1. 1 WELCOME The lecture of GMS Training Program

2. 2 Electronic Commerce’s (E-Commerce) Cooperation Model between China and ASEAN Xiang Li, Senior Assistant to Dr Xiangdong Yu General Manager of China-ASEAN Expo International Information Co., Ltd December 2005

3. 3 Outline Part I: E-commerce’s conception and its applied phases Part II: E-commerce’s development in China and ASEAN Part III: E-commerce opportunities and cooperation model triggered by China-ASEAN Free Trade Area (CAFTA) Part IV: China-ASEAN Expo’s (CAEXPO) impact Part V: A rising e-commerce platform--- www.caexpo.org

4. 4 Part II: e-commerce’s development in China and ASEAN E-commerce’s development in China E-commerce’s development in ASEAN countries Electronic ASEAN (E-ASEAN)

5. 5 Part II: e-commerce development in China Started from 1997 Growing rapidly with the average rate of 40% annually Transaction amount of e-commerce reached US$53 billion in 2004 Had more than 4000 e-commerce website in 2004 Mainly centralize in eastern and costal cities such as Beijing, Shanghai and Guangzhou

6. 6 Part II: e-commerce development in China Population of internet users (million) 50 100 150 E-commerce infrastructure situation in China 200220032004

7. 7 Part II: e-commerce development in China E-commerce’s model in China Some giant enterprises have their advanced e-commerce website s Some giant enterprises have their advanced e-commerce website: Sinopec, CNPC, Sinochem, COFCO and China Minmetals The third party network service platforms provides e-commerce opportunities to small and medium enterprise (SMEs): Alibaba.com, Ebay.com.cn, Taobao.com, www.hc360.com

8. 8 Part II: e-commerce development in China US$ billion 20 40 60 The increasing of transaction value of e-commerce (source: China National Network Information Center (CNNIC) ) 20002002200420012003

9. 9 Part II: e-commerce development in China Challenge ’s support Lack of specialized third party logistics distribution system’s support weakness in payment system Distempered credit system

10. 10 Part II: e-commerce development in ASEAN US$ billion) 2.5 5 7.5 The increasing of e-commerce revenue in ASEAN (source: ASEAN’s annual report) 199819992003

11. 11 Part II: e-commerce development in ASEAN E-commerce infrastructure in ASEAN countries Source: IBM’s report in 2004 Source: Factbook on the Telecom and IT Industry in Asia, January 2002, IDA, Singapore Source: factbook on the telecom and IT industry in ASIA, Jan 2002

12. 12 Part II: e-commerce development in ASEAN E-readiness of different ASEAN countries Source: IBM’s report in 2004

13. 13 Part II: e-commerce development in ASEAN Different countries’ development status in terms of e-commerce in ASEAN Source: IBM’s report in 2004

14. 14 Part II: E-ASEAN E-ASEAN Agreement signed by ASEAN Leaders at ASEAN Informal Summit in Singapore in Nov 2000 Initiative: establish a region-wide approach to making comprehensive use of information and communication technology in business, society and government. Target: develop a broad-based and comprehensive action plan, including physical, legal, logistical, social and economic infrastructure needed to promote an “ASEAN e-space” as part of an ASEAN positioning and branding strategy.

15. 15 Part II: E-ASEAN Coverage scope of e-space Source: By Rodolfo Noel S. Quimbo

16. 16 Part II: E-ASEAN Five important steps of E-ASEAN Source: By Rodolfo Noel S. Quimbo

17. 17 Part III : E-commerce opportunities and cooperation model triggered by China-ASEAN Free Trade Area (CAFTA) between China and ASEAN E-commerce cooperation model between China and ASEAN Opportunities brought by CAFTA E-commerce’s future in CAFTA

18. 18 Part III: E-commerce cooperation between China and ASEAN E-commerce Cooperation model Improve infrastructure jointly Adopt general standard and international norms Strengthen communication and training Governments’ pushing

19. 19 Part III: E-commerce cooperation model: improve infrastructure jointly Infrastructure cooperation between China and ASEAN China-ASEAN Information and communication technology (ICT) seminars Draft agreement on Mid and Long-Term Cooperation in ICT Sector ICT workshop series Telecom Network Management Wireless Internet and 3G Mobile Communications ICT management and training course New Technologies of Optical Network & Internet Access Network Training

20. 20 Part III: E-commerce cooperation model Beijing Declaration on China-ASEAN Information Communication Technology (ICT) Cooperative Partnership for Common Development

21. 21 Part III: E-commerce cooperation model Adopt general standard and international norms Based on recognized international norms Mutual recognition of digital signature frameworks, CA system United regional electronic transactions, payments and settlements

