Report of NEAT Working Group (WG) on
Theme: “Sustainable, Inclusive and Resilient Socio-Economic Recovery and Growth in
the Midst of Pandemic”
Hosted by NEAT-Laos via Zoom Platform
9 June 2022
I. Background
The Corona Virus-2019 (COVID-19) has caused an unprecedented global crisis. It has
catastrophic consequences for in every country on earth including ASEAN Plus Three (APT).
Governments’ countermeasures including social distancing, temporary closure of schools,
offices and businesses, travel ban or restriction as well as partial and full lockdown to containthe spread of the virus have triggered deep economic contraction for the APT although theimpacts vary in each country. These measures have disrupted regional and global supply chain.
Tourism and related service sectors as well as micro, small and medium enterprises (MSME)
have been hit extremely hard over the last two year-period. This has resulted in a rapid increasein unemployment rate, especially in tourism and hospitality industry as well as the other related
sectors, which literally lead to income loss for workers, especially those in informal economic
sectors are the most vulnerable since they have no social protection. Such a circumstance has
exacerbated economic or income disparities.
Moreover, the outbreak has put pressure on the public health care system, resulting in a
reduction in routine health care services, posing a threat to human security and well-being inboth developed and developing countries. In addition, the COVID-19 pandemic has disrupted
education for several months. Learning and teaching have to take place virtually in the midstof the outbreak. However, not all families with schooling aged children can have access to theinternet. For example, due to the limited access to the internet, only 16.5% of households withchildren in Laos were able to access distance learning. This means that human development
has been adversely impacted.
Since the outbreak of the COVID-19 began, countries around the world, including the APT
have worked closely through both bilateral, regional and international cooperation frameworks
such as ASEAN Submit, ASEAN Plus Three Health Ministers’ Meeting and the World HealthOrganization in order to contain the pandemic and endeavored to keep people safe from thisvirus. China and Japan were among the top support providers. At regional level various
initiatives including the COVID-19 ASEAN Response Fund, the ASEAN Regional Reserve of
Medical Supplies for Public Health Emergencies (RRMS), the ASEAN Comprehensive
Recovery Framework and Implementation Plan, the ASEAN Strategic Framework for Public
Health Emergencies have been established in order to minimize the impact COVID-19 in theregion. Bilaterally, countries also provide mutual support in the forms of medical supplies,
vaccines and exchange of medical experts.
These days, after countries have distributed COVID-19 vaccines to their citizens, the situation
is winding down. Thus, the regional countries begin to relax the measures that have been
implemented previously and reopen their borders, aiming at boosting socio-economic recovery

