DTI cites rise of global value chains and in export growth

IN a recent seminar co-organized by the Department of Trade and Industry (DTI) and the ASEAN Japan Center (AJC) entitled “Changing Trade and Investment Landscape in ASEAN and the Philippines”, DTI cited the importance of global value chains and non-equity mode (NEM) in the growth of Philippine exports.

“NEM is of particular importance to the country given our participation to activities such as IT-BPO, international subcontracting, franchising and licensing among others,” said DTI Undersecretary Nora K. Terrado. Meanwhile, global value chains (GVCs) for international production translate to the different stages of the production process across different countries. This allows outsourcing and offshoring of activities of many multinational enterprises (MNEs).

AJC Secretary General Masataka Fujita and Dr. Chie Iguchi from Keio University led the presentation of three (3) AJC-initiated papers namely, “Global Value Chains in ASEAN: A Regional Perspective”; “Global Value Chains in ASEAN: The Philippines”; and “Non-Equity Modes of Trade in ASEAN: The Philippines.”

The papers provided valuable perspectives on the strategic importance of participation in global and regional value chains as Association of Southeast Asian Nations (ASEAN) member states maximize opportunities and benefits of economic integration while recognizing differences in economic development and industrial policies, and the growing threat of protectionism.