ECOMMERCE
ECOMMERCE
ECOMMERCE
PRACTICES ON E-COMMERCE
TrainForTrade case studies in South-East Asia
Strengthening knowledge
and skills through innovative approaches
for sustainable economic development
U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
PRACTICES ON E-COMMERCE
TrainForTrade case studies in South-East Asia
Strengthening knowledge
and skills through innovative approaches
for sustainable economic development
Geneva, 2020
Practices on e-commerce: TrainForTrade case studies in South-East Asia
This publication is available under the open access policy in line with the Creative
Commons licence for intergovernmental organizations, available at
http://creativecommons.org/licenses/by/3.0/igo/.
The designation employed and the presentation of material on any map in this work do
not imply the expression of any opinion whatsoever on the part of the United Nations
concerning the legal status of any country, territory, city or area or of its authorities,
or concerning the delimitation of its frontiers or boundaries.
UNCTAD / DTL / KDB / 2019 / 2
eISBN: 978-92-1-004668-8
ii
Strengthening knowledge and skills through innovative approaches for sustainable economic development
The summaries of the featured dissertations and participants’ career profiles were prepared
by Shuaihua Wallace Cheng, Cécile Barayre, Torbjörn Fredriksson from the Information
and Communication Technology Policy Section; Dominique Chantrel, Tomasz Kulaga,
Debbie Francisco, Erika Morishita, under the supervision of Mark Assaf, Chief of the Human
Resources Development Section-TrainForTrade and the overall guidance of Geneviève
Féraud, Head of the Knowledge Development Branch and Shamika Sirimanne, Director
of the Division on Technology and Logistics of UNCTAD, and with input from Yann Duval,
Chief of Trade Policy and Facilitation Section of Trade, Investment and Innovation Division
of UNESCAP.
The views expressed are those of the authors and do not necessarily reflect the views of
the United Nations Secretariat. The designations employed, and the presentation of the
material do not imply the expression of any opinion whatsoever on the part of the Secretariat
of the United Nations concerning the legal status of any country, territory, city or area or its
authorities, or concerning the delimitation of its frontiers or boundaries.
Material in this publication may be freely quoted or reprinted, but acknowledgement is
requested, together with a copy of the publication containing the quotation or reprint to be
sent to the UNCTAD secretariat. This publication has not been formally edited.
Contact:
Human Resources Development Section
TrainForTrade Programme, Knowledge Development Branch
Division on Technology and Logistics, UNCTAD
Palais des Nations
1211 Geneva 10, Switzerland
Email: [email protected]
www.unctad.org/trainfortrade
iii
Strengthening knowledge and skills through innovative approaches for sustainable economic development
Executive summary
Digital marketplaces could drive sustainable and inclusive growth across South-East Asia,
with e-commerce likely to grow to US$88 billion by 2025. Benefits will include opening of
markets to facilitate sales and consumption, upgrading of traditional manufacturing and
services, and development of new industries for business opportunities.
While some countries have made significant inroads into e-commerce, the majority of
developing countries are still trailing behind due to two categories of challenges. First,
developing countries need to tackle obstacles to e-commerce, such as lack of access
to information and communications technology (ICT) infrastructure, shortage of skills,
and weak legal frameworks. Second, the current market concentration and competition
frameworks are skewed against latecomers and smaller players, in particular those from
less developed countries.
Against this backdrop, UNCTAD has over the past two decades focused its work on the
development implications of e-commerce and digitalization. UNCTAD provides leading-edge
research and analysis, technical cooperation, and global platforms for multi-stakeholder
policy dialogues in a holistic and integrated approach. It publishes flagship reports on digital
economy (the Digital Economy Report), coordinates the multi-agency eTrade for all initiative,
conducts eTrade readiness assessment, and convenes the influential multi-stakeholder
E-commerce Week.
As part of its holistic methodology, UNCTAD underscores the importance of mutual
learning between countries and at regional levels in the areas of e-commerce and digital
economy. In this context, the UNCTAD TrainForTrade programme launched a project in
2018 on “Leapfrogging skills development in e-commerce in South-East Asia in the
Framework of the 2030 Development Agenda” under the United Nations eleventh tranche
of the Development Account. Two hundred and sixty candidates from the public and
private sectors from South-East Asia have successfully participated in this training project
that encompasses six in-depth online training modules on e-commerce and e-business
fundamentals, e-government, payment, transportation and logistics, digital marketing, and
marketplaces, as well as a face-to-face workshop in the region.
It is hoped that the project’s goal of sharing experiences, knowledge and expertise among
participants and delegates has been achieved. This report explores in its first chapter a
history of the project. The second chapter gives an overview of the e-commerce situation
in the region. The third chapter presents the selection of eight case studies prepared by
the project’s participants, covering e-government, e-payment, transportation and logistics,
marketplaces and digital marketing. These case studies provide succinct examples of good
practices as well as policy recommendations for further development of e-commerce. The
fourth chapter concludes the publication with a list of recommendations.