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in order to restore livelihoods while safeguarding the lives of the people and thinking beyond
COVID-19 pandemic. Nonetheless, it the process of recovery is sluggish and uneven acrossthe region. This is indicated by the fact that economies achieve tiny growth rates. It can beinterpreted that it will take time for the economies to rebound back to the level prior to COVID19 period.
Given this situation, it needs coordinated efforts and actions not only within the region but also
cooperation with external partners for the countries in the region to recover individually and asa whole. Therefore, the working group (WG) meeting under the theme, “Sustainable, Inclusive
and Resilient Socio-Economic Recovery and Growth in the Midst of Pandemic” was held by
the Institute of Foreign Affairs of Laos (NEAT-Laos), the chair of NEAT 2022.
The WG was attended by 17 participants including NEAT country coordinators, NEAT experts
and NEAT staff members from the 10 APT countries, namely NEAT-China, NEAT-Indonesia,
NEAT-Japan, NEAT-Korea, NEAT-Laos, NEAT-Malaysia, NEAT-Philippine, NEATSingapore, NEAT-Thailand and NEAT-Vietnam whereas NEAT- Brunei Darussalam, NEATCambodia and NEAT-Myanmar were unable to join the event. The WG meeting was divided
into sessions under the same theme. For the details of the agenda and the participants, please
see Annex I and Annex II respectively.
II. Objectives
The WG aims to:• Create a platform for experts from NEAT member countries to share their national
experiences, plans and strategies for speeding up socio-economic recovery to restore
their societies and economies.
• Provide policy recommendations for the region to recover and boost socio- economic
development in a sustainable, inclusive and resilient manner in the wake of thepandemic.
III. Lessons learned by NEAT member countries
China
Global Value Chain was interrupted by COVID-19, which caused an enormous impact.
However, recovery began. The supply side is recovering steadily while the demand side ismaking its way slowly. The sluggish market demand and reduced orders have brought severe
challenges to enterprises’ supply chains. This is due to 1) lacking of coordinated bordermanagement, and border clearance and procedures; 2) having inadequate quality and lacking
access to transport infrastructure and services; and 3) unreliable logistics services and highcosts. To cope with these challenges, it is recommended: 1) strengthen policy communicationand coordination to ensure an unimpeded supply chain, 2) promote quality infrastructuredevelopment and PPP (Public-Private Partnership facilitation, 3) enhance regulatory
coordination and cooperation and gradually establishing a mutually recognized and compatible
system of standards and rules, 4) accelerate the building of FTAs and other mechanisms toprovide institutional guarantee for supply chain connectivity, including utilization of RCEP etc.
5) step up the construction of new types of infrastructure and improve the connectivity of digital2

supply chain, and 6) deepen comprehensive reforms to stimulate domestic circulation andpower supply chain connectivity in the region.
Indonesia
Due to COVID-19, Indonesia’ economy has been contracted, which downgraded Indonesia
from upper-middle to lower-middle income country in 2021. Likewise, the household income
and the share allocated on savings reduced consistently while the health of the people has been
severely affected. This is indicated by the highest fatality rate among the APT. To respond to
those impacts, various containment measures have been applied, for instance, the fiscal
measures have been issued to support healthcare system, assist low-income households, expand
unemployment benefits, and to provide relief for enterprises especially for MSMEs. In addition,
macro finance policy was also applied.
Japan
COVID-19 caused deep economic recession in East Asia. Supply chain has been interrupted.
Digital technology play a critical role in coping with the pandemic and boost socio-economic
recovery. During the pandemic Japan actively promote the regional and international
cooperation through both bilateral assistance and international organizations. For instance,
Japan provided 5 billion USD to support the fight against the outbreak through COVAX facility.
Moreover, Japan established COVID-19 Crisis Response Emergency Support Load of up to
700 billion JPY over 2 years since 2020. Japan emphasized the important of health security
and resilience which need to be prepared for the future health crisis.
Most importantly, Japan introduces two initiatives for the next chapter of Japan’s economic
relations with ASEAN. These include 1) ASIA-Japan Investing for the Future Initiative” AJIF”
and 2) Asia Energy Transition Initiative “AETI”. This initiative should be implemented by
Japan in collaboration with ASEAN in order to improve the attractiveness of the region so as
to transform the region into the hub of global supply chain. This is aimed at creating innovation
to enhance sustainability, solving social challenges and promoting energy transition.
Republic of Korea (ROK)
In ROK, COVID-19 pandemic began in early 2020. ROK applied its experience learned fromthe 2015 Middle East Respiratory Syndrome (MERS) to response to COVID-19, which curve
the outbreak quickly and the government dealt with COVID-19 through three phases namely
Detection: provides testing and screening, Containment: officers can draw on the major
information such as facility visits, GPS data from cell phones, credit card transaction logs andclosed-circuit television; and Treatment: requires to use the self-quarantine safety protection
app; provides support twice daily check and deliver food; provides hotline and recording
service for isolated persons; as well as offers free tests and treatment.
Laos
COVID-19 adversely affected Laos in various aspects. Due to the COVID-19 pandemic, theunemployment rate has risen from around 9% a few years ago to about 25%. MSMEs in Laosare the backbone of the economy, accounting for more than 80% of employment in the
country. Hospitality and tourism industry has been hit extremely hard within the two yearperiod (2020-2021). Other sectors like manufacturing have also been affected due to thedisrupted supply chain. This has resulted in significant income loss. Moreover, COVID-19
disrupted educational and social, traditional and religious functions. However, COVID-19 has

