This chapter provides an overview of the key elements shaping the digital transformation for trade in ASEAN, underscoring its opportunities and challenges. It examines the initiatives ASEAN is deploying to harness the benefits of the digital transformation and then analyses how ASEAN countries are currently participating in digital trade. Overall, the analysis reveals that digital trade is one of the fastest growing segments of trade in ASEAN, growing even faster than in the rest of the world.
Digital Trade Review of the Association of Southeast Asian Nations
Abstract
The digital transformation is revolutionising international trade, changing its scope and speed and offering firms and individuals new ways to benefit from trade.
ASEAN is well positioned to seize these opportunities, combining high trade openness with rapid digital uptake. The share of individuals connected to the internet has doubled in the last decade, strengthening the foundation for ASEAN Member States (AMS) to expand participation in digital trade and capture benefits.
ASEAN has been actively building the policy and institutional architecture for the digital economy since the late 1990s. The Agreement on Electronic Commerce and the upcoming Digital Economy Framework Agreement (DEFA) will help set common rules of the road, while strategies such as the AEC 2026‑2030 agenda link digital trade to wider regional economic integration goals. Overall, ASEAN has built a multi-layered regulatory ecosystem that promises to reduce trade costs, enhance competitiveness, and strengthen the region’s position as a digital trade hub.
ASEAN’s digital trade exports grew by almost 10% per annum between 2005 and 2022, outpacing global averages by almost 4 percentage points. By 2022, ASEAN’s digital trade exports had reached USD 387 billion representing nearly 20% of total exports and 6% of global digital trade.
Digitally deliverable services are key drivers of ASEAN digital trade. Exports of digitally deliverable services grew at 11% p.a. also significantly outpacing non-digitally deliverable services and goods exports (which grew at 6% p.a. over 2005 and 2023).
ASEAN is also a key supplier of the hardware underpinning digital trade. The region is the world’s second largest exporter of ICT goods, with Viet Nam more than doubling its global share of ICT goods exports over the last decade.
AMS rely on imports to access critical ICT goods and services that power the digital transformation. The region is the third largest importer of ICT goods and represents a high share of global digitally deliverable services imports.
The digital transformation is revolutionising international trade, changing the scope and speed of activities undertaken by firms; making supply chains more resilient; providing new ecosystems for exchange; and helping firms, especially micro, small and medium-sized enterprises (MSMEs), better connect with each other and with consumers across the globe. As a result, the costs of engaging in international trade are falling, leading to new opportunities for more trade across all sectors of the economy (OECD, 2023[1]).
At the same time, digitalisation is changing how and what we trade. Today’s trade in goods and services is increasingly enabled by intermediary digital platforms. Trade in digitally enabled services is also flourishing with i) growing trade in services that were previously considered non-tradeable; ii) new combinations of embedded services in “smart” products; and iii) trade in new services (including cloud computing, intermediation services and fin-tech).
However, while digital transformation makes it cheaper and easier to engage in trade, it also increases the complexity of transactions. For example, the purchase of an e-book rests not only on market access for the e-book, but also on the ability to purchase e-readers (the devices used to read e-books); on the cost of access to digital networks to order the e-book and the ability to engage in electronic payments and to transfer data across borders. A barrier on one of these linked transactions will affect the need or the ability to undertake the other transactions (Casalini, López-González and Moise, 2019[2]).
Moreover, digitally enabled trade transactions are expected to meet a range of emerging “trade and …” objectives, including privacy and data protection, consumer protection, cybersecurity, and national security. In this fast-evolving environment, governments are facing new challenges to ensure that the opportunities and benefits from digital trade, for both consumers and for businesses, are realised and shared more inclusively. Understanding the nature of the evolving changes is key to understanding the implications of digital transformation for ASEAN countries.
Recognising the transformative potential of digital technologies for future economic success (ASEAN, 2025[3]), ASEAN has developed a comprehensive architecture of interlinked initiatives that further digital integration (Figure 1.1).1 These encompass primary instruments used to set major overarching agendas, as well as secondary instruments designed to support and operationalise commitments.
These initiatives started in the late 1990s with the e-ASEAN Framework Agreement in 2000 and have progressively become more ambitious, seeking to enhance digital connectivity, promote harmonised regulatory frameworks, and build digital capacity among ASEAN Member States. Recent years have seen an increase in the number of initiatives, underscoring the growing importance ASEAN assigns to digitalisation.