Participants in this project highlighted that the classic policy issues are still to be addressed.
The first approach identified to address these issues is to consistently and strategically invest
in physical infrastructures, from roads and railways, to waterways and air transportation, in
particular in remote and less-developed regions. The second is to increase the ease of
doing business by cutting red tape, reducing unnecessary taxes and fees, and providing
more support to empower micro, small and medium-sized enterprises (MSMEs). The third
is to level the playing field between big and small companies, through more transparent
government procurement policies, and more robust antitrust policies to allow more
competitors in the markets.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
The workshop focused on e-commerce readiness and drew on case studies. Participants
used these as a basis for the following seven key policy recommendations that can be
applied to the South-East Asia region:
1. Holistic approach: It is advisable to take a “whole-of-government” approach to
harness the digital economy by improving inter-ministerial coordination.
2. Access: Efforts should be made to increase access to fast, affordable and reliable
Internet services, as well as to last-mile connectivity.
3. Trade procedures: Governments need to make more effort to overcome the low
efficiency of trade procedures and logistics infrastructure that limit their countries’
ability to take advantage of the digital economy.
5. New legal framework: E-commerce development requires new legal and regulatory
frameworks on a variety of issues. Areas of particular relevance include legislation
relating to secure e-transactions, consumer protection and dispute settlement, data
protection, intellectual property and cybercrime. The adoption of laws and regulations
needs to be complemented by effective enforcement, as well as appropriate capacity-
building among lawmakers and some members of the judiciary.
Participants in this project confirmed that, with smart policies in place, developing countries,
including those in South-East Asia, will be able to achieve more progress on the road
towards the Sustainable Development Goals (SDGs).
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
Table of contents
Notes and acknowledgements....................................................................iii
Executive summary...................................................................................... v
Table of contents, list of figures and boxes...............................................vii
Abreviations and acronyms.......................................................................viii
Chapter 1 Brief history of the project.............................................1
E-commerce and the Sustainable Development Goals........................................ 3
UNCTAD and e-commerce.................................................................................. 4
UNCTAD e-commerce work in the ASEAN region................................................ 7
E-commerce in South-East Asia within the Framework
of the 2030 Development Agenda........................................................................ 7
Chapter 2 E-commerce strategies in South-East Asia...................9
Introduction........................................................................................................ 11
Regional strategies ............................................................................................ 12
Maintaining momentum ..................................................................................... 13
National strategies ............................................................................................. 15
Summary ........................................................................................................... 17
Chapter 3 E-commerce case studies...........................................19
Methodology and scope..................................................................................... 21
Chapter 4 Policy recommendations.............................................31
Three approaches to address current policy issues ........................................... 33
Seven points to enhance the e-commerce readiness in South-East Asia........... 34
Bibliography.....................................................................................37
List of figures
Figure 1 Satisfaction rate per workshop day........................................................... 8
Figure 2 Satisfaction ratio of the overall course....................................................... 8
Figure 3 ASEAN GDP total values and per capita................................................. 11
Figure 4 More digital consumers across six ASEAN countries ............................. 12
Figure 5 ASEAN e-commerce strategies timeline.................................................. 13
Figure 6 Case study 1: Key takeaways and recommendations............................. 22
Figure 7 Indonesia main delivery blocks............................................................... 25
Figure 8 NRPS framework.................................................................................... 27
Figure 9 Digital readiness in Thailand – the number of users................................. 28
List of boxes
Box 1 Impacts of UNCTAD’s E-commerce and Digital Economy Programme ........ 4
Box 2 The eTrade for all initiative............................................................................. 6
Box 3 United Nations treaty on cross-border paperless trade facilitation
in Asia and the Pacific: A tool for inclusive cross-border e-commerce
development.............................................................................................. 17
vii
Practices on e-commerce: TrainForTrade case studies in South-East Asia
AI artificial intelligence
ACE Action Community for Entrepreneurship
ACHs automated clearing houses
ASEAN Association of Southeast Asian Nations
B2B business to business
B2C business to customer
DEDC Digital Economy Development Committee
EIF enhanced integrated framework
FDI foreign direct investment
GDP gross domestic product
ICT information and communications technology
ICT4D information and communications technologies for development
IGE Intergovernmental Group of Experts on E-commerce and
the Digital Economy
ITC International Trade Centre
LDC least developed country
MSMEs micro, small and medium-sized enterprises
NDI national digital identity
NGO non-governmental organization
OECD Organization for Economic Co-operation and Development
SDGs Sustainable Development Goals
SMEs small and medium-sized enterprises
UNCITRAL United Nations Commission on International Trade Law
UNCTAD United Nations Conference on Trade and Development
UNESCAP United Nations Economic and Social Commission for Asia and the Pacific
UPU Universal Postal Union
WTO World Trade Organization
viii
Chapter 1
Brief history of the project
Strengthening knowledge and skills through innovative approaches for sustainable economic development
E-commerce can become a powerful driver of economic growth, inclusive trade and
job creation across the developing world. However, while some countries have made
significant inroads into e-commerce, the majority of developing countries are still
trailing behind.
