How ASEAN Can Move Up the Manufacturing Value Chain

[HalfMoon]

Not quite, ASEAN countries are mostly able to separate political and economic approach between each other and between ASEAN and external partners. That results to continous close economic and supply chain integration both internally (AFTA) and externally (ACFTA). Furthermore, ASEAN basically sits in the most busy and active trade route in the world which enables manufactured products to be shipped not just to China, but also to other parts of the world.

Everyone thinks that they are the center of the world.

ASEAN may be well placed to ship to the Americas but not suitable for shipping to EU, GCC, Africa.

This is where South Asia comes in and is better placed.

A factory in Pakistan is certainly better suited to ship to EU than a factory in Philippines.

 

[REhorror]

Everyone thinks that they are the center of the world.

ASEAN may be well placed to ship to the Americas but not suitable for shipping to EU, GCC, Africa.

This is where South Asia comes in and is better placed.

A factory in Pakistan is certainly better suited to ship to EU than a factory in Philippines.

Instead of worrying about exporting to which market, ASEAN countries should consider more about better domestic market and increasing wages for workers.
As always, once you fix the domestic then you can talk about export.

 

[MH.Yang]

I looked at B&R and ASEAN's industrial investment report.

From 2013 to 2016, B&R's phase I investment in ASEAN totaled US $50.69 billion. It mainly invests in the four Mekong countries, Indonesia and Malaysia.

BTW: I'm optimistic about Vietnam.

 

[nufix]

Everyone thinks that they are the center of the world.

ASEAN may be well placed to ship to the Americas but not suitable for shipping to EU, GCC, Africa.

This is where South Asia comes in and is better placed.

A factory in Pakistan is certainly better suited to ship to EU than a factory in Philippines.

Err, that's not a thought nor was it an opinion, that is a fact. You took Philippines as an example, yet ASEAN consisted of countries like Malaysia, Singapore, and Indonesia that basically have direct access and multiple major ports along the routes of Strait of Malacca as well as Thailand and Vietnam that have access to the SCS route.

No offence, but the only South Asian countries worth mentioning in this context are India and Sri Lanka and the combined container traffic of those two countries based on the traffic of their bussiest ports are still less than the traffic of one single port of Singapore. https://en.wikipedia.org/wiki/List_of_busiest_container_ports

When it comes to manufacturing output, ASEAN alone has about USD 600 billions in manufacturing output while South Asian countries has a combined total of about USD 500 billions. Take India away and you will have less than USD 100 billions in manufacturing output. https://howmuch.net/articles/map-worlds-manufacturing-output. ASEAN might not be the center of the world, but it certainly is better suited for manufacturing than Pakistan, Bangladesh, or Sri Lanka, at least for now.

 

[HalfMoon]

Err, that's not a thought nor was it an opinion, that is a fact. You took Philippines as an example, yet ASEAN consisted of countries like Malaysia, Singapore, and Indonesia that basically have direct access and multiple major ports along the routes of Strait of Malacca as well as Thailand and Vietnam that have access to the SCS route.

No offence, but the only South Asian countries worth mentioning in this context are India and Sri Lanka and the combined container traffic of those two countries based on the traffic of their bussiest ports are still less than the traffic of one single port of Singapore. https://en.wikipedia.org/wiki/List_of_busiest_container_ports

When it comes to manufacturing output, ASEAN alone has about USD 600 billions in manufacturing output while South Asian countries has a combined total of about USD 500 billions. Take India away and you will have less than USD 100 billions in manufacturing output. https://howmuch.net/articles/map-worlds-manufacturing-output. ASEAN might not be the center of the world, but it certainly is better suited for manufacturing than Pakistan, Bangladesh, or Sri Lanka, at least for now.

Through Strait of Malacca? That says it all.

 

[Viet]

The article is most likely referring to output per year growing $400-600bil by 2030 from 2020 levels, not growing $400-600bil every year lol.

Doubling in 10 years time is reasonable.

Correct. Manufacturing of low and medium costs will gradually move to SE Asia that’s the trend in the next coming years.

ASEAN brand image will likely be boosted if Indonesia is inshaAllah successful in developing R 80 passenger plane.

View attachment 774235

Only possible if that plane is an Asean project like Airbus. Otherwise it will forever remain on paper.
Even if you succeed nobody outside Indonesia will buy.
If nobody buys how can it boost asean image?

