The transformation of Asian electronics production networks: evidence from the participation of Vietnam

Abstract

This chapter offers an updated investigation on the configuration of the Asian electronics production networks since the late 2000s. Existing literature has demonstrated that the participation of the East Asian countries in the global and regional production networks has led to the so-called "triangular trade" pattern, in which China as the "world factory" assembles the intermediaries imported from Japan and Asian newly industrialized economies (NIEs), particularly South Korea and Taiwan, and then exports final goods to external markets mainly in the United States and European countries. However, such a prevalent understanding warrants an updated exploration, due to the emergence of changing dynamics and effects on the reconfiguration of the Asian production networks over the past decade. This chapter advances the literature by examining the transformation of the Asian production networks with the increasing participation of the Southeast Asian developing countries, such as Vietnam. Based on the case study of Vietnam, we argue that the Asian electronics production networks have been reconfigured not only by the relocation of the established transnational corporations (TNCs) from Asian NIEs, but also that of the emerging TNCs from China. The chapter helps put forward future research on the manufacturing in general and electronics industry in particular in the changing dynamics of the global and regional production networks in Asia.