The Mekong-U.S. Partnership Track 1.5 Policy Dialogue on Digital Economy recently culminated in its eleventh and final meeting in Bangkok, Thailand, from August 13-15, 2025. This series, spanning five years, brought together experts across various sectors to discuss pressing challenges and opportunities that the Mekong sub-region faces in the realm of digital economy.
Central to this session were themes of data governance, digital platforms, e-commerce, artificial intelligence (AI), cyber resilience, online scams, and training a digital-ready workforce. The discussions were attended by 70 experts, with a substantial proportion hailing from Mekong countries and a notable participation from the U.S. This engagement demonstrated the strong collaborative spirit aimed at addressing the pressing issues related to digital transformation in the region.
Growing Digital Economy in the Mekong Region
The digital economy in Southeast Asia has undergone rapid growth, with its value doubling to over $200 billion between 2019 and 2022. Projections indicate that this could double again by 2030, marking an escalating momentum in the area. The dialogue revealed critical gaps, particularly concerning the integration of e-commerce and digital trade, varying data governance laws, the challenge of maintaining digital trust in the face of cyber fraud, and the underlying need for upskilling the workforce.
Attendees at the dialogue prioritized solutions across various thematic areas. Key recommendations responded to the challenges faced by small and medium enterprises (SMEs), who often struggle with compliance issues stemming from the myriad of e-commerce regulations across countries. Simplifying rules and offering harmonized standards for SMEs was a common refrain, as these businesses are crucial for regional economic development yet face high barriers to digital engagement.
Data Governance: A Patchwork of Regulation
One of the standout themes was that of data governance, where the regulatory landscape remains fragmented across the Mekong region. Countries like Thailand and Vietnam have instituted data localization laws, which create hurdles for companies operating across borders. This presents a significant challenge, especially for SMEs that must navigate a complex and varying regulatory framework that can impede economic integration.
Sessions emphasized the need for governments to establish clear accountability structures for data classification. This harmonization is essential not only for facilitating cross-border trade but also for fostering technology adoption by building digital trust. Collaborative efforts between governments, private sectors, and civil society can drive progress in this area.
Cyber Resilience in the Face of Online Scams
Cybersecurity emerged as a significant concern during the dialogue, particularly in light of the increasing sophistication of online scams. A notable statistic from a 2025 Global Anti-Scam Alliance survey found that nearly 80% of adults in Southeast Asia reported experiencing a scam within the year. Such figures underscore the urgency for a consolidated cybersecurity framework within ASEAN nations.
To bolster cyber resilience, a coordinated approach to enforcement across national borders was recommended. Sharing best practices among countries with established frameworks, such as Singapore and Thailand, with those still developing their capacities can forge a path forward.
Artificial Intelligence: A Double-Edged Sword
The dialogue also showcased the potential of AI as a transformative tool while simultaneously highlighting associated risks. Participants expressed concern over the dual role of AI in enhancing cybersecurity processes while also facilitating criminal activities. Hence, implementing responsible AI governance measures became essential for both capitalizing on its economic potential and mitigating risks.
Dedicated sessions explored how AI can streamline various sectors like fintech and healthcare, yet they also pointed out the critical shortage of local language models, which hinders broader adoption. Building capacity locally through ethical AI training datasets that respect cultural nuances and legal frameworks was deemed essential.
Building a Digital-Ready Workforce
An overarching theme throughout the dialogue was the necessity of a skilled workforce prepared to engage with new digital economies. With rising digitalization came the challenge of reskilling the workforce to meet industry demands. An emphasis on educational reforms that integrate industry insights into curriculum development aimed to better align graduates’ skills with practical job needs emerged as a priority.
To facilitate this, partnerships between governments, educational institutions, and tech companies emerged as critical to ensuring that upskilling initiatives are implemented effectively. Notably, fostering a culture of lifelong learning was emphasized as vital for keeping pace with technological advancements.
Looking Ahead: Next Steps and Future Collaboration
With the conclusion of the Mekong-U.S. Partnership Track 1.5 Policy Dialogue series, the Stimson Center and the U.S. ASEAN Business Council are committed to continuing the conversation. The insights and recommendations gathered throughout this process will inform ongoing collaborations in areas like cyber resilience, data governance, and workforce training.
Feedback from participants highlighted the need for continued forums to address the evolving challenges in the digital economy. Suggestions for future dialogues indicated a desire for more participation from civil society organizations, enriching the discussion by incorporating a wider range of perspectives.
As digital economies continue to unfold and evolve, the key takeaway is the streamlined collaboration among governments, private sectors, and civil society. Moving forward, addressing these challenges collectively will be paramount for harnessing the full potential of the digital landscape in the Mekong sub-region, ensuring an inclusive and robust economic future.
