The National Digital Trade Platform (NDTP) will work alongside a fintech affiliate. The firm conducted a proof-of-value workshop for an NDTP working group from the Joint Standing Committee on Commerce, Industry and Banking of Thailand (JSCCIB).
The JSCCIB, which is composed of the Thai Chamber of Commerce, Board of Trade, Federation of Thai Industries and Thai Bankers Association, has been appointed by the government of Thailand as one of the parties that will work with the Office of the Public Sector Development Commission to set up the NDTP, a joint statement said.
The NDTP will be a central system linking international digital trade data that is compliant with international standards.
Over 25 leaders and representatives of the Thailand Banking Association and Federation of Thai Industries attended a workshop hosted by the fintech arm.
During the workshop, the company showcased a system prototype demonstrating how advanced blockchain and cryptography technologies enable information exchange while ensuring commercial data privacy within a digital trade platform.
In addition, the company showed how trade processes are digitised and simplified through data and document threading, and how to trade irregularities can be detected and risks reduced through data cross verification.
The fintech affiliate also shared its experience and capability in developing and operating similar platforms in Asia, such as eTrade Connect, a blockchain trade finance platform the company built for the Hong Kong Monetary Authority, and China’s first cross-border trade service blockchain for Tianjin Port.
As part of the workshop, both parties exchanged information on the challenges encountered by the trading and financial services communities and how Thailand’s NDTP can be a central platform connecting to the National Single Window to centralise online import-export data related to customs, export agents, freight forwarders and the shipping and airline companies.
OpenGov Asia reported that in November 2019 the Joint Standing Committee of Commerce, Industry and Banking (JSCCIB) of Thailand completed a trial of a trade platform that leverages blockchain technology.
The test was run as part of JSCCIB’s private sector initiative to develop a National Digital Trade Platform (NDTP) in Thailand. The project is being developed to boost international trade in Thailand and the broader ASEAN region.
NDTP aims to increase the efficiency of trades by reducing processing cost and time. It will also help curb double financing and fraudulent documents as well as improve access to finance for SMEs.
Forty-seven participants from 24 different industries explored the benefits of digitalization of trade documents for international trade. JSCCIB said the trial achieved over 60% faster processing of trade documents.
Researchers found it is a single integrated digital platform that connects all parties and enables the exchange of trade-related data and documents digitally, according to the Head of Business Requirements Working Group for JSCCIB.
The time and cost of export and import will be reduced dramatically, the risk of financial fraud will be mitigated, and the process of logistics and insurance arrangement will be streamlined through the platform.
The trade platform uses blockchain and AI, among other technologies. Thai banks, forwarders, carriers, exporters, insurers and a Japanese importer took part in the trial.
Trade documents such as purchase orders, invoices, shipping instructions, sea waybills, certificates of origin, export permits, insurance policies and other materials were exchanged electronically between the participants.
The primary goal is to link the trading platform with the National Single Window and other platforms developed by neighbouring countries to boost trade in the ASEAN region.
