Global value chains have helped boost growth, create jobs and reduce poverty across Asia and the Pacific over the past 25 years, a new report by the Asian Development Bank said.
But the gains are not evenly shared across the region.
The report, titled Global Value Chains and Inclusive Development, was launched at ADB’s 59th annual meeting in Samarkand on Wednesday.
It said Asia and the Pacific now account for about one-third of global value chain trade. Developing economies in the region have doubled their share from 9% in 2000 to 18% in 2023.
However, only a few economies have benefited strongly.
Countries in East and Southeast Asia have become key hubs in global production networks. They are able to capture higher value from trade.
In contrast, many smaller and lower-income economies remain on the sidelines. Their participation in global supply chains is still limited.
ADB Chief Economist Albert Park warned that rising global tensions could make the situation worse.
“Growing fragmentation in the global economy may reduce opportunities for countries stuck in low-value activities,” he said.
He stressed the need for stronger support to less-developed economies. This includes better infrastructure, improved logistics and a more business-friendly environment.
The report said global value chains allow countries to specialise in specific stages of production. This has helped many economies integrate quickly into global markets.
But the benefits are uneven even within countries.
Large firms gain the most. Small and medium enterprises often struggle due to high costs and weak capacity.
The report said resilience is now becoming a key factor for competitiveness. Countries need reliable infrastructure and flexible firms to deal with global uncertainty. Policies should also allow diversification of markets and supply sources.
It also said environmental sustainability is increasingly shaping global trade. Firms must comply with stricter standards, including certification and traceability, to remain competitive. Cleaner production is becoming essential.
Inclusion remains another major priority. Governments need to reduce trade costs, invest in skills and help small firms access finance and export markets. This will ensure wider benefits from global value chains.
ADB said stronger policies and regional cooperation will be needed to ensure more balanced gains in the coming years.