The digital economy is growing at an unprecedented rate, accounting for nearly 16% of global GDP today, and 18% by 2028. Southeast Asia is a particular powerhouse, with the digital economy projected to exceed USD$1 trillion by 2030.
Digital trade is estimated to account for around one-quarter of all crossborder commerce. Exports of digitally-delivered services and platform-based “e-commerce” are large, and growing more rapidly than traditional trade.
Despite this vibrant landscape, New Zealand digital exports to the ten economies of the Association of Southeast Asian Nations (ASEAN) are low. This is out of step with the wider trade relationship – where ASEAN is a top partner – and with New Zealand’s trade profile, where tech is the thirdlargest export overall.
There are certainly some great New Zealand success stories in Southeast Asia across a range of sectors, including education (edtech), sustainability (green tech), financial services (fintech), medical services (healthtech) and agriculture (agritech).
Successful business models are not just about direct sales, whether B2B or B2C, through an app or over a platform.
Some businesses use cross-border partnership models to help navigate complex regulatory landscapes and strengthen cultural fit.
Other businesses are leveraging the Southeast Asian talent pool for scale and efficiency back home – and even to service third markets.
Digital technologies can also support ‘non-tech’ exports – including goods exports via e-commerce platforms; and digital tools and systems that can reduce costs and increase integrity, such as digital supply chain management platforms, e-invoicing or e-payments.
Awareness of the digital opportunities in Southeast Asia is generally low in the New Zealand business community, with tech exporters much more likely to look to Australia, North America, the United Kingdom and Europe – more familiar environments, and important sources of venture capital.
Those doing business in Southeast Asian markets agree that understanding and responding to customer preferences is key (as it is for traditional trade). Products, delivery channels and business models all have to be “localised” – and each of the very distinct ASEAN markets needs to be considered on its own.
Relationships and networks are also critical, and can only be established and sustained over the long term with in-person visits – even for cloud businesses. Partnerships can provide significant benefits in adapting to markets and navigating regulatory complexities. In-market conferences, trade missions and regular familiarisation visits and check-ins all have a part to play.
Source: Honey Consulting