, it has also
hosted a summit meeting since 1993. The secretariat is
located in Singapore.)‐ Expert Meeting on Business Personnel Mobility(BMG)‐ Activities to promote trade and investment liberalizationand facilitation, regional economic integration, andeconomic and technological cooperation for sustainablegrowth and prosperity in the Asia-Pacific region.

‐ Intellectual Property Experts Group (IPEG)‐ The APEC Business Advisory Committee (ABAC) makes
direct recommendations to leaders on issues ofimportance to the business community.

‐ Subcommittee on Customs Procedures (SCCP)‐ Digital Economy Steering Group (ECSG/DESG)‐ Service Group (GOS)‐ Investment Experts Group (IEG)‐ Market Access Group (MAG)‐ Standards & Conformity Subcommittee (SCSC)

Source: Ministry of Finance, https://www.mof.go.jp/policy/customs_tariff/trade/international/apec/apec_economies.pdf , viewed on 2023/12/26
Ministry of Finance, https://www.mofa.go.jp/mofaj/files/100130972.pdf, viewed on 2023/12/26
Copyright © Mitsubishi Research Institute602. International Trends, Trends in ASEAN, etc.

2.3.1 Policy Trends (２) History of APEC APEC was established in 1989 by 12 countries. Since 2006, activities have been
underway to create a regional free trade area, beginning with FTAAP.
Year

EventsContents

1989

Launch of APEC

At its inception, the organization had 12 members from six ASEAN
countries (Indonesia, Singapore, Thailand, the Philippines, Brunei,and Malaysia), South Korea, New Zealand, Australia, Canada, theUnited States, and Japan.

2006

Announcement of the Asia-Pacific Free Trade
Area (FTAAP) concept at the APEC Leaders'Meeting.

At this meeting, the leaders agreed on a long-term vision to form an
Asia-Pacific free trade area and to conduct a study on ways andmeans to achieve this.

2010

Roadmap to Asia-Pacific Free Trade Area
(FTAAP)" adopted at Yokohama Vision.

It was decided to "take concrete steps toward an Asia-Pacific Free
Trade Area (FTAAP) as the primary vehicle for advancing APEC's
regional economic integration agenda."

2011

Establishment of Cross Border Privacy
Enforcement Arrangement (CBPR) system

A system to ensure that information is protected in accordancewith APEC Privacy Principles for cross-border data flows, with theaim of protecting cross-border personal information.

2012

Establishment of Framework Action Plan for the
Capacity Building Initiative for Regional
Economic Integration (CBNI) to build capacity
for realizing FTAAP.

Capacity-building activities in pursuit of FTAAP. In line with thisaction plan, Japan is conducting several workshops.

2014

Beijing Roadmap for APEC's Contribution to theRealization of an Asia-Pacific Free Trade Area
(FTAAP)" adopted at the APEC Leaders' Meeting

It was decided to initiate the Collaborative Strategic Study on
Issues Related to the Realization of the FTAAP. Progress of thisstrategic study is reviewed annually by the APEC Trade andInvestment Committee and the High-level Working-Level Meeting. A
consensus-based report was completed and submitted to Ministers
and Leaders by the end of 2016.

Source: Compiled by Mitsubishi Research Institute, Inc. from various sources, viewed on 2023/12/26
Copyright © Mitsubishi Research Institute61

2. International Trends, Trends in ASEAN, etc.

2.3.1 Policy Trends (２) History of APEC
 Although activities to realize the FTAAP have been underway continuously forthe past five years, the progress of discussions has slowed due to a
deterioration of international relations.
 At the APEC Leader’s meeting, ”Strengthening supply chain resilience" and"promoting digital trade" were identified as areas of focus for activities toward
mutual cooperation, one of the priority issues.
Year

EventsContents

2017

APEC Leaders approve APEC crossborder e-commerce facilitation
framework at the APEC Summit

APEC leaders set development of transparent and predictable crossborder EC legal rules. (See below for details.)

2018

For the first time in the history of the
APEC Summit, adoption of the
Leaders' Declaration was abandoned.

The US and China disagreed on such agenda items as trade and regional
cooperation, and Papua New Guinea, the chairing country, declined toadopt the summit declaration.

2020

Presentation of Putrajaya Vision
2040

The vision of an open, dynamic, resilient, and peaceful Asia-PacificCommunity by 2040, based on the key parts of trade and investment
liberalization, digital economy and innovation, and sustainable andinclusive growth2021

Development of Aotearoa Action Plan

APEC adopted as implementation plan for Putrajaya Vision 2040.

2017

APEC Leaders approve APEC crossborder e-commerce facilitation
framework at APEC Summit

APEC leaders set forth development of transparent and predictablecross-border EC legal rules. (See below for details.)

2023

APEC Leaders' Meeting held in San
Francisco

The theme was "Creating a Resilient and Sustainable Future for All," andthree priorities were set for discussion: 1) Interconnectedness, 2)Innovation, and 3) Inclusiveness.

Source: Compiled by Mitsubishi Research Institute, Inc. from various sources, viewed on 2023/12/26
Copyright © Mitsubishi Research Institute62

2. International Trends, Trends in ASEAN, etc.

2.3.2 Activities to Strengthen Regional Cooperation(1) FTAAP The Asia-Pacific Free Trade Area (FTAAP) was proposed at the 2006 APEC
Leaders' Meeting with the aim of forming a free trade zone among member
countries.
Concept‐ The basic policy is to form FTAAP on top of regional economic partnership agreements already in progress, such as TPP
and RCEP.
‐ At the 2006 summit meeting, the US proposed the concept of FTAAP, which is said to have been motivated by concerns
over the rise of East Asian regionalism and aimed at discouraging broad-based FTAs such as ASEAN+3 and ASEAN+6
that exclude the US.
‐ The TPP and RCEP were subsequently launched. The TPP was led by the US at the time. In response, China advanced
the RCEP concept and has been negotiating an East Asia wide FTA.

Recent trends‐ At the APEC summit in November 2022, the US and Japan and Russia were at odds over their condemnation of
Russia's aggression against Ukraine.
‐ It appears that the participating countries have reached a consensus on accelerating research toward the realizationof the Asia-Pacific Free Trade Area (FTAAP) and ensuring a free, open, and fair trade and investment environment.

Source: Institute for International Trade and Investment, https://www.iti.or.jp/kikan100zoukan/100umada.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute632. International Trends, Trends in ASEAN, etc.

2.3.2 Activities to Strengthen Regional Cooperation(2) APEC Cross-border E-Commerce Facilitation Framework
 The APEC Cross-Border E-Commerce Facilitation Framework was
adopted at the 2017 APEC Leaders’ Meeting.
Objectives① Create a regulatory ecosystem that is favorable to e-commerce to promote predictability, transparency, security, faircompetition, and consistency② Promote the development of information and communication technology infrastructure to facilitate cross-borderelectronic commerce③ Encourage and facilitate the participation of businesses in global commerce, especially small and medium-sizedenterprises (SMEs)④ Strengthening public-private partnerships, including consumer protection⑤ Contribute to trade and investment facilitation in the region and help achieve the Bogor Goals and the post-2020 vision.

Main targets that make up the framework#

Main targets

A

Promote transparent and predictable legal and regulatory approaches and measures. Promote businessfriendly, consistent, transparent, and predictable legal and regulatory approaches and regulations tofacilitate cross-border e-commerce.

B

Strengthen capacity building to enable APEC economies to support MSMEs' cross-border EC entry into
global and regional markets.

cStrengthen cross-border data privacy protection by expanding implementation of existing APEC
programs

D

Facilitate cross-border paperless trade within the region

E

Address new and cross-cutting issues in cross-border e-commerce

Source: APEC, http://mddb.apec.org/Documents/2017/MM/AMM/17_amm_jms_anxa.pdf , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute642. International Trends, Trends in ASEAN, etc.

2.3.3 Harmonization of Legal Systems and Regulations(1) Cross-border Privacy Rule System (CBPR)
 Cross-border Privacy Rules (CBPR) form a system for certifying compliance withAPEC Privacy Principles with respect to protecting the cross-border personal
data of companies, etc. It was agreed upon in 2011, and a new independent
forum (tentatively called the agreement) was set up in 2011. Another new
independent forum (tentatively called the Global CBPR) was launched in 2022.

Overview

 Companies in participating countries are audited forJapancompliance with the requirements of the CBPR system
Transfer

CBPR participants

by a certification body called an accountability agent.

accepted Only institutions with CBPR certification may send andreceive personal data cross-border in accordance withTransfer OK

CBPR rules.
 Currently, nine countries participate: US, Canada,

Companies withTransfer OK

Mexico, South Korea, Taiwan, Singapore, Philippines,

Transfer

Australia, and Japan.

accepted

CBPR
certification

Source: JIPDEC, https://www.jipdec.or.jp/project/cbpr.html , viewed on 2023/12/26
JETRO, https://www.jetro.go.jp/biznews/2022/04/3ccb8aec46cb51c6.html , viewed on 2023/12/26
CBPR, http://cbprs.org/about-cbprs/ , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute652. International Trends, Trends in ASEAN, etc.

2.3.3 Harmonization of Legal Systems and Regulations(1) Cross-border Privacy Rule System (CBPR) The Global CBPR, formed in 2022, is developing international rules inaccordance with the following objectives

Recent Developments (Global CBPR) Of the current nine participating countries, seven—Canada, Japan, Korea, the Philippines, Singapore, Taiwan, and US—
have established a new independent forum, tentatively named Global CBPR.
 Against the backdrop of a growing need for third-party corporate certification for secure transborder transfers of
personal data, the forum aims not to be limited to the APEC framework. It has the five objectives listed below.

#

Objectives

1

Establish an international certification system based on the APEC Cross-Border Privacy Rule (CBPR) system and
the Privacy for Processors (PRP) system.

2

Support the free flow of data and effective data protection and privacy through the GlobalCBPR and PRP
systems

3

Provide a forum for exchanges of information and collaboration on matters related to the GlobalCBPR and PRP
systems.

4

Regularly review members' data protection and privacy standards to ensure GlobalCBPR and PRP program
requirements in line with best practices

5

Facilitate interoperability with other data protection and privacy frameworks

Source: JIPDEC, https://www.jipdec.or.jp/project/cbpr.html , viewed on 2023/12/26
JETRO, https://www.jetro.go.jp/biznews/2022/04/3ccb8aec46cb51c6.html , viewed on 2023/12/26
CBPR, http://cbprs.org/about-cbprs/ , viewed on 2023/12/26
Copyright © Mitsubishi Research Institute662. International Trends, Trends in ASEAN, etc.

2.3.3 Harmonization of Legal Systems and Regulations(2) APEC Trade Repository
 The APEC Trade Repository has been developed to ensure that small andmedium-sized enterprises (SMEs) can fully benefit from FTAs within the APEC
region.
#Item

Contents

1

MFN tariff rates

 MFN tax rate2

Preferential tariff rates

 Preferential tariffs

3

Rules of origin (ROO) on existing RTAs/FTAs

 Rules of origin in existing RTAs/FTAs

4Best practices in trade facilitation

 Best practices in trade facilitation

5

Domestic trade and customs laws and regulations

 Domestic trade and customs regulations

6

Procedures and documentary requirements for imports
and exports

 Procedures and documentation requirements
for import/export

7

Authorized economic operators (AEOs) and information
on mutual recognition arrangements (MRAs)

 Information on AEO and mutual recognition

8

List of AEOs(as available)

 AEO list

*The AEO system is a system whereby customs approves and certifies businesses that have established cargo security management and legal
compliance systems, and provides them with measures to ease and simplify customs procedures.

Source: APEC、 https://www.apec.org/docs/default-source/publications/2023/5/study-on-strategy-to-promote-the-utilization-of-the-apec-traderepository/223_mag_study-on-strategy-to-promote-the-utilization-of-the-apec-trade-repository.pdf、viewed on 2023/12/26

Copyright © Mitsubishi Research Institute672. International Trends, Trends in ASEAN, etc.

2.3.4 ABAC Initiatives
 At the APEC meeting in Brunei in May 2023, ABAC members urged APEC Trade
Ministers, the WTO, and the FTAAP to use the challenges facing the region,
including environmental risks and financial stress, as opportunities to build new
initiatives. They urged them to use the challenges facing the region, such asenvironmental risks and financial stress, as an opportunity to build a new path
to a strong, inclusive, and sustainable regional economy.
Recommendations to APEC Leaders#

Category

Contents

1

Regional economic
integration

 Promote the Asia-Pacific Free Trade Area (FTAAP)
concept
 Support the World Trade Organization (WTO) and defend arules-based multilateral trade regime Strengthen trade in services

 Novel coronavirus infection responses andvaccine availability in trade Border reopening through more consistentimmigration action responses in eachcountry/region in the region

2

Digital Expand physical infrastructure that is essential topromote digitization
 Expand basic digital infrastructure, including
cybersecurity and digital IDs

 Strengthen data infrastructure for value creation
through data sharing, cross-border data
facilitation, digital health applications, etc.