22. 22 Part III: E-commerce cooperation model Strengthen communication and training Opened and clear policy of entering e- commerce field Clear strategies and market regulations More dialogue, exchange and training

23. 23 Government and enterprises’ pushing Part III: E-commerce cooperation model Government and enterprises’ pushing Regulate domestic laws and related rules Provide favorable policies and condition to enterprises who pursue e-commerce Host seminar, forum, lecture, promotion fair Establish international e-commerce relationship and strategy

24. 24 Part III: Opportunities brought by CAFTA E-commerce’s opportunities triggered by CAFTA Introduction of CAFTA E-commerce opportunities during the construction of CAFTA

25. 25 Part III: Opportunities brought by CAFTA Introduction of CAFTA Eleven members: China and ten ASEAN countries The third biggest Free Trade Area in the world - 1.8 billion population, cover 30% people in the world - US$ 2 trillion GDP, total trade amount over 1.2 trillion - will be set up in 2010 Fastest growth - bilateral trade volume increase by 38.9% annually. - import and export will be expected to increase by 50%.

26. 26 Part III: Opportunities brought by CAFTA Introduction of CAFTA Complementary advantages - bilateral trade volume reach US$ 105.9 billion - five ASEAN countries are China’s top 20 trading partners More convenience for trade and investment - agreement on dispute settlement mechanism - agreement on trade in good - lift most of the commodities’ tariff in 2010 - lift most of the commodities’ tariff in 2010 - started “early harvest” in 2004, more than 7000 commodities’ tariff were abolished - started “early harvest” in 2004, more than 7000 commodities’ tariff were abolished

27. 27 Part III: Opportunities brought by CAFTA E-commerce opportunities triggered by CAFTA Zero tariff or low tariff to telecommunication products, IT products and Internet products CAFTA pushes united e-commerce standard Increasing business transaction in CAFTA enhances transaction value of e-commerce CAFTA promote the cooperation in e-commerce field

28. 28 Part III: E-commerce’s future in CAFTA E-commerce’s future development in CAFTA E-commerce’s transaction value in CAFTA is expected to be 1/3 of total transaction value, reach US$ 2.2 trillion in 2010 Important link between China and ASEAN Have better infrastructure and more favorable development environment Break current uneven situation and develop faster in some lagged ASEAN countries

29. 29 Part IV: China-ASEAN Expo’s (CAEXPO) impact Part IV: Outline Introduction of China-ASEAN Expo (CAEXPO) CAEXPO accelerates e-commerce’s popularization in China and ASEAN countries

30. 30 Part IV: China-ASEAN Expo’s (CAEXPO) impact Introduction of CAEXPO CAEXPO was proposed to be held annually by China Premier on 8 Oct 2003. The proposal was favorably accepted by leaders of ASEAN countries The 1st and 2nd CAEXPO were held successfully in Nanning, China in 2004 and 2005 CAEXPO is held by China, ASEAN secretariat and ASEAN countries jointly

31. 31 CHINA-ASEAN EXPO

32. 32 Part IV: China-ASEAN Expo’s (CAEXPO) impact CAEXPO target Promote the construction of CAFTA Share opportunities of cooperation and development Bring and create development opportunities for enterprises of China and ASEAN countries

33. 33 Part IV: China-ASEAN Expo’s (CAEXPO) impact Five main contents of CAEXPO Commodity trade Investment and Cooperation Trade in service High-level Forums Cultural exchanges

34. 34 Part IV: China-ASEAN Expo’s (CAEXPO) impact Achievement of CAEXPO Attracted more than 20, 000 exhibitors and purchasers More than US$ 1 billion trade volume during the 1st and 2nd CAEXPO US$ 4.99 billion and 5.29 billion cooperation contractual volume in the 1st and 2nd CAEXPO respectively Brought country leaders and entrepreneurs of the region together

35. 35 Part IV: China-ASEAN Expo’s (CAEXPO) impact CAEXPO’s promotion to e-commerce Bring famous e-commerce enterprises into the CAEXPO Hold forum and conference of e-commerce on CAEXPO e-commerce behavior on CAEXPO

36. 36 Part IV: China-ASEAN Expo’s (CAEXPO) impact Bring famous e-commerce enterprises into the CAEXPO - raise brand and enterprise image - opportunities of China and ASEAN market and customer resource - New products, technology and service of e- commerce emerge on CAEXPO

37. 37 Part IV: China-ASEAN Expo’s (CAEXPO) impact Forum and conference of e-commerce on CAEXPO - E-commerce cooperation between enterprises - E-commerce policies and related law’s release - The application of e-commerce in different field - Human resource’s exchange and training

