Assuming the current pace of e-commerce adoption and export, the countries’ business-to-consumer (B2C) e-commerce export revenue is projected to reach $30.4 billion in 2028, with micro, small and medium enterprises (MSMEs) capturing 48 per cent of this value.
These nations are positioned well for this due to their manufacturing capabilities, strategic geographic location and integration into a dynamic trading bloc, the report noted.
The ASEAN-6 countries—Singapore, Malaysia, Thailand, Vietnam, Indonesia and the Philippines—can substantially expand their e-commerce exports by 2028, a recent report by AWS and Access Partnership said.
Assuming the current pace of e-commerce adoption and export, the countries’ B2C e-commerce export revenue is projected to reach $30.4 billion in 2028, with MSMEs capturing 48 per cent of this value.
Trade agreements like the Regional Comprehensive Economic Partnership (RCEP), shifts in consumer behaviour after the COVID-19 pandemic and technological advancements have created a favourable environment for ASEAN-6 businesses to thrive in the e-commerce sector.
The B2C e-commerce export revenue of the ASEAN-6 countries was estimated at $18.9 billion last year. However, only 38 per cent of this revenue was generated by MSMEs, despite these enterprises constituting 99 per cent of all businesses in the region.
This wide gap highlights a lucrative opportunity: with targeted support, MSMEs could dramatically increase their share of the global e-commerce market, driving economic growth and job creation, the report observed.
Access Partnership’s survey of 700 MSMEs in ASEAN-6 countries reveals that 90 per cent believe they would not have been able to export without e-commerce, and 46 per cent report that over half of their B2C e-commerce sales come from overseas markets.
MSMEs value the access to digital tools, the ease of connecting with foreign customers and the access to diverse markets provided by e-commerce marketplaces. Additionally, they benefit from the logistics support and payment solutions these marketplaces offer.
Currently, MSMEs in ASEAN-6 prioritise China, the United States, Japan and other Southeast Asian countries as key export markets, with expectations to maintain this focus over the next five years.
However, the United Kingdom and the European Union (EU) are emerging as increasingly important destinations, the report remarked.
To leverage the full potential posed by the growth in e-commerce, ASEAN-6 will need to help MSMEs overcome a range of challenges, which include a lack of understanding of import regulations in foreign markets, high costs of cross-border logistics, the inability to partner with manufacturers and a variety of knowledge gaps impeding MSMEs’ ability to engage in cross-border e-commerce, the report added.
Fibre2Fashion News Desk (DS)
