Resilient and Sustainable Supply Chains:
The Strategic Role of Foreign Direct Investment
About the forum
Asia-Pacific economies are at the core of global value chains (GVCs). Yet recent shocks – from COVID-19 pandemic to geopolitical and climate risks – exposed concentration vulnerabilities. While foreign direct investment (FDI) is well recognised for its role in economic growth, job creation and knowledge spillovers, it is increasingly being realised as a factor that shapes supply chain diversification and resilience by distributing production decisions across multiple geographies and deepening regional integration under arrangements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). FDI also plays an important role in addressing sustainability of supply chains through the transfer of technology and knowledge, and the adoption of sustainable production, management practices and delivery processes. Still, much of the impact of FDI on resilience and sustainability depends on host country characteristics, industry dynamics and firm strategies.
Looking ahead, the strategic role of FDI in improving resilience and sustainability will gain importance. Asia-Pacific economies have been adopting policies to move higher in GVCs, and these efforts when further supported by initiatives that align investment decisions with diversification strategies and with measures around trade facilitation, technology adoption, and sustainability objectives, has the potential to transform Asia-Pacific from a cost-driven hub into a resilient and sustainable production and trade centre.
Against this backdrop, the Asian Development Bank (ADB), under its Asian Think Tank Network (ATTN) platform, in collaboration with the Asian Development Bank Institute (ADBI), the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and its Asia Training and Research Network (ARTNeT), and the Institute of South Asian Studies (ISAS) at the National University of Singapore (NUS) is organising a project under the theme, “Resilient and Sustainable Supply Chains: The Strategic Role of Foreign Direct Investment”
The objective is two-fold: (a) to bridge the knowledge gap on strategic role of FDI in building resilient and sustainable supply chains; and (b) to strengthen the capacity of researchers in developing countries to conduct high-quality research on supply chain resilience and sustainability, thereby contributing to evidence-based public policy discourse within their institutions and governments.
The project explores ways in which FDI can strengthen supply chain resilience and sustainability and help Asia Pacific economies upgrade their position in GVCs. It examines policy frameworks, trade facilitation measures and digital policy infrastructure that enable diversification and adaptability in response to global shocks. Finally, the project aims to provide actionable insights for policymakers on aligning FDI strategies with trade, technology and sustainability goals, ensuring that investment flows not only drive growth but also enhance resilience and competitiveness in an increasingly uncertain global economy.
To register, please contact the ATTN Secretariat through attn-secretariat@adb.org.