In 2016, the United Nations committed to harnessing the potential of
information and communications technologies (ICTs) to advance the 2030
Agenda for Sustainable Development and achieve other internationally
agreed development goals (United Nations, 2016).
E-commerce and other economic activities enabled by ICTs have the potential
to accelerate progress across all the 17 Sustainable Development Goals (SDGs).
For example, e-commerce can be leveraged to promote the empowerment of women
as entrepreneurs and traders (Goal 5, Achieve gender equality and empower all women and
girls). This is because digital technologies can allow women not only to directly participate
in e-commerce trading but also to work in emerging economic sectors forming part of the
e-commerce ecosystem such as logistics, processing, packaging, digital marketing, online
advertising and other online services (OECD and WTO, 2017).
E-commerce and digitally-enabled trade can support productive activities, decent job
creation, entrepreneurship, creativity and innovation. They can encourage the formalization
and growth of micro, small and medium enterprises (MSMEs) in both developing and
developed countries, including through access to ICT-enabled financial services such as
online and mobile payments (Goal 1, End poverty in all its forms everywhere; Goal 8 target
8.3, promoting productive activities, entrepreneurship, creativity and innovation; Goal 9
target 9.3, integrating enterprises into value chains and markets) (UNCTAD, 2017).
Moreover, cross border e-commerce can help to significantly increase the exports of
developing countries (Goal 17 target 17.11), in particular to double the least
developed countries’ (LDCs’) share of global exports by 2020 (ITC, 2018). U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
UNCTAD
The UNCTAD Information Economy Report 2015 was among the first
publications to point out these challenges (UNCTAD, 2015).
ISBN 978-92-1-112887-1
UNITED NATIONS
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
As highlighted in the UNCTAD Digital Economy Report 2019, “digital
technologies have the potential to greatly affect the achievement of the SDGs,
by both enabling and hampering progress”, and appropriate policies should
be put in place to maximize positive effects while mitigating and eliminating
negative ones (UNCTAD, 2019).
U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
4
Strengthening knowledge and skills through innovative approaches for sustainable economic development
As a result of the technical cooperation programme provided, Member States are in a better position to
participate actively in international dialogues on e-commerce and the digital economy. In Asia, thanks to
the eTrade readiness assessments conducted in Cambodia and Myanmar, for example, policymakers are
now devising e-commerce strategies. Following Thailand’s participation in the E-commerce Week, the Thai
Electronic Transaction Development Agency decided to organize an annual Thai E-commerce Week for
local entrepreneurs.
Technical assistance
eTrade readiness assessments are conducted by UNCTAD in response to the growing
interest from developing countries – especially from least developed countries (LDCs) – to
assess their readiness to engage in e-commerce. The assessments serve as a tool to
identify opportunities, barriers and recommend conducive and supportive policy measures.
UNCTAD TrainForTrade is instrumental in delivering technical assistance by strengthening
knowledge and skills through innovative approaches for sustainable economic development.
It has three focuses, namely: building sustainable networks of knowledge to promote
transparency and good practices; encouraging development-oriented trade policy to
reduce poverty; and promoting ICT solutions and innovative thinking to enhance capacities
of international trade players.
Another important area of technical assistance is the work of UNCTAD on ICT Policy
Reviews and National E-commerce Strategies, for which it conducts national
assessments, develops strategies and provides policy advice to countries requesting
assistance in building and maintaining a dynamic and responsive ICT-policy environment.
Since 2000, UNCTAD has offered technical assistance dedicated to e-commerce and
law reform that has supported developing countries in Africa, Asia and Latin America
in their efforts to establish legal regimes that address the issues raised by the electronic
nature of ICTs to ensure trust in online transactions, ease the conduct of domestic and
international trade online, and offer legal protection for users and providers of e-commerce
and e-government services. Key issues addressed are electronic transactions and electronic
signatures, data protection and privacy, consumer protection, computer crime, intellectual
property, competition, taxation, and information security.
UNCTAD also advises Member States in the area of measuring e-commerce and the
digital economy. The lack of statistical data constitutes a significant gap in the toolkit
governments need to design and implement ICT policies for development. UNCTAD is a
member of the Partnership on Measuring ICT for Development and of the Inter-Agency
Task Force on International Trade Statistics, and works in collaboration with a broad range
of international organizations and experts to define, harmonize and produce internationally
comparable ICT indicators, including the G20.
Last but not the least, UNCTAD is helping to empower women entrepreneurs in developing
countries through the eTrade for Women initiative. This new endeavour undertaken with
the support of the Netherlands, and in collaboration with eTrade for all partners, aims at
allowing more women digital entrepreneurs to make their voices heard in high-level political
decision-making processes and to empower the next generation of female entrepreneurs
in developing countries.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
Dialogue
Since 2017, UNCTAD convenes the Intergovernmental Expert Group on E-commerce
and the Digital Economy. This policy-focused meeting aims to strengthen the
development dimension of e-commerce and the digital economy and discuss possible
opportunities as well as how to deal with associated challenges and risks.