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accelerated digital transformation in Laos like it does in other countries. To survive
economically, business operators turn to provide their services via digital platforms. In
addition, the pandemic give birth to logistics companies to accommodate the demand fordelivery. During the outbreak, Laos received extensive support from the friendly countries in
the forms of vaccines, medical supplies and medical expertise, which made a significant
contribution to the fight against the virus in Laos. After distributing vaccines to the citizens,
the situation is getting better and Laos has reopened its borders, aiming at boosting socioeconomic recovery in order to restore livelihoods while safeguarding the lives of the people.
Malaysia
The speaker emphasized the impact of COVID-19 on education in Malaysia. The statistics
showed that students lost between 5.4 and 11.4 months of schooling. During March 2020 toJuly 2021, over 0.22% of total students dropped out of school. Students suspended theireducation in higher education institutions and a sizable number of students stopped attending
online classes during school closure. This is attributed to the lack of access to stable internet
and digital devices, and ineffective teaching and training. Disruption in education would cause
substantial loss in human capital and lead to worsening income inequality. The studies revealed
that greater investment in education to produce highly educated labour force would strongly
contribute to Malaysia’s economic growth.
Philippines
The Philippines is one of Southeast Asian countries most severely impacted by COVID-19,
with most of its major cities particularly being hit the hardest. This is indicated by the very
high infection rates. Containment measures have impacted the Philippines’ economy and
COVID-19 has lowered domestic consumption and purchasing power in the Philippines. This
has resulted in an increase in unemployment rate, particularly among low-wage workers in theinformal sector. As part of the Bayanihan to Heal as One Act, which was enacted in 2020, thegovernment of the Philippines announced plans to launch the country's largest social safety
program, including cash payments to 18 million low-income families. There are some
responsive solutions that the Philippines’ government focus on in order to overcome this issue
such as health and community quarantines, education support for students, Data, ICT, anddigitalization, social protection and etc.
Singapore
The COVID-19 pandemic and the war slow the recovery and gap persists. While following arecession, economic recovery occurs when GDP increases, income rises, and unemployment
decreases. Simply expressed, economic recovery refers to a country's return to its high output
potential. In order to recover economically and socially. The Green Development Plan 2030
has been established as a national stability movement in Singapore, with the goal of unitingbold and collective action to combat climate change. Supporting green (not brown) economic
activities, supporting brown economic activities assuming climate progress, and setting thecorrect carbon price could all be detrimental to individual economies. The green development
recommendations rely on policy coordination to assist the countries in developing a new andassertive medium-term climate strategies, establishing green funding, implementing
international cooperation at the municipal level, and expanding the scope of the RCEP+ that
included more green issues.

