ASEAN countries accelerate the promotion of digital construction

China UnionPay International, a subsidiary of China UnionPay, and Laos National Payment Network recently announced the implementation of their cooperation on QR code network interconnection. Starting today, consumers can use the Cloud QuickPass app, domestic wallets that support the "Cloud QuickPass Network Payment Platform", and overseas UnionPay cooperative wallets to scan and pay at Laotian merchants. According to reports, almost all merchants' sales terminals and ATMs in Laos now support UnionPay cards, and more and more local residents are using QR code payments.

The increasing popularity of electronic payments in Laos is a microcosm of ASEAN countries accelerating their digital construction. The ASEAN region has a total population of more than 600 million, the penetration rate of Internet and mobile phones has increased year by year, and electronic payment has a good foundation. According to consulting firm Bain&Company, the penetration rate of electronic wallets in payment methods in Southeast Asia is expected to increase from 4% in 2021 to 7% in 2025. The new generation of Internet access technology and artificial intelligence technology bring new opportunities to the development of e-commerce in the region. According to the "2024 Southeast Asia Digital Economy Report" jointly released by Google, Temasek, and Bain&Company, the electronic payment markets of Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines are expected to reach $220 billion by 2024, accounting for over 80% of the e-commerce market in Southeast Asia. Among them, QR code payments in Thailand are expected to account for 55% of e-commerce transactions.

Journalists have personally experienced the convenience of electronic payments in Southeast Asian countries. In Parkson Shopping Center in Vientiane, the capital of Laos, more and more restaurants and businesses accept WeChat, Alipay and other payment methods. The number of international tourists visiting Laos is constantly increasing, and many Chinese tourists prefer mobile payments. We need to keep up with the needs of our customers, "said Pu Mi, a staff member at the mall. The reporter saw in many shopping centers in Kuala Lumpur, Malaysia that many local people are using mobile phones to pay, and some businesses will also recommend using Alipay for shopping settlement. In Thailand, almost all industries such as supermarkets, restaurants, gas stations, and taxis accept electronic payments. The popular social, consumer, and shopping applications in Thailand all have electronic payment functions. At the supermarket checkout counter, the teller will also present the payment QR code for consumers to choose from. As long as you have a Thai bank debit card and have activated electronic banking services, you can scan the QR code for payment.

In recent years, governments of ASEAN countries have continuously improved their digital payment infrastructure and networks. The Indonesian government has launched the "National Cashless Campaign", issued electronic currency licenses, and launched a standardized QR code payment system in Indonesia, covering over 6 million merchants; The Thai government vigorously promotes the "quick payment" of the digital payment system. Users can only register their accounts and log in to the system through ID number, mobile phone number, etc; The Singapore government strongly supports digital banking, and the Monetary Authority has issued comprehensive digital banking licenses to ride hailing and food delivery platforms Grab, Singapore Telecom consortium, technology company Donghai Group, and others. In addition, countries in the region are also accelerating electronic payment connectivity. ASEAN has launched the "ASEAN Digital Integration Framework" to promote cooperation among member countries in areas such as data sharing, cross-border payments, and network security; Thailand's "Quick Payment" and Singapore's "Instant Payment" have achieved interoperability.

With the innovative development of digital businesses such as mobile payments and e-commerce, the digital consumer market in Southeast Asia is accelerating its expansion. To accommodate large-scale digital network applications, the demand for data center construction has increased accordingly. Southeast Asia is increasingly becoming a popular region for global data center investment, especially countries such as Singapore, Malaysia, and Indonesia, attracting multinational companies such as Amazon and Google to expand their investments. At the same time, the construction of smart city projects is steadily advancing to address the transportation, energy, and environmental issues brought about by urbanization. Singapore implements the "Smart Nation" plan and invests heavily in the fields of IoT, artificial intelligence, and big data; Thailand is promoting smart transportation and energy projects in Bangkok and other cities through the "Eastern Economic Corridor" plan; Hanoi and Ho Chi Minh City in Vietnam are also actively building smart transportation and smart housing projects.

ASEAN countries and China continue to strengthen digital technology cooperation, providing important assistance for regional countries to accelerate digital construction. For example, Huawei Cloud has jointly established 18 cloud availability zones in the Asia Pacific region and has over 15 industry partners in Thailand, launching more than 100 cloud services; China Mobile and Singapore Telecom have signed a memorandum of strategic cooperation, focusing on cooperation in multiple areas such as 5G and IoT applications, system integration solutions, etc. ASEAN Secretary General Gao Jinhong stated that ASEAN is acutely aware of the transformative power of digital technology and sees it as a new driving force for economic growth. Emerging technologies such as the Internet of Things and artificial intelligence bring enormous opportunities for ASEAN and China to expand cooperation.