In 2016 UNCTAD launched the eTrade for all initiative at its fourteenth Ministerial
Conference in Nairobi. The initiative pulls together key public and private stakeholders to
contribute more effectively – and on a much greater scale – to the efforts of developing
countries to harness e-commerce as a vehicle for the implementation of the United Nations
Agenda 2030 on Sustainable Development. Its overall goal is to raise awareness of the
unique opportunities, challenges and constraints to e-commerce; to mobilize necessary
resources; and to strengthen coherence and synergies among partner activities (see box 2).
The UNCTAD E-commerce Week has become a flagship event in the areas of
e-commerce and the digital economy. By convening ministers, senior government officials,
business representatives, international organizations, development banks, academics and
civil society, UNCTAD facilitates and catalyses vibrant discussions about development
opportunities and challenges associated with the evolving digital economy.
eTrade for all is connecting the dots among partners, donors and beneficiaries to scale up cooperation,
transparency and aid efficiency in the field of inclusive e-commerce.
All relevant information on this initiative can be found on the online platform: etradeforall.org.
The initiative brings together Collaborating towards Bringing assistance and cohesive 30 Development
direct impact on action in 7key e-commerce policy Solutions: technical
2 SDG goals areas assistance offerings
from partners
Information
E-commerce readiness Legal and regulatory hub
Donors 30 Partners assessment and frameworks
Monthly newsletters,
strategy formulation
daily digests of news,
events, publications
Partnership in action
ICT infrastructure E-commerce skills Data
3 eCommerce Weeks 2 new initiatives and services development 137 e-commerce
at the global and regional launched
levels mmunit
MyeT4a
Co y
n
WEF-eTrade for all
Pan-Africa
on
Trade Logistics
* The reference period for the Year in Review is April 2018 – April 2019
“eTrade for all is a groundbreaking effort built on cross-sectoral synergies to address the challenges faced
by many LDCs in their efforts to be fully included in the e-commerce value chain. The platform creates
opportunities for the UPU and others working in dynamic partnership to achieve far more than they could
on their own…” – Mr. Bishar A. Hussein, Director General, the Universal Postal Union.
6
Strengthening knowledge and skills through innovative approaches for sustainable economic development
1
See https://unctad.org/en/pages/MeetingDetails.aspx?meetingid=1640.
7
Practices on e-commerce: TrainForTrade case studies in South-East Asia
93 93.1
90.5
89.5
The overall opinion questionnaire assessed the course on nine different aspects
(see figure 2) and provided space for comments and suggestions.
According to the final evaluation questionnaire, the overall satisfaction rate was 91.5 per cent.
The quality of the visual aids (slides, videos, etc) was good
The quality of the written material (manuals, etc) was good
The depth at which the course explored the different
topics was appropiate
The coverage of the course subject was appropriate
The training material was clear and accurate
The training methodology was effective
The course was well organized
The number of participants was appropriate
The time allocated for this course was appropriate
0 5 10 15 20 25
In summary, the participants and beneficiary countries have expressed a high opinion of this
capacity-building project for having successfully increased capability of both policymakers
and entrepreneurs, particularly in increasing knowledge about best practices on e-commerce
and developing evidence-based policies in the field.
This project was delivered by UNCTAD in collaboration with UNESCAP and UNCITRAL,
and with the support of the ASEAN Member States.
8
Chapter 2
E-commerce strategies in South-East Asia
Strengthening knowledge and skills through innovative approaches for sustainable economic development
Introduction
South-East Asia has made tremendous progress in the past few decades. Taken as
a single entity, the 10-member Association of Southeast Asian Nations (ASEAN) has
dramatically outpaced the rest of the world on growth in GDP per capita since the
late 1970s, with average annual real gains of more than 5 per cent (figure 3). With the
current combined gross domestic product (GDP) of almost US$2.8 trillion in 2017,
ASEAN is now collectively ranked as the world’s fifth and Asian third-largest economy.
The proportion of the ASEAN population living with less than $1.25 PPP per day has
consistently declined from 47 per cent in 1990, 22 per cent in 2005, to 14 per cent in
2015, according to an ASEAN statistical report (ASEAN, 2017).
Trade and economic integration within the region as well as into world markets has
contributed to the region’s remarkable progress. Ninty-nine per cent of the intra-ASEAN
trade tariffs have already been eliminated. In the year 2017, values of total merchandise
trade reached almost US$2.6 trillion, trade in services US$703.2 billion, and FDI
US$135.6 billion.
3.00 5 000
4 308
2.75 4 500
2.50
2.77
4 000
2.25
3 500
2.00
1.50 2 500
1.25 2 000
1 195
1.00
1 500
0.75
1 000
0.50
0.62
0.25 500
0.00 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
ASEAN is also the world’s fastest-growing Internet market, with 330 million Internet users.
