E-com boom makes upgrading SE Asia'a garment sector critical need: ADB

Improving competitiveness through simplified business regulations, faster digital technology adoption, stronger research and development, a greater focus on culture-related garments, skills training and establishing more flexible production and business models could support the industry’s growth, the report noted.

It urged governments in the region to add higher-value agro-processing activities that can support a post-pandemic recovery. The agricultural sector, however, was less affected by the pandemic, it noted.

“Recovery prospects in Southeast Asia are encouraging, but not without persistent risks, including heightened uncertainty from the Russian invasion of Ukraine and the evolving conflict, the emergence of coronavirus variants and the scarring effects of the pandemic through large employment and education losses, production disruptions and fragile business confidence, and declining productivity growth,” said ADB director general for Southeast Asia Ramesh Subramaniam.

“Supporting industries with the competitive advantage to propel a green, resilient and inclusive recovery will not only require sector-specific interventions by governments, but crosscutting measures that encourage an enabling business environment, improved infrastructure and stronger intra-regional linkages.”

The report, titled ‘Post-COVID-19 Economic Recovery in Southeast Asia’, examines growth opportunities, sectoral strategies, and priority reforms that can help countries boost their medium-term economic recovery.

The report also sees digital trade as having strong growth potential in the region. Much of the region’s digital trade now concentrates on digital marketplaces and information technology and business process outsourcing (IT-BPO), while software development is picking up in some countries.

As demand for digital products and services grows, it is important to enhance digital connectivity, invest in logistics and distribution facilities, develop an IT-BPO road map, support skills development and training and rethink digital regulations to protect consumers, ADB said in a press note.

ADB senior economist James Villafuerte presented the report findings during a webinar on ‘Economic Recovery in ASEAN+3: New Drivers of Growth and Optimism’, jointly organised by ADB and the ASEAN+3 Macroeconomic Research Office (AMRO).

Fibre2Fashion News Desk (DS)