“E-commerce, Competition and ASEAN Economic Integration” is a comprehensive analysis of the economic integration among ASEAN member states with a focus on e-commerce published in Singapore in 2020, this book sheds light on the evolving digital economy within the ASEAN region. This insightful publication is a collaborative research effort between the Competition and Consumer Commission of Singapore (CCCS) and the ISEAS-Yousaf ISHAK Institute. The book reflects the contribution of numerous dedicated research fellows of ISEA and different Economists from various universities, with Cassey Lee and Eileen Lee serving as the main editors.
This book delves into the rapidly expanding realm of e-commerce inside the ASEAN Economic Community (AEC). It examines the current state of e-commerce in ASEAN member nations, highlighting both the challenges they encounter and the opportunities for deeper regional integration. The book is structured into four parts with ten chapters that focus on ASEAN member states e-commerce, and economic integration. It begins by defining the term and introducing the concept of e-commerce and various types of e-commerce transactions. E-commerce transactions involve the sale or purchase of goods or any services conducted through digital platforms, with payment methods that include options like cash on delivery. These transactions are classified into various categories based on the type of participants such as the customers, businesses, and government. The book identifies four primary categories of e-commerce transactions; Consumer-to-consumer(C2C), Business-to-Consumer(B2C), Business-to-Business(B2B) and Business-to-Government (B2G). Additionally, it mentions extended variants such as (B2B2C) in which companies (B) sell to consumers (C) through platforms (B).
It also explores the demographics of the ASEAN member states, as the total population was around 640 million in 2016, accounting for about 8.6 % of the global Population. The distribution of this population across Asian countries is uneven, with Indonesia alone representing 40.9% of the ASEAN population. Other countries with significant populations include the Philippines, Vietnam and Thailand. Overall, ASEAN has a youthful demographic, with 35% to 60% of its population under 35. In contrast, Singapore and Thailand have notably older demographics with over 30% of their populations aged 50 and above.
This book examines the ICT infrastructure and its utilization in the ASEAN member countries. Mobile phone usage is notably high in Cambodia, Indonesia, Malaysia, Thailand, Vietnam, Singapore and the Philippines, while Myanmar and Lao PDR experience lower levels of mobile penetrations. In addition to ICT, transport and logistics play crucial roles in E-commerce, as delivering physical goods purchased online relies heavily on an efficient transport and logistics system. In ASEAN countries, however, logistical infrastructure remains underdeveloped, presenting a significant challenge to e-commerce growth.
Despite these challenges, Singapore and Malaysia are leading the region’s e-commerce markets, even though they have smaller populations compared to Thailand and Indonesia. Countries with larger populations are expected to see accelerated e-commerce development. ASEAN economic integration encompasses two key dimensions; increased intra-regional investment and trade, as well as open regionalism. Member states engage with the global economy, and e-commerce facilitates both enhancing information flow and market access at the firm level. For instance, the World Bank reports that companies in Vietnam have boosted their total factor productivity by an average of 3.6%.
ASEAN cooperation in e-commerce is outlined in three key policy documents. The first key document is the E-ASEAN framework agreement, which details the activities of the member countries must undertake to establish an e-commerce platform within their economies and the region. This agreement focuses on the growth of e-commerce with countries committing to address seven key issues: legal framework for e-commerce, consumer protections, a regional electronic payment system, intellectual property rights, cybercrime legislation, prevention and taxation.
The second document, the ACE blueprint for 2015 and 2025, discusses e-commerce as a central component of the economic regional pillar. Its goal was to establish the policy and legal infrastructure for e-commerce and facilitate online trade within ASEAN, building on the ASEAN framework agreement, The ACE 2025 blueprint aims to achieve five interrelated objectives: creating a highly integrated economy, fostering a competitive and dynamic ASEAN, enhancing connectivity, promoting sectoral cooperation and building a resilient inclusive people-center ASEAN. Lastly, the ASEAN ICT masterplans for 2015 and 2020 focus on fostering trade and investment in ICT-related goods and services to support the development of telecommunications infrastructure.
The writers further discuss e-commerce and developments in different ASEAN countries like Thailand, Indonesia, Malaysia, Singapore, Philippines and Vietnam. It explains the current state of e-commerce in these countries and policies regarding e-commerce and has given recommendations. Despite having a large and growing number of Internet and mobile phone users, the Philippines still lags in e-commerce adaptation. However, e-commerce continues to impact traditional businesses and industries, with new business models emerging through online platforms like Lazada and Zalora, plus sharing economy services like Grab Taxi and Airbnb. In contrast, Vietnam has advanced beyond the initial stage of e-commerce development, with improvements in internet infrastructure, e-payment system and logistics. Vietnam’s e-commerce sector can be categorized into three main groups: Traditional businesses that have adopted websites and management systems to expand markets, reduce costs and enhance customer services. A business engaged in import and export, leveraging e-commerce and online public service to boost efficiency, saving both time and money.
The third group includes of providers of e-commerce services, such as online marketplaces, travel platforms and digital marketing which support new businesses that primarily thrive through e-commerce. Meanwhile, Malaysia has made significant strides in policy planning and strategic efforts to boost e-commerce adaptation, However, the country’s digital adaptation among businesses aligns more with lower middle-income nations, as only 62% of businesses are connected to the Internet and just 28% maintain an online presence
In the final chapters, The author offers suggestions for furthering ASEAN’s e-commerce integration in the final chapters. They advocate ongoing initiatives to resolve trust and security concerns, enhance ICT infrastructure, and harmonize regulatory regimes. To guarantee that every nation can profit from the expansion of e-commerce, Lee and Basu also stress the necessity of information sharing and capacity building among ASEAN members.
This book is highly recommended to the professionals and the students as well. As the authors a detailed examination of the state of e-commerce in ASEAN member countries, highlighting both the opportunities and challenges. This includes discussions on the frameworks for cooperation, measuring e-commerce, and identifying key challenges. Along with discussing those frameworks, they are also given clear definitions and concepts of e-commerce, including the use of the Internet and the World Wide Web for transactions, buying and selling using the Internet, and the production, distribution, marketing, sale, or delivery of goods and services by electronic means. The authors have discussed the challenges faced by the ASEAN member states and also provide recommendations to overcome those challenges which makes this book a perfect collection of information related to the E-commerce and Economic Integration among the ASEAN countries.
Interned at ISSI think tank.
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