By 2025, the ASEAN Internet economy is expected to quadruple to US$200 billion from
US$50 billion in 2017, with e-commerce expected to grow to US$88 billion. “In the dynamic
world of digital commerce, there’s no place as exciting as South-East Asia”, commented
Bain & Company,2 “where the online consumer base grew by 50 per cent last year and now
totals 200 million individuals across ASEAN’s top six economies” (see figure 4).
Going forward, ASEAN growth is faced with various challenges. Global economic growth
has slowed in recent years and this has already affected all markets across the ASEAN
region. New automation and AI technologies may threaten employment and disposable
incomes in the short term at least. Furthermore, rising protectionism of external partners,
risks of financial technology, stagnating productivity growth, an ageing population, risks of
natural disasters, and a lack of smart infrastructure are also significant challenges to the
future prosperity of ASEAN (PWC, 2018; OECD, 2019).
2
See Bain & Company’s brief, https://www.bain.com/insights/so-you-want-to-win-in-southeast-
asia-ecommerce/.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
4.7M
22M 60M
80
46M
3.4M
17M 133M 50M
60
42M
3.2M 32M 97M 38M
40 13M
24M 35M
83M
35M
20
0
Thailand Indonesia Philippines Vietnam
Singapore Malaysia
7% 13% 58% 74% 13% 63%
Against this backdrop, ASEAN economies have recognized e-commerce and other
related economic sectors driven by digital technologies as an important component for the
sustainable and inclusive growth of the region in the context of the SDGs. E-commerce
and wider use of SMAC (social, mobile, analytics, and cloud) cannot only facilitate sales
and consumption, but also enhance profitability, upgrade traditional manufacturing and
services, and develop new industries along with the whole e-commerce system.
Regional strategies
In the past two decades, ASEAN has put in place a series of initiatives aiming at promoting
regional e-commerce (see figure 5). E-commerce, e-ASEAN and ICT Master Plans are
the three key elements that contribute to the ASEAN vision as “a concert of Southeast
Asian nations, outward looking, living in peace, stability and prosperity, bonded together in
partnership in dynamic development and in a community of caring societies”.
In 2000, the e-ASEAN Framework Agreement was signed by ASEAN Member States
during the fourth ASEAN Informal Summit in Singapore. In its article 5 on the facilitation of
the growth of electronic commerce, the Agreement states that ASEAN should promote the
development of e-commerce by adopting electronic commerce regulatory and legislative
frameworks, which would create trust and confidence of consumers as well as facilitate the
transformation of businesses towards the development of e-ASEAN.
In the following year, ASEAN developed its first ICT Master Plan 2015, which included
six strategic thrusts: economic transformation, people engagement and empowerment,
innovation, infrastructure development, human capital development, and bridging the digital
divide. Building an enabling environment for e-commerce, including building the capacities
for countries to engage in and benefit from e-commerce, is essential in support of the
implementation of the Master Plan.
In 2015, ASEAN issued its updated ICT Master Plan towards the 2020 horizon, which
highlighted an objective of building “a digitally enabled economy that is secure, sustainable,
and transformative, and to enable an innovative, inclusive and integrated ASEAN
Community”. The ICT Master Plan 2020 encompasses eight strategic thrusts, and one of
them is dedicated to accelerating the development and growth of ASEAN’s ICT industry
and services as well as supporting the growth of priority areas of ASEAN’s digital economy.
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
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The latest ICT Master Plan 2020 promotes digital trade in ASEAN, encourages and
enhances it through policy, innovation, awareness-raising and enabling electronic and
other better modes of transactions and payments, especially for SMEs. Proposed actions
include: study and identify enabling policies and best practices that will accelerate the
development of e-commerce and digital service delivery in ASEAN; identify best policies,
industrial practices and case studies in the region that will benefit ASEAN businesses,
especially SMEs; raise awareness of digital trade and use of electronic payment among
businesses so that they can better transact with their suppliers and customers, including
online consumer protection.
For the first time, the ICT Master Plan 2020 stresses the importance of building a trusted
digital network, so that transactions and information exchanges will be safe, secure and
trustworthy. Thus, this plan includes actions to address cyber threats and risks – both
economic and social – posed by malicious software, hacking, data theft and online fraud.
Maintaining momentum
In 2015 the region issued the ASEAN Economic Community Blueprint 2025 (AEC Blueprint
2015) to maintain the momentum of economic integration and social development. While
keeping the continuity with the Blueprint 2015, this latest Blueprint stressed two new
areas for the next decade, which are “development and promotion of micro, small and
medium enterprises (MSMEs)” and to “embrace the evolving digital technology as leverage
to enhance trade and investments, provide an e-based business platform, promote good
governance, and facilitate the use of green technology”.
The Blueprint acknowledges that e-commerce plays a key role not only in cross-border
trade, but also in facilitating foreign investment through the supply of intermediary services.