4Thailand
Thailand was hit hard by COVID-19, especially its tourism sector while the digitalization
expands significantly. The poor, migrant workers, and other vulnerable groups were affectedsocially and economically, but those venerable groups were left behind without the access togovernment welfare and subsidies. Thailand has been putting efforts in responding to COVID19 by building community powers and find the best practices. As a result, the digital market
was created as a tool to provide assistance to the vulnerable groups, and build a smart city. This
project became a model for other cities to learn from. For the long-term policy, the strategy of“Bio-Circular-Green economy (BCG)” was created aiming to drive economic and social
development in a sustainable manner. The strategy focuses on food and agriculture, material,
energy, health and medicine, and tourism sectors.
Vietnam
The recovery has been unequal across the APT countries. In the face of pandemic shocks, trade,
digital technology, and green production offer some economic potential. The Vietnamese
economy has been impacted by the ongoing COVID-19 pandemic due to its closeinterconnectedness with the global economy, but it has demonstrated extraordinary resilience.
Although it was one of the few countries to do so, the crisis had a long-term impact onhouseholds and businesses. While negative risks have increased, Vietnamese economic
fundamentals remain strong, and it is expected that the country's GDP growth rate could returnto 6.5 to 7.0 percent by 2022. Despite overall global economic downturn, the Vietnamese
economy is still recovering in the first four months of 2022, with GDP growth of 5% year on
year and several sectors seeing some light as a result of possible solutions, common policies,and recommendations implemented to help the Vietnamese economy recover in areas such as
supply chain, business assistance, imported inflation awareness, and tax reduction.
IV. Opportunities and challenges
The COVID-19 epidemic has accelerated digital transformation in most of the APT countries
like in other parts of the world. More and more business operators turn to provide their services
via digital platforms. Digital technology is extensively embraced, that enabled the expansionof digital supply chains. In particular, digital supply chains are gaining robust momentum insectors that have long industrial chains and require sophisticated production management.
More importantly, it is the opportunity for the countries in the region and around the world toenhance their cooperation for advancing public health system. These days, the situation isgetting better and recovery begins.
However, there are still challenges and setbacks to be addressed in order to move forward in asustainable, inclusive and resilient manner. These include the intensifying major power rivalry
that has disrupted supply chain around the world, as well as the global consequences of theRussia-Ukraine conflict, increasing inflation and surging global commodity prices,
particularly oil and food, which are adding up to the already devastating impacts of the
COVID-19 pandemic. This could hinder the countries from achieving the UN Sustainable
Development Goals.

5In terms of health security, there will be long-standing concerns in the health sector, whichhave been hampered by vaccine nationalism, anti-vaccination movements, and the APT
coverage differences across facilities. Economically, scarring effects will be long lasting due
to global production limitation, inadequate cold chain system, and uneven fiscal and monetarycapacity. This will lead to a delay economic recovery and inflation.
Furthermore, digitalization is perceived to be one of the options for recovery. However, ICT
infrastructure is inadequate and digital divide is pronouncing, resulting in issues such as thelack of dependable Internet connection and digital devices, as well as ineffective education andtraining. This could also barricade the process of recovery.
V. Policy recommendations
The WG meeting acknowledged that the COVID-19 has severely impacted societies andeconomies around the world without exception for the APT countries. In order for thecountries in the region to recover and grow sustainably, inclusively and resiliently while thepandemic is still going on, multiple policy recommendations have been provided as follows:
Economically1) Accelerate digital transformation: by investing in digital or ICT infrastructure andstrengthening digital literacy amongst MSMEs and students through investing indigital education so as to ensure that all groups in society and firms regardless of
sizes will be able to meaningfully participate in and benefit from digitalization.
2) Reconnect and enhance the disrupted supply chain: by further developing theplanned infrastructure while upgrading the existing infrastructure for connectivity as
well as lowering trade barriers.
3) Finance MSMEs: by providing better access to finance through credit facilities andfinancing scheme for the most impacted MSMEs.
4) Lower tax rate: This can be done by reducing import tax and value added tax, which
will help counter the increasing inflation rate and the soaring global commodity
prices (oil, gas and food prices). By doing so, it will also further promote investment
and boost consumption, which could result in economic growth and employment
opportunities for people to generate income to restore their livelihoods.
5) Promote tourism among APT countries and beyond: This could be done byfacilitating international travel.
6) Carry out international cooperation at the city level: RCEP+ covering more
green issues: to increase membership across the Asia-Pacific region by enhancing
cooperation with other regional arrangements under the Paris Agreement on climatechange.
7) Encourage public-private partnership: improving the quality of infrastructure(transportation, ICT, and energy) to increase efficiency and investigate the creationof a comprehensive trans-regional multimodal and cold-chain transportation control
system.
Socially1) Design pro-poor policies. This will ensure that the vulnerable groups of citizens canbenefit from the process of recovery. Otherwise, they could be left behind in theprocess of recovery.