The ASEAN Digital Integration Framework (DIF), prepared by the ASEAN Coordinating Committee on Electronic Commerce (ACCEC)2 and adopted by ASEAN Economic Ministers in 2018, aims to accelerate progress to build an integrated digital economy (ASEAN, 2018[4]). It provides a list of six priority areas to address existing gaps and accelerate integration efforts: facilitating digitally-enabled trade, facilitating data flows across ASEAN Member States via shared data protection principles, seamless digital payments as a key enabler of cross-border digital trade, broadening the digital talent base via upskilling, assisting digital MSMEs, and coordinating actions.
These were further developed in the Digital Integration Framework Action Plan 2019‑2025 (DIFAP), adopted by ASEAN Economic Ministers in 2019. It set out initiatives, outputs, and timelines across the six priority areas, bringing together a wide range of relevant ASEAN framework documents and strategic action plans (ASEAN, 2019[5]). It includes, among others, promoting measures from e-commerce facilitation, customs simplification, region-wide accessibility of broadband infrastructure to harmonising frameworks on data policies (including the ASEAN Data Management Framework and the ASEAN Framework on Digital Data Governance) and electronic authentication and cross-border payments within ASEAN. The DIFAP is noteworthy for its integrated approach, bringing together previously separated areas of action into one comprehensive policy framework, and assigning ACCEC a coordinating role to drive the overarching action plan’s implementation.
The Bandar Seri Begawan Roadmap (BSBR) was endorsed at the 20th AEC Council in October 2021. It is a recovery and resilience plan created to minimise the negative impacts of the COVID-19 pandemic by capitalising on ASEAN’s ongoing digital transformation and transforming ASEAN into a leading digital economy. It aims to provide a single coherent strategy for an economy in which “the seamless and secure flow of goods, services, and data is underpinned by enabling rules, regulation, infrastructure, and talent” (ASEAN, 2021[6]), while making sure no ASEAN Member State is left behind. It brings together initiatives from previous ASEAN documents, including the DIFAP, the ASEAN Digital Masterplan 2025 (ADM2025) (ASEAN, 2021[7]), and the ASEAN E-commerce Agreement.
The BSBR brings activities into a structured timeline, consisting of three phases: After phase I (Recovery, 2021‑22), which included a strengthening of the ACCEC’s coordination mechanisms and accelerating delivery of DIFAP outputs, phase II (Acceleration, 2022‑24) focused on accelerating existing work in the areas of trade facilitation (such as electronic exchange of trade documents, common e-invoicing standards, digital identities), facilitation of cross-border data flows (implementing ASEAN Data Management Framework, recognition of ASEAN Model Contractual Clauses), as well as interoperable cross-border digital payments in ASEAN (incl. ASEAN Interoperable QR Code Framework). The current phase III (Transformation, 2025) aims to complement existing initiatives, launching negotiations on a comprehensive ASEAN Digital Economy Framework Agreement (DEFA).
The DEFA is intended to consolidate and expand previous ASEAN commitments. Having been substantially concluded at the October 2025 AEC Council (Box 4.2), and with its conclusion expected in 2026, it offers an opportunity to overcome barriers towards an “open, secure, interoperable, competitive and inclusive regional digital economy” (ASEAN, 2021[6]). In implementing the BSBR, the ACCEC, which was renamed to ACCED, once again was chosen to act as the responsible body for cross-sectoral collaboration.
Last, the AEC Strategic Plan 2026‑2030 (ASEAN, 2025[3]) is an economic blueprint adopted by the 46th ASEAN Summit in May 2025. It serves as a five-year plan to guide ASEAN’s efforts to create a single market and integrated production base, outlining strategic goals, objectives and strategic measures grouped into six aspirational communities. It emphasises significant advancements through implementation of the previous AEC Blueprint 2015‑2025, not least in digital trade, including strengthened infrastructure connectivity, policies to promote ICT adoption, and expanded e-commerce transactions. Building on this progress, the current plan identifies technological transformation as a “critical megatrend” and calls for focused strategies in digital trade.
Under Strategic Goal 3, the AEC Strategic Plan 2026‑2030 aims to accelerate digital transformation by targeting areas like paperless cross-border trade, interoperable digital systems (e-invoicing, digital identity and authentication), regulations for secure and seamless cross-border data flows, digital talent mobility, affordability of and inclusive access to technology and telecommunication solutions, strengthening digital infrastructure connectivity (including broadband networks and data centres), as well as a coordinated approach to AI governance and facilitating its adoption (see the ASEAN Responsible AI Roadmap, covering the timeframe until 2030 (ASEAN, 2025[8])). According to the strategy, efforts will be supported through the implementation of the DEFA. Furthermore, it aims to align ASEAN commitments and practices with international norms. By providing high-level strategic direction, the plan integrates digital trade goals into ASEAN’s broader economic integration agenda.
