Session 3- Part 3 of 3

DigiSRII: Economy specific example

Witada Anukoonwattaka, Economic Affairs Officer Richard Sean Lobo, ConsultantTrade Policy and Facilitation SectionTrade, Investment and Innovation Division

Examining economy specific performance in regional integration:An example using Viet Nam

ProcedureOverall Index level

Step 1: Examine the performance of the economy in overall regional integration.

Step 2: Examine the performance of the economy in conventional vs sustainable integration.

Step 3: Examine the performance of the economy in different dimensions of regional integration (conventional and sustainable).

Dimensional index level

Step 4: Examine the performance of the economy in a specific dimension of DigiSRII.

Step 5: Examine the performance of the economy in the chosen dimension: conventional vs sustainable integration.

Step 6: Examine the performance of the economy across all indicators in chosen dimension (conventional and sustainable).

Step 7: Compare performance in a chosen indicator across all other economies.

Step 1: Performance in overall regional integration

2010−13 average 2014−17 average

BhutanBangladesh

FijiCambodia

KyrgyzstanPakistanMongoliaLao PDRSri Lanka

KazakhstanRussian Federation

IndonesiaBrunei Darussalam

IndiaTurkey

PhilippinesViet NamThailandAustralia

ChinaMalaysia

Republic of KoreaJapan

Singapore

0.2 0.3 0.4 0.5 0.6Index value

Direction of change between periods

Increaseyears_2010_13years_2014_17

Index Change: 2010−13 vs 2014−17DigiSRII: Asia-Pacific economies

• Viet Nam is in the group of average performers.

• It performs well in terms of progress over 2010-2017.

• It is the 8th most integrated economy in the region.

2010−13 average 2014−17 average

Pakistan

Russian Federation

Lao PDR

Turkey

Philippines

India

Indonesia

China

Australia

Viet Nam

Japan

Thailand

Republic of Korea

Malaysia

Singapore

0.4 0.5 0.6Index value

Direction of change between periods

DecreaseIncreaseyears_2010_13years_2014_17

Index Change: 2010−13 vs 2014−17Conventional integration Sustainable integration

<=25

thpct

26-74thpct

>=75

thpct

2010−13 average 2014−17 average

Kazakhstan

Indonesia

Viet Nam

India

Russian Federation

Turkey

Philippines

Thailand

Malaysia

China

Australia

Singapore

Republic of Korea

Japan

0.4 0.5 0.6 0.7Index value

Direction of change between periods

Increaseyears_2010_13years_2014_17

Index Change: 2010−13 vs 2014−17

Step 2: Overall conventional vs sustainable integration

Movement of people

Digital economy

Trade and

investment

Value chain

Finance

Regulatory cooperation

Infrastructure

0.0 0.2 0.4 0.6Dimensional value

Direction of change between periods

Asia−Pacific 2010_13Asia−Pacific 2014_17DecreaseIncreaseVNM_2010_13VNM_2014_17

Dimension average values: 2010−13 vs 2014−17

Drivers of conventional integration: Viet Nam

Step 3: Performance in DigiSRII conventional dimensions

• Infrastructure and regulatory cooperation are the most important.

• Viet Nam performs well above the regional average in trade and investment.

• Finance and regulatory cooperation are the main drivers of progress.

• Viet Nam made good progress in most dimensions.

Drivers of sustainable integration: Viet Nam

Sustainable movement

of people

Sustainable digital

economy

Sustainable value chain

Sustainable trade and

investment

Sustainable regulatory

cooperation

Sustainable infrastructure

Sustainable finance

0.2 0.4 0.6Dimensional value

Direction of change between periods

Asia−Pacific 2010_13Asia−Pacific 2014_17IncreaseVNM_2010_13VNM_2014_17

Dimension average values: 2010−13 vs 2014−17

Step 3: Performance in DigiSRII sustainable dimensions

• Sustainable finance and infrastructure are the most important.

• Viet Nam performs far below the regional average in sustainable RVC.

• Sustainable regulatory cooperation and infrastructure are the main drivers of progress.

Step 4: Performance in a specific dimension of DigiSRII

Overall digital economy integration : Asia-Pacific economies2010−13 average 2014−17 average

PakistanCambodiaMyanmarLao PDR

IndiaIndonesiaViet Nam

TurkeyPhilippines

Russian FederationThailand

ChinaMalaysia

JapanHong Kong, China

AustraliaNew Zealand

Republic of KoreaSingapore

0.2 0.4 0.6Index value

Direction of change between periods

Increaseyears_2010_13years_2014_17

Index Change: 2010−13 vs 2014−17• Viet Nam is placed towards the bottom of the group of average performers.