3

Micro, small andmedium enterprises
and inclusiveness Strengthen sustainable practices of micro, small andmedium enterprises

 Promote digital transformation of micro, small andmedium enterprises

4

Sustainability

 Build a sustainable and resilient food system
 Promote effective responses to climate change Promote energy transition toward a low-carbon
economy5

Finance andeconomics

 Implement monetary and fiscal policies to intercept the
wage-price spiral Balance fiscal consolidation through new fiscal
instruments and fiscal spending for structural reforms

 Financing transitions to a sustainable economy
 Build a regional platform for transitions anddigitalization and resilience

Source: Ministry of Economy, Trade and Industry, https://www.meti.go.jp/press/2022/11/20221110002/20221110002.pdf , viewed on 2023/12/26
APEC, https://www.apec.org/press/news-releases/2023/asia-pacific-business-leaders-call-for-forging-a-new-path-on-inclusion- resilience-and-sustainability , viewed
on 2023/12/26
Copyright © Mitsubishi Research Institute682. International Trends, Trends in ASEAN, etc.

2.3.4 ABAC Initiatives Digital Trade Connect
 Digital Trade Connect was launched as a network for sharing initiatives andcase studies on digital trade in both APEC and ASEAN under an initiative of
ASEAN-BAC (Thai Bankers Association) in Thailand. The first task force meeting
was held in October 2023.
Participants

Plan

Category
Of the ASEAN
Participation fromboth ABAC and
ASEAN-BAC

ASEAN-BAC

Country
BruneiIndonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam
Cambodia
Lao PDR
Myanmar

Other countries

Japan, Hongkong, Australia

International
Institutions, standard
institutions

ASEAN SEC, ICC DSI, ETDA, UN,
UN/CEFACT, ADB

Source: Prepared by Mitsubishi Research Institute, Inc. based on data from ASEAN-BAC

Copyright © Mitsubishi Research Institute69

Meeting

Date

AgendaKickoff

October 31,
2023

Overview, Presentation by
Thailand2nd
meeting

December 1,
2023

Presentation by Singapore,
ICC DSI, UN/CEFAC

3rd
meeting

January 25,
2024

Presentation by Japan,
ASEAN-SEC, UNCITRAL

4thmeeting

February 20,
2024

Presentation by Hongkong

5th
meeting

March 19,2024

Presentation by Australia,
New Zealand

6th
meeting

April 19,2024

Presentation by China andPAA

2. International Trends, Trends in ASEAN, etc.

2.3.５ Summary（APEC Trends）
 APEC has been working mainly toward regional economic integration andeconomic cooperation, particularly toward the realization of the Pacific Free
Trade Area (FTAAP), but progress has been slowing down due to international
instability.
 The three priorities of the 2023 APEC Leaders' Summit are 1) Interconnected,2) Innovative, and 3) Inclusive.
Viewpoint
Policy trend

Strengthening
intra-regional
cooperation

Harmonization oflaws andregulations

OutlookActivities to realize the FTAAP have been underway, but progress has beenslowed by deteriorating international relations.



APEC Cross-Border E-Commerce Facilitation Framework adopted. APEC agreed
measures to promote cross-border paperless trade.



Since the announcement of the FTAAP concept in 2006, efforts have been madeto date to realize the Pacific Free Trade Area concept (FTAAP).

In 2018, organizational activities slowed as the country has been significantly
affected by geopolitical risks and international instability, such as abandoning
adoption of the Summit Declaration due to conflict between the US and China.

Cross Border Privacy Rules/APEC Cross Border Privacy Rules System (CBPR)
established to set up a certification system for protecting the cross-borderpersonal data of companies, etc. APEC Trade Repository is being established. It
compiles and publishes trade and tariff information of member countries.

In the area of trade digitalization, the Taskforce on Digital Trade Transformation
and Connectivity was established under the Financial Taskforce and recruitedmembers from each country until August 2023, with meetings started forknowledge sharing in October 2023.

ABAC initiatives

Source: Ministry of Foreign Affairs, https://www.mofa.go.jp/mofaj/gaiko/apec/index_rekishi.html 、viewed on 2023/12/26
Copyright © Mitsubishi Research Institute70

3. Analysis of Current Status of the 10
ASEAN Countries
 ３.1 Trade Transactions and Trade-related Data
 3.2 Status of Platform Development
 3.3 Status of Infrastructure Development
 3.4 Trends in Digitization and Standardization
 3.5 Issues with Trade Procedures
 3.6 Potential of Trade Digitalization Market
 3.7 Stakeholders
 3.8 Summary
Copyright © Mitsubishi Research Institute71

3. Analysis of Current Status of the 10 ASEAN Countries

3.1 Trade Transactions and Trade-related Data
(1) Trade value The following table shows the values of imports and exports of the 10 ASEAN
countries. Trade with Singapore and is largely divided into Indonesia, Vietnam,
Malaysia, Thailand, and the Philippines, Cambodia, Laos, Myanmar, and Brunei(million USD)

Categorized into threegroups in terms of valueof imports and exports
and GDP

LegendImportExports andimports by
ASEAN
countries(2022)(million USD)
ExportSource: Compiled by Mitsubishi Research Institute, Inc. from IMF Direction of Trade Statistics for each country in 2022.
Copyright © Mitsubishi Research Institute

72

GDP

3. Analysis of Current Status of the 10 ASEAN Countries

3.1 Trade Transactions and Trade-related Data
(2) Proportions of imports and exports
 The following table shows the percentages of imports and exports of ASEAN
countries to other countries.
 Both imports and exports tend to be dominated by transactions within the
ASEAN region, followed by trade transactions with China.

Proportions of imports and exports of ASEAN countries, 2022
Year 2022（Percentage of exports to other countries by ASEAN countries）
Country

ASEAN

Japan

China

EU

Year 2022（Percentage of imports to other countries by ASEAN countries）

United States

Country

ASEAN

Japan

China

EU

United States

Brunei

37.2%

24.6%

16.2%

0.0%

0.0%

Brunei

40.8%

4.3%

7.4%

2.1%

5.8%

Cambodia

5.9%

5.3%

5.7%

19.3%

44.8%

Cambodia

43.4%

1.9%

38.0%

2.1%

1.1%

Indonesia

21.2%

8.0%

20.7%

7.2%

10.9%

Indonesia

22.6%

7.7%

25.3%

4.8%

4.0%

Lao P.D.R

48.2%

1.9%

33.2%

4.3%

2.7%

Lao P.D.R

66.2%

1.2%

28.4%

1.7%

0.5%

Malaysia

29.2%

6.3%

13.6%

8.3%

10.8%

Malaysia

24.7%

6.4%

21.3%

7.0%

7.8%

Myanmar

26.7%

6.8%

28.0%

19.8%

3.3%

Myanmar

52.4%

2.2%

31.0%

2.6%

0.7%

Philippines

17.6%

13.9%

13.8%

11.5%

15.8%

Philippines

28.9%

8.9%

20.3%

5.9%

6.5%

Singapore

28.6%

4.0%

12.4%

7.7%

8.8%

Singapore

22.4%

5.6%

13.2%

9.0%

10.9%

Thailand

25.1%

8.6%

12.0%

7.8%

16.6%

Thailand

17.5%

11.5%

23.5%

6.0%

5.9%

Vietnam

9.2%

6.6%

16.1%

12.8%

30.0%

Vietnam

13.5%

6.6%

33.5%

4.4%

4.1%

Source: Compiled by Mitsubishi Research Institute, Inc. from IMF Direction of Trade Statistics for each country in 2022 (transaction value basis)
Copyright © Mitsubishi Research Institute73

3. Analysis of Current Status of the 10 ASEAN Countries

3.1 Trade Transactions and Trade-related Data
(3) Trade data (TFI) The OECD's Trade Facilitation Indicators indicate the status of customs andother trade procedures under the WTO's Trade Facilitation Agreement. Based on
the indicators, countries can be divided into three main groups.
Trade Facilitation Indicators
300

Japan, Singapore
250

Malaysia, Thailand,
Philippines, Vietnam,
Indonesia, andBrunei200

150

Cambodia, Laos, andMyanmar

100

50
2017

2019

2022

Brunei Darussalam

Cambodia

Indonesia

Lao PDR

Malaysia

MyanmarPhilippines

Singapore

Thailand

Viet NamJapan

Source: Compiled by Mitsubishi Research Institute from OECD, Trade Facilitation Indicators
Copyright © Mitsubishi Research Institute74

3. Analysis of Current Status of the 10 ASEAN Countries

3.1 Trade Transactions and Trade-related Data
(4) Trade data (LPI) In terms of Logistics Performance Indicators (LPI), which measure theperformance of logistics in each country, there are three main groups ofcountries.
Logistics Performance Indicators
4.5

Singapore, Japan
4

Malaysia, Thailand,
Philippines, Vietnam,
and Indonesia

3.5

3

2.5

Brunei, Cambodia,
Laos, and Myanmar

2
2012
Brunei Darussalam
Malaysia
Thailand2014
Cambodia
MyanmarVietnam

2016

2018
Indonesia
Philippines
Japan

Source: The World Bank, Logistics Performance Indicators
Copyright © Mitsubishi Research Institute

75

2023
Lao PDR
Singapore3. Analysis of Current Status of the 10 ASEAN Countries

Reference: TFI and LPI
 Explanations of indicators for LPT and TFI are as follows.

Indicator

SourceOverview

Description

TFI

OECD

A KPI launched in 2013 to evaluate
fulfillment of the WTO's tradefacilitation agreement. 133 indicators
are classified into 11 data sets.

The following data sets are defined:(a) Information availability, (b) Improvement of
the trade community, (c) Advance rulings, (d)Appeal procedures,(e) Fees and charges, (f)Formalities-documents,(g) Formalitiesautomation,(h) Formalities-procedures, (i)Internal co-operation, (j) External co-operation,and (k) Governance and impartiality.
Each indicator is rated on a scale of 0 to 2,
with the total being the sum of the indicators.

LPI

The World BankA KPI launched in 2007 used forlogistics-related benchmarking andupdated every two years. It is divided
into an international LPI and adomestic LPI. Current indicators areunder review, and new indicators will
be set in 2023.

The International LPI is evaluated with six
indicators: Customs Procedures (Customs),
Trade and Transportation Infrastructure(Infrastructure), International Shipments(International Shipments), Logistics
Competence (Tracking and Tracing), andTimeliness. The evaluation of indicators ismade on a scale of 0 to 5.

Source: UNSCAP, Indicators for Trade Facilitation: A Handbook (Version 1.0)
https://www.unescap.org/sites/default/files/FINAL%20V1.0_Indicators%20for%20Trade%20Facilitation-ESCAP-OECD%20Handbook_0.pdf、viewed on 2023/12/28

Copyright © Mitsubishi Research Institute76

3. Analysis of Current Status of the 10 ASEAN Countries

3.1 Trade Transactions and Trade-related Data
(5) Survey of ESCAP The United Nations Committee on Regional Commissions and UNCTAD have been
jointly conducting a study on digital and sustainable trade promotion aimed at
reducing the time and cost of cross-border trade.
 The study covers 160 economies and 60 measures worldwide, and has produced aglobal and regional report every two years since 2015. The regional reportfocuses on the progress of trade facilitation in the 10 ASEAN countries andincludes 60 trade facilitation measures in four categories and 11 subgroups. It
also includes measures related to digital trade.
Examples of trade facilitation measures#

Category

1

General trade facilitation(related to WTO TFA)

2

Digital trade facilitation

3

Sustainable tradefacilitation

4

Other trade facilitation

•
•
•
•
•
•
•
•
•
•

Automated Customs System
Internet access available to customs and other tradecontrol agencies
Electronic Single Window System
Electronic submission of customs declarations
Electronic application and issuance of import and export
permits
Electronic submission of ocean cargo manifests
Electronic submission of air cargo manifests
Electronic filing and issuance of certificates of preferredoriginElectronic payment of customs duties and fees
Electronic application for customs refunds, etc.

