ABSTRACT

This chapter outlines the background and current situation of companies’ cross-border production networks (CPNs) in Southeast Asian countries, with the aim of providing an insight into the future trends of CPNs in the region. Companies in Southeast Asian economies have adopted complex regional strategies and intricate network structures that have facilitated intra-regional economic interdependence. One characteristic of firms’ activities across the region is that of a sophisticated intra-firm division of labour for each corporate function. This regional pattern is interrelated, in many cases, with that of a broader set of activities carried out by firms in Asia as a whole. In this chapter, we consider firms that make an intentional effort to network their own operations and interfirm relationships on a regional basis, across functions and locations. Thus, CPNs include activities taking place between one firm and other affiliates of the same group within the region, and between one firm and other business partners located in countries of the region.