In sum, ASEAN’s digital economy and digital trade efforts have significantly accelerated since their inception in the late 1990s and have resulted in an architecture of interdependent legal, policy, and operational components. Broader strategic frameworks provide a critical foundation for ASEAN’s integration efforts. Building on these frameworks, ASEAN has developed a set of concrete digital trade initiatives that operationalise and give effect to these strategic commitments. Treaties such as the Agreement on Electronic Commerce or the upcoming DEFA provide binding commitments; strategies such as the AEC 2026‑2030 agenda link digital trade to broader regional economic integration goals; documents like the DIF and the ADM2025 offer guiding policy frameworks; and action plans/roadmaps (DIFAP, BSBR, etc.) outline specific measures to implement commitments on the ground. Together, these instruments form a multi-layered ecosystem that translates ASEAN’s high-level frameworks into practical measures that reduce trade costs, enhance competitiveness, and strengthen the region as a digital trade hub.
This architecture provides the foundation for regional co-operation in digital trade, and assessing ASEAN Member States’ policy developments in this domain would support the monitoring of opportunities and implementation of ASEAN’s digital trade initiatives.
The extent to which AMS can benefit from digital trade largely depends on their ability to access and effectively use digital technologies. At the same time, understanding how trade has evolved in individual AMS and across the region is key to identifying the channels through which digitalisation can impact AMS’ trade.
1.3.1. Important progress has been made in connecting people to the Internet
ASEAN Member States have rapidly adopted digital connectivity, whether through fixed or mobile networks (Figure 1.2), nearly doubling the average share of individuals connected to the internet in the last decade.3 However, the ASEAN region seems to be progressing at different speeds.4 Best performers are Brunei Darussalam, Malaysia, Singapore, and Thailand with internet penetration rates at or above 90% of the population, higher than OECD averages. Viet Nam, the Philippines, and Indonesia follow closely at around 70 or 80%. Lao PDR, Cambodia, and Myanmar are witnessing important growth in connectivity, but still lag, with around 60% of their population with access to the internet.
Share of individuals using the Internet by country, 2000‑24 (or latest available year)
Note: The share refers to the proportion of individuals who used the Internet from any location in the last three months. Access can be via a fixed or mobile network.
Source: ITU statistics (extracted on 20 October 2025).
Internet access can stimulate trade in goods and services by reducing trade costs (López González, Sorescu and Kaynak, 2023[9]). In ASEAN in particular, economies with a higher share of internet users tend to have a higher ratio of trade to GDP, underscoring the potential for benefits from digital trade for the region (Figure 1.3).
Singapore stands out with both a high proportion of individuals using the internet and trade accounting for more than three times its GDP. Likewise, Brunei Darussalam, Malaysia, Thailand, and Viet Nam are also well positioned combining high rates of internet usage alongside a substantial contribution of trade to GDP. By contrast, the Philippines features a more moderate engagement in international trade relative to the degree of internet access available to its population.
In Indonesia, Lao PDR, and Cambodia, further progress in connecting people and firms to the internet would allow these economies to better take advantage of the opportunities offered by international trade – including, among other benefits, its contribution to economic growth (Frankel and Romer, 1999[10]; Feyrer, 2019[11]; Arkolakis, Costinot and Rodríguez-Clare, 2012[12]).
Internet usage vs. trade as percentage of GDP by economy, 2023 (or latest available year)
Note: For Myanmar, no data was available for trade as percentage of GDP. Trade as percentage of GDP for Lao PDR represents the average over the years 2014 to 2016, which are the last three available years. Internet usage refers to the share of individuals who used the Internet from any location in the last three months. Access can be via a fixed or mobile network.
Source: World Bank Development Indicators (2025) and ITU Statistics (extracted on 20 October 2025).
1.3.2. Trade accounts for an important share of ASEAN economic activity
Understanding the evolving patterns of international trade in the ASEAN region helps identify the channels through which digitalisation can enhance the region’s integration into global markets. Overall, international trade, including both imports and exports, accounts for a significant share of economic activity in ASEAN, though exposure to trade varies across AMS, as reflected in their trade-to-GDP ratios (Figure 1.4). In most AMS, merchandise trade often exceeds GDP, except in Indonesia (35%), Myanmar (36%), and the Philippines (44%). Services trade generally plays a smaller role than merchandise trade except for Singapore, where it reaches more than 130%.
In % of GDP, 2024 (or latest available year)
Note: Figures include imports and exports. On trade in services refer to the year 2023 for Lao PDR and to the year 2019 for Myanmar.
Source: World Bank’s World Development Indicators (2025).