Source: Compiled by Mitsubishi Research Institute, Inc. based on ESCAP Digital and Sustainable Trade Facilitation in ASEANhttps://www.unescap.org/kp/2023/untfsurvey-asean
United Nations, UN Global Survey on Digital and Sustainable Trade Facilitation, https://www.untfsurvey.org/compare-measures, viewed on 2024/1/30
Copyright © Mitsubishi Research Institute77

3. Analysis of Current Status of the 10 ASEAN Countries

3.1 Trade Transactions and Trade-related Data
(5) Survey of ESCAP Between 2021 and 2023, when the most recent similar survey was conducted,
the overall implementation rate of trade facilitation measures within ASEAN rosefrom 79% to 81%. Vietnam, in particular, saw a rapid increase from 67% in 2021
to 74% in 2023. The Philippines and Laos followed, with implementation rates
increasing by five and three percentage points, respectively.
 Singapore ranked first in terms of implementation rate within ASEAN in 2023,
while Indonesia, Malaysia, and the Philippines ranked second). Countries thatshowed an increase in ranking were Indonesia (from 4th to 2nd) and Lao PDR(from 9th to 10th).
Implementation ratio for trade facilitation

100%
95%
87%
90%
81%
85%
78%
80%
85%
75%
78% 78%
70%
65%
60%

Ranking for the implementation ratio in ASEAN

97%

87%
86%

96%

87%

85%
85%

81%

86%

83%
81%

74%
79%

67%
68%
63%

2021

67%

66%

64%

61%

2023

Country

2021

2023

Singapore1

1

Malaysia22

Philippines

2

2

Indonesia

42

Thailand

4

5

Brunei6

7

Cambodia66Vietnam88Myanmar9

10

Lao PDR

10

9Source: ESCAP, Digital and Sustainable Trade Facilitation in ASEAN, https://www.unescap.org/kp/2023/untf-survey-asean,2024/1/20
Copyright © Mitsubishi Research Institute

78

Trend

3. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(1) NSW The table below shows the operation status of the National Single Window in each
ASEAN country.
In operation in●several countries－ Unknown

Connection status with ASWCountry nameNational Single Window(NSW)

e-ATIGA Form D

ASEAN Customs
Declaration
Document(ACDD)Electronic
Phytosanitary
Certificate(ePhyto)

Brunei

BDNSW

●

●

ー

Cambodia

CNSW

●

●

System already builtIndonesia

INSW

●

●

Exchanged with Thailand

Lao PDR

LNSW

●

ー

ー

Malaysia

NSW（myTRADELINK）●●

System already built

Myanmar- （MACCS/MCIS）

●

●

ー

Philippines

TradeNet●●

System already built

Singapore

TradeNet●●ー

Thailand

TNSW

●

●

Exchanged withIndonesia

Vietnam

VNSW

●

●

ー

Source: Compiled by Mitsubishi Research Institute, Inc. from various sources.
Copyright © Mitsubishi Research Institute79

3. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(1) NSW The table below shows the main organizations and governance of the National
Single Window in each ASEAN country.
Country
name
Brunei
Cambodia

National Single
Window (NSW)

Organization in
chargeGovernance

BDNSW

Royal Customs &Excise Department

Government initiative (Developed by CrimsonLogic）

CNSW

Ministry of Finance(GDCE)

Government initiative (Developed in collaboration with customs and VCC,
then operated by NSW Steering Committee）

INSW

Ministry of Finance（INSW department、
formal name: LNSW）

Government initiative (until 2016, the Directorate General of Customs was
the lead agency, then responsibility was transferred to the LNSW Agency;
the operating entity is EDI Indonesia, a private company)

LNSW

Ministry of Finance

PPP (a joint venture between the Ministry of Finance and BIVAC Lao Co.,
Ltd.）

NSW
（myTRADELINK,
uCustoms）

Ministry of Finance

PPP (led by the Ministry of Finance, developed, operated, and managed
entirely by Dagang Net)
myTRADELINK provides the user interface for inputs to NSW.

－（MACCS/MCIS）

Ministry of Planning
Finance andInvestment

Government initiative (with support from USAID, the NSW Routing Platform
was established to integrate MACCS and MCIS, but it is a temporary systemand does not fulfill the main functions of NSW)

TradeNet

TradeNet secretariat
Department of
Finance

Government initiative (introduced by the NSW Steering Committee on across-ministry basis. Currently under the jurisdiction of the Trade Net
Secretariat and closely related to the Department of Finance)

TradeNet

Singapore Customs

Government initiative (CrimsonLogic has been the developer, but all
investors are public agencies)

TNSW

Thailand Customs

Government initiative (development and operational support from National
Telecom)

VNSW

General Departmentof Vietnam Customs

Government initiative (joint involvement of Ministry of Finance and Ministryof Industry and Trade; VNACCS and VCIS are positioned as customs
functions)

Indonesia

Lao PDR

Malaysia

MyanmarPhilippines

Singapore
Thailand

Vietnam

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute80

3. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(1) NSW The table below shows the functions of the National Single Window for exportsof each ASEAN country.
●

Country

Equipped

Partially equipped

No function

Shipping

Customclearance

BondedTransportation,
CY delivery etc.

Permits
declarations toother ministries

Departure
clearance

Tax collection

Other BtoB
functionsInvoice, S/I

Export clearance,
approval
information

Transportation
to bonded
warehouse, CY
delivery etc.

Other laws andregulations(plant and animal
quarantine, etc.)

Departure andloading
procedures

Tariffs

OthersName

Brunei

BDNSW

●

●

Cambodia

CNSW

▲

▲

Indonesia

INSW●

Lao PDR

LNSW

●

▲

▲

(PortEDI)(LPCO)

●
▲
(C/O)

NSW

▲

●

Malaysia（myTRADELINK,
uCustoms）

Myanmar－（MACCS/MCIS）

Philippines

TradeNet

Singapore

TradeNet●

Thailand

TNSW●

Vietnam

VNSW（VNACCS)

●

●

●

●

(myTRADELINK)

●

●

●

●

(InterCommerce
Network Service)(InterCommerce
Network Service)

▲
(C/O)

●

●

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

▲

81

▲

▲

▲
TIP

▲

●
(InterCommerce
Network Service)●●(ITMX)▲
NTP●(Insurance
Policy)3. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(1) NSW The table below shows the functions of the National Single Window for importsof each ASEAN country.
●

Country

Name

Brunei

BDNSW

Cambodia

CNSW

Indonesia

INSW

Lao PDR

LNSW
NSW

Malaysia（myTRADELINK,
uCustoms）

Myanmar－（MACCS/MCIS）

Philippines

TradeNet

TradeNet

Thailand

TNSW

Vietnam

VNSW（VNACCS)

Partially equipped

No function

Arrivalclearance

BondedTransportation,
CY delivery

Importclearance

Tax collection

Other B2B
functions

Other laws andregulations (plant
and animal
quarantine, etc.)

Importclearance

bondedtransport
declaration

Delivery, mixed
sorting, importdeclarations

Tariffs

Others

●

●

●
▲

▲

▲

▲

(LPCO)(Port EDI)

(e-Customs)(LPCO)

●

●

▲

▲

(C/O)

Ascyuda▲▲(myTRADELINK)▲●(Port EDI)
(InterCommerce
Network Service)▲●(Portnet)

Importdeclaration

●

●

▲

●

●

(InterCommerce
Network Service)(InterCommerce
Network Service)

●

●

●

●
▲

●

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute▲

Permits
declarations toother ministries▲

Singapore

Equipped

82●●(ITMX)

▲

▲
TIP

▲

▲
(NTP)

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: NSW (Case Study: Thailand）
 The National Single Window of Thailand is operated by Thai Customs.
 In 1998, the company launched Customs EDI Services, introduced the ebXML
standard, adopted Public Key Infrastructure (PKI) and electronic
authorization, and began operating a single window system in 2008.
 As of 2021, 17 financial institutions, 37 government agencies, and more than
9,000 businesses were connected.
History of Single Window System
Milestone

Contents

2006

 Operation of a multi-single window system focusing on electronic procedures at customs wasstarted. The system became operational throughout Thailand in 2008.

2008

 Operation of the National Single Window System was started (integrated as Single Window)

2011 Realization of ASEAN Single Window and other cross-border data exchange

2019 Implementation of single-entry forms for applications for hazardous materials, phytosanitaryand certificate of origin, and handling of insurance policies

2021

 Consideration of the release of B2B trading systems such as the Port Community System andthe Air Community System, as well as the handling of the Sino-ASEAN Certificate of Origin(Form E).

2022

 By linking IPPC ePhyto Hub with Thailand's NSW, the electronic phytosanitary certificate
system (Thailand's ePhyto System) has officially started operation.

Source: UNESCAP, Thai Customs Department (2019), Thailand National Single Window & ASEAN Single Window, https://www.unescap.org/sites/default/
files/Session%207%20%20%26%208.pdf,, viewed on 2023/12/26
Copyright © Mitsubishi Research Institute83

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: NSW (Case Study: Thailand）
 The Single Window System is primarily responsible for BtoB, BtoG, and GtoG
transactions, declarations, and information linkage functions. At the businessside, shipping lines, airlines, terminal operators, importers and exporters,
forwarders, customs brokers, and insurance companies participate, andfinancial institutions are connected to the National ITMX's interbank network.
Basic functions of Single Window System
ChannelExamples of functions

BtoB

 Purchase management, delivery management

BtoG

 Includes some BtoB transactions, but also includes software for cargo, transport, port, air, andinsurance procedures (Cargo and land transport regulatory SW (software), maritime regulatory SW,
air regulatory SW, and e-Insurance) Customs declaration, customs payment, permit issuance, certificate of origin application (ecustoms, single entry form, e-Payment, e-Permit/e-License, e-Cess, social security system,
certificate of origin)

GtoG Customs declaration, payment of customs duties, issuance of permits, verification of certificate oforigin/permission procedures (e-Customs, e-Permit/License) Software for cargo, transport, port, air and insurance procedures (Cargo and land transport
regulatory SW, maritime regulatory SW, air regulatory SW, e-Insurance)

External systems to be connected
External system

Examples of functions

National ITMX

 Assumes collection of customs duties via banks, etc.

ASEAN Single Window Form D etc. Exchange of certificate of origin

Source: UNESCAP, Thai Customs Department (2019), Thailand National Single Window & ASEAN Single Window, https://www.unescap.org/sites/default/
files/Session%207%20%26%208.pdf, viewed on 2023/12/26
Copyright © Mitsubishi Research Institute84

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: NSW (Case Study: Philippines）
 The National Single Window of the Philippines is called TradeNet and isadministered by the TradeNet Secretariat, while the Departments of Finance,
Information and Communication, and Agriculture are supposed to be
responsible for ensuring its operation and development.
 The purpose of TradeNet is to facilitate trade, increase transparency incustoms clearance procedures, and improve national revenue.
 As of 2022, 21 relevant government agencies were connected to TradeNet,
and 55 agencies were scheduled to be connected by the end of 2022.
History of Single Window System
Milestone

Contents

2005‐ NSW Steering Committee (NSW Steering Committee) established as a team of senior
officials chaired by the Ministry of Finance2010‐ NSW Phase 1, the predecessor of NSW, was built by Customs

2011‐ NSW Phase 1 rollout begins

2017‐ The parties have agreed to develop a government-built online platform to make NSW
functionality work in practice. This is TradeNet.

2019‐ ASEAN Single Window is now in actual operation, and data exchanges between AMSs
have started for e-ATIGA Form D.

Source: JASTPRO、Current status of single windows in ASEAN countries、viewed on 2023/12/23
Copyright © Mitsubishi Research Institute85

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: NSW (Case Study: Indonesia）
 The Indonesian National Single Window is operated by the Indonesian Single
Window Department (INSW Department) of the Ministry of Finance.
 Those conducting interviews with the Indonesian Ministry of Trade for thisstudy were impressed by the application of blockchain and the extension offunctionality to B2B.
 Although the Ministry of Trade has been working with various ministries on
NSW, there were cases where it was not possible to obtain approval for NSW
and direct inquiries were eventually required.
History of Single Window System
Milestone

Contents

2007

 INSW Preparatory Team established under the leadership of the Ministry of Economic
Affairs and Related Coordination. Implementation of pilot tests on import projects

2008 INSW operated as an import/export system, port system, and airline system.

2009

 Preparation for linkage with ASEAN Single Window and pilot test of electronic proof oforigin (ATIGA Form-D)

2010

 The use of INSW is now mandatory for import procedures at five customs offices.

