The MoU with Vietnam was the fifth of its kind after TradeWaltz signed MoUs with four other ASEAN members, including Brunei, Thailand, Singapore, and Indonesia. The agreements have all been made since the ASEAN-Japan Economic Co-Creation Vision was announced on August 22, which embedded the concept of digitalising and connecting trade procedures between ASEAN and Japan using blockchain.
Signing the corporation MoU and the way forward
The signing of the MoU took place on FPT Techday 2023 – FPT's largest in-house event on October 24. The initial system integration will be completed in February, and it will then be further refined.
TradeFlat, developed by FPT Information System, has been exploited in the Japanese market by FPT Japan Holdings, two subsidiaries of FPT Corporation.
This is the first trade platform in Vietnam that performs letter of credit (LC) settlements for trade finance with blockchain technology.
TradeFlat can handle end-to-end LC operations using blockchain. In this way, the solution reduces 90 per cent of the document transfer time compared to traditional financing transaction flows, cuts half of the bank staff's operational processing time, and increases productivity and efficiency threefold.
TradeFlat is integrated with the Made by FPT ecosystem, including electronic invoicing (FPT.eInvoice), electronic contracts (FPT.eContract), and electronic signatures (FPT.eSign), to make the experience on the system seamless.
Along with that, accurate, real-time data helps minimise issues due to a lack of information and difficulties in finding bank and product consumption partners.
This is a key factor in helping businesses shorten the time it takes to receive support from the bank and ensures stable operations. For banks, it is also possible to assess the financial health of businesses, thereby facilitating decision-making.
|Businesses can easily resolve capital financing problems in commercial transactions with TradeFlat
TradeFlat approached TradeWaltz hoping to collaborate to expand the functions of commercial and financial flows, and decided to proceed with a full-scale collaboration modification.
Tran Dang Hoa, chairman of FPT Information System said, "With the integration of TradeFlat and TradeWaltz, FPT Information System and FPT Japan Holdings aim to achieve the mission of becoming Vietnam's leading technology enterprise, accompanying the government and enterprises in developing business activities, becoming a model to digitalise global trade processes, and removing barriers related to the import-export procedures between enterprises in the two countries."
"From here, it will create better conditions for transitions in the global supply chain and facilitate international trade, completing the goal of strengthening the two countries' relations," added Hoa.
|TradeWaltz is the only platform in Japan that digitalises trade procedures for commercial, logistics, and financial flows with blockchain.
Satoru Someya, executive officer, COO, and CMO of TradeWaltz Inc. said, “We are pleased to sign this MoU with FPT. Vietnam was the ASEAN chair country in 2020 when TradeWaltz was founded, and we have had many discussions on trade digitalisation, including at governmental level. We believe the cooperation between TradeFlat and TradeWaltz will help make great improvements in this area.”
The ASEAN-Japan Economic Co-Creation Vision
In commemoration of the 50th anniversary of the friendship between ASEAN and Japan, the Economic Co-Creation Policy for the next 50 years was announced on August 22 during intergovernmental consultations to realise a safe, prosperous, and free economic society between ASEAN and Japan that is based on trust.
Among the four policies to be covered, enhancing cyber and physical connectivity includes the concrete implementation of the Indo-Pacific Economic Framework, free and reliable data flows to build a seamless logistics network, and the elimination, digitalisation and linkage of trade procedures for commerce, logistics, and money flow between ASEAN and Japan using blockchain technology.
TradeWaltz is the only platform in Japan that digitalises trade procedures for commercial, logistics, and financial flows with blockchain.
The status of trade digitalisation with Vietnam
Vietnam has a long-standing and close relationship with Japan in terms of trade and digitalisation, and Japanese products are so prevalent in the country that the word Honda is sometimes used to refer to a motorcycle.
Due to the pandemic, many Japanese manufacturers – mainly of medical products – have relocated and dispersed their production facilities to Vietnam. The nation has become a preference for Japanese companies when setting up overseas factories.
In 2020, when TradeWaltz Inc. was founded, the platform was used for transactions with LCs using Mitsubishi Corporation Plastics' Vietnamese commercial distribution chain within the support projects related to the diversification of supply chains from the Japanese Ministry of Economy, Trade, and Industry (METI).
Then METI Minister Kajiyama and Vietnam’s Minister of Industry and Trade Tran Tuan Anh have conversed about the efficiency of Japan-Vietnam trade procedures, which was incorporated in a joint ministerial statement.
Since then, discussions have been held on the establishment of a trade consortium in collaboration with FPT Corporation and major banks, as well as on the creation of a platform.
On May 1, 2022, during Prime Minister Kishida's visit to Vietnam, he spoke to Prime Minister Chin, saying, “The digital transformation is expected to enable Vietnam and Japan to cooperate to solve social and economic challenges in a wide range of fields. For example, the private sector in Japan and Vietnam have begun to work together to improve efficiency by digitalising paper-based trade procedures.”
For more details, please visit: https://www.tradeflat.com/
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