Thailand-Plus-One Strategy: Practices of Japanese Firms in the Greater Mekong Subregion Tongurai Jittima1, Fujioka Takamasa2 1Associate Professor, Graduate School of Business Administration, Kobe University, Kobe, Japan-6578501. Email: tongurai@people.kobe-u.ac.jp 2Director-Sasin Japan Center, Sasin School of Management, Chulalongkorn University, Bangkok, Thailand-10330. Email: taka.fujioka@sasin.edu Online published on 23 March, 2018. Abstract In this study, we examine cross-border production fragmentation of Japanese firms and their practices of the Thailand-Plus-One strategy in the Greater Mekong Subregion (GMS). Thailand-Plus-One refers to a business strategy in which Japanese firms in Thailand move the production processes of labour-intensive parts to the neighboring countries with cheaper labour cost. We find several cases of Japanese manufacturing firms operating in Thailand that do fragmentation by transferring labourintensive production blocks of their manufacturing processes to Thailand's neighboring countries (i.e., Cambodia, Laos and Myanmar, or the so-called the CLM countries). The development of Special Economic Zones (SEZs) near the borders between Thailand and the CLM countries promotes the Thailand-Plus-One strategy. Greater regional economic integration (i.e., ASEAN Economic Community), the improvement in political and economic conditions in the CLM countries, the development of logistics infrastructure, and differences in factor prices (e.g., raw materials, wages and production costs) between Thailand and the CLM countries increase the prospect of implementing the “Thailand-Plus-One ”strategy in the region. Top Keywords Cross-Border Fragmentation, Production Blocks, Japanese Firms, Thailand-Plus-One, Greater Mekong Subregion. Top |