ASEAN merchandise exports amounted to around USD 1.8 trillion and imports USD 1.7 trillion in 2023, representing around 8% of global merchandise trade (Table 1.1). The top 3 AMS engaged in merchandise trade were Viet Nam, Singapore, and Malaysia, which together accounted for around 60% of regional exports and imports in 2023.
Merchandise trade statistics for ASEAN Member States, in USD million or percentage, 2023
Note: The table shows merchandise exports and imports by ASEAN Member States to the world, including intra-ASEAN trade.
Source: Balanced International Merchandise Trade Dataset (BIMTS) for goods trade (OECD, 2025[13]).
The structure of merchandise trade differs significantly across AMS (Figure 1.A.2). The Philippines, Viet Nam, Singapore, Malaysia, and Thailand are more significant exporters of machinery and electric equipment (Panel A. Figure 1.5). In turn, Brunei Darussalam and Lao, PDR, Indonesia, Malaysia and Myanmar tend to export minerals. Cambodia, Myanmar, Viet Nam are also strong textile and apparel exporters. By contrast, the import structures of AMS are more diversified (Panel B. Figure 1.5).
Note: Product groupings are based on the following HS sections (2-digit level): Agrifood (HS section 01 to 24), Mineral products (25 to 27), Chemicals (28 to 40), Materials (44 to 49, 68 to 83), Textile, apparel (41 to 43, 50 to 67), Machinery, electrical (84 to 85), Miscellaneous including transportation (86 to 97). Trade values are balanced and adjusted for re-exports.
Source: Balanced International Merchandise Trade Dataset (BIMTS) with adjustments for re-exports of goods trade (OECD, 2025[13]).
ASEAN services exports add up to around USD 450 billion with imports amounting to around USD 470 billion in 2023. This represents around 6% of global services trade (Table 1.2). Singapore occupies more than half of ASEAN services trade, at around USD 270 billion in exports and USD 250 billion in imports in 2023.
Trade statistics for ASEAN Member States, in USD million or percentage, 2023
Note: The table shows services exports and imports by ASEAN Member States to the world, including intra-ASEAN trade.
Source: Balanced trade in services (BaTIS) dataset (OECD-WTO, 2025[14]).
Among the most exported and imported services are other business services, transport and travel services often representing up to 80% of AMS service exports (Figure 1.6).
The geography of ASEAN trade is changing fast. Although intra-ASEAN trade remains important, the last decade has seen ASEAN trade – both merchandise and services – grow most with respect to partners outside the region, especially the People’s Republic of China (hereafter, China) but also the United States and the EU 27 (Figure 1.7).
Source: Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
Source: Balanced International Merchandise Trade Dataset (BIMTS) with adjustments for re-exports of goods trade (OECD, 2025[13]), and Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
Digital trade plays an increasingly important role both globally and for ASEAN (see Box 1.1 for a discussion on measuring digital trade). Globally, in 2022, digital trade accounted for almost a quarter (23%) of global trade in goods and services, or about USD 6 trillion, rising from around 20% two decades earlier. Digital trade is also growing faster than non-digital trade (at an average of 6.2% p.a. compared to 5% p.a. for non-digital trade from 2005 to 2022).5
The ASEAN region has achieved above global average growth rates. From 2005 to 2022, digital trade grew at an average of 9.9% per year in ASEAN, that is almost 4 percentage points higher than in the rest of the world (Figure 1.8). This has helped ASEAN close the digital trade gap with other major economies.
Changes compared to 2005 (2005=100)
Note: Digital trade is defined as outlined in Box 2.1, as the sum of digitally delivered trade and digital inputs embodied in non-digital trade. For measurement purposes in this work, digitally delivered trade is identified as Information and Communication Technology (ICT) services (ISIC 61, 62, 63) and other digitally deliverable services (ISIC 58 to 60, 64 to 66 and 69 to 82). Digital inputs embodied in non-digital trade is identified as ICT goods and services as well as other digitally deliverable services in non-digital sectors (all those not counted as digital). Trade data in the figure covers exports of the ten ASEAN Member States, and of the rest of the world encompassing 71 economies and a rest of world group in the 2025 TiVA revision. Other trade is defined as exports less digital trade. Gross exports cover the total economy (ISIC 01 to 98).
Source: calculation based on Trade in Value-Added (TiVA) dataset 2025.
For measurement purposes digital trade is defined as “all international trade that is digitally ordered or delivered” (IMF et al., 2023[15]). Digital trade is therefore a subset of international trade in merchandise and services.
