Japan will work with Association of Southeast Asian Nations members to promote digital processing of imports and exports in an effort to ease bilateral trade.
The trading partners will agree on a digital roadmap as part of an action plan at the Japan-ASEAN economic ministers' meeting to be held in Indonesia at the end of the month, Nikkei has learned.
The roadmap will include targets for the volume of trade to be digitized, as well a goal of digitizing customs procedures in each country.
Trade between Japan and ASEAN countries grew 17% to $240.2 billion in 2021, according to ASEAN data, but much of this remains bound by paper and email chains.
Each import and export transaction can involve dozens of documents, including certificates of origin and payment information. The format differs from company to company, making the process cumbersome.
A growing number of private-sector services offer to streamline trade with digital forms and central data management. The roadmap will seek to promote data links between companies that offer such services in Japan and ASEAN.
For countries that do not have such companies, the Japanese side could offer support.
One such provider, Tokyo-based startup TradeWaltz, has linked up with trade management systems in Thailand and Singapore. TradeWaltz's services use blockchain technology to prevent fraud.
Japan's Ministry of Economy, Trade and Industry will request 1.5 billion yen ($10.3 million) in funding for next fiscal year's budget to support expanding such private-sector services. METI aims to subsidize manufacturers and trading companies that use these cross-border services on a trial basis.
The Japan-ASEAN roadmap will also include partnerships on extracting and recycling minerals from discarded products.
The move comes as nations seek stable sources of lithium, rare-earth elements and other critical minerals amid concerns of supply shortages. Japan has invested in recycling critical minerals extracted from discarded electronics. The Japanese government is looking to bring its homegrown recycling technology to ASEAN.
Source: Nikkei Asia
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
