Tuesday, October 13, 2009

Indonesia export replaced by Vietnam


Indonesia's position as one of the major exporting countries in ASEAN increasingly supplanted by other ASEAN members. In the export market garments and furniture products, for example, Indonesia  compete very tight with Vietnam. In fact, since last year, exports of Vietnamese garments and furniture have managed to overtake Indonesia's position in world markets. In the garment export market, especially to the countries of the European Union (EU) and the United States (U.S.), the product began to displace Vietnam Indonesia products. "Because Vietnam has a special facility," said Executive Secretary of the Indonesian Textile Association (API) Ernovian G. Ismy.

API noted, the last two years, Vietnam ranked second in the garment exporters in the world. While Indonesia sixth. Throughout the quarter I-2009 and then only, of the total U.S. garment imports reached U.S. $ 14.84 billion, Vietnam market share reached 8.2% or U.S. $ 1.21 billion. The Indonesian market is only 7.2% or U.S. $ 1.06 billion. In the European Union, of the total garment imports 28.6 billion euros, market share 1.26% Vietnam or 3.6 billion euros as for Indonesia market value of 1.21% to 3.46 billion euros. That's why, according to Ernovian, Indonesian garment manufacturers need to find alternative markets.

Export figures of furniture even worse. In 2008, the value of Vietnam's furniture exports rose 40% to U.S. $ 3.8 billion in exports compared to 2007. Meanwhile, Indonesia's export value is only U.S. $ 2.65 billion in the same or rose only 6% of exports in 2007 amounted to U.S. $ 2.5 billion. "Although we are not able to have a definite figure, but it seems they will continue to beat us," said Chairman of the Association of Industry and Handicraft Permebelan Indonesia (Asmindo) Ambar Tjahyono, yesterday.

Indeed, there are several factors that boost Vietnamese exports. For example, Vietnam get special facilities from developed countries as the establishment of a new status as a developing country. Facilities include a decrease in import duties (BM). In addition, the price of raw materials and rattan wood in Vietnam is also much cheaper by 20% than in Indonesia. As a result, production costs of Vietnam's furniture industry is lower. Two years ago, Vietnam's furniture exports are still below Indonesia. In 2007, Indonesia ranked fourth world exporter of furniture. Meanwhile, Vietnam is still below Indonesia. However, drastic changes occurred in 2008. Vietnam exports exceeded export value of Indonesia with the difference up to U.S. $ 1.15 billion. Vietnam especially superior in the American market.