Bridging digital transformation in an ASEAN-EAEU cooperation

 

Ruhimat Soerakoesoemah, Head of Subregional Office for South-East Asia, ESCAP
Andrey Panteleev, Head of Economic Policy Strategies Section, Macroeconomic Policy Department, Eurasian Economic Commission
Philip Diamant, Intern, Subregional Office for South-East Asia, ESCAP

 

Physical borders are shrinking, and digital ones are quietly taking their place. As governments use digital transformation as a powerful driver of economic and sustainable development, the challenge is no longer simply a digital divide between those with technology and those without it. It is a question of digital fragmentation, where infrastructure, standards and regulations make cross-border cooperation more difficult.  

 

This raises an important question of how economies in Asia and the Pacific can pursue digital sovereignty while remaining connected to trade, innovate and develop together.

 

One promising answer lies in closer cooperation between the Association of Southeast Asian Nations (ASEAN) and the Eurasian Economic Union (EAEU). Both regions are trying to build stronger digital capabilities while keeping their economies open to cross-border trade. Despite their different economic structures and development pathways, the two blocs share many of the same digital ambitions and challenges.  

 

 

 

Digital transformation has become a powerful driver of economic development, competitiveness and resilience. However, progress remains uneven within regions. While some countries are rapidly building digital infrastructure and services, others still face constraints in skills, financing and institutional capacity.

 

This means digital transformation is no longer solely considered in terms of technology. Governments are increasingly seeing it as a strategic priority which is linked to competitiveness, national security, sovereignty and their citizens’ well-being. For regional blocs such as the EAEU and ASEAN, this makes cooperation and the exchange of experience more and more important.

 

In the EAEU, this ambition is reflected in the work of the Eurasian Economic Commission. In 2017, the EAEU launched its Digital Agenda, which serves as the overarching framework for digital transformation processes across members States.

 

The EAEU’s regional approach is complemented by national efforts. A good example from Kazakhstan was how a dedicated ministry for artificial intelligence (AI) is established and that Kazakhstan had already passed new laws on AI, cybersecurity and digital assets and started running powerful computing centres. Kazakhstan's nationwide AI training programme is already reaching thousands of people. This is a good example of what a push towards digital sovereignty can look like.
 

 

 

Such a similar ambition can be seen in the ASEAN region, where the ASEAN Digital Economy Framework Agreement (DEFA) is expected to be launched at the 49th ASEAN Summit this November.

 

DEFA aims to create a more seamless regional digital economy by addressing areas, such as digital trade, cross-border shopping, e-signatures, cybersecurity, electronic payments and AI. The region has been asked for such a framework since SMEs account for 85% of jobs and 44.8% of GDP in South-East Asia, but they generate only around 18% of exports.

 

At the same time, the region's digital economy is already worth an estimated US$ 0.5 trillion and is expected to double to US$ 1 trillion by 2030. With an effective implementation of DEFA, this number can be further increased to US$ 2 trillion. 

 

With all these developments, the complementary strengths of ASEAN and the EAEU are highlighted. The EAEU's experience in building digital public platforms, solutions for critical infrastructure and cybersecurity frameworks is complemented with ASEAN's dynamic markets, vibrant digital entrepreneurship and successful models for commercialising digital services.

 

A stakeholder survey conducted by ESCAP across EAEU and ASEAN countries in 2025 found broad agreement on the nature of digital transformation, priority technologies and key risks. This suggests that, despite their different contexts, the two regions share significant common ground for cooperation.

 

This is where ESCAP can play an important convening role as the UN’s regional body for Asia and the Pacific. Through the project “Strengthening Regional Cooperation in Digital Transformation for Economic and Sustainable Development”, ESCAP is working with ASEAN and EAEU countries to help identify practical solutions, share experiences and advance opportunities for collaboration between the regions. Policymakers explored how both subregions can cooperate more efficiently across borders. 

 

Interesting examples include the benefits of interoperability. Eleven South-East Asian economies now run their own QR-payment systems, with eight already working across at least one border. This same interoperability is starting to reach across other subregions, with a QR-code issued by a Russian bank already working in Viet Nam. These experiences demonstrate a clear scope to explore how similar approaches could support wider cross-border cooperation between ASEAN and the EAEU.

 

In hindsight, the first sentence of this blog could have been: Physical borders may be shrinking, but digital borders are still being drawn. Addressing digital fragmentation requires dialogue, shared standards, and practical cooperation that allows countries to benefit from the digital transformation. Initiatives like this aim to strengthen interoperability and knowledge sharing across subregions and promote a digital future of Asia that is connected, inclusive and supports sustainable development for all.
 

 

Source: ESCAP