38. 38 Part IV: China-ASEAN Expo’s (CAEXPO) impact E-commerce behavior on CAEXPO - Official website of CAEXPO---www.caexpo.org - Exhibitors and purchasers’ online application and management - CAEXPO’s online propaganda and promotion - Combination of substantial booth and online interactive booth during the CAEXPO

39. 39 Part V: Case study: e-commerce platform (www.caexpo.org) Part V: www.caexpo.org Introduction of www.caexpo.org Customers and products Development steps and target The competitive advantage and competitive strategy Cooperative mode and cooperation partners Blueprint

40. 40 Part V: Case study: e-commerce platform (www.caexpo.org) Introduction of www.caexpo.org Established in Feb, 2004 The uniquely official website of CAEXPO Authoritative economic & trade website in CAFTA Multi-language and non-boundary e-business platform

41. 41 Multi-language website of www.caexpo.org

42. 42 Part V: Case study: e-commerce platform (www.caexpo.org) Customers and products Current customers: Expo’s organizers, exhibitors and purchasers Potential customers: enterprises in China and ASEAN countries Final customers: all enterprises interested in CAFTA market

43. 43 Part V: Case study: e-commerce platform (www.caexpo.org) Clients and products Products: - online expo - business matching - online advertisements - expo management system

44. 44 Online expo Company slogan FAQ Main picture or flash Company logo Platform area Company introduction Personal picture Chat with our staff Chat with visitors Media centre gift Business card Questionnaire Information center Product introduction Dynamic news Contact us E-card

45. 45 Business matching Procedure of business matching

46. 46 Part V: Case study: e-commerce platform (www.caexpo.org) Online advertisement Authoritative warrant, possess of numerous clients The most professional and excellent e- commerce platform in CAFTA Quintuple-languages websites help grasp business opportunities Flexible advertisement, unique advantages

47. 47 CAEXPO information management system

48. 48 Part V: Case study: e-commerce platform (www.caexpo.org) Development steps and target Phase 1 Phase 2 Phase 3 Official website of CAEXPO B to B economic & trade website in China and ASEAN Advanced e-commerce platform in CAFTA Online propaganda Expo management Information release Technical service Online transaction Online payment Online logistic “10+1” e-commerce cooperation Advanced e-commerce service in CAFTA

49. 49 Part V: Case study: e-commerce platform (www.caexpo.org) Phase 1: official website of CAEXPO Target: official, unique website Customer: CAEXPO secretariat Service content: - expo management - expo propaganda - information collection and processing - technical service

50. 50 Part V: Case study: e-commerce platform (www.caexpo.org) Phase 2: B to B e-commerce website Target: authoritative economic & trade website in China and ASEAN Customer: enterprises in China and ASEAN Service content: - online transaction - online payment - online logistic

51. 51 Part V: Case study: e-commerce platform (www.caexpo.org) Phase 3: Advanced e-commerce platform in CAFTA Target: the most influential e-commerce platform in CAFTA Customer: all enterprises interested in CAFTA market Service content: - “10+1” e-commerce cooperation - online finance and investment - research and application of new e-commerce fields

52. 52 Part V: Case study: e-commerce platform (www.caexpo.org) The competitive advantages and competitive strategies Competitive advantage - strong government support - advanced service network - good cooperation relationship with chamber of commerce, associations and organizations - trade and investment of database of China and ASEAN

53. 53 Part V: Case study: e-commerce platform (www.caexpo.org) The competitive advantage and competitive strategy Market strategies - focus strategy: bilateral trade and investment between China and ASEAN - professional strategy: target in demands of customers, provide advanced information and e-commerce service - reasonable resource utilization: official website of CAEXPO, government support

54. 54 Part V: Case study: e-commerce platform (www.caexpo.org) Cooperative mode and cooperation partners Cooperative mode - technical cooperation - market cooperation - project cooperation - investment cooperation “10+1” e-commerce platform

55. 55 Part V: Case study: e-commerce platform (www.caexpo.org) Cooperative mode and cooperation partners Cooperation partners - government level: CAEXPO secretariat, Chamber of commerce, counselor office of China and ASEAN countries’ embassies - market level: Hai-O group, APP, www.sina.com, www.sohu.com, Worldvideobusiness,www.sina.com www.sohu.com - technical level: China Telecom, Siemens, IBM, HP

56. 56 Part V: Case study: e-commerce platform (www.caexpo.org) Blueprint The most authoritative “10+1” e- commerce platform in CAFTA The most comprehensive website in terms of trade & investment in China and ASEAN region List on stock market in Singapore or Malaysia in 2008 List on NASDAQ in 2010

57. 57 Conclusion E-commerce is growing rapidly in China and ASEAN region B to B is the main mode of e-commerce in CAFTA Third party e-commerce platform has bright future in CAFTA The cooperation between China and ASEAN has unlimited potential

58. 58 Thanks