The ASEAN Digital Economy Framework Agreement is expected to make a significant contribution to the development of the bloc’s digital economy. — VNS Photo Hồng Linh

HCM CITY — Cross-border data flows are becoming a growth engine for the ASEAN digital economy, raising the need for member countries to harmonise data protection, cybersecurity and sectoral requirements, the Autumn Economic Forum heard in HCM City on October 27.

John Low, senior partner and co-general director of Roland Berger Southeast Asia, said the next phase of economic integration would be driven not just by the movement of goods, but increasingly by data, digital services, technology, and ideas.

The ASEAN Digital Economy Framework Agreement would establish common rules for the bloc's digital economy, covering cross-border data flows, digital trade, payments, digital identity, cybersecurity, competition, consumer protection, and emerging Technologies, he said.

While data was a key driver of the digital economy, poor governance posed risks to privacy, intellectual property, trade secrets, and national security, making effective data governance crucial to ASEAN's competitiveness, he said.

Data underpins artificial intelligence, digital services, investment decisions, and regional supply chains, and trusted cross-border data flows would help digital platforms, supply chains, and smaller businesses expand beyond domestic markets, he said.

He said ASEAN should not treat economic openness and national security as opposing objectives, and governments need to facilitate both while safeguarding sensitive information and national interests.

The bloc does not need identical national laws, only compatible rules that allow data to move securely across borders, he said.

Governments should align regulations, remove unnecessary barriers, and harmonise data protection, cybersecurity, and sectoral requirements, he said.

Businesses should make data protection, cybersecurity, and digital trust board-level priorities, and incorporate secure data transfers into contracts, systems, and supply chains, he added.

Nguyễn Văn Thuật, deputy director general of the Ministry of Science and Technology's department of digital economy and digital society, said the agreement would create new opportunities in ASEAN's digital markets.

He identified three domestic policy priorities to help Việt Nam benefit from greater regional digital connectivity.

The first is improving the regulatory framework, he said.

Việt Nam already has numerous laws governing electronic transactions, digital transformation, artificial intelligence, and related fields, and the priority is to make regulations easier to follow, simplify administrative procedures, and reduce compliance costs for businesses, he said.

He also encouraged regulatory sandboxes for emerging technologies and business models.

The second priority is developing shared digital platforms to help small and medium-sized enterprises overcome the high costs and technical difficulties of adopting digital technologies, he said.

The third is strengthening business capabilities as digital transformation involves more than just buying software; it requires helping businesses improve productivity, competitiveness, and readiness for regional markets, he said.

His ministry has a programme to support digital transformation by SMEs, he said.

"We have a domestic market of 100 million people, and now an ASEAN market of over 600 million people is now accessible. Việt Nam can be a launchpad for our businesses to improve their products and prepare for ASEAN markets." — VNS