The pandemic exposed the vulnerabilities of global value chains (GVCs) as lockdowns disrupted supply lines across economies. However, the ASEAN+3 region remains a prime location for GVC investment post-pandemic.
The “flight to digital” has given the region an opportunity to upgrade and strengthen its role in GVCs. Meanwhile, rival technologies pose risks to GVCs. The post-pandemic world calls for more globalization. Post-pandemic, policy making should focus on: 4th Industrial Revolution-targeted infrastructures, more resilient crisis policy frameworks, and sustainable funding to rebuild fiscal space.