BusinessMirror

Asean-ja­pan Cen­tre to share re­sults of study on GVCS to ex­porters in Dec. 3 Congress

- Business · Finance · Infectious Diseases · Health Conditions · Japan · NEC · G20 · Philippines

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.

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