Jakarta, 30–31 January 2023: Structural transformation of domestic and regional economies in East Asia has intensified the service linkages of global value chain (GVC) activities. Whilst offering opportunities, this structural transformation has exposed the challenge of digital convergence in the region. At the same time, the COVID-19 pandemic has contributed to the robust development of digitalisation and artificial intelligence and accelerated trade in services.

On 30–31 January 2023, the Economic Research Institute for ASEAN and East Asia (ERIA) held a technical workshop for its Servicification, Structural Transformation, and the Pandemic Recovery study. Now on its fourth phase, the study is led by Prof Fukunari Kimura, ERIA’s Chief Economist; Prof Christopher Findlay, of the Australia National University; Dr Dionisius Narjoko, ERIA Senior Economist; and Prof Shandre Mugan Thangavelu, of the Institute of International Trade, University of Adelaide and Head of the Jeffrey Cheah Institute on Southeast Asia, Sunway University, Kuala Lumpur.

Fifteen researchers presented papers and exchanged information relating to the study. The current phase of the study focuses on the impact of emerging new services from the second and third stages unbundling on manufacturing, value chains in services, and the servicification of the ASEAN economies.

The technical workshop was followed by two sessions specifically for officials from the Ministry of Commerce and the Council for the Development of Cambodia and the Ministry of Public Works and Transport of the Lao People’s Democratic Republic who attended ERIA’s Capacity Building Programme. The capacity-building sessions gave the officials an opportunity to share their comments and observations about the papers presented and discuss in-depth key issues around structural transformation of industries in the service sector and their linkages. The discussions highlighted challenges and best practices in policy to develop . The capacity-building session was facilitated by Prof Shandre Mugan. ERIA’s Capacity Building Programme is supported by the Government of Australia.