Workshop on Cross-border E-commerce: Towards Seamless Connectivity May 2017, Bangkok, Thailand

Transcription

1 Workshop on Cross-border E-commerce: Towards Seamless Connectivity May 2017, Bangkok, Thailand Jointly organized by: Asian Development Bank (ADB) and ASEAN Studies Center, Chulalongkorn University, Thailand I. Workshop Description CONCEPT NOTE 1. Almost 70% of trade facilitation efforts in Asia and the Pacific goes to transport and communications infrastructure. 1 As cross-border connectivity improves across the region, information and communication technology (ICT) has become an integral part of regional cooperation and integration that encompasses almost every sector and every aspect of development lending. 2 With this rapidly evolving trade environment, more and more businesses are moving away from traditional bricks-and-mortar stores and going on-line. Electronic commerce (henceforth, e-commerce ) defined as purchases and sales conducted over computer networks, using multiple formats and devices, including the web and electronic data interchange has become part and parcel of doing business cross-border, even in the least developed countries. 3 From 2009, e-commerce grew by 35% annually reaching $12.6 billion in Following this trend, Southeast Asian countries and the People s Republic of China (PRC) are moving quickly to take advantage of cross-border e-commerce opportunities. In Cambodia and Viet Nam, for example, on-line cross-border trade and deliveries have already been ubiquitous among local retailers. 2. While ICT infrastructure is crucial for e-commerce operations, this is not enough. Small and medium entrepreneurs need to leverage on the business potential of cross-border e- commerce in a levelled playing field, maximize opportunities and minimize the risks. On the one hand, e-commerce can lower transaction costs, encourage innovations and expand market segments, but on the other hand, businesses usually have limited capacities and skills, weak ICT infrastructure, and cannot compete with new entrants. Critical impediments to e-commerce include the lack of harmonized legal frameworks, need for appropriate policy and institutions, and weak logistics and limited financial systems for cross-border e-commerce. As a result, a large portion of Southeast Asia s emerging markets and developing countries which do quite well on the infrastructure side, are still struggling to translate their connectivity into business opportunities. 4 1 ADB Aid for Trade in Asia and the Pacific: Thinking forward about Trade Costs and the Digital Economy. Manila: Asian Development Bank. 2 ICT is a growing feature of development lending. During , ADB implemented 547 ICT-related projects worth $17.67 billion throughout Asia and the Pacific. 3 OECD OECD Guide to Measuring the Information Society Paris: Organisation for Economic Co-operation and Development. 4 WEF Global Information Technology Report 2014: Rewards and Risks of Big Data. Geneva: World Economic Forum. 1

2 3. From the point of few of Governments, e-commerce brings both benefits and challenges. It can spur job creation in the ICT sector, boost exports when domestic enterprises access foreign markets and connect with the international supply chains, and allow innovative businesses to flourish. The risks include local firms may not be able to compete with foreign firms, taxation issues arise, and growing evidence suggests that reliance on online transactions are associated with fraudulent activities and cybercrimes. It is also hard to monitor quality of the products being sold online. Governments have a critical role to play in setting the enabling environment for e-commerce to thrive. They need to adopt e-commerce and legislative frameworks that create trust and confidence for consumers and to facilitate the transformation of business especially SMEs towards electronic modes. Government interventions are required in (i) facilitating secure cross-border transactions, payments and settlements; (ii) protection of consumers; (iii) measures to protect intellectual property arising from e-commerce; (iv) ensuring reliable and affordable ICT infrastructure and services; and (v) enhancing e-literacy and consumer awareness, among others. 4. Considering the global nature of the internet, cross-border e-commerce brings about greater need for policy coordination at regional (subregional) and multilateral levels. Compatibility among regulations and legal frameworks, resolving taxation concerns, information sharing, and transparency and consistency are needed. International dialogue and cooperation is crucial to promote the benefits and mitigate the risks of cross-border e-commerce. Regional (subregional) cooperation can include enhancing policy support and advocacy, strengthening institutional structures, information sharing (database and consumer markets), better policy coordination, setting up support services and capacity development, among others. 5. The Asian Development Bank (ADB) supports three subregional cooperation programs in Southeast Asia the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA); the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT); and the Greater Mekong Subregion (GMS). It has also supported various activities and initiatives of the Association of Southeast Asian Nation (ASEAN). In the context of Southeast Asia s e-commerce cooperation frameworks, substantial efforts have been made at the regional and subregional levels. The first e-commerce cooperation was inaugurated in 1999 when ASEAN member countries endorsed the e-asean Framework Agreement which aims to promote e-commerce through the ASEAN Information Infrastructure. E-commerce development has been an integral part of subregional cooperation platforms including BIMP-EAGA, IMT-GT, and GMS. In 2011, the ASEAN ICT Master Plan 2015 was ratified. It envisaged ICT as a catalyst for further social and economic integration. The GMS countries endorsed the Framework on GMS Cross-border E-commerce Cooperation in June It seeks to advance cross-border e-commerce through shared consumer markets as a key driver of intra-gms trade and development of its economic corridors. The Masterplan on ASEAN Connectivity (MPAC) 2025 includes in its digital innovation strategic objectives and initiatives enhancing technology platforms for MSMEs. 6. Against this backdrop and in response to the countries capacity development needs, ADB will convene a three days workshop on Cross-border E-commerce: Towards Seamless Connectivity on May 2017 in Bangkok, Thailand. The workshop will be organized under the auspices of RCDTA 8836: Building Capacity for Enhanced Connectivity in Southeast Asia in partnership with the ASEAN Studies Center of Chulalongkorn University, Thailand. The workshop aims to enhance capacities of BIMP-EAGA, IMT-GT, and GMS officials in overcoming constraints to and identifying avenues for cross-border e-commerce development and cooperation. 2

