OECD, SEA discuss strong partnership for resilient, sustainable supply chain

The forum themed Connecting Regions: Partnerships for Resilient and Sustainable Supply Chains was organized on the joint initiative of Vietnam and Australia in their capacity as co-chairs of the OECD Southeast Asia Regional Programme.

Addressing the event, Vietnamese Foreign Minister Bui Thanh Son requested delegates from 38 OECD member states and Southeast Asia analyze causes and consequences of supply chain disruptions on the global economy, examine the future trend of recovery and supply chain shift, and clarify issues facing governments and businesses in recovering and shaping resilient and sustainable production chains.

He also requested that delegates analyze development trends of the global economy and the adaptability of Southeast Asian countries, so as to put forward policies and measures to strengthen the economic self-reliance in the context of enhancing international economic integration and linkages.

Sharing his perspective, OECD Secretary-General Mathias Cormann highly appreciated Vietnam’s active contribution to the OECD Southeast Asia Regional Programme as Co-chair, and affirmed he would continue to coordinate with Vietnam to promote OECD cooperation with Southeast Asian countries and implement the OECD-ASEAN action plan.

He suggested that delegates examine countries’ efforts to achieve the goal of economic self-reliance, at the same time consider the Southeast Asian economy’s potential in the coming time as well as the OECD’s ability to support Southeast Asia.

In his remarks, Vietnamese Deputy Prime Minister Pham Binh Minh pointed out that Southeast Asia is an increasingly powerful, dynamic economic region which is forecast to emerge as the fourth largest economy in the world by 2030. Boasting a population of more than 660 million, Southeast Asia is not only a strategic destination for supply chain diversification but also a large consumer market with a purchasing power of up to US$4 trillion by 2030.

Southeast Asia is also an important link of the global economic chain characterized by the world’s largest free trade agreement - the Regional Comprehensive Economic Partnership (RCEP) – along with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It is shaping common market rules and taking the lead in new fields such as digital economy, green growth, and circular economy with strong commitment to carbon neutrality. The region also boasts great potential for digital transformation with a market size forecast to reach US$1 trillion by 2030.

As Co-Chair of the OECD Southeast Asia Regional Programme for 2022-2025, Vietnam is ready to contribute to promoting cooperation between the OECD and Southeast Asia in a more comprehensive, effective, substantive and sustainable manner, Minh stressed.

The Vietnamese Deputy PM proposed further strengthening supply chain cooperation between the OECD and Southeast Asia by taking advantage of the existing economic linkage network, especially the RCEP, CPTPP and free trade agreements between the OECD and Southeast Asia, and strengthening business connectivity based on the needs and strengths of the two sides.

He called on OECD countries to support Southeast Asia in promoting the potential of the digital economy, high-tech agriculture, and innovation, in an effort to develop a digital supply chain in the region and turn ASEAN into a global semiconductor chip supply centre, while further strengthening the region’s role in ensuring food security globally.

The Government of Vietnam will continue to create favourable conditions for businesses to invest in priority fields such as high technology, information technology, supporting industries, smart agriculture, environmental protection, renewable energy, and infrastructure to serve social security, stressed Deputy PM Pham Binh Minh.

At the forum, delegates attended two sessions focusing on strengthening the OECD-Southeast Asia partnership to enhance resilient supply chains, and increasing cooperation between the Governments and businesses towards a resilient future.