OECD Investment Policy Review: New Governance Paradigm for ASEAN Regional Economic Integration and Industrial Upgrading

OECD's latest "ASEAN Investment Policy Review" report provides a key policy perspective for understanding ASEAN's development trajectory in the complex global economic environment. The core insight of the report is not simply to list policies of various countries, but to focus on how ASEAN can build a more resilient and competitive investment ecosystem under existing challenges—such as the international fragmentation of global value chains, the transformative pressure from climate change, and the acceleration of digital technology penetration.

I. The "China+1" Strategy Under Global Value Chain Restructuring and ASEAN's Positioning The global economy is undergoing profound structural adjustments, with enterprises shifting production away from single regions towards diversified layouts under the "China+1" strategy. For ASEAN economies, this presents both opportunities and challenges. On one hand, as a major global manufacturing and supply chain node, ASEAN's labor-intensive advantages and cost competitiveness make it an ideal destination for multinational enterprises seeking diversification. However, the report emphasizes that relying solely on low costs to attract investment cannot guarantee long-term competitiveness. The challenge for ASEAN nations is how to translate policies aimed at attracting external capital into capabilities that support deep industrial upgrading and technological innovation, avoiding competition in low-value-added segments.

II. Refinement of Investment Governance: From Attracting Investment to Achieving Sustainable Development The report's examination of ASEAN investment policies highlights the decisive role of "governance." A successful investment environment depends not only on preferential tax policies but also on transparency, the rule of law, and a stable regulatory environment. Within ASEAN, differences in anti-corruption measures, corporate governance, and intellectual property protection directly affect the confidence and flow of foreign capital. The deepening of the ASEAN Economic Community (AEC) must simultaneously promote regional coordination in investment governance to ensure that member states can establish a unified and predictable regulatory framework while attracting foreign investment, thereby enhancing the overall regional risk management level.

III. The Digital Economy and Green Transition: New Engines for ASEAN's Regional Competitiveness The report clearly points out that the digital economy and green transition are two core driving forces shaping ASEAN's future competitiveness. In the digital realm, data flow governance, the application of artificial intelligence, and the interconnection of digital infrastructure have become key indicators of ASEAN's digital economy maturity. How ASEAN effectively manages cross-border data flow risks and develops regulatory frameworks adaptable to the rapid iteration of AI will directly determine its leading position in building the "Digital ASEAN." Simultaneously, facing the urgency of global climate governance, ASEAN's industrial transformation must be closely aligned with green and low-carbon goals. The shift from resource efficiency to a circular economy, and how to seize the opportunities of global clean energy transition through green technological innovation, is the necessary path for ASEAN to achieve sustainable economic growth.

IV. Deepening Regional Cooperation: From Trade Agreements to Value Chain Collaboration Ultimately, ASEAN's long-term development depends on the depth of regional coordination.IV. Deepening Regional Cooperation: From Trade Agreements to Industrial Chain Synergy Ultimately, the long-term development of ASEAN depends on the depth of regional coordination. Free trade agreements such as RCEP and CPTPP are the foundation for promoting trade liberalization, but achieving true regional economic integration also requires breakthroughs in the coordinated layout of industrial chains, the optimization of regional logistics systems, and the interconnection of public infrastructure. The industrial division of labor among ASEAN member states must be more scientific, avoiding the limitations of the "internal circulation" and instead forming a regional supply chain network characterized by interdependence and complementary advantages. This is not only about increasing trade volume but also about securing the stability of regional economic sovereignty. Summary: The OECD assessment reminds ASEAN that the future development path is highly systematic. The key lies in whether ASEAN countries can translate macro global trends (such as AI, climate change) into concrete, actionable regional governance and industrial policies, thereby maintaining a structural advantage in competition and ultimately moving towards a more inclusive and sustainable ASEAN economic community.