2017 e-ATIGA Form D via ASW with ASEAN member countries in actual operation2020

 Developing the second generation of NSWIn in a parallel operation with the first
generation as of 2023, and aiming to fully transition to the second generation by 2024

Source: JASTPRO、Current status of single windows in ASEAN countries、viewed on 2023/12/23
ESCAP, https://www.unescap.org/sites/default/d8files/event-documents/Indonesia%20experience.pdf 、viewed on 2023/12/23
Copyright © Mitsubishi Research Institute863. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(2) Digital trade platforms
 There is no clear definition of a digital trade platform. We define it based on
the following three characteristics, and some platforms are listed on the next
page.
１

BtoB

2

Cross-border

3

Cross-industry

Digital trade in the private sector (contracts, shipping, payments, etc.)
a n d s u p p l y c h a i n m a n a g e m en t .
External connections, including those of trading partners.
It covers not only specific industries, but also all trade procedures
including shippers, forwarders, and banks.

Country
国

Activities
to establish a trade platform
貿易プラットフォーム構築の動き

Bruneiブルネイ

Dagan Borneo project of ASEAN-BAC is considering building a cross-industry digital trade platform (Private initiative)

Cambodia
カンボジア

Cambodia Customs is building an ASYHUB to connect the customs system to the external system. (Government initiative)

Indonesia
インドネシアThe Ministry of Trade and the National Single Window Agency are interested in the government initiative. There are also players who
政府主導でのインドネシア貿易省及びナショナルシングルウインドウ庁が関心。民間企業（Andalin)の取組も存在。
operates
digital trade platform from the private sector (Andalin).

ラオス
Lao PDR

No動きはない。
major initiatives

マレーシア
Malaysia

政府としての動きは見られないが、民間企業の取組は存在。
There
are no government initiatives, but there are some initiatives by private companies.

ミャンマー
Myanmar

No動きはない。
major initiatives

フィリピン

Philippines

フィリピン貿易産業省はインドネシアのAndalinとB2Bの貿易手続きの推進に向けてMOUを締結。民間企業の取組も存在。
The
Department of Trade and Industry signed an MOU with Andalin of Indonesia to promote B2B trade procedures. Private sector
initiatives also exist.

Singapore

Government initiatives, such as NTP operated by Singapore Customs and TradeTrust framework provided by IMDA.

シンガポールタイ

民間主導であり、ASEAN-BACのDagan Borneoのプロジェクトにおいて、業界横断型のデジタル貿易プラットフォームの構築を検討中。
政府として、カンボジア税関は税関システムと対外システムを接続するASYHUBを構築中。

政府主導であり、シンガポール税関が運用するNTP、IMDAが提供するTradeTrustフレームワーク等の動きがみられる。

民間主導で、NDTPのコンセプトの元で貿易プラットフォーム構築を開発中。がB2B取引を主に取り扱う貿易プラットフォームというコンセプトで

ベトナム

ThailandThe
private sector is taking the lead in developing a trade platform under the NDTP concept. The NDTP concept is a trade platform that
あり、民間主導のもと業界横断的に導入を検討中。直近では業界（金融、荷主）ごとにプラットフォームを細分化して連携する動きがある。
mainly handles BtoB transactions, and is being considered for cross-industry implementation led by the private sector. Most recently,
政府としては貿易手続きの電子化を推進しており、民側では特定業界のプラットフォーム構築の動きがみられる。
there
has been a move to subdivide the platform by industry (finance, shippers) with collaboration.

Vietnam

The government is promoting digital trade, and at the private side, there are moves to build platforms for specific industries.

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute87

3. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(2) Digital trade platforms
 The table below shows the operational status of the digital trade platforms ofmajor ASEAN countries.
●・・・Equipped ×・・・Not equip

Overview of digital trade platform

Digital trade PFCountry
nameIndonesia

Name ofplatform

Operator

Details

Connection
with NSW

B2B

Cross-border

Crossindustry

●

Under
consideration

××

AndalinPrivateDigital trade initiatives with the focus on
SMEs; MOU signed with the Philippine
Department of Trade and Industry inAugust 2022.

NTP

Public(Customs)

The system targets BtoB transactions
operated by customs.

●

●

●

●
（TradeNet）

SGTraDex

PPP（JV with
IMDA etc.）

A public-private partnership that focuseson trade transactions in multiple use
cases, characterized by a data sharing
method called the Data Highway.

●

Under
consideration●×

It is a trade platform that mainly handles
BtoB transactions, and is being introduced
across industries under the initiative of
the private sector, with the most recent
move being to build a system segmented
by industry.

●

Under
consideration(Japan,Singapore)

●

Under
consideration

Specializing in e-LC and supply chain
finance led by FPT.

●

Under
implementation(
Japan)

××

Singapore

Thailand

NDTP

Private（JSCCIB）

Vietnam

TradeFlat

PrivateSource: Various entities
Copyright © Mitsubishi Research Institute88

3. Analysis of Current Status of the 10 ASEAN Countries

3.２ Status of Platform Development(2) Digital trade platforms
 A functional classification of the trade platforms of the major ASEAN countries
is shown in the table below.
Functions of each platform●

Equipped▲

Partially equipped※ Pilot phaseNo description

No function

Function
Application
Country

Platform① Supply chain
management
SC
Logistics
Visualiza- Managetion
ment

Indonesia
Singapore

Andalin▲●Infrastructure② Trade procedures
Trade data
management/application

Finance▲① Data sharing
Datamanagement

Data sharing
anddistribution

●

▲

●

●

② Infrastructure

Servicepenetration

Trust/
Infrastructure
More than 150 ports
More than 200 cities▲
NTP

SGTraDex

●

●

▲

※
(eBL)

（Trade financeis done via
third-party
application）※(Successful
payment onexport)●(Connect with
Trade Trust)●●●(Connect with
Trade Trust)More than 6,000
enterprises(As of November 2022)
As of June 2022, 70
businesses had pledged
to participate, andcurrently some use
cases are underdevelopment.

※

Thailand

NDTP

Vietnam

TradeFlat

※

※
▲
(Only
Domestic)

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

89

※

※

▲

▲

(Authenticity of
documents isguaranteed by
TDRs)▲(FPT Quoram
network)

Pilot phase

No information

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: Singapore (NTP) TradeNet implements approval procedures for import/export operators, andautomatically links import/export permits to the NTP at the back end as astructured data format for approval data. Therefore, users only need to access the
NTP's data repository to utilize data when applying to TradeNet.
 Import/export declarations are made via the service provider.

‐

In a d d i tio n, there is Trade Xch an ge, wh i chc o nd uct s ex ternal Bto G tr an sacti on s an d i s
i nt e rn ally incorpo rated i n to T r ad e N et.

‐

S i nc e t he o perating ag re e m e n t b e tween
T ra d e N et and TradeX ch an ge was sch e d u l ed
t o e xp i r e in 2017, NTP was i n i ti al l y
c o nc e i ved as a new sy stem th at wou l de nc o m pass these two systems.

‐

H o w e v e r, TradeNet and N T P ar e sti l l b e i n g
u s e d t og ether, and NTP h as be e n assi gn e dt h e ro l es mainly of ex chan gi n g B2Be l e c t ro nic data and o ver seas col l ab or ati on .

Source: Singapore Customs、 https://www.customs.gov.sg/businesses/national-single-window/overview 、viewed on 2023/12/25
Copyright © Mitsubishi Research Institute90

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: Singapore (NTP) In May 2023, the NTP launched the Container Track & Trace Service.
 This allows all NTP users to view information on container traffic between five
Singapore ports and two Chinese ports.

Data items for track and trace service
Data item

Description

Vessel ETA

Estimated time of arrival of a vessel in waters within the boundaries of the port

Vessel ATA

The actual time a vessel arrives at waters within the boundaries of the port

Vessel ETB

Estimated time a vessel will berth

Vessel ATB

Actual home country where a vessel berths

Export Declaration

Time of export clearance to customs

Container Loaded

Time container was loaded onto the vesselContainer Gate Out

Time container leaves the port at the time of importation

Import Release

Time when customs approve import declaration.

Source: Singapore Customs、 https://www.customs.gov.sg/businesses/national-single-window/overview 、viewed on 2023/12/25
Copyright © Mitsubishi Research Institute91

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: Singapore (SGTraDex)
 With the aim of improving the efficiency of data sharing among ecosystem
partners in the global supply chain, a study on SGTraDex, a data collaboration
platform, began in 2021, and the system entered use in June 2022.
 Discussions are underway in the public and private sectors, focusing on
multiple use cases at the beginning of development, and new use cases arestill being considered.
 The system is interconnected with a framework called TradeTrust, which also
ensures the authenticity of trade documents.

Use case

Overview

Enhancement of trade financeIn existing procedures, financial institutions have limited visibility into the physicalmovement of goods in the supply chain, so visibility into the data flows used in trade
will reduce the risk of double financing, etc.

Container flow nodedecongestion

Since visibility of container flow is lacking and congestion is occurring at warehouses
and depots, the visibility of logistics flows will be improved by sharing information suchas container reservation status among shipping companies, warehouse operators, andcarriers.

Bunkering optimization

The bunkering industry is facing problems of reduced operational efficiency and lower
lending volumes due to a lack of digitization and difficulties in assessing document
authenticity. SGTraDex aims to solve these problems by reducing the duplication of
document processing in the supply chain and enabling financial institutions to verify
the authenticity of trade documents. It aims to solve these problems.

Source: Compiled by Mitsubishi Research Institute, Inc. from various sources.
Copyright © Mitsubishi Research Institute92

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: Thailand (NDTP)
 Due to delays in developing the NDTP, importers and exporters are unable touse the NDTP; the NDTP focuses on data structuring and business modelstudies.
 Under the umbrella of the NDTP Cluster, Thailand Banker’s Association isseeking to link with NSW, external systems, and industry platforms via
PromptTrade.
 Regarding industrial platforms, the Thai Shipowners' Association began
developing the Supply Chain Management Network (SCM Net) in 2023. This
platform handles exchanges of data in different formats between importers
and exporters, and will be connected to PromptTrade in the future.
NDTP Cluster

PromptTrade
External

Thailand National

platforms

Single Window
SCM NetE-D/O

Source: Compiled by Mitsubishi Research Institute, Inc. based on interviews
Copyright © Mitsubishi Research Institute933. Analysis of Current Status of the 10 ASEAN Countries

Reference: Thailand (NDTP)
 Several systems have been partially built as the NDTP Cluster, and eachsystem is being considered to work together to promote cross-industry trade
digitization.
Thailand’s Digital Trade Platforms
Group of systems thatmake up the cluster

Initiatingorganization

Progress

Overview of roles and functions

PromptTrade

Thai Bankers
Association andeight pilot banks

The first phase of GoLive is scheduled forQ4 2024

It covers the sending and receiving of
documents generated during the collection offunds, settlement, and financing of both
imports and exports, and also serves as agateway to connect with overseas platforms.

SCM NetThai National
Shippers Council

First phase of Go-Livescheduled for Q42023

The trade procedures of the exporter arecovered. The scope covers everything frombooking the cargo ship to sending shipping
documents to the exporting bank.

E-D/O

Bangkok
Shipowners andAgents
Association

Under development
as of December 2023

Digitalization of trade procedures forimporters covers three processes at
the time of importing into Thailand:customs declaration, delivery order(D/O), and payment.

Source: Compiled by Mitsubishi Research Institute, Inc. based on interviews and UNECE、 https://unece.org/sites/default/files/2023-10/02Oct-PM-Thailand-NDTPCaseStudy.pdf 、viewed on 2023/12/27

Copyright © Mitsubishi Research Institute94

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: Vietnam (TradeFlat) In October 2022, FPT announced TradeFlat (formerly known as eTradeVN), thefirst blockchain-based trade finance platform in Vietnam, which wasdeveloped in cooperation with financial institutions.
 TradeFlat is focusing on developing a platform that connects Vietnamese
importers and exporters with banks. Currently, the firm offers services suchas letter of credit (LC), cash flow (CF), and bank guarantees in the domestic
market. At the same time, development of services related to cross-border
trade is underway.
 In 2024, the company plans to develop new functions for banks and improve
its services through integration with customs systems such as VNACSS andlogistics companies' systems.

Source: TradeFlat website (https://www.tradeflat.com/) and compiled by Mitsubishi Research Institute from interviews, viewed on 2023/12/28
Copyright © Mitsubishi Research Institute95

3. Analysis of Current Status of the 10 ASEAN Countries

Reference: Indonesia (Andalin Trade) On June 14, 2022, Indonesia's Andalin launched a one-stop international
trade platform called Andalin Trade, which offers a consistent range ofservices, including shipping, customs procedures, and international trade. At
the initial stage, services are limited to trade with Singapore, Vietnam, andThailand.
 After registering with Andalin Trade, users can obtain quotes for international
shipments. The platform offers international forwarding services, customs
procedures, insurance, and other functions.
 In the future, Andalin plans to develop and expand its services to othercountries in Southeast Asia.

