GLOBAL VALUE CHAIN

The disruption of the global value chain during the Corona virus pandemic
GROUP 10

1. Bùi Thị Tường Vân – 17071211

2. Lý Thị Hương – 18071114

3. Nguyễn Bình Dương - 18071063

4. Nguyễn Xuân Lộc - 18071153

5. Nguyễn Thị Thu Hiền - 18071083

 01 General Information
Outline
02 Causes Of GVC Disruption

03 The Effects Of GVC During

Corona Virus

The Robustness And

04 Resilience Of GVCs

05 Conclusion
I. General
Information
 Definition
A global value chain is a globalized
production and business chain in which
many countries participate, mainly
businesses, involved in various stages
from design, manufacturing, marketing
to distribution and consumer support.

MODERN PowerPoint DESIGN

 Example
Designed in
the world
Tailored in Vietnam
fashion center
of Paris A branded shirt
sold in Europe

Fabric made in
China,
accessories made
in India
 Classification
Short Value Chains
In the mining industry, raw
processing through exploitation -
primary processing - trade -
consumption

Global value
chain

Long Value Chains

. .
Focusing from design, marketing to
define the stages of the chain
The roles of global value chain

GVCs are a powerful motivation of productivity

growth, job creation, and increased living standards

GVC helps countries that embrace them grow faster,

import skills and technology, and boost employment

GVC-based development, countries generate growth by

moving to higher-value-added tasks and by embedding
more technology and know-how in all their agriculture,
manufacturing, and services production

GVCs provide countries the opportunity to leap-frog

their development process
II. Causes of
GVC disruption
 There are 2 main causes

02

Countries US-China
close their trade war
borders due to
the Covid 19
pandemic
III. The effects of
GVC disruption
during Corona
Virus
 To the world
The Covid-19 pandemic has created a huge
shock on a global scale

Forcing businesses to close, causing

unemployment , reduced
Breaking the chain
consumption, the flow of goods and
of links
activities.
 To Vietnam

The pandemic is a time to

relieve pressure on
Vietnam's trade, when the
restructuring of the global Elevating the new position
supply chain is an inevitable of Vietnam’s trade
rule
.

Becoming a new
"nucleus" in the global
value chain.
Factors that are contributing
Vietnam's exports are equivalent to
to accelerating this process
A China's by 53.4%

A
Labor costs in Vietnam are lower
B than in China
C
B
D Vietnam's business environment and
C competitiveness
IV. How to
improve the
robustness and
resilience of
GVCs
 A demand risk

Classify and For example, COVID-

19 involves a supply
01 assess the
likelihood and
likely impacts of
risk

different risks An operational risk

Avoidance

Postponement
The design of risk

02 management
strategies Speculation

Enhanced security

the supply chain
To find the right strategy
Information on Ensure Improve their
Firms that value
transparency in resilience, their
and the level of resilience over
the value chain, ability to return to
risk at different robustness focus
with sufficient normal operations
stages is key more on the
information on in an acceptable
speed of recovery
suppliers. period of time after
being disrupted
V. Conclusion
References

World Bank. 2021. Global Value Chains. [online] Available at:

<https://www.worldbank.org/en/topic/global-value-chains>
[Accessed 13 July 2021].

Trường Đại học Kinh tế TP. Hồ Chí Minh. 2021. Hội thảo khoa học
quốc gia: Việt Nam cần kịch bản cho thương mại tương lai.
[online] Available at: <https://ueh.edu.vn/khoa-hoc/hoi-thao-khoa-
hoc-quoc-gia-viet-nam-can-kich-ban-cho-thuong-mai-tuong-lai-
57137> [Accessed 13 July 2021].

OECD. 2021. COVID-19 and global value chains: Policy options to

build more resilient production networks. [online] Available at:
<https://www.oecd.org/coronavirus/policy-responses/covid-19-and-
global-value-chains-policy-options-to-build-more-resilient-
production-networks-04934ef4/> [Accessed 13 July 2021].
Q&A
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