The UK government delivered a Digital Trade Toolkit workshop for Cambodia, Laos, Timor Leste and Vietnam on 24 April 2026 in Phnom Penh.

Micro, small, and medium enterprises, more commonly known as MSMEs are often called “the backbone” of ASEAN economy as they make up over 97% of businesses in ASEAN and employ around 85% of the workforce. 

In recognition, not only has ASEAN prepared its Strategic Action Plan on Micro, Small and Medium Enterprise Development 2026–2030, the forthcoming Digital Economy Framework Agreement (DEFA) further aims to harmonise rules on paperless trade, e-commerce, cross-border data flows, and digital payments across ASEAN, aiming to ensure that digitalisation benefits all, especially women entrepreneurs, rural and small businesses. 

Interestingly…”only 16% of all these small businesses use digital technology to the fullest potential,…which is a competitiveness gap…” according to Mr. Ea Hai Khov, Assistant Director of the Enterprise and Stakeholder Engagement Division of the ASEAN Secretariat at a kick-off workshop for the Digital Trade Toolkit for MSMEs in ASEAN.

Held in Phnom Penh Cambodia on 24 April, the workshop marked the official launch of the initiative aimed at supporting ASEAN Member States in strengthening MSME capacity to participate in the region's digital trade ecosystem. 

“The importance of digital trade tools for all businesses today is fundamental. Taking advantage of digital trade tools (for MSMEs) can really help access new markets, improve efficiency and drive down cost… and help MSME’s build resilience to ups and downs of the market,” according to H.E. Dominic William MBE, British Ambassador to Cambodia. “…And the UK is supporting this through the ASEAN Economic Integration Programme for two reasons. … This year marks the fifth year as the UK joined ASEAN as a Dialogue Partner. So … we are taking a number of actions that show that ASEAN matters to us, and this is one of those many initiatives. The second reason is the impact it will make. We are believers in the importance of growth and prosperity of this region…” 

He emphasised the UK’s commitment to this agenda because that as one of the fastest growing in the world, growth in ASEAN will impact the global economy, which will further impact open trading nations like the United Kingdom, that benefits when the global economy becomes stronger. 

“The SAPSMED and forthcoming DEFA sends an unambiguous signal that the future of ASEAN economies will be digital, it will be connected, and it would be deeply integrated,” said H.E. Nhim Khemara Rosa, Director General, General Department of Small and Medium Enterprises and Handicraft. “The question is how would we actually bring them (MSMEs) on board and how quickly and effectively can we help them to do so. Today’s workshop, although it’s a start, it is not a standalone event. It connects national reform priorities, with regional commitments, and directly contributes to the implementation to the ASEAN Strategic Action Plan and also the opportunities that would be emerging under DEFA as well. 

The event featured presentations on the ASEAN Strategic Action Plan on MSME Development 2026-2030 and the regional overview of the digital trade toolkit project, followed by real-time feedback from public and private sector participants. Country representatives from Cambodia, Lao PDR, Timor-Leste, and Vietnam shared their national assessments and implementation strategies, highlighting challenges specific to each country including digital literacy gaps, informal business registrations, and infrastructure limitations.