Source: Prepared by Mitsubishi Research Institute, Inc. based on information on Andalin‘s website (https://andalin.com/, viewed on 2023/12/23
Copyright © Mitsubishi Research Institute96

3. Analysis of Current Status of the 10 ASEAN Countries

3.3 Status of Infrastructure Development(1) Network
 The table below summarizes the number of registered fixed broadband lines per
100 people in each country, the number of registered fixed-line phones, thenumber of individuals using the Internet, and the number of registered cell
phone users. While there are some variations in the Internet usage rate, mostcountries have more than 100% cell phone registrations .
Country
nameStatus of Internet, mobile networks, etc., usage rate per 100 people (2021)
Usage rate of fixed
broadband

Usage rate of landline
phone

Usage rate of personalInternet

Number of cell phone
subscribers

Brunei

17.8%

25.2%

98.1%

135.5%

Cambodia

2.0%

0.2%

60.2%

120.0%

Indonesia

4.5%

3.3%

62.1%

133.7%

Lao PDR

2.0%

17.5%

62.0%

65.0%

Malaysia

11.1%

24.6%

96.8%

140.6%

Myanmar

1.7%

1.0%

44.0%

126.3%

Philippines

8.5%

4.0%

52.7%

143.4%

Singapore

25.7%

32.0%

91.1%

147.5%

Thailand

17.3%

6.5%

85.3%

168.8%

Vietnam

19.8%

3.2%

74.2%

138.9%

Globalaverage

16.9%

11.3%

63.1%

107.3%

Source: The World Bank, World Development Indicators, data for 2021
Copyright © Mitsubishi Research Institute97

3. Analysis of Current Status of the 10 ASEAN Countries

3.3 Status of Infrastructure Development(2) Blockchain usage environment
 Singapore is the most active country in the region promoting blockchain use,
while other countries (Cambodia, Indonesia, the Philippines, Malaysia, andThailand) are considering its use in the financial sector and at the initiative of
their governments. Brunei, Laos, and Myanmar are underdeveloped in terms of
related systems, and their utilization is limited.
Country
nameClassification of approaches toblockchain implementation（ADGSOM Project Report)

Institutional/governmental status
Crypto assets are minimally regulated; the use of blockchain to issue digital quarantine
certificates was demonstrated in collaboration with a Singaporean company in the ASEANBAC Legacy Project.

Brunei

Immature

Cambodia

Introduced after the system is in place The central bank operates a blockchain-based payment system called Bakong.

Indonesia

Introduced after the system is in place

Lao PDR

Immature

Malaysia

Introduced after the system is in place Digital currency standards and guidelines are in place for AML/CFT aspects.

MyanmarImmature

There are no regulations, etc. related to blockchain.

Introduced after institutional
development, multilateral cooperation
Introduced after institutional
development, multilateral
cooperation

Commercial banks are working with the Treasury Department to launch applications forthe issuance of personal government bonds.

Philippines
Singapore
Thailand
Vietnam

Project Garuda, a digital currency project, is being implemented at the Central Bank;
crypto assets in 2021 have also been approved as a trading instrument.
Regulatory system for crypto assets is under development. The government is also
considering blockchain use.

Central banks and stock exchanges are demonstrating blockchain use, and otherinstitutions are actively considering its use. There were 234 blockchain companies in
2020, including joint projects with other countries.

The financial sector has been actively using blockchain, including the demonstration ofdigital currency at central banks and the issuance of letters of guarantee.
In the government's growth strategy, blockchain is defined as one of the focus areas. In
Introduced after the system is in place addition to blockchain developers, many startups are also developing application services
using blockchain.

Introduced after the system is in place

Source: Compiled by Mitsubishi Research Institute, Inc. from Gerardo R. Ungson and Sada Soorapanth, The ASEAN blockchain roadmap.
Copyright © Mitsubishi Research Institute98

3. Analysis of Current Status of the 10 ASEAN Countries

3.4 Trends in Digitization and Standardization(1) Trends in digitization and standardization
 Although each country has an electronic signature law in place, only Singapore ismaking progress in adapting administrative procedures, linking corporate ID andauthentication infrastructures, and complying with national MLETR laws thatserve as the basis for trade documents requiring the transfer of rights.

Country name

Corporate ID
authorization

Electronic signatureCompliance with
MLETR*

BruneiDefined in The Electronic Transaction Act. There are no special requirements or
restrictions for governments.

－

2_Supported by thegovernment

Cambodia

Although its use is limited, the validity of electronic signatures is legally defined in SubDecree No. 246. No special requirements or restrictions for government use.

－

2_Supported by thegovernment

Indonesia

E-signature regulation was established in 2008 and revised in 2016. Application of esignatures to administrative documents is at the discretion of each ministry and agency.

－_0.No progress

Lao PDR

The validity of electronic signatures is defined in the Law on Electronic Signature No.
59/NA 2018. There are no special requirements or restrictions for governments.

－

2_Supported by thegovernment

Malaysia

The Electronic Commerce Act 2006 was enacted in 2006. The Electronic Government
Activities Act 2007 regulates the government sector.

－

1_MLETR Socialization

Myanmar

It is regulated under the Electronic Transactions Law 2004. There are no special
requirements or restrictions for governments.

－

1_MLETR Socialization

Philippines

The Electronic Commerce Act of 2000 defines the validity and conditions for electronic
signatures. There are no special requirements or restrictions for governments.

－

0_No progressSingapore

The Electronic Transactions Act (2010). Electronic signatures are required forgovernment procedures using SingPass, a government authentication platform.

SingPass

ThailandThailand's electronic transaction act stipulates electronic signatures. The government isalso required to provide procedures for electronic signatures.

－

7. Passage oflegislation

Vietnam

The validity of electronic signatures is defined in a subordinate notification of the Law on
E-transactions 2005. There are no special requirements or restrictions for governments.

－

0_No progress

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

８_Amendment ofdomestic law*Compiled from the MLETR Tracker of the ICC Digital Standard Initiative as of Jan 2024.
The situation is divided into eight stages, including the legal reform stage.
99

3. Analysis of Current Status of the 10 ASEAN Countries

3.4 Trends in Digitization and Standardization(2) Regulation of data distribution
 The Personal Data Protection Framework (ASEAN PDP) exists in ASEAN, but it is
not legally binding and data distribution is regulated by each country.
 Data transfer regulations are set forth by privacy laws and other laws in eachcountry. In addition to the requirement for the same level of protection as in
the country of origin, some countries have stricter data transfer regulations,such as requiring the consent of the data owner, domestic data storage, andapproval by the authorities.
CountrynameNational laws related to cross-border data distribution (e.g., Personal Information Protection Law)
Strict or only partial

Brunei

Conditional transfer

Free distribution

Does not exist
Not exist

Cambodia
Indonesia
Laos PDR

Does not exist

Malaysia
Myanmar

Does not exist

Philippines
Singapore
Thailand
Vietnam
Source: U N C T A D , D ig it al E c o n o my R e p o r t 2 0 2 1 , h t t ps: //un ctad. or g/pag e/dig ita l- e co no my- r epor t- 2 0 21 ,viewed o n 2 0 2 3 / 1 2/2 6
Copyright © Mitsubishi Research Institute1003. Analysis of Current Status of the 10 ASEAN Countries

3.4 Trends in Digitization and Standardization(3) Electronic invoice In ASEAN, the Digital Trade Standards and Commerce Working Group (DTSCWG) has
organized trends of electronic invoicing (BtoB and BtoG) in each country: Singapore,
Vietnam, Indonesia, and Thailand have electronic invoice systems.

Country
name

Objective
Trends in electronic invoices
For tax
Digitalization
administration of enterprises

BruneiCurrently nonexistentCambodia

Currently nonexistentIndonesia

E-Faktur Pajak has been mandatory since July 2016. It is mainly for tax
administration.

Lao PDR

Currently nonexistent

Malaysia

A national electronic invoice framework is under consideration.

MyanmarCurrently nonexistentPhilippines

Under the Digital Transformation Strategy, a pilot program for electronic invoices andelectronic receipts was implemented in July 2022.

Singapore

IMDA launched Invoice Now in 2019 based on the Peppol framework, applying awidely interchangeable model for B2B and B2G.

ThailandUnder the Thailand 4.0 policy, electronic invoices and electronic receipts have been
introduced.

Source: INFOCOMM MEDIA DEVELOPMENT AUTHORITY (July 2022, https://asean.org/wp-content/uploads/2023/06/9DTSCWG-06-IMDA-ASEAN-E-Invoicing-LandscapeFinal-Report_For_Circulation_v2.pdf, viewed on 2023/12/28

Copyright © Mitsubishi Research Institute101

3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Brunei
 The table below describes issues related to trade digitization in Brunei. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.

Category

Contents

Digitalization andStandardization• Need to address trade data silos and lack of information platforms, as wellas support electronic signatures and strengthen legal framework.

Platform, trade
procedures

Issues with digitaltrade platform－（There are no digital trade platforms.）※Currently building a platform in the Dagang Borneo project.

Issues with National
Single Window• Brunei's NSW, developed by a Singaporean service provider, has not been
updated and is outdated.
• Not fully utilized by ministries and lacks uniformity of data requirements
and portals across different government departments.

Issues with user
acquisition－

Needs analysis• Building a cross-border trade platform to expand trade transactions andgrow the business in Brunei and Borneo island.

Bottleneck analysis• Harmonization of cross-border electronic transaction requirements, etc.,
for integration into the broader surrounding economy.

Source: Interviews and Mitsubishi Research Institute, Inc.
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3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Cambodia
 The table below describes issues related to trade digitization in Cambodia. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• No digital signature or certification authority available, although an electronic
signature law exists.
• The competent ministries and agencies require original documents and are notable to operate digitization.

Platform, trade
procedures

Issues with digitaltrade platform－（There are no digital trade platforms.）

Issues with
National Single
Window• The electronic customs clearance system is not organized with the systems ofministries and borders.
• customs system (ASYCUDA) is not linked to the annual import plan (masterlist) required for duty exemption measures, etc. in qualified investment
projects.
• Status of promotion of digitization in CNSW (operation with original
documents remains)

Issues with user
acquisition－

Needs analysis• Data linkage between CNSW and ASYCUDA, especially status of import/export
licenses, etc.
• Information linkage between stakeholders

Bottleneck analysis• Improvement of connectivity between NSW and customs systems, in particular,
and peripheral systems.
• Ministry officials have not received adequate training in NSW.

Source: Interviews and Mitsubishi Research Institute, Inc
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3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Indonesia
 The table below describes issues related to trade digitization in Indonesia. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization and Standardization• There are various arrangements for submitting invoices, certificates oforigin, B/Ls, etc., all of which require the submission of hard copy
originals.
• Hard copies must be submitted to various ministries for import/export
permits.

Platform, trade
procedures

Issues with digital trade
platform• Interconnection of platform with customs system and NSW.

Issues with National
Single Window• As NSW, we are looking at extending B2B capabilities and newtechnologies (using blockchain).
• Digitization in NSW and other ministries is still in the process of being
implemented. Inter-ministerial procedures remain paper-based andrequire submission of original documents.

Issues with user
acquisition• Dissemination of information to users (training etc.)

Needs analysis• A platform that enables centralized electronic management of trade
documents and response to post-customs inspections.
• Digitization of L/C (L/C issuance and streamlining of L/C application andissuance operations through digitization of trade documents)• A system that enables SMEs to participate in trade

Bottleneck analysis• Domestic privacy laws are strict regarding cross-border data distribution.

Source: Interviews and Mitsubishi Research Institute, Inc
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3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Lao PDR
 The table below describes issues related to trade digitization in Lao PDR. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• Regarding electronic signatures, the country has not ratified the UNESCAP
agreement on cross-border trade and has no clear strategy for electronic
trade transactions.
• Unclear which promotion ministries and agencies are involved in electronic
trade and electronic signatures.

Platform, trade
procedures

Issues with digitaltrade platform－（There are no digital trade platforms.）

Issues with National
Single Window• NSW mainly applies to certificates of origin and enables exchanges of Form
D with ASW, but has not been able to obtain other permits or achieve
digitalization. Paperless declaration in customs system (ASYCUDA) has also
not been achieved.

Issues with user
acquisition－

Needs analysis• Enhancement of LNSW and customs system (ASYCUDA) functionality andconnectivity

Bottleneck analysis• Unclear which authorities are promoting electronic transactions, electronic
signatures, etc.

Source: Interviews and Mitsubishi Research Institute, Inc
Copyright © Mitsubishi Research Institute1053. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Malaysia
 The table below describes issues related to trade digitization in Malaysia. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• Documents with signatures on certificate of origin after approval must be
brought to customs.

