IKAT : The Indonesian Journal of Southeast Asian Studies
Vol 1, No 2 (2018): January

Production Shifts and Upgrading in ASEAN Automotive Production Network: Case on Toyota-led Regional Value Chains

Riza Noer Arfani (Universitas Gadjah Mada)
Awan Setya Dewanta (Universitas Islam Indonesia)



Article Info

Publish Date
17 Jan 2018

Abstract

The study aims at exploring the phenomenon of regional production network in ASEAN (Association of Southeast Asian Nations) automotive sector/industry by employing a firm as well as macro-level analysis of data gathered through combining techniques between desk-study and a series of fieldwork. It examines patterns of production and manufacturing activities of leading Japanese automotive firms and their upgrading strategies as showcased by Toyota in an endeavor to cast the much-aspired ASEAN regional value chains (RVCs). Production shifts have been apparent as indicated in the trade patterns and trends in value added of key automotive products traded between Japan and its ASEAN partners during the past 25 years. The shifts have resulted in deepened localization of production and manufacturing activities of Japanese automotive lead firms in ASEAN countries. Such dynamic shifts, as shown especially in passenger cars and automotive parts and accessories, have further prompted upgrading efforts by the lead firms (along with their suppliers, subsidiaries, and local partners) which suggest the functioning RVCs. The upgrading embraces areas of upstream (on research, development, and design or RD&D), midstream (on production, manufacturing, and assembly) as well as downstream (on sales, marketing, and after-market) activities. Future policy outlook lays on the ability of firms and other related stakeholders in the region’s automotive sector/industry to team up in the upgrading activities and hence capture the value-added. ASEAN-Japan long and strong historical relations facilitate the enhanced collaborative automotive industrial development, particularly in the areas of technical capacity formation and supporting industries. 

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Journal Info

Abbrev

ikat

Publisher

Subject

Economics, Econometrics & Finance Other

Description

The Journal strives to provide new, rigorous and comprehensive knowledge and understanding of Southeast Asia through inter-disciplinary perspectives. Its scopes includes but is not limited to economic welfare, institutional knowledge production, history, political transformations and the social ...