ASEAN: Regional Trends in Economic Integration, Export ... - USITC
ASEAN: Regional Trends in Economic Integration, Export ... - USITC
ASEAN: Regional Trends in Economic Integration, Export ... - USITC
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FIGURE 2.3 Broadband penetration: Subscribers rema<strong>in</strong>ed highest <strong>in</strong> S<strong>in</strong>gapore between 2004 and<br />
2008 but <strong>in</strong>creased <strong>in</strong> all <strong>ASEAN</strong> countries<br />
25<br />
Broadband subscribers per 100 <strong>in</strong>habitants<br />
20<br />
15<br />
10<br />
5<br />
0<br />
2004 2008<br />
Source: International Telecommunications Union (ITU), ICT Eye database, accessed April 21, 2010.<br />
A sound legal framework for e-commerce gives consumers and bus<strong>in</strong>esses confidence<br />
that transactions are secure and makes compliance with bus<strong>in</strong>ess laws and regulations<br />
possible without excessive paper-based documentation. <strong>ASEAN</strong> members have made<br />
progress <strong>in</strong> develop<strong>in</strong>g their legal frameworks for e-commerce <strong>in</strong> recent years. For<br />
example, <strong>in</strong> 2004, only Brunei, the Philipp<strong>in</strong>es, S<strong>in</strong>gapore, and Thailand had adopted<br />
laws on electronic contract<strong>in</strong>g; at present, all members have done so except Cambodia<br />
and Laos. 131 Vietnam was particularly active <strong>in</strong> develop<strong>in</strong>g its legal framework for e-<br />
commerce dur<strong>in</strong>g this period. Between 2004 and 2008, it enacted a Law on Electronic<br />
Transactions, a Law on Information Technology, and 11 decrees and circulars to<br />
implement provisions of these laws. 132<br />
Nevertheless, gett<strong>in</strong>g the legal framework right is challeng<strong>in</strong>g for even the most active<br />
reformers. For example, despite Vietnam’s numerous reforms, bus<strong>in</strong>esses there do not<br />
conduct transactions through electronic data <strong>in</strong>terchange (EDI) systems. 133 Industry<br />
representatives reported that electronic payments are difficult to implement because<br />
f<strong>in</strong>ancial and account<strong>in</strong>g regulations require companies to obta<strong>in</strong> many physical<br />
signatures (e.g., from a company’s chief accountant and its director), and tax regulations<br />
require paper-based receipts. One mult<strong>in</strong>ational automobile manufacturer <strong>in</strong> Vietnam<br />
cont<strong>in</strong>ues to use paper-based payments <strong>in</strong> Vietnam despite hav<strong>in</strong>g implemented EDI at<br />
virtually every other location <strong>in</strong> the world. 134<br />
ICT access, facility with ICTs, and will<strong>in</strong>gness to make electronic transactions are more<br />
difficult to measure. One proxy for the first two factors is the percentage of the<br />
131 Galexia, Harmonisation of E-Commerce Legal Infrastructure, April 2008; <strong>ASEAN</strong> Secretariat official,<br />
telephone <strong>in</strong>terview by <strong>USITC</strong> staff, April 21, 2010.<br />
132 Vietnam E-Commerce and IT Agency (VECITA), Vietnam E-commerce Report 2008, 11.<br />
133 Government officials, <strong>in</strong>terview by <strong>USITC</strong> staff, Hanoi, Vietnam, March 9, 2010.<br />
134 Industry representatives, <strong>in</strong>terviews by <strong>USITC</strong> staff, Hanoi, Vietnam, March 8 and 9, 2010.<br />
2-30