E-commerce has significantly lowered barriers to entry and operating costs for businesses,
and is particularly beneficial for MSMEs. It states that ASEAN shall intensify cooperation
on e-commerce building upon article 5 of the e-ASEAN Framework Agreement adopted
by ASEAN leaders in November 2000, with a view to developing an ASEAN agreement
on e-commerce to facilitate cross-border e-commerce transactions in ASEAN. This could
include, but is not limited to, putting in place the following strategic measures:
(a) Harmonized consumer rights and protection laws;
(b) Harmonized legal framework for online dispute resolution, taking into account available
international standards;
(c) Interoperable, mutually recognized, secure, reliable and user-friendly e-identification and
authorization (electronic signature) schemes;
(d) Coherent and comprehensive framework for personal data protection.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
As part of the implementation of AEC Blueprint 2015, ASEAN adopted its first regional
Work Programme on Electrical Commerce (AWPEC) in December 2017, encompassing
cooperation in all key areas related to e-commerce development, such as infrastructure,
education and technology competency, consumer protection, modernizing the legal
framework, security of electronic transactions, payments, trade facilitation, competition,
logistics, and e-commerce framework.
Five key initiatives were also highlighted in the AWPEC:
(a) Development of ASEAN guidelines on accountability and responsibilities of online
intermediaries (platform providers);
(b) Putting in place of voluntary internal and peer reviews of national laws/regulations on
e-commerce;
(c) Provision of comprehensive updated information on domestic e-commerce-related
laws and regulations;
(d) Coordination with relevant ASEAN sectoral bodies and logistics service providers to
identify measures to improve ASEAN logistics services’ support for e-commerce;
(e) Review of the elements of the ASEAN e-commerce framework and development of an
ASEAN agreement on e-commerce.
The ASEAN Agreement on E-commerce was signed by 10 Member States in November
2018. This is ASEAN’s first agreement dedicated to facilitating cross-border e-commerce
transactions through advancing trade rules in e-commerce and greater digital connectivity
within the region.
It has three objectives:
(a) To facilitate cross-border e-commerce transactions;
(b) To create an environment of trust and confidence in the use of e-commerce;
(c) To deepen cooperation among ASEAN Member States to further develop and intensify
the use of e-commerce to drive regional economic growth.
It promotes paperless trading and takes active steps to promote better consumer and
personal data protection through the use of online dispute resolution mechanisms to
facilitate the resolution of e-commerce claims.
The results of eTrade Readiness Assessments conducted in several countries of the
region reveal that there is much scope for further improvement in developing a conducive
environment for cross-border e-commerce in the region. The readiness of ASEAN countries
varies greatly, as also highlighted in the 2019 report on digital and sustainable trade
facilitation in ASEAN, where Singapore, Malaysia and Thailand feature among the world
leaders with implementation rates of paperless trading measures exceeding 80 per cent,
while implementation in some other countries barely reach 50 per cent (UNESCAP, 2019).
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
National strategies
Along with regional blueprints, master plans, work programme and initiatives, some
Governments from the region have also developed national strategies or action plans in the
areas of e-commerce.
The Philippines
In January 2016, the Philippines launched an E-commerce Roadmap 2016–2020, as well
as the e-commerce.gov.ph website. Fifteen years after the enactment of the Electronic
Commerce Act of 2000, the Roadmap aims to renew and reinvigorate collaboration
between the Government and the private sector and to fully accelerate the growth of
Philippine e-commerce.
The Roadmap addresses a number of issues in the e-commerce ecosystem that requires
collective effort of the various stakeholders towards the realization of the goals outlined
in the Roadmap. It sets the direction, lays down the strategies and plots the policy and
industry support measures for e-commerce to further grow and to contribute 25 per cent to
the Philippines’ GDP in 2020, from 10 per cent of GDP in 2015. It is also expected that the
information technology and business process management (IT-BPM) and global in-house
centre (GIC) industry in the Philippines will continue the high growth trend with higher value
addition (Philippine Department of Trade and Industry, 2016).
The Roadmap is supported by other major initiatives of the Government such as the
formulation of the National Broadband Plan led by the ICT Office under the Department
of Science and Technology, and the National Retail Payment System project led by the
Bangko Sentral ng Pilipinas. In turn, the Government will support other initiatives such as
the implementation of iGovPhilippines, the Philippine Roadmap for Digital Startups, and the
APEC Boracay Action Agenda to Globalize MSMEs.
Indonesia
The Government of Indonesia published its E-commerce Roadmap 2017–2019 through
presidential regulation No. 74 of 2017. The Roadmap aims to provide direction and
strategic guidance to various public agencies to support and accelerate development of
e-commerce in the country. It highlights eight key areas, namely education and human
resources development, telecommunication infrastructure, logistics, cybersecurity, funding,
taxation and customer protection.
