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WELCOME The lecture of GMS Training Program

WELCOME The lecture of GMS Training Program. 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.

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WELCOME The lecture of GMS Training Program

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  1. WELCOME The lecture of GMS Training Program

  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. 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. 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. 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. Part II: e-commerce development in China E-commerce infrastructure situation in China Population of internet users (million) 150 100 50 2002 2003 2004

  7. Part II: e-commerce development in ChinaE-commerce’s model in China • 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. Part II: e-commerce development in China The increasing of transaction value of e-commerce (source:China National Network Information Center (CNNIC) ) US$ billion 60 40 20 2000 2001 2002 2003 2004

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

  10. Part II: e-commerce development in ASEAN The increasing of e-commerce revenue in ASEAN (source: ASEAN’s annual report) US$ billion) 7.5 5 2.5 1998 1999 2003

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

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

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

  14. Part II: E-ASEANE-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. Part II: E-ASEANCoverage scope of e-space Source: By Rodolfo Noel S. Quimbo

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

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

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

  19. Part III: E-commerce cooperation model: improve infrastructure jointlyInfrastructure 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 • ICTmanagement and training course • New Technologies of Optical Network & Internet • Access Network Training

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

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

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

  23. Part III: E-commerce cooperation modelGovernment 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. Part III: Opportunities brought by CAFTAE-commerce’s opportunities triggered by CAFTA • Introduction of CAFTA • E-commerce opportunities during the construction of CAFTA

  25. Part III: Opportunities brought by CAFTAIntroduction 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. Part III: Opportunities brought by CAFTAIntroduction 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 - started “early harvest” in 2004, more than 7000 commodities’ tariff were abolished

  27. Part III: Opportunities brought by CAFTAE-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. Part III: E-commerce’s future in CAFTAE-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. Part IV: China-ASEAN Expo’s (CAEXPO) impactPart IV: Outline • Introduction of China-ASEAN Expo (CAEXPO) • CAEXPO accelerates e-commerce’s popularization in China and ASEAN countries

  30. Part IV: China-ASEAN Expo’s (CAEXPO) impactIntroduction 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. CHINA-ASEAN EXPO

  32. Part IV: China-ASEAN Expo’s (CAEXPO) impactCAEXPO 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. Part IV: China-ASEAN Expo’s (CAEXPO) impactFive main contents ofCAEXPO • Commodity trade • Investment and Cooperation • Trade in service • High-level Forums • Cultural exchanges

  34. Part IV: China-ASEAN Expo’s (CAEXPO) impactAchievement ofCAEXPO • 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. Part IV: China-ASEAN Expo’s (CAEXPO) impactCAEXPO’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. Part IV: China-ASEAN Expo’s (CAEXPO) impactBring 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. Part IV: China-ASEAN Expo’s (CAEXPO) impactForum 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. Part IV: China-ASEAN Expo’s (CAEXPO) impactE-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. 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. 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. Multi-language website of www.caexpo.org

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

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

  45. Business matching Procedure of business matching

  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. CAEXPO information management system

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

  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. 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

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