ASEAN’s digital economy could significantly grow by 2030 but experts say the region will only get there if countries can make their digital systems work together in practice.
Speaking at the Autumn Economic Forum 2026, panelists said the challenge is not a lack of digital rules but rather the fragmentation of digital identity, payments and document systems across Southeast Asia, reports Vietnam Plus.
National systems are still designed for domestic use. As a result, businesses and individuals often have to repeat identity verification and compliance checks when operating across borders. Ellina Binti Roslan, senior director at MyDIGITAL Corporation, said ASEAN should focus on practical areas where interoperability delivers immediate value.
This extends to digital identity, payments, trade documents and trusted data sharing. Interoperability does not require countries to adopt identical laws or platforms, she argued. But systems can connect through common standards instead whilst preserving national sovereignty.
Roslan highlighted initiatives such as the ASEAN Single Window and cross-border payment links as examples of how countries can exchange information and process transactions without giving up control of their own systems.
The ASEAN Single Window is a regional platform that allows customs and trade authorities in member countries to exchange trade documents electronically across borders. Roslan also pointed to the need for strong privacy protections, clear governance frameworks and simpler compliance requirements, particularly for small businesses.
Felix Sharief, vice president of public policy and government relations at Indonesian fintech DANA, identified the lack of common standards as a major barrier to regional integration. He said ASEAN should prioritize open APIs, retail payment standards and fast-payment infrastructure.
These measures would allow national systems to connect without forcing countries onto a single platform. According to Sharief, the same model could eventually support cross-border eKYC services and open-finance initiatives across ASEAN.
Nguyen Van Thuat, deputy director of Vietnam’s National Authority of Digital Economy and Society, called for greater interoperability between ASEAN countries’ digital public infrastructure.
He said mutual recognition of digital identities, electronic signatures and trust services would make it easier for businesses to verify partners, exchange documents and complete cross-border transactions. Vietnam is in the process of completing trial connections between its VNeID digital identity platform, Singapore’s Singpass and Laos’ LAeID by November 15.
DEFA to be signed this month
The discussion comes as the ASEAN Digital Economy Framework Agreement (DEFA) is expected to be signed at the ASEAN Summit in November following the conclusion of negotiations in May.
While DEFA establishes rules for digital trade, data flows, payments and cybersecurity, speakers said regulatory frameworks alone will not resolve the region’s interoperability challenges. Speaking to Biometric Update recently, international advisor Christopher Goh believes Thailand is a regional frontrunner in open credential standards, with strong public key infrastructure (PKI).
ASEAN’s roughly 70 million micro, small and medium-sized enterprises (MSMEs) face a particularly heavy burden from digital fragmentation. Many lack the resources to navigate multiple national systems and repeated verification requirements, argue researchers for the Asian Development Bank Institute (ADBI).
The region has already demonstrated the benefits of interoperability through cross-border QR payment networks. But technical connections alone are not enough. Common security standards, trusted credential frameworks, fraud protections and governance arrangements are also needed, according to the ADBI blog post.
ASEAN eyes digital integration as a bulwark
The ASEAN Digital Masterplan 2030, an 80-page document that sets out priorities and strategy, mentions growing concerns. A backdrop of increased global fragmentation. Geopolitical tensions, supply-chain realignment and “rivalry” over technology are reconfiguring international trade.
Christopher Goh also spoke to this, commenting how outside forces have fueled economic reform. “The pressure cooker of the world outside has actually made them come together more substantively, because they are stronger together,” he told Biometric Update.
For ASEAN, these tensions create both risks and opportunities. As companies diversify supply chains and seek alternative manufacturing and logistics hubs, Southeast Asia is becoming increasingly attractive.
Speakers said ASEAN’s ability to capitalize on that shift will depend in part on whether identities, credentials, payments and trusted information can move seamlessly across borders rather than remaining trapped in national digital silos.
Under the Masterplan 2030, work on data protection and cybersecurity is expected to pave the way for broader cross-border digital identity and interoperability initiatives later in the decade. ASEAN can support progress with common principles, technical frameworks and knowledge-sharing, especially with national digital ID architecture, the document says.
Ultimately, speakers said, DEFA’s success will be measured by whether businesses and citizens experience lower costs, faster transactions and easier access to regional markets.
Article Topics
ASEAN | cross border identity verification | digital identity | digital public infrastructure | interoperability
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