While existing trade statistics, in principle, cover all digital trade transactions, digital trade remains largely invisible. For example, a digitally ordered book will be captured in trade statistics under the relevant customs code, but this code will not distinguish whether imported books have been digitally ordered or not. Similarly, the rise of international e-commerce has led to an increase in low-value goods crossing borders, which may elude traditional tracking methods if higher value thresholds are used.
These challenges are compounded by the rapid adoption of digital intermediation platforms (DIPs), which facilitate transactions for a fee, without taking ownership of the goods or rendering the services being intermediated. The identification of these platforms in business registers and the treatment of the transactions they facilitate – including which parts should be recorded as being cross-border, and with which partner country – pose significant empirical challenges.
National statistical offices are making significant efforts to address these challenges and to improve the coverage of their international trade data. Surveys are being expanded and new data sources (such as payment card information, administrative records, postal data) are being explored, including to better quantify small value trade.
Until better measures for digital trade are available, analysis has to proceed carefully, using estimates to shed light on particular aspects of trade in the digital era. This review follows the approach in López González, Sorescu and Kaynak (2023[9]).
Digitally delivered trade is approximated using digitally deliverable defined as those which can be delivered remotely through computer networks (IMF et al., 2023[15]). This covers exports of Information and Communication Technology (ICT) services (ISIC 61 to 63), such as computer and telecommunication services, and trade in other digitally deliverable services (ISIC 58 to 60, 64 to 66 and 69 to 82), such as exports of financial or business services.
Digitally ordered trade, although more challenging to identify, is proxied by the value of digital inputs in the production of non-digital sectors (as a proxy for digitally enabled trade). It covers the value of domestically sourced ICT goods, ICT services and digitally deliverable services that are embodied in the exports of non-digital sectors (which are all sectors except ICT goods, ICT services and digitally deliverable services).
Note: While digitally delivered trade can be derived from traditional statistics, digitally ordered trade is approximated by using input-output tables following López González, Sorescu and Kaynak (2023[8]). This measurement approach is not without caveats. First, it is important to note that there are no available and comparable measures of digitally ordered trade to understand the extent to which the approximation made is aligned with existing digitally ordered goods trade. The second is that the proxy measures proposed do not cover services trade under Mode 3, which are services supplied in a market via a commercial presence. Trade in Mode 3 are likely to be important since much digital trade operates through commercial presence.
In 2022, ASEAN as a region ranked 4th among major economies in digital trade with a share of more than 6% of global digital trade or around USD 387 billion, rising from 8th position almost two decades ago. Among ASEAN Member States, Singapore stands out, ranking 7th globally in 2022 with a share of about 4% of global digital trade – more than double its share in 2005 (Figure 1.9). By contrast, other major economies, such as the United Kingdom, Germany, and France saw a decline in their share of global digital trade. Other new key global players in digital trade include China, Ireland, and India.
Share in global digital trade by economy, 2022 versus 2005
Note: Digital trade is defined as outlined in Box 2.1, as the sum of digitally deliverable trade and digital inputs embodied in non-digital trade.
Source: calculation based on Trade in Value-Added (TiVA) dataset 2025.
However, participation in digital trade varies significantly across ASEAN Member States. Singapore accounted for almost two-thirds of total ASEAN digital trade or USD 246 billion in 2022 (Table 1.3). The Philippines (9.5%), Malaysia (8%), Indonesia (7%), and Thailand (7%), represented almost one-third of ASEAN digital trade, while Cambodia, Lao PDR, Myanmar, and Viet Nam (CLMV countries) jointly accounted for around 5%. That said, Cambodia, Myanmar, and Viet Nam were among the AMS with fastest growing digital trade (above 12%) in recent years.
Digital trade statistics for ASEAN Member States, in USD million or percentage
Note: Digital trade is defined as outlined in Box 2.1, as the sum of digitally deliverable trade and digital inputs embodied in non-digital trade.
Source: calculation based on Trade in Value-Added (TiVA) dataset 2025.
Digital trade accounts for an important and growing share of most ASEAN countries’ exports. Overall, digital trade represented around 19% of ASEAN exports in 2022, up from about 13% in 2005 (Figure 1.10). Singapore has the highest share at 45%, which is more than double the ASEAN region’s average in 2022. The Philippines follows with digital trade representing around one-third of its exports, exceeding both the OECD and ASEAN averages. By contrast, Lao PDR, Viet Nam, and Brunei Darussalam experienced declines in their digital trade shares.
Share of digital trade in overall exports, 2022 versus 2005
Note: ASEAN exports include intra-ASEAN trade flows. Digital trade is defined as outlined in Box 2.1, as the sum of digitally delivered trade and digital inputs embodied in non-digital trade. Gross exports cover the total economy (ISIC 01 to 98).
