This paper is based on a newly created database of Thai multinationals. It shows that the fledging Thai MNEs are drawn from industries whose value chains are characterized by global integration under a producer- or buyer-driven mechanism. Qualitatively different characteristics in ownership patterns, directions and types of international activities between these two groups are evident from the database. By integrating the literatures on emerging multinationals and on the global value chain, the paper reveals two insights. First, developing country firms upgrade their position in the global value chain through international expansion in the direction of their governance structure. Supplier firms break from being in the lower end of the value chain by moving upstream or downstream. Second, this paper sheds more light on the relationship between global ‘lead firms’ and local subsidiaries in developing countries. It indicates that insertion into the global value chains is not an automatic panacea for the upgrading of developing country firms. While being part of the global value chain helps firms from developing countries to expand their market reach, the semi-independent relationship could render developing country firms captive and locked-in under the control of the more dominant global lead firms. International expansion can therefore be adopted to enhance the position of firms in developing countries