• Moderate progress, but remains below regional average for both periods.

Conventional integration Sustainable integrationStep 5: Digital economy integration: conventional vs sustainable

2010−13 average 2014−17 average

PakistanCambodiaMyanmar

IndiaLao PDR

IndonesiaRussian Federation

TurkeyViet NamThailand

PhilippinesChina

MalaysiaAustralia

New ZealandJapan

Republic of KoreaHong Kong, China

Singapore

0.2 0.4 0.6 0.8Index value

Direction of change between periods

Increaseyears_2010_13years_2014_17

Index Change: 2010−13 vs 2014−172010−13 average 2014−17 average

AfghanistanPakistan

TajikistanMyanmar

CambodiaBangladesh

NepalKyrgyzstan

Lao PDRIndia

Viet NamPhilippines

Sri LankaArmenia

IndonesiaUzbekistanAzerbaijan

GeorgiaMongolia

TurkeyThailand

KazakhstanIran

Russian FederationChina

MalaysiaHong Kong, China

JapanSingapore

Republic of KoreaNew Zealand

Australia

0.0 0.2 0.4 0.6Index value

Direction of change between periods

Increaseyears_2010_13years_2014_17

Index Change: 2010−13 vs 2014−17

Drivers of conventional digital economy integration: Viet Nam

Digital regulatory

similarity

Online purchases

Mobile account

ICT imports

ICT exports

ICT tariffs

0.3 0.5 0.7Indicator value

Direction of change between periods

Asia−Pacific 2010_13Asia−Pacific 2014_17DecreaseIncreaseVNM_2010_13VNM_2014_17

Indicator average values: 2010−13 vs 2014−17

Step 6: Performance in specific DigiSRII dimension (conventional)

• Use of online transactions and digital trade policy environment are major bottlenecks.

• Reducing digital trade restrictions and harmonising digital trade rules will support deeper integration.

Drivers of sustainable digital economy integration: Viet Nam

Secure servers

Online purchases

female

Household internet

Mobile account female

0.0 0.2 0.4 0.6Indicator value

Direction of change between periods

Asia−Pacific 2010_13Asia−Pacific 2014_17DecreaseIncreaseVNM_2010_13VNM_2014_17

Indicator average values: 2010−13 vs 2014−17

Step 6: Performance in specific DigiSRII dimension (sustainable)

• Viet Nam made good progress in household internet and women’s access to mobile accounts.

• However, still lags behind regional average performance in most indicators.

‘ICT tariffs’: Asia-Pacific economies

Step 7: Performance in specific DigiSRII indicator (conventional)

2014−17 average2010−13 average

CambodiaPakistan

IndiaLao PDR

Republic of KoreaRussian Federation

ThailandMyanmarIndonesia

ChinaViet NamMalaysia

TurkeyPhilippines

AustraliaNew Zealand

JapanHong Kong, China

Singapore

0.00 0.25 0.50 0.75 1.00Indicator value

Direction of change between periods

DecreaseIncreaseyears_2010_13years_2014_17

Dimension average values: 2010−13 vs 2014−17• Viet Nam is placed in the group of average performers.

• It performs above the regional average in both periods.

• Reflects its performance in conventional digital economy integration.

• There remains room for improvement in this indicator.

‘Household internet’: Asia-Pacific economies

Step 7: Performance in specific DigiSRII indicator (conventional)

2014−17 average2010−13 average

AfghanistanTajikistan

BangladeshNepal

Lao PDRKyrgyzstanCambodiaSri LankaPakistan

MyanmarIndia

MongoliaViet Nam

PhilippinesIndonesiaThailand

ChinaIran

GeorgiaArmenia

TurkeyRussian Federation

UzbekistanMalaysia

AzerbaijanHong Kong, China

KazakhstanNew Zealand

AustraliaSingapore

JapanRepublic of Korea

0.25 0.50 0.75Indicator value

Direction of change between periods

Increaseyears_2010_13years_2014_17

Dimension average values: 2010−13 vs 2014−17• Viet Nam is placed towards the bottom of the group of average performers.

• It performs well below the regional average in both periods.

• Reflects its performance in sustainable digital economy integration.

• There remains room for improvement in this indicator.

Thank you