62) Apply local or community-based approach to development: by setting up

mediator between local and national level, using science, technology and innovation,and linking macro economy to local economy, regional cooperation to strengthen
local governments and create APT countries’ Bio-Circular-Green Economy value
chain.
3) Further strengthening public health system: this could be done by further
building and improving healthcare infrastructure and strengthening capacity ofhuman resource in this field, aiming at creating the more robust, resilient andtransparent health system in order to prepare for the future pandemics.
4) Enhance the quality of online educational platforms: The government should
launch several education-based channels to bridge the learning divide and support
vulnerable pupils during and post crisis, while improving teachers’ proficiency andprogramme contents. Proper training should be offered to academically qualified
teachers on methods for distance learning. In addition, frequent evaluation on the
educational platforms could help in terms of scrapping off the ineffective andquestionable programmes.
Environmentally,
1) Invest in clean energy infrastructure development: This will create new
employment opportunities, which will enable people to generate income to restore
their livelihoods that have been impacted by the pandemic.
2) Build up green finance: by financing additional climate spending with green bonds
and higher-income countries can increase financial support for low-income andvulnerable countries.
3) Promote policy coordination to help countries to have a new and aggressive
medium-term climate plan: regional cooperation for a greener recovery including
digital technologies in the fight against the COVID-19 pandemic.

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Annex I: Agenda of NEAT WG on “Sustainable, Inclusive and Resilient SocioEconomic Recovery and Growth in the Midst of the Pandemic”:
Thursday 9 June, 2022
(As of June 08, 2022)
Time: 8:00-12:30 (Lao time: GMT +7:00)
08:00-8:30

Registration and Technical Preparation

08:30-08:40

Introduction of Participant

08:40-08:45

Group photo

08:45-08:55

Welcome and Opening Remarks
Amb. Mai Sayavongs, Director-General of the Institute of Foreign
Affairs of the Lao PDR
Session 1: Sharing insight, experience and perspective on how toachieve “Sustainable, Inclusive and Resilient Socio-Economic
Recovery and Growth in the Midst of the Pandemic”

08:55-10:15

Moderated by Mr. Sonexay VANNAXAY, Deputy Director-General of
The Institute of Foreign Affairs (IFA), NEAT Laos Country
Coordinator

Discussion points:•••

Explore ways and means for the APT countries to recover
their socio-economic conditions in a sustainable, inclusive,and resilient manner
Identify common issues and challenges that APT countries
should focus their cooperation on for socio-economic
recovery
Provide policy recommendations for the governments of the
APT countries to recover and stimulate socio-economic
development progress in the time of the pandemic.

Speakers:

SHINODA Kunihiko, Prof.
Executive Advisor, GRIPS Alliance,
National Graduate Institute For Policy Studies, NEAT- JapanHE Min Dr. Associate Prof.
Institute for International Economics, China Foreign Affairs University(CFAU), NEAT-China
Jahen Fachrul Rezki Dr.
Faculty of Economic and Business, Universitas Indonesia, NEAT-

Indonesia

Chol Bunnag, Assistant Professor
Director of SDG Move, Thailand

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NEAT-Thailand

10:15-10:45

PHEUAPHETLANGSY Bounphieng (Mr.)
Deputy Director, Strategic and International Studies Division, Institute ofForeign Affairs, NEAT- Laos

Discussion

10 minutes

Break10:55-11:55

Session 2: Sharing insight, experience and perspective on how toachieve “Sustainable, Inclusive and Resilient SocioEconomic Recovery and Growth in the Midst of thePandemic”
Moderated by Ms. Kaymany ORABOUNE, Deputy Director-General
Speakers:of The Institute of Foreign Affairs (IFA)

