ABSTRACT

This chapter presents conclusions in terms of the three main aims set out in Chapter 1. Firstly, to look at the driving forces behind automotive development in countries in ASEAN, the Association of Southeast Asian Nations. Secondly, specifically to look at the role of industrial policy as a driver, both before and after the new set of World Trade Organization rules from the early 2000s on trade-related industrial policies. Thirdly, to consider the roles Japanese multinational companies have played in the industry’s development in Southeast Asia, and their relation to the Japanese government and to ASEAN’s policy-makers. The roles of market size and growth and of inward investment within global value chains and production networks are highlighted, which, however, have become more regionally focussed. The successes of hard (directive) industrial policy both before and during the WTO era are discussed, especially in Thailand and Indonesia, and soft (facilitative) policy measures are shown to be more important in some countries (like Thailand) than others. The growth of clusters of Japanese assemblers and their suppliers, and of cooperation in labour training, has helped spread development to local firms. It ends with discussion of challenges and prospects for the ASEAN automotive industry.