Platform, trade
procedures

Issues with digitaltrade platform－（There are no digital trade platforms.）

Issues with National
Single Window• Improve NSW functionality and simplify customs declaration procedures• Related systems such as ports, logistics, and customs are not linked(customs, NSW, myTRADELINK, uCustoms)※Development of Maritime Single Window began in 2023, and will be
expanded to include air transportation.

Issues with user
acquisition－

Needs analysis• Expansion of functions for digitalization of trade procedures related to
BtoB• Linkage of related systems such as port, logistics, customs, etc.
• Centralization of licensing at different ministries and agencies

Bottleneck analysis• Regulation of data protection in cross-border electronic transactions• Insufficient human resources and response to digitalization, including
import/export operators

Source: Interviews and Mitsubishi Research Institute, Inc
Copyright © Mitsubishi Research Institute1063. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Myanmar
 The table below describes issues related to trade digitization in Myanmar. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• Original documents are required for customs declarations (invoices, B/Ls,
certificates of origin, etc.)

Platform, trade
procedures

Issues with digitaltrade platform－（There are no digital trade platforms.）

Issues with National
Single Window• The systems are separated by procedures in each ministry and do not
function as a single window.
• The Ministry of Commerce and the Ministry of Agriculture have separate
systems from MACCS (customs system), fragmenting procedures andreducing the efficiency of trade procedures.

Issues with user
acquisition－

Needs analysis• Since the various administrative systems related to imports and exports
are not linked, the need for a centralized platform (trade portal) thatfacilitates BtoG and GtoG system integration and regulatory compliancehas been recognized.

Bottleneck analysis• Making changes to existing rules and regulations and interagency
coordination.
• Restrictions on obtaining regulations or licenses that force conversion into
local currency due to foreign currency shortages, etc.

Source: Interviews and Mitsubishi Research Institute, Inc
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3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Philippines
 The table below describes issues related to trade digitization in Philippines. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• Each ministry has its own platform, and some procedures are difficult to convert
into electronic format or are siloed.
• After the pandemic, customs submissions were converted to PDF (but there is atrend back to submitting original documents).

Platform, trade
procedures

Issues with digitaltrade platform－（There are no digital trade platforms.）

Issues with National
Single Window• Progress in the development of TradeNet has been delayed and its functions arelimited.
• Some service providers are providing backup systems for NSW, and some functions
such as electronic certificate of origin exchange with other countries and partial
functions such as checking the movement of vessels are also provided.

Issues with user
acquisition－

Needs analysis• Expansion of TradeNet functions (digitalization of customs payments, otherfunctions)• Centralization of applications under other laws and regulations of other ministries• Provide a user interface that is compatible with different user devices (PC, mobile,tablet, etc.)

Bottleneck analysis• There is a lack of user awareness about NSW, and concerns about data protection
laws have been cited, so it is not sufficiently diffused.

Source: Interviews and Mitsubishi Research Institute, Inc
Copyright © Mitsubishi Research Institute108

3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Singapore
 The table below describes issues related to trade digitization in Singapore. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• TradeTrust introduced as a framework to ensure the authenticity ofnegotiable documents of trade such as eBLs in compliance with MLETR• Actively collaborates with ICC DSI and other industry organizations topromote standardization

Platform, trade
procedures

Issues with digitaltrade platform• Authentication for user identification (eKYC) and how to authenticate
users when using different platforms

Issues with National
Single Window• NTP was positioned to integrate and replace TradeNet and TradeExchange,
but TradeNet and NTP are still being operated in parallel.

Issues with user
acquisition• Companies bear the cost of API connection.
• The company is considering expansion to other countries, and, in that case,compliance with the laws and regulations of the other country is important.
• If users are not willing to agree to data sharing, it will be difficult to
expand users.

Needs analysis• Promotion of understanding and dissemination of the convenience ofTradeTrust, which guarantees the authenticity of eBLs
• Expansion of user base through platform linkage with other countries, etc.
• Multilateral harmonization of data distribution

Bottleneck analysis• Operating with a sustainable business model and securing a revenue base
• Cross-border data distribution and user authentication

Source: Interviews and Mitsubishi Research Institute, Inc
Copyright © Mitsubishi Research Institute109

3. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Thailand The table below describes issues related to trade digitization in Thailand. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• There are three types of import license, and, in many cases, hard copy documentation isrequired to be submitted to the various ministries and agencies to obtain such licenses.
• In some cases, HS codes are required to be changed after import customs clearance, requiring
the submission of additional documents.
• It is difficult to promote standardization of data items in trade documents at the private side.

Platform, trade
procedures

Issues withdigital trade
platform• NSW and multi-platform connectivity• Cross-border trade platform connectivity• Standardization of data items in shippers' trade documents

Issues with
National
SingleWindow• NSW is considering expansion of B2B functionality and new technologies (use of blockchain);although NSW allows batch processing of license applications, there is no system reception or
response from each ministry and inter-ministerial procedures remain paper-based, requiringsubmission of original documents.
• Since NSW does not have the ability to link import license numbers to individual companies,
import license numbers must be transcribed and re-entered at the time of customs declaration.

Issues withuser
acquisition• Incentives for users. Especially for shippers and forwarders, it is necessary to clarify thebenefits, etc. of connecting to NSW and of further connecting to different platforms, and to
consider business models for trade platforms.

Needs analysis• A platform for centralized management of trade documents and sharing with shippers,
forwarders, financial institutions, etc.
• Establishment of a platform for shippers, forwarders, and banks to interconnect with each otherand with the National Single Window.

Bottleneck analysis• Standardization of data items in trade documents (especially for shippers and forwarders)• Business models and operating entities of trade platforms

Source: Interviews and Mitsubishi Research Institute, Inc
Copyright © Mitsubishi Research Institute1103. Analysis of Current Status of the 10 ASEAN Countries

3.5 Issues with Trade Procedures: Vietnam
 The table below describes issues related to trade digitization in Vietnam. The
information was collected through the interviews to the stakeholders(government, private firms etc.) in the country and public information.
Category

Contents

Digitalization andStandardization• Hard copies are required of trade documents, certificates of origin, phytosanitarycertificates, and satellite certificates to the bank in relation to L/C.

Platform, trade
procedures

Issues withdigital trade
platform• Cross-border L/C support

Issues with
National
SingleWindow• Digitization in NSW and other ministries is still a work in progress• VNACCS has limited and aging functionality and performance is not stable. (Currently
considering updating VNACCS with a milestone of 2025 or 2030).
• Interagency procedures remain paper-based and require submission of original documents.

Issues withuser
acquisition• Trade documents are not digitized and therefore underutilized.

Needs analysis• A need exists for a stable and fast customs clearance system.
• Electronic exchange of L/C's and submittals between shippers and banks• Ability to update cargo transportation and delivery status in batches and communicate it to
stakeholders

Bottleneck analysis• Consistency with existing systems such as VNACSS• Security performance, including measures to prevent information leakage to othercompanies• Adaptation to the cultures of shippers and banks, which prefer hard copies of documents• Need to comply with the Personal Information Protection Law.

Source: Interviews and Mitsubishi Research Institute, Inc
Copyright © Mitsubishi Research Institute111

3. Analysis of Current Status of the 10 ASEAN Countries

3.6 Potential of Trade Digitalization Market (1) The size of the trade digitalization market is estimated based on the costs
associated with international trade transactions and the volume of imports andexports, including the digitalization of companies involved in trade transactions.
The size of the market is calculated using the following methodology.
 The size of Japan's trade digitalization market is estimated at approximately USD$426 billion.
① T ot a l c ost t o t r a d e for each co untry (Japan)
C o s t a t i m por t /exp or t p er transacti o n * 1 ×Num be r o f
tra d e d t r a nsa ct ion s (nu mbe r o f e xpo rt transacti o ns) * 2＋ C os t a t i m p or t p er t r a nsacti o n * 1 ×Num be r o f trade
tra n s a c t i on s * 2 （Nu mb er of i m po rt transacti o ns）② E st im a t e s o f e a c hc o u n t r y 's t r a d e w it h Ja p a n(im p o r t s a n d e xp o r t s)(① (M a r k e t size o f Ja p a n ) x
Percentage of eachc o u n t r y 's t r a d e w it h Ja p a n * 3*1 Data for the year 2020 from the index of The World Bank, Doing business “Trade Across Borders”*2 Data for 2021 obtained fromJapan Customs Web site：https://www.customs.go.jp/zeikan/pamphlet/report/pdf/report_008j.pdf、*3 IMF, Direction of Trade Statistics (DOTS), https://data.imf.org/?sk=9D6028D4-F14A-464C-A2F2-59B2CD424B85

Source: Mitsubishi Research Institute, Inc.

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3. Analysis of Current Status of the 10 ASEAN Countries

3.6 Potential of Trade Digitalization Market (2) For ASEAN as a whole, we estimate USD $108.3 billion for the trade digitalization
market.
 The table below shows the size of each country's trade digitalization market.

Country name

Percentage of trade value (with Japan)

Market size estimation（USD million)

Brunei

1.6%

887.24

Cambodia

3.4%

1,723.29

Indonesia

32.0%

17,624.13

Lao PDR

1.1%

489.75

Malaysia

39.4%

12,569.54

Myanmar2.4%

1,799.71

Philippines

13.6%

10,564.63

Singapore

60.3%

23,397.11

Thailand

35.6%

13,008.91

Vietnam

43.5%

26,283.90

ASEAN as awhole

108,348.2

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute113

3. Analysis of Current Status of the 10 ASEAN Countries

3.7 Stakeholders (1) Stakeholders and summary of status of stakeholders are shown in the table below.
Country

Brunei

Cambodia

Indonesia

Summary・The government has aunified competentauthority, which makes it
easier to promote theproject.

・The public side is taking
the initiative in improving
trade and logistics, andthe drive for
digitalization at theprivate side is weak.

・The public side is spread
across two ministries, socross-industry
collaboration is necessary.
・The private sector isclear on the subject, but
cross-industry efforts areneeded.

Category

Key stakeholder

PublicMinistry of Finance andEconomyRoyal Customs & Excise
Department

The Ministry of Finance and Economy is responsible forfiscal and economic policy (including trade facilitation),and the Royal Customs & Excise Department, which
oversees NSW, also belongs to the Ministry.

PrivateDynamik Technologies

Government IT company acquired in 2018 by KhazanahSatu Sdn Bhd, a subsidiary of the Ministry of Finance; also
represents Brunei in ASEAN-BAC.

PublicMinistry of Economy and
FinanceNational Single Window
Steering Committee

Ministry of Economy and Finance (MEF) oversees theGeneral Department of Customs and Excise, which
promotes economic and fiscal policies.

PublicGeneral Department of
Customs and Excise

Supervises imports and exports and computerize customs
procedures and manages ASYCUDA as a customs
clearance system.

PrivateCambodian Logistics
Association（CLA）

The Cambodia Freight Forwarders Association (CAMFFA)
was established in 2012. It has since become the current
organization.

PublicMinistry of Trade

Ministry with jurisdiction over trade facilitation. In trade
procedures, it is in charge of certificates of origin, etc.

PublicMinistry of Finance

Customs and the INSW department, which has jurisdiction
over NSW.

PrivateKADIN(Indonesian Chamber ofCommerce)

Representative of ASEAN-BAC Indonesia

Source: Various information
Copyright © Mitsubishi Research InstituteDescription

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3. Analysis of Current Status of the 10 ASEAN Countries

3.7 Stakeholders (2)(cont.)Country

Summary

Category

Lao PDR

Malaysia

Myanmar・The public side isspread across multiple
ministries and agencies,
so cross-industry
collaboration isnecessary.
・The private sector side
is clear, but crossindustry efforts areneeded.

・The public sector istaking the lead in
improving trade andlogistics. The private
sector is not strong inpromoting digitalization.

Ministry of Finance

PrivateLao National Single Window

Joint venture established by the Lao officeof a subsidiary of French-registered
Bureau Veritas under a PPP agreementwith the Lao Ministry of Finance.

PrivateLao National Chamber of Commerce andIndustry

Laotian Chamber of Commerce

PublicMinistry of International Trade andIndustry

Promotes Malaysia's international tradeand industry, enacts relevant laws andregulations, and formulates trade policies

PublicMalaysia External Trade Development
Corporation (MATRADE)

Promotes Malaysian exports and supports
partnerships with companies related tocross-border e-commerce platforms

PrivateFederation of Malaysian Manufacturers

Represents Malaysian manufacturers, while
improving the business environment forelectronic trade and protecting
manufacturers' interests

PrivateDagang Net Technologies

Develops and maintains an electronic trade
platform and provides related IT services
and solutions

PublicCustoms Department

NSW is under the Myanmar Ministry ofPlanning and Finance.

