Thailand has integrated its national trade blockchain with Japanese blockchain TradeWaltz and Singapore’s Networked Trade Platform (NTP). The pilots for NDTP, created with public-private partnership will begin soon in an effort to minimize paperwork and increase ease of doing business. As a test, two pilot but rea transactions between Thailand and Singapore were made, along with four test transactions with Japan as a proof of concept.
The National Digital Trade Platform has been created to streamline and centralized export and import operations in Thailand. Currently there are 20-30 entities that get engaged in every trade deal. Paperwork and the impact of Covid-19 has further increased the need for a more efficient system.
NDTP will also allow small and middle enterprises to easily access loans, as the blockchain will incorporate banks through the trade document registry for verification. The national trading blockchain of Thailand has been developed by the Joint Standing Committee of Commerce, Industry and Banking (JSCCIB), which is formed by three private Thai business organizations. The Thai government is involved through the participation of office of public sector development commission.
The commercialization phase will see services being offered by NDTP. In its first phase, NDTP will digitize trade documents such as invoices or packing lists and transport documents. The digitized records will be connected with the trade document registry created this year.
The first phase of NDTP was developed by the Thai payment operator, National ITMX Company. Legal aspects are taken care of by Baker McKenzie Thailand. The initial set of banks taking part include the Bangkok Bank, Siam Commercial Bank, etc.
NDTP is expected to make trade easier, faster and more convenient for everyone involved, as per the Chairperson of Thai Bankers’ Association. The blockchain will make it easier to verify loan documents or check double financing.
Japan’s TradeWaltz is a trading platform developed by NTT in which investments have been made by companies such as Mitsubishi, NTT Data, and Toyota Tsusho. It has raised nearly 4 billion Yen in investments, and has over 130 participants from Japan. Along with Thailand and Singapore, it also connects with Australia and New Zealand via TradeWindow.
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