3 II. Workshop Output and Objectives 7. The three days workshop will be participated by senior officials from relevant ministries and national agencies in BIMP-EAGA, IMT-GT, and GMS. At the end of the workshop, participants will propose a framework and action agenda for e-commerce at national and subregional levels. 8. Specifically, the workshop aims to: (i) Deepen participants understanding of e-commerce as an essential element of cross-border trade facilitation for sustainable development; (ii) Expose participants to international best practices and tools for assessing e- commerce readiness as well as regional and sub-regional cooperation initiatives for deepening e-commerce development; (iii) (iv) (v) Enhance participants problem-solving, analytical and strategic thinking skills in formulating and implementing e-commerce policies and strategies; Offer a forum for participants to share experiences with counterparts from neighboring countries on e-commerce development and relevant policies; and Develop a network of e-commerce practitioners and leaders. III. Workshop Content 9. The workshop will be conducted in three days and include the following topics and sessions: DAY 1: (i) (ii) Cross-border E-commerce in the Globalized World This context session will discuss concepts, definitions, trends, and opportunities and risks of cross-border e-commerce and how it impacts the regional economies. The critical role of Governments will be highlighted. Assessing E-commerce Readiness: Tools and Best Practices This session will feature select tools (e.g. UNCTAD B2C E-commerce Index) and best practices for assessing e-commerce readiness. Key elements of e- commerce transactions including internet access, payment systems for online purchases, and delivery systems will be presented as well as their potential (and risks) to promote cross border trade and facilitate goods and commodity flows. (iii) Case Studies on Cross-border E-commerce (Part 1) This session will feature case studies of cross-border e-commerce opportunities and challenges in select developing countries in BIMP-EAGA, IMT-GT, and GMS. Potentially, the session will involve 2 case studies from Cambodia or Viet Nam and People s Republic of China. Good practices and lessons learned and implications to their current country situation can be discussed by participants at the end of the country case studies presentations. DAYS 2 and 3: (iv) Case Studies on Cross-border E-commerce (Part 2) This session will feature case studies of cross-border e-commerce opportunities and challenges in select developing countries in BIMP-EAGA, IMT-GT, and 3

4 GMS. Potentially, the session will involve 2 case studies from Philippines and Thailand. Good practices and lessons learned and implications to their current country situation can be discussed by participants at the end of the country case studies presentations. (v) (vi) Tackling E-commerce Challenges This session will highlight e-commerce development challenges as experienced by real life businesses, SMEs, governments and other e-commerce operators and stakeholders. A panel format is suggested to ensure efficient and effective time management. The challenges to be discussed can include a range of issues such as ICT and logistics infrastructure constraints; underdeveloped customs clearance system for e-commerce; lack of well-functioning financial systems and on-line payment systems; e-commerce legislation, regulatory frameworks, and online security; levelled playing field for SMEs; and limited consumer preferences toward online transactions. The discussions will be based on country and company experiences and how they address these multiple challenges. An experienced moderator will be needed to chair the panel discussion to ensure the key points are summarized well since these will be used as inputs to the succeeding session. Towards Cross-border E-commerce Cooperation: An Action Agenda Participants will be divided into subregional groups (i.e. GMS, BIMP-EAGA and IMT-GT) and discuss proposals and elements for cross-border e-commerce cooperation taking into account concepts, trends, good practices and lessons in the workshop. They will present the proposed Framework and Action Agenda at both national and subregional levels to the plenary. The starting point of the exercise will be sharing of country experiences and lessons on e-commerce policies and strategies. Clear guide questions and a proposed template/format for the presentation will be provided. Ideally same panel of experts in the earlier session can provide comments and guidance on how participants can improve the cooperation framework and action agenda. IV. Target Participants 10. The workshop is intended for upper-middle and senior level officials with the ranks of Director-General, Deputy Director-General, and Director and Deputy Director of Division, or their equivalent. The participants are potentially invited from the relevant Ministries and Departments including but not limited to Ministry of Commerce and Customs Department. from the member countries of BIMP-EAGA, IMT-GT, or GMS. The participants should be responsible for and involved in the design and implementation of policies, programs, strategies, and projects related to e-commerce or regional cooperation with respect to e-commerce. Around 30 participants will attend the workshop; three from each member country. One third of the participants are expected to be women. V. Workshop Methodology 11. The sessions will be interactive to encourage exchange of ideas and sharing of country experiences though case studies, problem-solving exercises, and group discussions and presentation. At the end of each session, a 30-minute brain-storming session will be provided so that participants will have ample opportunities to discuss issues, challenges, and concerns and share their ideas and experiences with counterparts. 4

5 VI. Workshop Team, Dates, and Venue 12. The experts will be drawn from a mix of e-commerce practitioners, operators, logistics and delivery businesses, relevant government officials, multilateral and international organizations, and academia. Potential sources of experts can include, but not limited to, Ministries of Commerce, Customs Bureau, e-commerce operators (e.g. Amazon.com, Alibaba Group, ebay, and Rakuten), delivery service providers (e.g. DHL and FedEx), World Customs Organization, UN-CEFAT, ASEAN Secretariat, ADB, and universities. The workshop will be organized at Chulalongkorn University and the ADB Thailand Resident Mission in Bangkok, Thailand, from May