ASEAN e-commerce: economic challenges and prospects under trade agreements

Electronic commerce in the ASEAN countries is currently one of the most dynamic sectors of the regional economy, with a projected market volume of approximately USD 300 billion by 2025, underscoring the relevance of research in the context of global digitalization and deepening regional integration. The rapid growth of the sector is driven by high internet penetration (78% of the population, over 500 million users in 2022) and was further accelerated by the COVID-19 pandemic, which added about 70 million new digital consumers to the region. At the same time, this process reveals significant structural challenges, including differences in legal regulation, risks in data protection and cybersecurity, limitations in logistics, as well as digital inequality, especially in Myanmar, Laos, and Cambodia, where only about 27% of the population has internet access, while a gender gap persists. The study focuses on analyzing the economic challenges and prospects of electronic commerce in ASEAN through the lens of key agreements, such as the ASEAN E-Commerce Agreement of 2019, RCEP 2022, and DEFA, showing that these frameworks contribute to the harmonization of regulation, reduction of transaction costs, and market trust strengthening, despite persistent risks of dependence on foreign investments, tendencies toward platform monopolization, and tax disparities, which require enhanced regional cooperation to achieve sustainable and inclusive growth.

1. Feng, B., Feng, C. (2025). SME–Platform System Development in China–ASEAN E-Commerce: A Synergetic Evolution Perspective. Systems, 13(4), 218. https://doi.org/10.3390/systems13040218

2. Chan, T. M. H., Pidchosa, O., Hunda, A., Mo, C., Liu, D., & Liang, T. (2024). The Rise of Cross-Border E-Commerce in Southeast Asia: Trends, Players, and Market Dynamics. Hong Kong Review of Belt and Road Studies, 3(1), 67–99. https:// doi.org/10.63596/oborjournal.1.2024.67-99

3. Flores, J. S. (2025). The Impact of E-Commerce on small and medium enterprises in the second district of albay. International Journal of Research and Innovation in Social Science, 9(1), 841–883. https://doi.org/10.47772/IJRISS.2025.9010072

4. Rabe, W., Kostka, G. (2022). China’s growing digital reach: explaining citizens’ high approval rates of fintech investments in Southeast Asia. Review of International Political Economy, 29(4), 1098–1124. https://doi.org/10.1080/09692290.2022.2044884

5. Huong Ha, C.K., Chuah, P. (2023). Digital economy in Southeast Asia: challenges, opportunities and future development. Southeast Asia. A Multidisciplinary Journal, 23(1), 19–35. https://doi.org/10.1108/SEAMJ-02-2023-0023

6. OECD (2021). OECD Competitive Neutrality Reviews: Small-package Delivery Services in ASEAN. Competition Law and Policy Reviews. Paris: OECD Publishing. https://doi.org/10.1787/77fb3159-en

7. Mishra, N., Valencia, A. M. P. (2023). Digital services and digital trade in the Asia pacific: an alternative model for digital integration? Asia Pacific Law Review, 31(2), 489–513. https://doi.org/10.1080/10192557.2023.2216058

8. Wang, Y., Li, X. (2023). Why can ASEAN promote sustainable development cooperation? Revista Brasileira de Política Internacional, 66(2), e0222. https://doi.org/10.1590/0034-7329202300222

9. Ji, M., Gao, X., Liang, Y. (2023). Opportunities and Challenges of Cross-Border E-Commerce Development Cooperation between China and Southeast Asian Countries–Based on the Perspective of the Entry into Force of RCEP. Academic Journal of Business & Management, 13(5), 136–145. https://doi.org/10.25236/AJBM.2023.051319

10. Asian Development Bank (2023). E-commerce evolution in Asia and the Pacific: Opportunities and challenges. ADB.

11. ASEAN, UNCTAD (2024). ASEAN Investment Report 2024: Digital Transformation and Sustainable Investment. Jakarta: ASEAN Secretariat.

12. Junhai W., Dr. Oluwatobi G. A., Ibrahim, O. (2024). Advances and Constraints in Cross-border E-commerce in the Southeast Asia. Iconic Research and Engineering Journals, 8(4), 85–97.

13. Gao, X., Chen, X. (2025). The regime complex for digital trade in Asia and China’s engagement. Asia Europe Journal, 23, 393–413. https://doi.org/10.1007/s10308-024-00705-0

14. Ing, L. Y. (2023). ASEAN Digital Community 2045: Country Perspectives. Economic Research Institute for ASEAN and East Asia (ERIA).

15. Ali, A. S., Zaaba, Z. F., Singh, M. M. (2025). Advancing cybersecurity in ASEAN: current trends, emerging challenges, and opportunities for enhanced resilience. International Journal of Information Security, 24, 200. https://doi.org/10.1007/s10207-025-01111-2