Strengthening the Regional Value Chain RVC) and enhancing participation in the Global Value Chain (GVC) is an important strategic option for the Association of Southeast Asian Nations (ASEAN) as it moves towards achieving the ASEAN Economic Community (AEC) Blueprint 2025. AEC aims to achieve a single integrated market through regional economic integration to support more equitable, inclusive, resilient and sustainable high economic growth, even amid global economic shocks and volatilities. The recently signed Regional Comprehensive Economic Partnership (RCEP) will further strengthen ASEAN’s position as a major trade bloc in the centre of the largest trade agreement upon its ratification in 2022.
In preparation to assume the Chairmanship of ASEAN in 2023, the Directorate of ASEAN Negotiation, DG International Trade Negotiations of the Ministry of Trade, launched a study on 8 December 2021 on strengthening regional value chains with technical support from ARISE+ Indonesia.
The specific objective of the study is to provide strategic recommendations to ASEAN through Indonesia to develop ASEAN into a centre of GVCs, and increase the participation of ASEAN Member States in RVCs, thereby to advance the ASEAN regional integration agenda.
According to the Director of ASEAN Negotiation, Ms Dina Kurniasari, the study result will inform policies towards the strengthening ASEAN Regional Value Chains to enhance community resilience in addressing economic shocks and spur economic recovery.
The study will build on ongoing work at the ASEAN level to reinforce regional cooperation on three potential sectors for RVCs: electronics, automotive, and medical devices.
Therefore, the study will look into the sectoral analysis from a regional perspective. The national perspective will be highlighted, for example, in sectoral linkages where Indonesian firms possess significant strength and potential to expand. The study will help align the national strategy with the regional strategy and enable Indonesian firms to seize the opportunities to better integrate into the unexploited segments of the ASEAN RVCs.
Three international senior experts Paul Baker, David Vanzetti and Neetish Hurry have been mobilised to conduct the study. The final report will be delivered in March 2022.
