Post on 15-Jul-2020
transcript
Digital Trade Facilitation and Emerging Technologies
Somnuk Keretho, PhDDirector, Institute of IT Innovation
Kasetsart University, Bangkoksk@ku-inova.org
Somnuk Keretho, PhD 1
ESCAP-ARTNET-ITD Trae Facilitation for Sustainable Development Workshop 2019
Bangkok, Thailand: 23 – 26 September 2019
Topics of Discussion
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Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.
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Digital Disruption / Enabling Environment
• 4G/5G Internet
• Smart Mobile Penetration
• E-Banking
• Interbank Online Payment
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• Social Media / Social App
• Digital Platform:B2B, B2C & C2C e-Commerce
2018
5สถาบันนวัตกรรมเทคโนโลยีสารสเนทศ ม.เกษตรศาสตร์
PromptPay
&
QR Code
Services
for
Interbank
Online
Payment
At any Fresh Markets around the country,MSME can receive payment online.
Thailand tops global digital rankings
Thailand ranks
• No.1 for mobile banking users
• 2nd for ownership for cryptocurrency
• 3rd in mobile commerce
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Global Digital Ranking Report 2019
FinTech
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Emerging Technology
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What is blockchain?Blockchain = a distributed “ledger” (records) of transactions
• Temper-proof/Immutable
• Decentralized control
• Highly resilient
9Somnuk Keretho, PhD
รายงานขององค์การการค้าโลก
พฤศจิกายน 2018
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Blockchain has the potential to improve global trade significantly.
But the technology alone is not enough,
other challenges (e.g. collaboration, regulations) need to be managed!
A WTO Report (November 2018)
2018
A WEF Report (January 2018)
Blockchain could help increase the global trade
by 1.1 Trillion USD within 2026
Yes,Highly Likely !
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Commercial
Financial Transport
Regulations
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Blockchain for Trade Finance could revolutionize global trade by increasing 1 trillion USD trade by 2026*
* A report during World Economic Forum 2018 (conducted by Bain & Company, and HSBC), from the base of US$ 16 trillions global trade.
2018
L/C Approval
80% faster
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As-Is vs To-be Model
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Blockchain for L/C Payment Settlement
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Bank (HSBC)
Importer(Cargill
Malaysia)
Bank (ING)
Exporter(Soybean, Argentina)electronic L/C &
electronic Bill of Lading (from Bolero network of
ocean carriers), but other regulatory documents
still in paper forms, e.g. C/O (potentially fraud)
Time reduction from 5-10 days to 24 hours
* Reference: Voltron (R3 Corda) blockchain platform for L/C Trade Finance
Payment Settlement
80%faster
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Use of L/C vs Open Account (1978 – 2013)
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L/C 20%
Open Account
80%
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We.Trade & Marco Polo are two example blockchain platforms for Open Account Trade Finance
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SME’s could access to more finance for trade (with less risks, and better transparency of blockchain)
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A pilot project to connect Bank-to-Bank L/C Blockchain with Thai NSW (2019/2020)
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BC Trade Finance Thai (regulatory) NSW
Bank
Bank
Bank
BankBank
Dept of Foreign Trade (DFT)
Dept of Agriculture
Customs Dept
.
.
.
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Blockchain for sea freight•
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Somnuk Keretho, PhD https://www.asiablockchainreview.com/thai-customs-to-use-maersk-ibms-tradelens-blockchain/ 18
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Blockchain for end-to-end ocean freight transactions
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Expected Benefits of Blockchain in Thai Customs
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Blockchain for Bank Guarantee
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Artificial Intelligence / Machine Learningat China Customs
• Application of automatic image recognition
• The system can detect 120 Iphones (smuggled goods)in the photo (from X-ray machines).
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Thank you for your interest
Q & A
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