When we examine the differences in location advantages and the levels of the
service-link costs focusing on the Mekong region and advanced ASEAN, the
international production networks would be more favorable in advanced ASEAN than
in the Mekong region in terms of the service-link costs, whereas the differences in
location advantages might work in the future creation of production networks in the
Mekong region. Table V compares the GDP per capita, and the Logistic Performance
Index (LPI) presented by the World Bank among ASEAN. The LPI can be a proxy
variable of service-link costs since it includes the performance of customs,
infrastructure, international shipment, logistics competence, tracking and tracing, and
timeliness. Table V clearly shows that the logistic performances of Lao PDR, Cambodia,
and Myanmar are far behind those of advanced ASEAN, while CLMV has a potential to
accept fragmentation impacts due to the lower levels of GDP per capita.