Commerce/NDTP

Editorial team

JSCCIB launched Thailand’s National Digital Trade Platform

JSCCIB announces the success of the first key milestone of Thailand NDTP (National Digital Trade Platform).

The NDTP project is driven and owned by the Joint Standing Committee of Commerce, Industry and Banking (JSCCIB), an apex body of the three core private organizations of the Thai business sector with the objective of improving efficiency of end-to-end export and import processes and increasing access to financing particularly for SMEs.

A special sub-committee under the Office of the Public Sector Development Commission has been established to orchestrate various public sectors in supporting JSCCIB to drive the NDTP.

The NDTP platform is to be operational by 2024. Currently, it is in the feasibility study process that will allow the NDTP to respond to the needs and expectations of business sector and citizens.”

NDTP Phase 1 has been developed with blockchain technology and operated by National ITMX Company Limited (NITMX), the infrastructure service provider for payments in Thailand such as PromptPay.

The first phase is the critical milestone for Thailand to kick start international trade digitization. The scope includes implementation of standards, UNCEFACT, for electronic commercial documents including electronic purchase orders, electronic invoices and electronic packing lists.

This Phase 1 also includes authenticity verification of the underlying document for financing by banks by way of connectivity between NDTP and TDR, the platform connecting international trade financing banks which has been operative in providing double financing checking for banks since early 2022.

Participating banks in phase 1 NDTP/TDR include Bangkok Bank Public Company Limited, Bank of Ayudhya Public Company Limited, Kasikorn Bank Public Company Limited, Krungthai Bank Public, Siam Commercial Bank Public Company Limited,and TMB Thanachart Bank Public Company Limited.

The next step for Thailand NDTP is to establish a body to take what has been completed in Phase 1 forward, and continue the development and connectivity, in order to start offering services in the commercialization phases.

   

Mr. Payong Srivanich, chairman of the Thai Bankers’ Association and co-chair of JSCCIB said this achievement of NDTP Phase 1 is indeed a significant milestone in the digital transformation of Thailand’s international trade, which will make export and import easier, faster and more convenient for not only exporters and importers but also all other stakeholders. It will reduce time spent on preparing and processing documents.

Banks will be able to verify supporting documents for financing more efficiently in addition to the existing double finance checking on TDR. This will increase access to financing for exporters and importers and in turn increase the competitiveness of Thai exports particularly for SMEs.”

Mr. Kriengkrai Thiennukul, chair of the APEC Business Advisory Council (ABAC) 2022, chairman of the Federation of Thai Industries (FTI) and the chairman of JSCCIB said the importance of this NDTP project is helping the industrial sector, which is an important part of the country's imports and exports, in being more efficient and competitive.

Currently, imports and exports of goods worth up to 17 trillion baht in 2021, play an important role in driving the country's economy. This has been particularly true in the COVID era, where the export sector has been the main engine in driving the Thai economy. In addition, the NDTP project can help SMEs access financial loans more easily.

Mr Kobsak Pootrakul, chairman of the sub-committee of the Office of Public Sector Development Commission for NDTP, said a digital trade platform, as a part of digital trade transformation, is a key element to drive the digital economy for Thailand. Driving digital trade transformation is very complex.