Press Release

April 25, 2022
ASEAN-Japan Centre
ASEAN should participate more in RCEP GVC according to the study by ASEAN-Japan Centre
ASEAN-Japan Centre (AJC) completed a paper on “ASEAN Global Value Chain and Its Relationship with RCEP:
Impacts of RCEP on ASEAN Integration” in March 2022. The paper examines and compares global value chain (GVC)
patterns of ASEAN with those of RCEP (Regional Comprehensive Economic Partnership) to identify RCEP-related
opportunities and costs to ASEAN.
The study reveals that the role of ASEAN in RCEP GVCs is smaller than that in ASEAN GVCs and that ASEAN
connectivity through production is therefore also smaller partly because RCEP is less integrated than ASEAN. While
ASEAN produces many products, they do not necessarily become inputs to exports of non-ASEAN RCEP members’
exports.
On a per industry basis, the study shows that while the automotive and electronic GVCs are strong in ASEAN, they aremuch stronger in RCEP because of the participation of China, Japan, and South Korea. Therefore, there areopportunities for ASEAN GVCs in these industries to expand into non-ASEAN RCEP member states.
According to the study, ASEAN Member States are mainly producers of apparels which are final product exporters
rather than intermediate producers, for example of textiles, which are not much integrated into the next stage ofproduction. ASEAN countries can benefit from the RCEP agreement by expanding their imports of textiles from China.
ASEAN agribusiness and tourism are typically regional or domestic market-oriented industries that could penetrate both
ASEAN and RCEP markets.
The direct impact of RCEP on trade and investment as measured by increases in value is estimated at $42 billion inexports and $900 million in FDI in the current value. These numbers correspond to 1.8% and 0.3% of current exportsand FDI flows.
To maximize benefits from the RCEP agreement, the paper identifies the following five specific policy measures forASEAN.
1.

Create RCEP production network to widen value chains and promote trade and investment.

2.

Utilize existing production programmes and initiatives of RCEP member states; one being Japan’s programme todiversify and multiplicate supply chains in ASEAN to deal with various risks such as COVID-19 that disrupted thesupply chains.

3.

Attract foreign direct investments especially those that creates value chains from non-ASEAN RCEP member states.

4.

Strengthen relationship with Japan since Japan is seen to benefit more from the RCEP agreement than ASEAN.

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5.

Develop parts and components of other RCEP member countries’ exports that are locked into the production linesof various GVCs. The competitiveness of ASEAN exports should be improved to maximize RCEP’s growth
opportunities.

AJC promotes awareness of Japanese and ASEAN firms, particularly the micro, small and medium-sized enterprises
regarding the usefulness of the RCEP agreement to their businesses through the regular conduct of webinars anddialogues among stakeholders.
“ASEAN Global Value Chain and Its Relationship with RCEP: Impacts of RCEP on ASEAN Integration” is available fordownload on AJC’s website below.
URL:

https://www.asean.or.jp/ja/wp-content/uploads/sites/2/RCEP-Impacts-of-RCEP-on-ASEAN-Integration-March-

2022.pdf

Contact:
ASEAN-Japan Centre (AJC) PR Unit
Tomoko Miyauchi (MS)URL: https://www.asean.or.jp/en/
TEL: 03-5402-8118
E-mail: toiawase_ga@asean.or.jp

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