Asean-japan Centre to share results of study on GVCS to exporters in Dec. 3 Congress
SECRETARY General of the Asean Japan Centre (AJC), Mr. Fujita Masataka will present the results of AJC’S study on resilient global value chains (GVCS) to Philippine exporters during the National Export Congress (NEC) on December 3, 2020. The AJC is an intergovernmental organization established in 1981 to strengthen economic partnerships between Asean member-states and Japan in the areas of trade, investment and tourism.
There were a series of calls at the international and regional levels for strengthening and rebuilding value chains since the outbreak of the Covid-19 pandemic. These included “G20 Actions to Support World Trade and Investment in Response to Covid-19” endorsed on May 14, 2020, and the “Hanoi Plan of Action on Strengthening Asean Economic Cooperation and Supply Chain Connectivity in Response to the Covid- 19 Pandemic” on June 19, 2020.
In response to this, the AJC conducted a study on “Resilient Global Value Chains for Asean and its Relationship with Partner Countries: A way to Mitigate and Adapt to the Economic Impacts of Covid-19.” The study calculated the degree of risks of value chains to external shocks and identified which industries tend to be more vulnerable to risks.
In the study, the AJC considered two types of GVC risks— risks that affect the upstream part of GVCS (supplier market concentration) and those that affect the downstream part of GVCS ( buyer market concentration).
The more concentrated the market is, the more vulnerable it is to the disruption of chains. In the case of the Philippines, both supplier and buyer markets are generally, not much concentrated, leaving the country with the opportunity to expand its suppliers’ base and find more buyers to strengthen resilience of their GVCS.