Thailand’s Joint Standing Committee of Commerce, Industry and Banking (JSCCIB) of Thailand has announced that it has successfully completed a trial of a trade platform incorporating blockchain technology. JSCCIB collaborated with Japanese tech firm, NTT DATA, which has been developing a digital trade solution in Japan.
The trade platform deployed blockchain, artificial intelligence (AI) and other digital technologies. NTT DATA has been developing the platform in Japan through discussions with cross–industry companies consortium.
The trial achieved up to 60% faster processing of document processing, including preparation and delivery, which normally takes hours or even days to complete. It also confirmed that sharing information via the trade platform using blockchain technology can prevent the illegal practice of double financing, or receiving redundant financing from multiple financial institutions.
The B2B platform is part of Thailand’s National Digital Trade Platform project spearheaded by the JSCCIB. Once completed, the Thai blockchain trade platform will be connected with other trade platforms. The platform brings the entire trade ecosystem together.
The project could be a significant sign of progress for ASEAN's international trade as it will help improve efficiency, both in terms of the processing costs and time of trade transactions by digitalising the entire processes. Other benefits include improving SMEs’ ability to participate more in the economy and access to finance, all while preventing double financing and fraud documents.
Nattapon Dejvitak, head of a working group under the standing committee, said “We found it is a single integrated digital platform that connects all parties and enables the exchange of trade-related data and document digitally. The time and cost of export and import will be reduced dramatically, the risk of financial fraud will be mitigated, and the process of logistic and insurance arrangement will be streamlined through the platform.”
Thailand continues to focus on blockchain, with 22 banks now part of the Thailand Blockchain Community Initiative, as well as announcing three further blockchain projects, for VAT refunds, bonds and procurement, in the pipeline.