Table 3-1: E-commerce penetration related to input factors15 Country Name GDP per capita, PPP (constant 2017 international $) GDP per capita (2017, current US$) Share of individuals using the Internet (2018 or latest) Share of individuals with an account (15+, 2017) Secure Internet servers (Normalised, 2018) UPU postal reliability score (2018 or latest) 1,250 Used the internet to buy something online in the past year(% age 15+) 2.6 Myanmar 4,620 Cambodia 3,928 31 26 24 26 1,385 3.1 40 22 41 20 Pakistan Zambia 4,571 1,465 0.9 16 21 44 54 3,485 1,535 5.1 26 46 36 9 Bangladesh 4,161 1,564 1.3 15 50 44 47 Kenya 4,036 1,568 9.3 26 82 49 47 India 6,185 1,981 2.9 34 80 48 65 Vietnam 7,156 2,366 18.7 70 31 66 77 Lao PDR 7,258 2,424 5.6 26 29 30 56 Indonesia 10,934 3,837 9.9 40 49 64 48 On this basis it can be seen that Myanmar has similar GDP per capita to Zambia and Kenya, and all the Asian countries except India, Vietnam, Lao and Indonesia which have a higher GDP per capita. However, Myanmar has a higher e-commerce penetration level than Pakistan and Bangladesh, and only slightly lower than India. On input factors, however, there are marked differences between countries. These are considered below in order. Share of individuals using the Internet. Myanmar performs relatively well against all other countries in this benchmark on this measure, even performing well against Kenya and Zambia with their higher levels of e-commerce penetration. However, Cambodia is higher, and Vietnam is over double the level of Myanmar. Thus, Myanmar has a gap which needs addressing to improve its e-commerce penetration. This gap is being addressed already and measures in the strategy are intended to further promote the use of the Internet. Share of individuals with an account. Electronic payments and payments through financial institutions are a first step towards e-commerce. Electronic bill payment and payment for goods using mobile wallets in shops introduce the idea of trading electronically, and indeed, electronic payments using mobile wallets, payment cards or by electronic funds transfer enable e-commerce to move beyond CoD, removing a major inhibitor to penetration. Zambia, Bangladesh, Kenya and India perform particularly well with regard to this input factor, while Myanmar is lagging. However, while it may be important, having an account is not an over-riding requirement. Vietnam, has high consumer e-commerce penetration despite its relatively low score on this measure, whereas India’s high score belies its laggardly performance in e-commerce penetration. Nevertheless, in Kenya and Zambia, mobile wallet use has become widespread, with e-commerce performed using GSM feature phones as well as with smart phones and other digital devices. The combination of mobile wallets and e-commerce services geared to the needs and resources of lower income groups and those in rural areas that do not have access to broadband internet services, would appear to be a major driver of e-commerce in those countries. While smartphones are becoming increasingly prevalent in Myanmar, there is still a need for very basic e-commerce services for feature phone users who do not have access to the Internet aligned with mobile wallets or other digital payments enabled on mobile phones. The strategy is addressing this requirement. Secure Internet servers. This measure is a proxy for the development of the IT sector and the availability of IT services. Myanmar is lagging behind all other countries in this benchmark in this 15 ibid 70

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