The Asia Pacific, home to 60% of the world’s total population (4.7 billion people), is predicted to exceed the West’s digital economy and is showing potential in cross-border trade.
Deloitte’s new report titled ‘Technology-empowered Digital Trade in the Asia Pacific’, predicted that digital trade will catapult the region in the next three years, boosted by growing cross-border e-Commerce, regional cooperation, more digitalized lifestyles, developments in technological infrastructures, resolution of logistics and payments issues and blockchain technology, and the Covid-19 pandemic.
The report identified and analyzed how APAC markets will contribute to the development and maturity of digital trade across cross-border e-commerce and digitalization.
For instance, mature markets such as China, South Korea, Singapore, and Japan are leading in sales, payments, and logistics, while developing markets such as Thailand, Malaysia, Indonesia, Vietnam, and the Philippines led in production and trading. Meanwhile, Myanmar, Cambodia, Laos, and Brunei are in their early stages of cross-border e-commerce.
According to Deloitte, the developing markets need to further mature in terms of digitalization, trading, logistics, and payments, giving private players diverse opportunities to invest and develop these industries in the respective countries.
The report added that factors that affect big data such as critical infrastructure, data distribution platforms, network architectures, the Internet of Everything (IoE), and AI will bring deeper business insights and aid in decision making.