Theme and On-Site Trip Destinations
The world is a complex value chain, a network of organizations that works collaboratively to transfer products and services from producers to consumers. The conditions we have become accustomed to is inconceivable without an international supply chain. During the 7th edition of exploreASEAN we will dive into this complex world of global value chains and the positioning of ASEAN+ in those growing dynamics. Learn more about our theme and the destinations chosen for the on-site trip.
Over the last several years, ASEAN (the Association of Southeast Asian Nations) maintained strong and steady economic progress showing the enormous potential that lies in this region. As a result of closer economic and political collaboration – the establishment of trade agreements combined with the promotion of peace and stability – poverty declined significantly, and GDP rates grew rapidly.
During the 7th edition of exploreASEAN we will dive into the complex world of global value chains and the positioning of ASEAN+ in those growing dynamics. Herewith, we proudly present this year’s project theme:
>> ASEAN+ in the Global Value Chain: Gain and Sustain <<
The world is a complex value chain, a network of organizations that works collaboratively to transfer products and services from producers to consumers. The conditions we have become accustomed to is inconceivable without an international supply chain. Due to this reason, we want to dive into the intricate field of the global value chains and the positioning of ASEAN+ in those growing dynamics. Due to the rapid development, sustainable potential, and fast pace of innovation, the value chain of ASEAN+ is an exciting destination for tomorrow’s investors.
For this year’s edition we have incorporated South Korea in our project. The unprecedent inclusion of an ASEAN+ country was based on the growth and influence South Korea has gained in the global market in recent decades. South Korea’s economic success cannot be overlooked and therefore will be an exciting and remarkable addition to this years exploreASEAN.
Value chains exist to connect producers and consumers in an ongoing exchange of value. As a result, innovations in value chain drive innovations in the rest of the economy. According to a research conducted by the APEC Policy Support Unit, a 1% gain in logistics performance and competitiveness may result in a 3% boost in export growth. This fraction already shows the immense potential in the ASEAN market. Hence this project will investigate the position of ASEAN+ in the global value chain and how their role might be strengthened or challenged.
Value chains are to human civilization what oxygen is to life; when they work well, no one notices them. It is only when they start to fail that we realize there is a problem. Therefore, one can say that the value chain is an integral part of a company which is commonly faced with many challenges. Whether it is in the day-to-day operations or more significant adaptations like the transformational change, which are gaining on importance in the forthcoming years. The growing volatility in the business environment motivated us to explore the difficulties, innovations, and opportunities that might face ASEAN+ and how their competitiveness can be sustained in the constant evolving environment.
On-Site Trip Destinations
The journey of this year’s exploreASEAN edition will lead us to two founder nations of ASEAN – Singapore and Thailand – and to one of ASEAN’s main partners and ASEAN+ member state, South Korea.
Singapore – World-Class Global Connectivity
Thanks to state-of-the-art technology and a strong Free Trade Agreement network (25!) and a reliable, highly advanced, and efficient logistics and supply chain management hub, Singapore has one of the best logistics performances in the world and plays a crucial role in the global value chains.
Even in times of the pandemic, which severely disrupted supply chains, Singapore’s strong maritime performance could be relied upon. This is a clear indication of how it has strengthened its status as a global logistics center.
Thailand – ASEAN’s Manufacturing Hub
Manufacturing is one of the most important sectors of ASEAN second-largest economy Thailand. Therefore, it is not surprising that Thailand is one of the largest manufacturing hubs in Southeast Asia. The country produces a variety of goods such as textiles and apparel, footwear, electronics, machinery, including computers, automobiles and parts, gems, and rubber.
Thailand’s government currently is investing in four major infrastructure projects with the aim of transforming Thailand into a leading ASEAN investment and business center.
South Korea – ASEAN’s important trade partner
A country with big multinational corporations such as Samsung, LG or Hyundai has raised global importance in the value chain within the last few years. With its 17 Free Trade Agreements, including ASEAN, EFTA and EU, South Korea is a major international trading partner.
The country is looking to expand its presence in Southeast Asia and has recently launched talks with ASEAN to update its FTA. The recent Regional Comprehensive Economic Partnership (RCEP) free trade agreement between the ASEAN and ASEAN+ member states is expected to reduce import and export costs significantly and will help facilitate international supply chains.
Today, ASEAN is the second-largest trading partner of South Korea.
The Current Pandemic Situation
Due to the current pandemic situation, our team is faced with planning uncertainties. As a result, we allow ourselves to keep the option open to visit other significant and relevant countries, which play a vital role in the global value chain if the prevailing restrictions make it impossible for us to complete our mission in the countries listed above. Possible alternative destinations are Vietnam, Indonesia, and Malaysia. In the worst-case scenario, we might visit key European hubs in terms of the global value chain.