James Zhan, head of investment and enterprise at UNCTAD, outlines ten broad trends that will play out in the coming decade as global value chains are reconfigured.
The decade to 2030 is likely to prove a period of transformation for global value chains (GVCs), which will have significant implications for the global trade and investment landscape and multinational enterprises’ (MNEs) modes of operation.
The change will be driven by five major forces: economic governance realignment, the new industrial revolution, the sustainability endeavour, corporate accountability and resilience-oriented restructuring. All of this will present challenges and opportunities for companies and states alike, leading to an investment-development paradigm shift.
In light of these five driving forces that will change the locational determinants and MNEs’ strategic choice for modes of operation, ten broad trends in the future GVC transformation and reconfiguration of the global investment landscape can be projected in the coming decade.