# How Asia Can Thrive in the New Age of Global Value Chains?

- Link: https://www.thailand-business-news.com/asean/247506-how-asia-can-prosper-in-the-emerging-era-of-global-value-chains
- Published: 2025-10-23T07:30:00+07:00
- Author: Vivian Wei

**Asia’s global value chains face geopolitical and technological challenges, requiring
a balance of openness, diversification, and digital innovation to maintain competitiveness
and navigate fragmented global markets.**

## Challenges and Opportunities in Asia’s Global Value Chains

Global value chains (GVCs) are crucial to Asia’s economic growth but face significant
disruptions due to geopolitical tensions, the pandemic, and emerging technologies.
These networks must evolve in response to US-China trade conflicts and pressures
on cross-border production. The question arises: Can Asia adapt its GVC-driven model
in this challenging environment? The answer lies in embracing transformative changes.
As tensions escalate, companies are shifting operations outside China to other Asian
countries, notably ASEAN, which have invested heavily in infrastructure and regulations.
Countries like Vietnam and Indonesia are attracting investments in electronics and
electric vehicles, while Malaysia, Thailand, and the Philippines are expanding in
semiconductors and digital services.

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## Strategies for Resilience and Adaptation

The pandemic highlighted vulnerabilities in GVCs, prompting a reevaluation of supply
chain models. Diversification, resilience, and national security are now priorities
over “just in time” approaches. Full self-sufficiency isn’t practical, so Asian 
economies must balance efficiency with flexibility, embracing digital readiness 
and AI to remain competitive. Technology can help mitigate geo-economic fragmentation,
boost productivity, and increase resilience. Policies should support workforce reskilling
and cross-sector mobility, preparing for technology-driven disruptions. Similar 
shifts occurred post-Plaza Accord in the 1980s, and Asia must now leverage its growing
middle class to become both producer and consumer in global trade, deepening trade
ties globally.

## Path Forward for Asian Economies

To thrive, Asia must strengthen regional integration, invest in infrastructure and
human capital, and foster industry specialization. Building robust production networks
and stimulating intra-regional demand are essential. Encouraging strategic hubs,
such as EVs in Indonesia and digital services in the Philippines, will drive sectoral
growth. Balancing resilience with openness is crucial, avoiding protectionism that
can hinder innovation. The world is entering a new phase of globalization that is
more digital and dynamic. Asia’s success depends on innovation, adaptability, and
proactive responses to geopolitical shifts. GVCs will continue to evolve, and Asia
has the potential to lead in this new era.

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Source: [How Asia Can Thrive in the Next Era of Global Value Chains – ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/how-asia-can-thrive-in-the-next-era-ofglobal-value-chains)