One of the key ingredients of success in building internationally competitive industries lies in amassing a sizeable pool of competent suppliers of parts, components and accessories. This monograph examines how in developing countries suppliers of mechanical components at the low end of the technological trajectory build up key capabilities over time. The focus is on Vietnam's motorcycle industry, which was rapidly transformed from a small, highly protected market to the world's fourth largest motorcycle producer. This rare success resulted from intense competition between leading Japanese...