Source: Trade in Value-Added (TiVA) dataset (2025).
1.4.1. Digitally deliverable services drive growth of ASEAN digital trade
Digitally deliverable services – defined as services that can be delivered remotely through computer networks (IMF et al., 2023[15]) – are the backbone of digital trade in ASEAN. In 2022, they accounted for around three-quarters of the region’s digital trade (Figure 1.11, Panel A). This regional average is largely driven by Cambodia, Singapore, the Philippines, Myanmar, and Malaysia, where digitally deliverable services represent between 80% and 99% of digital trade, with notable growth compared to 2005. Other AMS remain below the regional average, including Indonesia (60%), Lao PDR (56%), Thailand (52%), Brunei Darussalam (48%), and Viet Nam (19%). In these countries, the share has either declined compared to 2005 or remained broadly stable, as in Thailand, pointing to a gradual shift towards digitally ordered trade as an increasingly dominant component of digital trade.
Digitally deliverable services are also the fastest growing segment of ASEAN international trade (Figure 1.11, Panel B). However, this trend hides significant diversity across the region. In Cambodia, Lao PDR, and Viet Nam, goods exports have expanded more rapidly than digitally deliverable services while in Indonesia both segments have expanded at a similar pace by 2023. For all other AMS, digitally deliverable services have been the strongest growing component of exports (Figure 1.A.3).
Note: Panel A. Digital trade is defined as outlined in Box 2.1, as the sum of digitally deliverable trade and digital inputs embodied in non-digital trade. Panel B. Digitally deliverable services are based on the list of services as outlined in Table 4.1 of the Handbook on measuring digital trade by IMF et al. (2023[15]). For the subcategories, such as SDMX-BOP SJ1, SJ2, SJ31, SJ34, SJ35, the parent code is use, in this case SJ. The figures are therefore based on the following services sectors: SF, SG, SH, SI, SJ, SK.
Source: Panel A. Authors’ calculation based on Trade in Value-Added (TiVA) dataset 2025. Panel B. Balanced International Merchandise Trade Dataset (BIMTS) with adjustments for re-exports of goods trade (OECD, 2025[13]), and Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
The main destination of ASEAN digitally deliverable services are the EU 27 (21%), the United States (13%), other ASEAN Member States (12%), Japan (11%), and China (7%). Overall, OECD Member countries are a strong destination for ASEAN digitally deliverable services exports (Figure 1.12).
In % of ASEAN digitally deliverable services exports, 2023
Note: Digitally deliverable services are based on the list of services as outlined in Table 4.1 of the Handbook on measuring digital trade by IMF et al. (2023[15]). For the subcategories, such as SDMX-BOP SJ1, SJ2, SJ31, SJ34, SJ35, the parent code is use, in this case SJ. The figures therefore are based on the following services sectors: SF, SG, SH, SI, SJ, SK.
Source: Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
1.4.2. ASEAN is the second largest exporter of ICT goods
Information and Communication Technology goods (ICT goods) support the digital transformation of economies in various ways, including enabling them to engage in digital trade. ICT goods involve a wide range of items, from electrical components like integrated circuits and semiconductors, to computers, and devices for consuming or delivering digital services, such as microphones or headphones (Box 1.2 provides an overview of products defined as ICT goods).
ASEAN is also among the key suppliers of the hardware that powers the digital transformation. It is the world’s second largest exporter of ICT goods. Notably Viet Nam saw its global export share of ICT goods almost triple in the last decade (Figure 1.13).
Share of ICT goods exports in global ICT trade, 2023 (otherwise indicated)
Note: Information and Communication Technology (ICT) goods in HS2017 at the 6-digit level are taken from UNCTAD (2017[16]).
Source: Balanced International Merchandise Trade Dataset (BIMTS) with adjustments for re-exports of goods trade (OECD, 2025[13]).
The OECD guide to Measuring the Information Society (OECD, 2011[17]) defines ICT products, including both goods and services, as “products [must] primarily [be] intended to fulfil or enable the function of information processing and communication by electronic means, including transmission and display”. Building on this, UNCTAD (2017[16]) provides a list of ICT goods based on the Harmonised System (HS), designed to closely align with the OECD definition while accommodating the HS structure, which organises goods by their degree of manufacture. The work’s analyses are based on UNTAD’s list of ICT goods at the HS6-level, except otherwise mentioned.
