ASEAN Framework Agreement on Digital Economy: Moving into the Era of Sustainability

As digital technology reshapes every aspect of the global economy, ASEAN is stepping into the game with an ambitious initiative.

The Digital Economy Framework Agreement (DEFA), which is under negotiation, is expected to become the foundation for deep digital economic integration in the region, while promoting sustainable development through modern digital tools.

More than just a digital trade agreement, DEFA is also positioned as a sustainable agreement that contributes to the implementation of ASEAN’s sustainable development agenda. By adopting highly interoperable digital solutions, the agreement is expected to reduce the environmental impact of trade activities; Increase transparency in supply chains; Promote green innovation in many areas, from agriculture to logistics.

ASEAN Framework Agreement on Digital Economy (DEFA) Conference in Hanoi .

Specific applications such as paperless customs, electronic invoices, smart agriculture or environmentally friendly transportation are clear evidence of the green-digital orientation that DEFA is pursuing.

The DEFA Agreement is built on many key content pillars, comprehensively reflecting aspects of a modern and integrated digital economy including:

Digital trade aims to promote cross-border electronic transactions by digitizing documents and standardizing interoperable processes among member countries. Cross-border e-commerce aims to create a fair and efficient environment for the purchase and sale of digital goods and services, breaking down geographical barriers. Digital identification and electronic authentication to build a digital identification system that can identify and interact with each other among ASEAN countries, creating favorable conditions for people and businesses.

Strengthen cooperation to build a secure, open and trusted cyber environment. Promote fair competition in the digital space, limit monopolies and facilitate inclusive growth. Provide cross-border e-invoicing and payment solutions, support technical interoperability and encourage financial innovation. And establish a framework for the secure movement of data, including:

Prohibit domestic data storage restrictions; Harmonize data transfer processes and formats; Protect personal data and open government data in a transparent manner.

Create a mechanism to update and coordinate regulations for advanced technologies such as artificial intelligence (AI), to keep up with the pace of innovation. Promote the flow of talent among ASEAN countries, serving the needs of developing a flexible and comprehensive digital economy.

The DEFA Agreement not only contributes to standardizing principles and standards in the ASEAN digital economy, but also plays a strategic role in enhancing the region’s global competitiveness. When completed, DEFA will be ASEAN’s first multilateral digital economic agreement, demonstrating the strong commitment of member states to jointly build an open – secure – sustainable – innovative digital region.

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