PublicMinistry of Commerce

In charge of TradeNet, an import/export
trade registration and license issuancesystemPrivateThe Republic of the Union of Myanmar
Federation of Chambers of Commerce andIndustry

Myanmar Chamber of Commerce andIndustry, chaired by the Chair of ASEAN
BAC.

Source: Various information
Copyright © Mitsubishi Research InstituteDescription
The Treasury Department, not Customs,
has jurisdiction over LNSW, and LNSW, ajoint venture with Treasury, is responsiblefor its operation.

Public・The public side is taking
the initiative in improving
trade and logistics, andthe drive for
digitalization at theprivate side is weak.

Key stakeholder

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3. Analysis of Current Status of the 10 ASEAN Countries

3.7 Stakeholders (3)(cont.)Country

Philippines

Singapore

Summary・The public side
is taking theinitiative toimprove tradeand logistics.
・At the private
side, crossindustry
initiatives areneeded.

・The public andprivate sectors
are taking thelead inimproving tradeand logistics,
and there are
moves such as
developing
public-private
platforms.

Category

Key stakeholder

PublicDepartment of Trade and Industry(DTI)

Supports industry in the Philippines and develops
laws and policies for electronic trade

PublicBureau of Customs (BOC)

Manages customs procedures for trade and has
jurisdiction over the National Single Window of
the Philippines

PrivatePhilippine Chamber of Commerce andIndustry (PCCI)

Represents Philippine commerce and industry andpromotes an improved business environment forelectronic trade

Inter Commerce Network Service

It is a leading service provider connected to the
NSW in the Philippines and operates a platformthat enables exchanges of electronic certificatesof origin and customs declarations for ASEAN andother countries.

PublicMinistry of Trade and Industry

It makes policy decisions and plans for overall
strategies and digital economy agreements
related to trade promotion. It has developed an
initiative called Trade 2030 to set trade volume
targets.

PublicInfocomn Media Development
Authority

Participates in development and operation of
trade platforms such as SGTraDex; also
implements subsidy policies to promote E-Invoice.

PublicSingapore Customs

It has jurisdiction over TradeNet, the National
Single Window, and NTP, the digital trade platform.

PrivateSingapore International Chamber ofCommerce

Singapore's Chamber of Commerce and Industry.
User guidance on FTAs and RCEP is available.

PrivateSource: Various information
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3. Analysis of Current Status of the 10 ASEAN Countries

3.7 Stakeholders (4)(cont.)Country

Thailand

Vietnam

Summary・The public side is spread
across multiple ministries
and agencies, so crosssectoral collaboration isnecessary.
・The private sector is clear
on who initiates trade
digitalization andaddresses cross-cutting
initiatives.

・The government side istaking the initiative toimprove trade and logistics,
while cross-industry
activities are needed at
the private side.

Category

Key stakeholder

PublicMinistry of Commerce

It has jurisdiction over initiatives related to thedigitalization and facilitation of trade
procedures. And, it has jurisdiction over the
NTR as a gateway for information on electroniccommerce.

PublicMinistry of Digital Economy andSociety

It was established through a 2016
reorganization to promote the digital economy.
Its predecessor was the Ministry of Information
and Communication Technology.

PublicThai Customs

It has jurisdiction over the National Single
Window of Thailand.

PrivateJoint Standing Committee on
Commerce, Industry and Banking:
JSCCIBThe committee is the driving body forestablishing the NDTP and is a combination of
associations from various industries. As anorganization, it is equivalent to Keidanren in
Japan.

PublicMinistry of Industry and Trade
Department of E-commerce andInformation Technology

Promotes development of the digital economy,
especially in the area of e-commerce.
Responsible for digitalization of certificate oforigin (C/O) issuance and administration.

PublicGeneral Department of Vietnam
Customs

Responsible
procedures.

PrivateVietnam Chamber of Commerceand Industry

The organization develops domestic andinternational trade by improving the businessenvironment. It is also in charge of issuingcertificates of origin (commissioned by the
Ministry of Commerce and Industry).

PrivateFPT Information System

It is the service provider of the customs system
VNACCS and operates the TradeFlat trade
platform.

Source: Various information
Copyright © Mitsubishi Research InstituteDescription

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digitalizationofcustoms3. Analysis of Current Status of the 10 ASEAN Countries

3.８ Summary (1)Legend Regarding the current status of trade facilitation and digitalization,
each ASEAN country has a different status. It is necessary toorganize a roadmap for activities based on development status.

・・・High・・・Medium

Unit: USD million

Tradefacilitation

Digitalization

Country
TFI*

LPI*

NSW

Trade platform

Network(fixed
broadband)

Legalframework

Blockchain

Data flow
regulation

e-Invoice・・・Low

Trade
value
with
Japan
(2022)

Brunei193

2.7 NSW

Not exist

Above world average

E-signature act

Needs
improvement

Does not exist

Does not exist

4,091.6

Cambodia155

2.6 NSW

Not exist

Needs improvement

E-signature act

Regulatedproperly

Does not exist

Does not exist

1,826.2

Indonesia

197

3.2 NSW

Andalin

Needs improvement

E-signature act

Regulatedproperly

Strict

For tax admin.

41,513.6

Lao PDR132

2.7 NSW

Not exist

Needs improvement

E-signature act

Needs
improvement

Does not exist

Does not exist

286.5

Malaysia208

3.2 NSWZETRIX

Above world average

E-signature act

Regulatedproperly

Conditional
permitUnderconsideration

41,267.1

Myanmar143

2.3 Non exist

Not exist

Needs improvement

E-signature act

Needs
improvement

Does not exist

Does not exist

1,806.5

Philippines

182

2.9 NSW

Not exist

Needs improvement

E-signature act

RegulatedproperlyFree flow

For tax admin.

23,983.6

Singapore251

4.0 Linkage with NTP, SGTradex

Above world average

E-signature act,
Regulated,
MLETR,
cross-border
Cooperate ID
linkagelinkage

Free flow

Corporate

47,538.2

Thailand203

3.4 NSW

NDTP（SCMnet,PromptTrade）

Above world average

E-signature act,
Regulated
MLETR
properly（Ongoing）

Conditional
permitCorporate andTax Admin

58,944.2

Vietnam211

3.3 NSW

TradeFlat

Above world average

E-signature act

Strict

For tax admin.

47,350.1

Japan

271

3.9 NSW

TradeWaltz

Above world average

E-signature act, Regulated,
MLETR
cross-border（Ongoing）
linkage

Free flow

Corporate

NSW
Trade PF

Regulatedproperly－

Source: Compiled by Mitsubishi Research Institute, Inc. from IMF Direction of Trade Statistics for each country in 2022.
Copyright © Mitsubishi Research Institute

118*Note: TFI（Year 2022) is rated medium at 200 and above, and high at 250 and above;
LPI(Year 2018) is rated medium at 3.0 to 3.9 and high at 4.0 and above.

3. Analysis of Current Status of the 10 ASEAN Countries

3.８ Summary (2) The table shows the results of the analysis of the current status of the 10
ASEAN countries organized by groups with similar characteristics.
Country

Summary

Singapore• In the electronic trade transaction system, the linkage between the National Single Window and related
systems, etc., is well developed, and domestic system linkage is being promoted.
• Efforts are also being made for international collaboration.
• In terms of regulatory framework, regulations for digitalization of documents are stipulated.
• The government is the key enabler, and there are efforts to digitalize trade in the public and private
sectors.
• Trade volume is high in the region, and trade-related data (TFI and LPI) is at a high level.

Thailand,Indonesia,
Malaysia,
Philippines,
and Vietnam• In terms of electronic trade transaction systems, National Single Windows have been developed to acertain extent, but there is interest in improving convenience through an expansion of BtoB functions(Thailand, Indonesia) and interest from the government (Philippines).
• In Thailand, there is a unified movement in the industry for BtoB trade electronic trading transactions.
• Although a certain degree of progress has been made in the digitalization of the system, trade processes
are not fully digitalized, For example, original documents are required to be submitted.
• Among stakeholders, the government is the key enabler, but there is a unified movement in the private
sector in Thailand.
• The market size is moderate, and trade-related data (TFI and LPI) indicators are at a medium level.

Brunei,
Cambodia,
Lao PDR, andMyanmar• In the electronic trade transaction system, a certain amount of progress has been made in developing a
National Single Window, but the need for a BtoB trade platform is low.
• Only in Brunei is there a need to introduce digital trade platforms in Borneo (including Indonesia andMalaysia).
• Digitalization is an area where institutional development is needed.
• Stakeholders are mainly in the government, but only in Brunei is there a unified movement of the private
sector.
• The market size is small and trade-related data (TFI and LPI) is at a low level.

Copyright © Mitsubishi Research Institute1194. Estimation and Analysis of Social
Benefits
 4.1 Estimation of Social Benefits 4.2 Analysis of Social Benefits 4.3 Summary

Copyright © Mitsubishi Research Institute120

4. Estimation and Analysis of Social Benefits

4.1 Estimation of Social Benefits (1) Estimation of Social Benefits of Digital Trade: Net benefits were estimated for
ASEAN as a whole and for each country by subtracting the investment amountfrom the cost reduction effect.
Cost reduction benefits (+ effect)Calculation unit
Market size in each country

Description
Market size for trade digitization.

×
Trade transactions with trade partners(percentage)See IMF Direction of Trade Statistics. Percentage of Japan-ASEAN
trade transactions is from the total trade value.

×Time reduction (hours)

Applying 44% time reduction effect, which is the time reduction
effect of the demonstration of the efficiency of trade procedures in
the global supply chain by New Energy and Industrial Technology
Development Organization’s project.
（https://www.nedo.go.jp/content/100896162.pdf）＝
Cost reduction benefit per year (USD)

Annual total amount×
Growth rate (CAGR)

The growth rate of each country's trade value from 2017 to 2022 isapplied.

＝
Cost saving effect over five years (USD)

Total for five years

Source: Compiled by Mitsubishi Research Institute, Inc. from various sources.
Copyright © Mitsubishi Research Institute121

4. Estimation and Analysis of Social Benefits

4.1 Estimation of Social Benefits (2) Estimating social benefits obtained by introducing a digital trade platformThe effect is USD 10.3 billion if the digital transformation of trade procedureswith ASEAN as a whole is realized, and

if Japan-ASEAN is taken within the scope, the effect expands to USD 13.7 billion.



If digitalization with all trading partners is promoted, the effect is USD 47.7
billion.
Unit: USD million
Country

ASEAN region

Japan-ASEAN

ASEAN-Global

Brunei

151.9

210.7

390.4

Cambodia

209.5

234.6

758.2

Indonesia

1,690.7

2,302.2

7,754.6

Lao PDR

122.5

125.8

215.5

Malaysia

1,500.8

1,853.2

5,530.6

Myanmar

307.5

344.2

791.9

Philippines

1,154.3

1,652.8

4,648.4

Singapore

2,638.3

3,131.7

10,294.7

Thailand

1,211.7

1,788.2

5,723.9

Vietnam

1,305.6

2,071.3

11,564.9

ASEAN all

10,292.8

13,714.8

47,673.2

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research InstituteNote: The electronic documents to be covered assume that all trade documents, including B/Ls, are electronic. The social benefits
for Japan-ASEAN and ASEAN-global are shown for the social benefits of only ASEAN, and do not include the benefits of thepartner countries.

1224. Estimation and Analysis of Social Benefits

4.1 Estimation of Social Benefits (3) Introducing digital trade platforms also brings about the effects of increasing thevolume of trade through the participation of SMEs, environmental impacts, andincreased transparency of supply chains.

Expected effects
Effects onContents•

environment, etc.

Other qualitative andReduce energy and CO2 emissions deriving from real document transport throughthe digitalization of trade documents and processes.

•

secondary effects

Increase accuracy and ease of storing data for post audits by customs andcompliance, and for preventing double finance etc.

•

Reduce trade barriers, especially for SMEs (expectation of increased tradevolume)•Increase supply chain resilience through other functions such as visualization ofcargo and trade process, CO2 emissions (towards Scope 3 on GHG protocol), etc.

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute1234. Estimation and Analysis of Social Benefits

4.2 Analysis of Social Benefits (1) Assuming that the manifestation of social benefits changes with the status of
trade digitalization and the introduction of trade digital platforms, the following
three analyses were conducted.
Analysis

１

２

３

Contents

Net social benefits ofimplementing a digital trade
platform• Estimation of net social benefits, based on cost savings over five
years and system investment and operation costs• Calculated for the case of digitization of trade transactions within
the ASEAN region, the case of digitization of trade transactions
between Japan and ASEAN, and the case of digitization of trade
partners in ASEAN countries.

