Survey on e-Commerce Utilization in East Asia （Outline: For EABC RCEP Workshop) December 2016 Ryohei Gamada Research Manager, Asia and Oceania Division Japan External Trade Organization (JETRO) Copyright © 2016 JETRO. All rights reserved.　

1-1. Back Ground (Situation in ASEAN) ASEAN EC Market Size Philippines Indonesia Viet Nam 2020 2014 62bil USD 18bil USD Thailand Singapore Malaysia ASEAN EC market share to Asia market 2014 2020 4.1% 5.5% Copyright © 2016 JETRO. All rights reserved.　

1-1. Back Ground (…With other RCEP members) e-Commerce Map (B2C, 2015) e-Commerce Map (B2C, 2020) CN 64 CN UNCTAD B2C e-Commerce Index (2016)　 e-Commerce sales amount (2015) (unit: bil USD)　 364 757 JP 5 JP 92 IN 182 90 KR 7 17 29 IN KR 93 23 69 75 44 89 AU 12 NZ 14 40 49 9 5 3 3 3 2 10 7 ID MY SR TH PH VN AU NZ Scattered market environments 25 9 9 6 6 3 22 8 Fragmented, small markets (Source) JETRO from UNCTAD, BMI Research (2016)　 Copyright © 2016 JETRO. All rights reserved.　

2-1. Restructure of the Recommendation EABC Recommendation (2015) Emerging layer Regional mechanisms Addressed holistically through comprehensive regulations and legislation covering e-transaction laws, consumer protection, privacy, data protection, and cyber-crime Rules need to allow fast and inexpensive movement of goods across the 13 countries. All information should be easily accessible on one website Utilisation of e-documents should be intensified through the establishment of the East Asia Single Window ePayment solutions must expand beyond traditional banking solutions. A framework for secure cross-border transactions should be established to allow for innovative payment solutions to flourish In order to address the fears of payment and product fraud, there needs to be a central regulatory body for payments Cross-border payment fraud enforcement mechanisms such as cross-border dispute addressal mechanisms should also be developed EC related regulations Consumer protection Privacy Data protection Cyber crime EC related regulations Consumer protection Privacy Data protection Cyber crime N.A. Key Infrastructure (TF) Fast pass for low value shipments Legislation for securing effectiveness on e-Documents Single Window Key Infrastructure (Payment & Fintech) Traditional layer with new elements Key Infrastructure (Payment) Framework to secure Cross-border transactions Key Infrastructure (TF) CCC CPTF-WG Key Infrastructure (Logistics) Regional mechanisms Central regulatory body for preventing payment and product fraud Cross-border dispute settlement More attractive Market environment (Source) EABC presentation material for AEM+3 Encouraging MSMEs’ EC utilization Copyright © 2016 JETRO. All rights reserved.　

2-2. Missing part of the existing studies Market Condition Business Perception UNCTAD (2016) BMI Research (2016) Transcosmos (2016) eMarketer, Euromonitor and other DBs JETRO, JCC and EABC (2016) APEC (2015) *Only available in Japanese Business perception questionnaire survey in RCEP countries Business perception from investors (Japanese companies, JETRO) Emerging layer Regional mechanisms EC related regulations Latest Regulations CARI (2015) MRI (2012) *Raising several key regulations in AMSs N.A. Key Infrastructure (Payment & Fintech) *Only available in Japanese *Limited countries (CH, ID and VN) Regulation survey (to be outsourced) Business Bottlenecks Traditional layer with new elements APEC (2015) CARI (2015) *Limitation in the APEC countries　 Key Infrastructure (TF) CCC CPTF-WG Best practices from major EC markets (e.g. CJK and US) Key Infrastructure (Logistics) More attractive Market environment (Note) APEC (2015): “Driving Economic Growth Through Cross-Border E-Commerce in APEC” CARI (2015): “Lifting the Barriers to E-Commerce in ASEAN” UNCTAD (2016): “UNCTAD B2C E-COMMERCE INDEX 2016” BMI Research (2016): “e-Commerce: Global Developments & Outlook”　 Encouraging MSMEs’ EC utilization Copyright © 2016 JETRO. All rights reserved.　

2-3. Basic Structure of the Survey 1. Questionnaire Survey (local companies) 3. Regulation study (to be outsourced) Basic Company Information Company info, company size, Industry group Best practice from major EC markets experience (CJK and US) Current rules and regulations in RCEP countries B. e-Commerce Utilization Condition B1. e-Commerce experience B2. Utilization type (B2B vs B2C, local vs cross-border) B3. Future utilization plan B4. Acknowledged platform B5. Utilizing platform B6. Reasons to utilize the platform B7. General perception to e-Commerce 4. Interview study Platformers Key infrastructure providers Logistics companies C. Bottlenecks on e-Commerce C1. Rating the bottlenecks C2-1. Company resources C2-2. e-Commerce platforms C2-3. Logistics C2-4. Customs procedures C2-5. Payment/Financial services C2-6. Communication with potential customers C2-7. Company/Personal data protection D. Preferable e-Commerce Environments D1. Key infrastructure to facilitate cross-border e-Commerce utilization D2. Governments’ support 2. Questionnaire Survey (Japanese companies) Copyright © 2016 JETRO. All rights reserved.　

3. Survey Framework AEM ASEAN SEOM SME-WG ASEAN-BAC ASEAN ASEAN+3 ASEAN Summit ASEAN+3 Summit Summit AEM AEM+3 Minister SEOM ASEAN SME-WG SEOM+3 DG Joint Consultation Meeting with ASEN+1 Business Councils *ASEAN-BAC compiled respective business councils’ requests for Summit Industry ASEAN-BAC East Asia Business Council (EABC) Round Table Discussion on e-Commerce *Conducted in April 2016 *Bridging EC related activities between ASEAN-BAC and EABC EC-WG EC-WG Copyright © 2016 JETRO. All rights reserved.　

4. Timeline Copyright © 2016 JETRO. All rights reserved.　

Thank you for your attention Copyright © 2016 JETRO. All rights reserved.