Strengthening businesses, in particular SMEs, is one of the focuses of the Indonesian
E-commerce Roadmap, together with increasing the digital literacy of policymakers,
businesses and society. The Government also intends to create a comprehensive legal
framework in relation to e-commerce business that includes classification of e-commerce
business, electronic certification procedures, accreditation processes, payment mechanism
policies, customer protection policies in e-commerce transactions, online dispute resolution
procedures, and information systems for e-commerce entrepreneurs.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
Singapore
As Singapore prepares to transform itself into a global e-commerce hub in the face
of strong global competition, an array of initiatives and grants have been rolled out by
various government agencies in support of e-commerce investment and developments
in the country. For example, under the Economic Development Board’s (EDB) Industry 21
Blueprint, the Info-communications Media Development Authority (IMDA) and industry have
teamed up to define and adopt common IT standards to enhance seamless B2B document
exchange among companies for the electronic cluster. Furthermore, Singapore has also
set up the Action Community for Entrepreneurship (ACE) to provide a holistic package for
start-ups to enter the e-commerce landscape, such as integrated warehouse functions,
inventory management solutions and order-fulfilment capabilities, allowing the streamlining
of the logistics chain and increasing efficiency by up to 45 per cent.
A National Digital Identity (NDI) system is currently under development and will be operational
in 2020. The NDI is one of five strategic national projects of Singapore’s Smart Nation
plan.3 The objective of a digital identity system is for Singapore residents and businesses
to transact digitally with the Government and private sector in a convenient and secure
manner.
Other countries
Other countries in the region are in the process of elaborating their national e-commerce
strategies. For example, after having completed an eTrade readiness assessment with the
support of UNCTAD in 2018, the Government of Myanmar recognized the need for a robust
e-commerce strategy to support its strategic goals for private-sector-led growth in line with
the Myanmar Sustainable Development Plan (2018–2030). While the Government has been
proactive in its focus on e-commerce development, with the adoption of an e-Government
Master Plan in 2015 and the establishment of a Digital Economy Development Committee
(DEDC) in 2017, without an overall vision the Government’s intentions may have led to
uncoordinated efforts to promote the sector. The e-commerce strategy will be developed
with the financial support of the Enhanced Integrated Framework (EIF) and the technical
assistance of UNCTAD building on the findings of the eTrade readiness assessment. It will
be accompanied by measures aimed at the creation of business opportunities supported
by leading business associations, in line with the DEDC’s Strategy Framework on Digital
Trade.
There is also scope for streamlining customs procedures, particularly for cross-border
shipments of small parcels in Asia and the Pacific (see box 3).
3
See https://www.smartnation.sg/.
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
Developed by a diverse group of more than 25 Asian and Pacific countries at very different stages of
development over four years, including many ASEAN countries, the Framework Agreement on Facilitation
of Cross-border Paperless Trade in Asia and the Pacific was adopted and opened to all 53 UNESCAP
Member States in 2016. Full implementation of cross-border paperless trade is expected to increase
regulatory compliance and cut trade costs by 12 per cent on average in ASEAN countries, enabling the
effective handling of small parcels, and in turn facilitating a more direct and effective engagement of small
and medium-size enterprise (SMEs) in international trade and cross-border e-commerce.
Building on the lessons learned from implementation of the ASEAN Single Window Agreement, the
Framework is designed as an inclusive and enabling platform that will benefit all participating countries
regardless of where they stand in terms of trade facilitation and digitalization, supporting the interoperability
of trade single windows in the region based on international standards and pilot testing of new solutions.
It is fully dedicated to the digitalization of trade processes and enabling the seamless electronic exchange
and legal recognition of trade-related data and documents across borders, rather than only between
stakeholders located in the same country. It provides clear strategic direction and key principles to
accelerate trade digitalization but is technology neutral and does not make electronic data exchange
mandatory among all parties.
Cambodia signed the treaty in 2017 and seven other ASEAN countries have participated in the development
of the implementation roadmap for the Framework, including legal and readiness assessment check lists.
Early accession by several ASEAN countries would enable the group to set regional priorities and ensure
single window and paperless trade systems under development bilaterally and/or in other regions are
interoperable, making cross-border e-commerce transactions simpler and more predictable.
More information is available at http://www.unescap.org/resources/framework-agreement-facilitation-
cross-border-paperless-trade-asia-and-pacific.
Summary
As a region, ASEAN has made important achievements in the past five decades and is
expected to continue with high growth. It is also faced with various challenges such as
rising protectionism, aging populations, automation, and risks of natural disasters.
Against this backdrop, ASEAN has increasingly worked on economic integration and
cooperation in the areas of e-commerce and the digital economy. Since the beginning of
this millennium, ASEAN has developed a number of visionary agreements and blueprint
plans dedicated to concrete strategies and actions on e-commerce, such as the e-ASEAN
Agreement adopted in 2000, the ASEAN Economic Community Blueprint 2025 approved
in 2015, and the ASEAN Agreement on E-commerce endorsed in 2018.
To implement these regional agreements and policies, the ASEAN member Governments
have developed, or plan to develop, national strategies, roadmaps or initiatives on
e-commerce.