Social benefits at 10%, 30%,
and 100% of the time

• Estimate changes in net social benefits in cases with 10%, 30%,
and 100% social benefit manifestation• Scenario scopes electronic trade transactions between Japan and
ASEAN

Social benefits per year in
the 10% effect case

• Estimation of year-to-year changes in social benefits in the 10%
effect case
• Scenario scopes the digitalization of ASEAN-Japan tradetransactions

Note: Development and operation costs of digital trade platforms were prepared from interviews, using Japan as a case study; construction and operation costs were
calculated based on the proportion of labor costs in each country.

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute124

4. Estimation and Analysis of Social Benefits

4.2 Analysis of Social Benefits (2) Including the cost of developing a digital trade platform to calculate net social
benefits, which were divided into the case of electronic trade transactions within
the ASEAN region, the case of electronic trade transactions between Japan and
ASEAN, and the case of all electronic trade transactions with trading partners ineach ASEAN country, the cost savings over a five-year period and social benefits(net) based on system investment and operation costs.
 The benefits of introducing the system are considered to be significant in eachcountry.
Unit: USD million

Country

ASEAN region

Japan-ASEAN

ASEAN-Global

Brunei

1,252

1,741

3,236

Cambodia

1,443

1,616

5,229

Indonesia

10,34314,08447,443

Lao PDR

738

759

1,300

Malaysia

9,050

11,17733,370

Myanmar

1,641

1,837

4,227

Philippines

6,700

9,594

26,987Singapore

15,295

18,16359,797

Thailand

6,685

9,868

31,594

Vietnam

8,012

12,712

70,987

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute1254. Estimation and Analysis of Social Benefits

4.2 Analysis of Social Benefits (3) In Japan-ASEAN trade transactions, the cost reduction effect is highest whenconnections with trading partners are advanced, but it can be estimated that there
will be benefits even when interconnections with some trading partners are achieved.
Scenario

Description

A. Case with 10% effect onset

Achieving interconnection with some trading partners in Japan and ASEAN, andpartial digitalization of trade documents

B. Case with 30% effect onset

Achieving interconnection with major trading partners in Japan and ASEAN, andpartial digitalization of trade documents

C. Case with 100% effect onset

Country

Achieving interconnection with all trading partners in Japan and ASEAN, and full
digitalization of trade documents
Unit: USD million

Scenario A

Scenario B

Scenario C

Brunei

165

515

1,741

Cambodia

159

483

1,616

Indonesia

1,407

4,224

14,084

Lao PDR

75

227

759

Malaysia

1,112

3,349

11,177

Myanmar

183

550

1,837

Philippines

958

2,877

9,594

Singapore

1,780

5,421

18,163Thailand

983

2,958

9,868

Vietnam

1,269

3,812

12,712

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute126

4. Estimation and Analysis of Social Benefits

4.2 Analysis of Social Benefits (4) Although the effectiveness of introduction increases from year to year, the initial
benefits of start-up are relatively low in Brunei, Lao PDR, Cambodia, Myanmar, andother countries. It is necessary to reduce initial investment costs and consider
measures for digitalization and standardization, as well as measures for user
expansion, in parallel.
Unit: USD million

Country

1 year

2 years

3 years

4 years

5 years

Brunei

14

26

32

41

52

Cambodia

22

27

31

37

42

Indonesia

229

253

279

307

338

Lao PDR

12

14

15

16

18

Malaysia

181

202

221

242

265

Myanmar

34

35

37

38

39

Philippines

164

177

191

205

220

Singapore

288

333

359

386

415

Thailand

176

187

197

206

217

Vietnam

206

228

252

278

306

Note: The estimation assumption is based on the social benefits (cost reduction effect) over five years and assumes digitalization of trade procedures (platform
connection) for ASEAN-Japan. The cost reduction effect is assumed to be 10%, and system investment costs are assumed to be incurred in the first year. The initialcost is assumed to be incurred in the first year. Also, social benefits on the Japanese side are not included.

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute1274. Estimation and Analysis of Social Benefits

4.３ Summary The social benefits are estimated to be USD 10.3 billion in a single year if
digitalization of trade transactions for the entire ASEAN region is achieved, andthe effect expands to USD 13.7 billion if Japan-ASEAN is taken as the scope of
the project. If digitization with all trading partners is promoted, the effect isestimated as USD 47.7 billion.
 Regarding the analysis of social benefits that takes into account system
investment costs, the introduction of digital trade platforms and the digitalizationof trade will have a significant effect in each country over a five-year period,
even in the light of investment costs.
 On the other hand, if the cost reduction effect does not manifest itself, such as alack of progress in connecting digital trade platforms and digitization of trade,the effect of introducing digital trade platforms will be low.
 Therefore, it is necessary to reduce the initial investment cost, launch digitaltrade platforms, promote digitalization and standardization, and consider
measures to expand users in parallel.

Copyright © Mitsubishi Research Institute128

5. Policy Recommendations andRoadmap Development
 5.1 Principle of Acceleration of Trade digitalization
 5.2 Policy Recommendations for ASEAN
 5.3 Policy Recommendations
 5.4 Roadmap
 5.5 ASEAN-Japan Cooperation

Copyright © Mitsubishi Research Institute129

５. Policy Recommendations and Roadmap Development

5.1 Principle of Acceleration of Trade Digitalization
 Basic principle for the massive deployment of digital trade composes threeelements, which can be accelerated via policies and actions.
 However, the pathways differ by country, so each pathway should be decided andshared through public-private collaboration

Establishandconnect
digitaltrade
platforms

Data
digitalization andstandardizationacquisitionofplatform
users

Provide policy mix and private actions for acceleration(Capacity building, demonstration, subsidies, regulation, etc. )Consensus about pathway toward digital trade among stakeholders(Custom Office, Platformers, Banks, Trade firms etc.) in each country
Copyright © Mitsubishi Research Institute

130

Massive
deployment
in specificareas andsectors• Platform’s type(create your own
or import, public
or private etc.)• Priority list ofdigitalization

５. Policy Recommendations and Roadmap Development

5.2 Policy Recommendations for ASEAN
 To accelerate the digitalization of trade, it is necessary forstakeholders to work together and to work on ASEAN.
International trend
Standardization such as ICC,
UN/CEFACT
Harmonization ofregulations on cross-borderdata flows



Visualization of NSW countries’ functions
and expansion plans, and promotion ofdomestic and multilateral NSW and trade
platform linkages

Harmonization of regulations andinitiatives of each country related tocross-border data flows, etc.



Encouraging the industry to standardize
trade data items in ICC/UNCEFACT

Establish digital trade platforms, promoteinterconnection with other countries andvisualize progressCooperation with ASEAN-BAC Legacy
ProjectTechnical assistance in developing a
regulatory framework for trade digitization

ASEAN
Secretariat

ASEAN/APEC trend
APEC-BAC initiatives for
digital trade
ASEAN-BAC
Functional expansion of
NSW, development of ASW
International cooperation
outside the ASEAN region(FTA, certificate of origin
exchange)
ASEAN-BAC legacy project
Copyright © Mitsubishi Research InstituteInternational
institutions（UNESACP/ADB etc.）131

５. Policy Recommendations and Roadmap Development

5.3 Policy Recommendations
 Detailed action items for accelerating trade digitalization are as follows.
A．Establish
and connect
platforms

B．Digitalize
andstandardize

C. Useracquisition

1) Digital trade
platform
development

Customs, economic
and financeministries

2) Interconnectionof digital trade
platform

Customs, Tradeplatform Operator

1) Implementationof digitizationrelated measures

Digital-related
ministries

2) Promotion ofstandardization

Chamber ofCommerce andIndustry1) Increased
awareness

Chamber ofCommerce andIndustry players•

Capacity building for shippers and forwarders for a better understanding
how to make current procedures efficient using a platform.

2) Incentives for
trade digitalization

Economic andfinance ministries•

Provide tax incentives and subsidies (especially for SMEs with limited
investment capacity) for introducing digital trade platforms.

•

Identify and clarify the government and private sector stakeholders whowill promote the digitization of customs procedures. For customs
procedures, it is necessary to involve the Customs Department, the National
Single Window facilitators, trade-related ministries, and digital-related
ministries.

•

Create and operate a scheme (e.g., cross-industry study consortium) toclarify issues to be addressed across industries and by the public andprivate sectors in collaboration.

1)Identificationof stakeholder

Enabler
2) Public-Private
partnership

ASEAN-BAC、Economic andfinance ministries
Customs•

To develop digital trade platforms and promote connection to National
Single Window and domestic industry platforms•

Promote multilateral connectivity of digital trade platforms through proof ofconcept (PoC), etc. Accumulate know-how on use cases, standardization,business models, etc. through PoC and small-scale connections.

•

Promote measures for digitizing domestic documents as a basis forelectronic signatures, electronic invoices, digital IDs, etc.,
Harmonization of regulations such as personal information protection, etc.,with awareness of cross-border data flows.

•••

In coordination with the activities of UN/CEFACT and ICC, standardize thetrade data items for digital trade platforms
Revise national laws and guidelines, especially for documents that require
revision of national laws such as the MLETR.

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute132

５. Policy Recommendations and Roadmap Development

5.4 Roadmap
 The figure below shows a roadmap for realizing
the trade digitization.
Establish and connect platforms

LegendDomestic

International

ASEAN-BAC legacy projects

Medium term
(3-5 years)

Short term
(1-3 years)

Long term(5 years～）

SGConnect（Singapore)

1) Digital trade platform
development
2) Interconnection of digitaltrade platform

Establish domestic digital trade platform or take advantageof the existing platforms such as NSW and connect them toeach other
Digital Trade Connect (Thailand)

Promote international linkage

Digitalize and standardize
1) Implementation ofdigitization-related measures

Promote and implement digitalization related rules
Harmonize regulations（Cross-border data flow etc.）
Abide by global regulatory framework (MLETR)

2) Promotion of standardization

Promote standardization through PoC
Follow global trend such as ICC and UN/CEFACT

User acquisition
AMEN (Philippines）

1) Increased awareness2) Provision of incentives
Copyright © Mitsubishi Research Institute

Digital Trade Connect (Thailand)

AKREDI etc. (Brunei)

Increase awareness of potential users (bank, exporter etc.)
ASEAN Business Entity(Indonesia）

Government Support (especially for SMEs)
133

５. Policy Recommendations and Roadmap Development

5.5 ASEAN-JAPAN Cooperation（1） In Japan, a cross-industry trade consortium has been established and the public
sector is also supporting trade digitalization.
 The following three measures are taken for tackling the challenges of trade
digitalization.
Challenges

Direction① Collaboration withtrade partners

Promote linkages between trade platforms and data linkage with not only Japan, butalso among ASEAN countries.

② Improvement of data
linkage in trade sector

Promote the use of data standard based on International standard institution（UN/CEFACT）- Request UN/CEFACT and others to reflect requests for additional data items fromJapanese companies etc.

③ Expanding user base

Share good examples of digital trade based on cooperation from key shipper
companies to maximize the network effects of trade platforms (knowledge sharing).
Partially subsidize costs from the government for connections between trade PFs
and users and other trade platforms.

Trade

Digital trade
platform

１

Digital trade
platform

partners

3（ASEAN)

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

2

Other
industrial
platform
134

Japan

５. Policy Recommendations and Roadmap Development

5.5 ASEAN-JAPAN Cooperation（2） Suggestions on areas and contents where ASEAN-Japan can cooperate
are as follows.
A. Establishing and connecting
platforms

Countries

Promotion ofInterconnections among
Digital Trade Platforms
(PoC)



Development support forcommercializing digitaltrade platform connectionsSupport for the functional
expansion of National
Single Window (financial
cooperation, technicalassistance)Support for thedevelopment of digitaltrade platforms or the
deployment of Japanesedigital trade platforms(financial and technicalassistance)with digitaltrade
platforms

Countriesthat do nothave digitaltrade
platforms



B. Digitalizing andstandardizingPromotion of the MLETR
and cooperation in its
enforcement

Bilateral and multilateral
cooperation on
standardization of data
items in trade documents

Support for regulatory
frameworks related todomestic digitization(technical assistance)

Support for the functional
expansion of the National
Single Window (financial
cooperation, technicalassistance)

Copyright © Mitsubishi Research Institute

135

C. User acquisition

Organizational and humanresource development
support (technicalassistance, training)Knowledge sharing on
trade consortium
management and otherpromotion initiatives inJapan (technicalassistance)

Organizational and humanresource development
support (technicalassistance, training)Knowledge sharing andtransfer of know-how on
trade consortium
management and otherpromotion initiatives inJapan (technicalassistance)