The formation of international production networks is widely recognized as one of the most important growth drivers in East Asia and South-East Asia. A global value chain (GVC) and associated production networks are emerging as the organizing framework for production, investment and trade in an expanding range of product groups such as garments, agro-industry, furniture, automobiles and automotive parts, consumer electronics, telecommunications, and information and communications technology (ICT) as well as various services. International production networks in this region are quite distinct compared to other parts of the world, in that: (a) Their significance in each economy is high; (b) They cover large number of countries in the region; (c) Sophistication level of intra-firm transactions are high.

(MARKHUB publication)