1.4.3. AMS rely strongly on foreign markets for their digital inputs
AMS also play an active role as importers of digitally deliverable services. Singapore stands out in this regard, ranking as the world’s 8th largest importer in 2023 (up from the 10th position a decade ago), with a share of around 4% of global digitally deliverable services imports.6 Across AMS, digitally deliverable services imports – largely consisting of other business services – have accounted for a growing share of services imports over the last decade (Figure 1.14), highlighting the region’s increased demand for services that enable the digital transformation.
More than half of ASEAN imports of digitally deliverable services originated from the United States, the EU27, and other AMS in 2023 (Figure 1.15). Intra-ASEAN sourcing has remained relatively stable over the past decade, at around 9%. Meanwhile, the United States has strengthened its role as a key supplier to the ASEAN market with its share rising from around 20% in 2013 to 25% in 2023, while the EU27’s share has slightly fallen (from 22% to 19%).
In % of services imports, 2013 versus 2023
Note: Digitally deliverable services are based on the list of services as outlined in Table 4.1 of the Handbook on measuring digital trade by IMF et al. (2023[15]). For the subcategories, such as SDMX-BOP SJ1, SJ2, SJ31, SJ34, SJ35, the parent code is used, in this case SJ. The figures are therefore based on the following services sectors: SF, SG, SH, SI, SJ, SK.
Source: Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
Share of ASEAN imports of digitally deliverable services by partner country, 2005‑23
Note: Digitally deliverable services are based on the list of services as outlined in Table 4.1 of the Handbook on measuring digital trade by IMF et al. (2023[15]). For the subcategories, such as SDMX-BOP SJ1, SJ2, SJ31, SJ34, SJ35, the parent code is used, in this case SJ. The figures are therefore based on the following services sectors: SF, SG, SH, SI, SJ, SK.
Source: Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
In 2023, ASEAN was the world’s third largest importer of ICT goods, accounting for over 13% of global imports, behind the EU 27 (17%), China (17%) and on par with the United States (13%) (Figure 1.16 Panel A). Within ASEAN, demand for ICT goods is driven by Singapore, which represents about 4% of global ICT imports and ranks as the 5th largest importing country worldwide. Viet Nam follows with 3.7% (7th globally), and Malaysia with 2.5% (12th globally). On the supply side, ASEAN sources more than one-quarter of its ICT goods from China, while intra-ASEAN trade and imports from Chinese Taipei each represent around one-fifth in 2023 (Figure 1.16 Panel B).
Note: Information and Communication Technology (ICT) goods in HS2017 at the 6-digit level are taken from UNCTAD (2017[16]).
Source: Balanced International Merchandise Trade Dataset (BIMTS) with adjustments for re-exports of goods trade (OECD, 2025[13]).
The digital transformation is reshaping international trade, expanding its scope, accelerating its pace, and creating new channels through which firms and individuals can participate and capture value. ASEAN is particularly well positioned to benefit. It combines a high trade-to-GDP ratio with rapid digitalisation (seeing a doubling in internet use in the last decade). This strong starting point suggests significant potential for AMS to broaden and deepen participation in digital trade as connectivity and digital adoption continue to spread.
ASEAN has actively prepared to realise opportunities by developing digital economy and digital trade frameworks since the late 1990s. Key initiatives, including the Agreement on Electronic Commerce, the forthcoming Digital Economy Framework Agreement (DEFA), and the AEC 2026‑2030 agenda, are building a multi-layered regulatory and strategic ecosystem that can reduce trade costs, enhance competitiveness, and strengthen ASEAN’s role as a digital trade hub.
These efforts are reflected in strong performance: ASEAN’s digital trade exports grew by nearly 10% per year from 2005 to 2022, reaching USD 387 billion (around 20% of exports and 6% of global digital trade) by 2022, driven especially by rapidly expanding digitally deliverable services. The region’s position is further reinforced by its strength in ICT goods—critical enablers of digital trade—with Viet Nam increasing its global export share substantially over the past decade.
Number of active mobile or fixed broadband subscriptions per 100 inhabitants, 2014 versus 2024 (or latest available year)
Source: ITU statistics extracted 04 December 2025.
Export similarity (Finger-Kreinin-index) across ASEAN Member States, 2023
Note: The index of export similarity of total exports (i.e. partner is “world”) in the table is based on Finger and Kreinin (1979[18]) with the formula: , which measures the similarity of the export patterns of country a and b to the world, where is the share of 6-digit-level good i in country a’s exports to the world. The index ranges between 0 and 1, where 0 refers to total dissimilarity of export patterns, and 1 refers to fully identical goods’ distribution of a’s and b’s exports to the world.
Source: BACI – International Trade Database at the Product-Level, 2025‑01 version, HS 2012 at the 6-digit level.