 

[Indos]

Only possible if that plane is an Asean project like Airbus. Otherwise it will forever remain on paper.
Even if you succeed nobody outside Indonesia will buy.
If nobody buys how can it boost asean image?

How do you know no body beside Indonesia will buy ? As far as I know Vietnam has bought NC 212i from Indonesian Aerospace. The plane is originally designed by CASA but we can see the "N" (Nusantara) and "i" symbol means the plane has been further developed by Indonesian Aerospace.

Just see CN 235 is even used by USA

 

[Viet]

How do you know no body beside Indonesia will buy ? As far as I know Vietnam has bought NC 212i from Indonesian Aerospace. The plane is originally designed by CASA but we can see the "N" (Nusantara) and "i" symbol means the plane has been further developed by Indonesian Aerospace.

View attachment 774490

Just see CN 235 is even used by USA

View attachment 774491
View attachment 774492

That’s Airbus aircraft. Vietnam buys it from Indonesia because probably of showing goodwill towards Indonesia.
think of the period when VN and IN clashed over fishing at seas.

 

[Indos]

That’s Airbus aircraft. Vietnam buys it from Indonesia because probably of showing goodwill towards Indonesia.
think of the period when VN and IN clashed over fishing at seas.

CN 212 is of course first developed by CASA (now become part of Airbus), but Indonesia Aerospace is the sole manufacturer of the plane now. After 2004, Vietnam cannot buy the plane from Airbus since they dont produce it anymore.

While CN 235 is a joint development of Indonesia Aerospace and CASA with 50:50 stake. You should know that Habibie has several important patent in aerospace and this is why CASA is keen to cooperate with Indonesia to develop CN 235.

Here right from Airbus website


Stepping up in size, CASA and IPTN began a joint development of the larger CN235 in January 1980, leading to a first flight in November 1983. With active production continuing today at the Airbus industrial facility near Seville, Spain, more than 280 of these pressurised twin turboprop-powered, rear-ramp equipped aircraft have been ordered by military operators, civilian carriers and transport companies, as well as for government and paramilitary operators. The versatility of this aircraft – which has a maximum take-off weight in the 16,000-kg. category – is demonstrated by the CN235’s diverse applications, covering the spectrum from airline flights, patrol and anti-drug trafficking to cargo, VIP duties and special missions.

The CN235 has even been configured as a gunship with a side-mounted 30mm cannon and integrated weapons pylons for missiles and rockets, while the U.S. Coast Guard acquired CN235s as its medium-range surveillance aircraft in the service’s Integrated Deepwater System Program – with equipment including a roll-on, roll-off electronics suite accommodated through the rear ramp.

Defence History

Defence History

www.airbus.com

Indonesia Aerospace older name is IPTN (Industry Pesawat Terbang Nusantara). The word N comes from Nusantara which is the indigenous name of Indonesia.

 

[nufix]

That’s Airbus aircraft. Vietnam buys it from Indonesia because probably of showing goodwill towards Indonesia.
think of the period when VN and IN clashed over fishing at seas.

CN235 was designed, developed, and manufactured together with PT DI of Indonesia. The workshare of each plane produced is at least 50-50 between EADS/Airbus and Indonesia. So planes bought from Airbus by the US were also partially produced in Indonesia.

 

[Indos]

Indonesia dream in Aerospace industry

Aerospace industry is something that Indonesia is now thinking big. I have seen our future Aerospace industry road map, and it is quite ambitious.

In the near term we will see whether small plane like N 219 can get many order from inside the country and our region, South East Asia. Archipelago country like Philippine and country like Malaysia who needs plane to link their mainland SEA region and Borneo island is the one that I see most prospective buyers, other is African country since N 219 is fit with mountainous landscape like Papua province and unpaved runway normally seen in less developed region like Africa and to some extend is also true in some part of South East Asia

N 219 Basic

Our current program

Component industry development is also supported by making testing lab for Aerospace component products made by our domestic industry.

PT Dirgantara Indonesia (Indonesia Aerospace) expansion has also been planned and in Mei our President has asked West Java Governor to prepare land for Indonesia Aerospace in our new airport complex in Kertajati.

In military divison we are preparing MALE UCAV

And together with South Korea, KF 21. At least if we dont get export license, then inshaALLAH we will be self sufficient to some extent to provide jet fighter to our own Air Force.

 

[Indos]

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