At both regional and national levels, some needs have been identified as priorities,
such as advancing further e-commerce capacity-building in public agencies, enhancing
communications and collaborations between Governments and private sectors, and
promoting peer learning between countries in the areas of legal frameworks, e-government,
payment, transport and logistics, consumer protection, and digital marketing.
17
Chapter 3
E-commerce case studies
- Why did you select this topic? Why does this matter to you?
21
Practices on e-commerce: TrainForTrade case studies in South-East Asia
Case study 1
C C C B C
B C B B C
G C G B C
Governments can benefit from cooperating with marketplace systems. More provinces in
Indonesia can apply this approach to advancing e-government by engaging marketplaces
in various services such as vehicle and property tax, birth certificates, passport applications,
and the like.
While working with marketplaces, Governments need to ensure that citizens’ personal and
other sensitive data are properly secured and protected.
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
Case study 2
4 See https://www.businessregistration.moc.gov.kh/.
5 See https://www.moc.gov.kh/en-us/certificate-of-origin.
6 See https://efiling.cambodiaip.gov.kh/efiling/.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
Case study 3
7
See Loadr at http://loadr.me/.
8
See Paymaya at https://www.paymaya.com/.
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
Case study 4
9
See https://www.mordorintelligence.com/industry-reports/indonesia-courier-express-and-par-
cel-cep-market.
10
See "Indonesian Experience in Developing the National Logistics Blueprint (SIStem LOGistik
NASional/SISLOGNAS)", presented by the Coordinating Ministry for Economic Affairs, Republic of
Indonesia, in "Building the ASEAN Economic Community: Better Logistics for Improved Connec-
tivity", an UNESCAP event, Colombo, 5-7 June 2013, https://www.unescap.org/sites/default/
files/5.1.SISLOGNAS.pdf.
25
Practices on e-commerce: TrainForTrade case studies in South-East Asia
Case study 5
26
Strengthening knowledge and skills through innovative approaches for sustainable economic development
Remittance/
Payroll Utility Bills Payment
NRPS is a policy and regulatory framework that aims to establish a safe, efficient, and reliable retail payment system in the Philippines
11
Fifteen BSFIs are limited to receiving funds.
27
Practices on e-commerce: TrainForTrade case studies in South-East Asia
Case study 6
Prompt
Pay
Passbook Debit card Credit card PromptPay E-wallet Mobile banking Online banking
81 million 51 million 20 million 28 million 40 million 21 million 15 million
Total
66.7 million Mobile Smartphone Social media Online Electronic data QR
populations subscribers installed base 48 million shopping capture (EDC) code
91 million 50 million units accounts 11 million 400,000
12
See http://www.epayment.go.th/home/app/.
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
Case study 7
29
Practices on e-commerce: TrainForTrade case studies in South-East Asia
Case study 8
30
Chapter 4
Policy recommendations
Strengthening knowledge and skills through innovative approaches for sustainable economic development
Policy recommendations
Achieving the Sustainable Development Goals (SDGs) requires smart policies and scalable
solutions. This capacity-building project has allowed participants from Governments, private
sector and academia to engage in discussion about best practices available in South-
East Asia. It has also enabled them to prepare evidence-based policy recommendations
to support national and regional priorities and deliver tangible results for the inclusive and
sustainable development of e-commerce.
The use of ICTs and their applications create radically new social and economic opportunities
for individuals, firms and Governments. Individuals can have faster access to information,
resources and opportunities, and can as well as offer their skills and services in global
markets. Firms may take advantage of e-commerce and other digital platforms to reach
new clients, improve their productivity and develop new business models. For the whole
society, the successful leveraging of the digital economy may generate growth, employment
and revenues for reinvesting in infrastructure and public services.
But the potential benefits from e-commerce are far from automatic. There are major challenges,
costs and risks involved. First, leapfrogging into a digital-economy future is desirable, but
the springboard for developing countries is weak and shaky. Most developing countries still
lag behind in fundamental elements that shape the success of traditional economies, such
as physical infrastructures, easiness of doing business, production capacity and efficient
and transparent government. Second, countries are at different stages of development and
their capability to engage in and benefit from e-commerce varies. Challenges include, for
example, shortage of electricity, lack of access to Internet, and shortage of digitally skilled
developers and workers. Third, national, regional or international policies will need to be
revisited to ensure the impact of e-commerce is inclusive and sustainable. These include
policies related to data flow and protection, competition laws and policies, taxation, the
labour market, intellectual property, and trade, as well as development cooperation.
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Practices on e-commerce: TrainForTrade case studies in South-East Asia
13
See https://unctad.org/en/Pages/DTL/STI_and_ICTs/ICT4D-eTrade-Readiness-Assessments.
aspx and https://unctad.org/en/Pages/Publications/E-Trade-Readiness-Assessment.aspx.
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Strengthening knowledge and skills through innovative approaches for sustainable economic development
35
Strengthening knowledge and skills through innovative approaches for sustainable economic development
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and skills through innovative approaches
for sustainable economic development