Exports, index=100 in 2005
Note: Digitally deliverable services are based on the list of services as outlined in Table 4.1 of the Handbook on measuring digital trade by IMF et al. (2023[15]). For the subcategories, such as SJ1, SJ2, SJ31, SJ34, SJ35, the parent code is use, in this case SJ. The figures therefore are based on the following services sectors: SF, SG, SH, SI, SJ, SK (SDMX-BOP).
Source: Balanced International Merchandise Trade Dataset (BIMTS) with adjustments for re-exports of goods trade (OECD, 2025[13]), and Balanced trade in services (BaTIS) dataset for services trade (OECD-WTO, 2025[14]).
References
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[3] ASEAN (2025), ASEAN Economic Community Strategic Plan 2026-2030.
[8] ASEAN (2025), ASEAN Responsible AI Roadmap 2025-2030.
[7] ASEAN (2021), ASEAN Digital Masterplan (ADM) 2025, https://asean.org/wp-content/uploads/2021/08/ASEAN-Digital-Masterplan-2025.pdf (accessed on 17 February 2026).
[6] ASEAN (2021), Bandar Seri Begawan Roadmap, https://asean.org/wp-content/uploads/2021/10/Bandar-Seri-Begawan-Roadmap-on-ASEAN-Digital-Transformation-Agenda_Endorsed.pdf (accessed on 17 February 2026).
[5] ASEAN (2019), ASEAN Digital Integration Framework Action Plan (DIFAP) 2019-2025, https://asean.org/wp-content/uploads/2020/12/Adopted-The-ASEAN-Digital-Integration-Framework-Action-Plan-DIFAP-2019-2025.pdf (accessed on 17 February 2026).
[4] ASEAN (2018), ASEAN Digital Integration Framework (DIF), https://asean.org/wp-content/uploads/2020/12/ASEAN-Digital-Integration-Framework.pdf (accessed on 17 February 2026).
[2] Casalini, F., J. López-González and E. Moise (2019), “Approaches to market openness in the digital age”, OECD Trade Policy Papers, No. 219, OECD Publishing, Paris,, https://doi.org/10.1787/818a7498-en.
[11] Feyrer, J. (2019), “Trade and income-exploiting time series in geography”, American Economic Journal: Applied Economics, Vol. 11/4, pp. 1-35, https://doi.org/10.1257/app.20170616.
[18] Finger, J. and M. Kreinin (1979), A Measure of`Exportof`Export Similarity’ and Its Possible Uses, https://about.jstor.org/terms.
[10] Frankel, J. and D. Romer (1999), “Does Trade Cause Growth?”, The American Economic Review, Vol. 89/3, pp. 379-399.
[15] IMF et al. (2023), Handbook on measuring digital trade.
[9] López González, J., S. Sorescu and P. Kaynak (2023), “Of bytes and trade: Quantifying the impact of digitalisation on trade” 2022.
[13] OECD (2025), The Balanced International Merchandise Trade Dataset (BIMTS).
[19] OECD (2023), Extending broadband connectivity in Southeast Asia, OECD Publishing.
[1] OECD (2023), Key Issues in Digital Trade Review: OECD Global Forum on Trade 2023 “Making Digital Trade Work for All”, OECD Publishing, Paris.
[17] OECD (2011), “OECD Guide to Measuring the Information”, https://doi.org/10.1787/10.1787/9789264113541-en.
[14] OECD-WTO (2025), Balanced trade in services (BaTIS) dataset.
[16] UNCTAD (2017), ICT goods categories and composition (HS 2017).
← 1. For a comprehensive overview of ASEAN digital initiatives, see the topology map of ASEAN digital documents in Isono, I. and H. Prilliadi (2023), ASEAN’s Digital Integration. Evolution of Framework Documents, Economic Research Institute for ASEAN and East Asia (ERIA), https://www.eria.org/uploads/10-Oct-ASEAN-Digital-Integration-Evolution-of-Framework-Documents.pdf, pp. 12‑13.
← 2. The ACCEC was founded in 2016.
← 3. Mobile broadband access represents more than 90% of total broadband subscriptions in general (OECD, 2023[19])) and the lion’s share in the ASEAN region (Figure 1.A.1).
← 4. Gaps in connectivity between key urban cities and periphery areas (within country) are likely to also be considerable raising issues related to the distribution of benefits from digital trade.
← 5. Estimates of digital trade are based on OECD TiVA database (2025) and follow the concept as outlined in López González, Sorescu and Kaynak (2023[9]) and Box 1.1.
← 6. The United States remains a major importer (14% of global digitally deliverable services imports), followed by Ireland, United Kingdom, and Germany (each at around 7%).