(Bloomberg) -- Southeast Asia can add as much as $1 trillion to its economy by 2025 through higher trade and growth from e-commerce and other digital opportunities for businesses, according to Bain & Co.
There's huge potential in the Association of Southeast Asian Nations, where the digital economy currently accounts for just 7 percent of gross domestic product, compared with 16 percent in China, 27 percent in Europe and 35 percent in the U.S., Bain said in a report on Monday.
Asean governments should improve digital payments domestically and regionally and adopt a uniform approach to data protection, the company said. It identified sectors like manufacturing, agriculture, retail, transport and logistics, and information and communication technology that will benefit significantly from digital integration.
Bain calculated the potential increase in GDP by taking into account productivity improvements, access to new markets through e-commerce or financial inclusion and growth of enabling sectors like ICT and logistics. The report was based on interviews and surveys of small and medium-sized businesses in the region.
To contact the reporter on this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net
To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net
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