Necessary transition

SGGP August 20, 2023 06:49

Japan will coordinate with ASEAN member countries to promote digital transformation for import and export activities, thereby facilitating bilateral trade.

Japan and ASEAN promote digital transformation in the trade sector. Photo: VIR

According to Nikkei Asia, the two sides will agree on an agreement on a digital roadmap as part of an action plan at the Japan-ASEAN Economic Ministers' Meeting, within the framework of the ASEAN Economic Ministers' Meeting, scheduled to take place in Indonesia in late August 2023.

This roadmap will be implemented through the digitalization of bilateral trade promotion activities as well as customs procedures in each country, thereby promoting transparency and efficiency of trade processes between Japan and ASEAN. In addition, the application of technology and digital will also help simplify customs procedures, reduce administrative burdens and improve overall trade.

ASEAN data shows that trade between Japan and ASEAN countries reached 240.2 billion USD in 2021, up 17.2% compared to 2020, but most transactions are still bound by many documents and procedures such as certificates of origin, payment information...

Converting document formats to suit the standards of each business and country also complicates the process. If the above roadmap is approved, private service companies specializing in supporting trade exchanges in Japan and ASEAN will easily connect data, helping to overcome procedural difficulties in bilateral trade activities. Japan's Ministry of Economy, Trade and Industry (METI) plans to provide 1.5 billion yen (US$10.3 million) in funding in the next fiscal year to support the expansion of private sector services, facilitating cross-border services to be promoted quickly and effectively.

According to the World Economic Forum, ASEAN's digital economy is expected to add about US$1 trillion to the region's gross domestic product (GDP) over the next 10 years.

This industry will continue to be a key factor driving ASEAN's integration and transformation into a single market, and a key factor in promoting trade and investment between ASEAN and its partners, including Japan.

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