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

Roadmap for the Promotion ofDigital Trade Platform inASEAN

March 2024

Public Consulting Division

Scope of Trade Digitalization

１.1 Scope of Trade Digitalization
 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
BankIssuing bank

Shipping documents
L/CArrange payment
Shipping

Request toInsurancecertificate

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
toG

Exportdeclaration/per

Customs

mit

declaration/perm

ImportCustoms

ArrivalCustoms

Customs

clearance

noticeclearance

declaration/permit

declaration/
permititGtoG

Other
ministries

ImportcustomsExportcustoms

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

2Otherministries

Estimation of Social Benefits

１.2 Estimation of Social Benefits (1) Estimating social benefits obtained by introducing a digital trade platformThe effect is USD 10.3 billion if the digital transformation of trade
procedures with 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 millionCountry

ASEAN region

Japan-ASEAN

Worldwide

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.

3

Estimation of Social Benefits

1.2 Estimation of Social Benefits (2) 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 Institute4Key Actions for Trade Digitalization

１.3 Key Actions for Trade Digitalization
 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

ImporterBAC

Forwarders,custombrokers

Digital trade
platform

Forwarders,custombrokers

Digital tradeplatform

CBtoNational Single
WindowGNational Single
WindowGtoG

Relatedministries

Customs(Export country)

Customs(Export country)

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute5

Relatedministries

Key Actions for Trade Digitalization

1.4 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

Establishandconnectdigitaltrade
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

6

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

1.5 Current Status of Trade Digitalization
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

Country

Tradefacilitation
TFI*

LPI*Digitalization
NSW

Trade platform

Network(fixedbroadband)

Legalframework

Blockchain

Data flow
regulation

e-Invoice・・・Low

TradevaluewithJapan

Brunei193

2.7 NSW

Not exist

Above world average

E-signature actNeeds
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 actNeedsimprovement

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）

Conditionalpermit

Corporate andTax Admin

58,944.2

Vietnam211

3.3 NSW

TradeFlat

Above world average

E-signature act

Strict

For tax admin.

47,350.1

Japan271

3.9 NSW

TradeWaltz

Above world average

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

Free flow

Corporate

NSW
Trade PFRegulated
properly－Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute

7*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.

ASEAN Trends

１.6 Relationships with ASEAN-BAC Legacy Projects
 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
Insurancecompany

B
to

B

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): PhilippinesForwarder,
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
Window

GGtoG

Relatedministries

Exportcustoms(ASW)

ASEAN Trade
Repository (ATR)

ASEAN Customs andTransit System(ACTS)

ASEAN Solutions for
Investments, Serviceand Trade (ASSIST)

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

8National Single
Window

Importcustoms

Relatedministries

Policy Recommendations and Roadmap１.7 Policy Recommendations for ASEAN
 Detailed action items for accelerating trade digitalization are as follows.

A．Establish
and connectplatforms

B．Digitalizeandstandardize

C. Useracquisition

1) Digital trade
platform
development

Customs,
economic andfinanceministries• To develop digital trade platforms and promote connection toNational Single Window and domestic industry platforms

2)
Interconnectionof digital trade
platform

Customs,
Trade platformOperator• Promote multilateral connectivity of digital trade platforms throughproof of concept (PoC), etc. Accumulate know-how on use cases,
standardization, business models, etc. through PoC and small-scaleconnections.

1)
Implementationof digitizationrelated
measures

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

2) Promotion ofstandardization

Chamber ofCommerceand Industry• In coordination with the activities of UN/CEFACT and ICC,
standardize the trade data items for digital trade platforms• Revise national laws and guidelines, especially for documentsthat require revision of national laws such as the MLETR.

1) Increased
awareness

Chamber ofCommerce andIndustryplayers• Capacity building for shippers and forwarders for a better
understanding how to make current procedures efficient using aplatform.

2) Incentives for
tradedigitalization

Economic andfinanceministries• Provide tax incentives and subsidies (especially for SMEs withlimited investment capacity) for introducing digital trade platforms.

Source: Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute9Policy Recommendations and Roadmap

1.8 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)
10Policy Recommendations and Roadmap

１.9 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.

TradeDigital tradeplatform

１

Digital trade
platform

partners3（ASEAN)

Source: Compiled by Mitsubishi Research Institute, Inc.
Copyright © Mitsubishi Research Institute2

Otherindustrial
platform
11JapanPolicy Recommendations and Roadmap

１.9 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 (financialcooperation, technicalassistance)Support for thedevelopment of digitaltrade platforms or thedeployment of Japanesedigital trade platforms(financial and technicalassistance)with digitaltradeplatforms

Countriesthat do nothave digitaltradeplatforms



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 (financialcooperation, technicalassistance)

Copyright © Mitsubishi Research Institute

12C. 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)