Choon Hee WOO Ms.
Visiting Research Fellow, JISEAS (Jeonbuk National University, Institutefor Southeast Asian Studies), NEAT-Korea
Sofea Azahar Ms.
Senior Researcher, Institute of Strategic and International Studies (ISIS
Malaysia), NEAT-Malaysia
Ma. Kristina P. Ortiz Ms.
Supervising Research Specialist,
Philippines Institute for Development Studies, NEAT-Philippines

KONG Tuan Yuen, Dr.
Research Fellow, East Asian Institute, National University ofSingapore

11:55-12:20
12:20-12:30

Nguyen Anh Tuan, Associate Prof.
Deputy Director General, Institute of Foreign Policy and Strategic
Studies, Diplomatic Academy of Vietnam (DAV), NEAT-Vietnam

Discussion

Wrap Up and Closing Remarks

Mr. Sonexay VANNAXAY, Deputy Director-General of The Institute ofForeign Affairs (IFA), NEAT Laos Country Coordinator

9Annex II: List of NEAT WG meeting participants
No.
1
2

NEAT
Country
Brunei
Cambodia

No. ofParts.

3

Indonesia

1

Name/Title/Institutional Affiliation

Jahen Fachrul Rezki Dr.
Faculty of Economic and Business, Universitas
Indonesia

SAYAVONGS Mai (Mr./Amb.)
Director General of the Institute of Foreign Affairs(IFA), Laos.
ORABOUNE Kaymany Ms.
Deputy Director General of the Institute of Foreign
Affairs (IFA), Laos.
VANNAXAY Sonexay (Mr.)
Country Coordinator, NEAT Laos
Deputy Director General of the Institute of Foreign
Affairs (IFA), Laos.
KEOBOUNKONG Vidavone (Ms.)
Director, ASEAN-ISIS & International Cooperation
Division, Institute of Foreign Affairs

4

Lao PDR

8

VONGMAHACHACK Somphay (Mr.)
Director, Human Resource Development Division,
Institute of Foreign Affairs
LATTANAKONE Nuanvilay (Ms.)
Deputy Director, ASEAN-ISIS & International
Cooperation Division, Institute of Foreign Affairs
SENGSOURIVONG Laddavanh (Ms.)
Deputy Director, ASEAN-ISIS & International
Cooperation Division, Institute of Foreign Affairs
MANICHANH Xaythavong (Mr.)
Contact Person, NEAT Laos
Deputy Director, ASEAN-ISIS & International
Cooperation Division, Institute of Foreign Affairs
PHEUAPHETLANGSY Bounphieng (Mr.)
Deputy Director, Strategic and International Studies
Division, Institute of Foreign Affairs

10

5

Malaysia

6

Myanmar7

Philippines

1

1
1

8

Singapore

9

Thailand1

10 Vietnam

1

11 China

1

12

Japan

13

1
1

S. Korea

Sofea Azahar Ms.
Senior Researcher, Institute of Strategic andInternational Studies (ISIS Malaysia)
Ma. Kristina P. Ortiz Ms.
Supervising Research Specialist,
Philippines Institute for Development Studies
KONG Tuan Yuen, Dr.
Research Fellow, East Asian Institute, National
University of Singapore
Chol Bunnag, Assistant Prof.
Director of SDG Move, Thailand
Nguyen Anh Tuan, Associate Prof.
Deputy Director General, Institute of Foreign Policy
and Strategic Studies, Diplomatic Academy ofVietnam (DAV)HE Min Dr. Associate Prof.
Institute for International Economics, China Foreign
Affairs University (CFAU)
SHINODA Kunihiko, Prof.
Executive Advisor, GRIPS Alliance,
National Graduate Institute For Policy Studies
Choon Hee WOO
Visiting Research Fellow, JISEAS (Jeonbuk National
University, Institute for Southeast Asian Studies)11