NTT Data has completed a blockchain technology trial in Thailand following a partnership with industry body the Joint Standing Committee of Commerce, Industry and Banking (JSCCIB).
The technology provider was tasked with helping identify the “feasibility and benefits” of a cross-industry trade platform under Thailand’s National Digital Trade Platform (NDTP) project, leveraging a “paperless international trade” model.
A private-sector initiative led by JSCCIB, the aim is to build a B2B trade platform for international trade in Thailand and the wider ASEAN market.
The platform deployed blockchain, artificial intelligence (AI) and digital technologies through NTT Data, first developed in Japan through consortium discussions with banks, insurance companies, cargo owners and logistics firms.
“The benefits of using electronic trade documents for international trade were examined by 47 trial participants from 24 cross-industry companies, including Thai banks, Thai forwarders, Thai carriers, Thai exporters, Thai insurers, Thai certificate of origin providers and Japanese importer, took part,” said Hironari Tomioka, president and CEO of Thailand, NTT Data.
“Trade documents such as purchase orders, invoices, shipping instructions, sea waybills, certificates of origin, export permits, insurance policies and trade finance documents were used in mock business scenarios during the trial.”
The trial achieved up to 60 per cent faster processing of document processing, including preparation and delivery, which normally takes "hours or even days" to complete, according to Tomioka.
Furthermore, the project 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.
“We found it as a single integrated digital platform that connects all parties and enables the exchange of trade related data and document digitally,” added Nattapon Dejvitak, head of working group, 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 logistic and insurance arrangement will be streamlined through the platform.”
Going forward, NTT Data said plans are in place to realise 100 per cent paperless international trade that eliminates the need for paper documents and increases the efficiency of trade procedures.
The provider also plans to introduce its trade platform in the ASEAN region in cooperation with local government agencies and service providers.
“We greatly appreciated conducting this trial with JSCCIB, which has been actively initiating trade digitalisation in Thailand,” said Ken Tsuchihashi, president and CEO of Asia Pacific at NTT Data. “This was a valuable opportunity for both parties to confirm the advantages and challenges of introducing a digital platform for international trade.
“We look forward to continuing our close work with JSCCIB to facilitate trade between Thailand and Japan.”
Specific to Thailand, NTT Data acquired Locus Telecommunication in September to enhance digital transformation offerings amid market expansion across the country.
The acquisition came more than two months after global SAP specialist itelligence AG acquired ISS Consulting, as the subsidiary of NTT Data Group builds out software capabilities in Thailand.