The COVID-19 pandemic, geopolitical tensions and US-China trade disputes, and the Russia-Ukraine war have increased the risk of global value chain (GVC) disruptions and forced firms to strengthen resilience in their supply chains and operations.

MNCs have diversified suppliers, established new production sites, and shifted production closer to consumers. ASEAN countries are becoming increasingly attractive destinations for foreign investors.

This paper gauges the position of ASEAN in GVCs and assesses the risks and opportunities of GVC reconfiguration for ASEAN countries. ASEAN countries are increasing their participation in GVCs and raising domestic value-added. The relocation of production sites from China to ASEAN countries could enhance their participation in GVCs. Should MNCs increase the concentration of supplier and buyer markets, ASEAN countries could become more vulnerable to external shocks.

About the Author

Sithanonxay Suvannaphakdy is Lead Researcher at the ASEAN Studies Centre, ISEAS – Yusof Ishak Institute, Singapore.

Pham Thi Phuong Thao is Senior Research Officer at the ASEAN Studies Centre, ISEAS – Yusof Ishak Institute, Singapore.

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