COVID-19 storm impacting Southeast Asia more than typhoons. ASEAN trade focus on few markets increases vulnerability. Need to diversify intra-regional trade.
The Impact of COVID-19 on Southeast Asia
Experts like Sandra Seno-Alday from Sydney University are highlighting how the COVID-19 pandemic is affecting Southeast Asia more significantly than the roughly 20 typhoons that hit the region annually. The economic infrastructure of Southeast Asia, which has traditionally focused on extra-regional trade, now faces challenges in the post-crisis recovery and reconstruction phase due to the pandemic’s impact.
ASEAN’s Economic Infrastructure and Global Value Chain Networks
ASEAN’s regional economic integration has progressed slower compared to other integrated regions like NAFTA and the EU. This has resulted in a dependency on a few external markets, leaving the region vulnerable to shocks like COVID-19. To navigate these challenges, ASEAN must focus on managing network risk exposure, enhancing flexibility in supply chains, and investing in innovation to diversify products and markets in the global value chain networks.
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