Why Is Vietnam Performing Better Than Indonesia In Manufacturing Sector? – OpEd

[Carlosa]

The overseas sweatshop factories that produce the products for these companies.

Those are mainly in china,

 

[Huan]

Those are mainly in china,

Vietnam is trying to get more of those types since they are reportedly moving low-wage production further south in East Asia.

 

[Aepsilons]

Dear Indonesian and Vietnamese bros,

Why bother in putting each other down ? I think both Indonesia and Vietnam are developing their manufacturing sector , both are developing economies with positive indicators for sustained growth. By emphasizing who is faster than who is such a short term and near sighted aspect, don't be like that, guys. Focus on long term goals , long term developmental aspirations, and encourage each other as competition is always a plus in a free and open market system.

So I say: Congratulations to both Indonesia and Vietnam !

 

[Carlosa]

Vietnam is trying to get more of those types since they are reportedly moving low-wage production further south in East Asia.

No, they are not trying to get those, some of those come anyway to the areas that will accept them, but in many areas such as Danang, they don't want anything that is low end labor intensive or anything that creates pollution.

 

[AndrewJin]

I think Indonesia is doing better as a whole.

 

[Carlosa]

Even Indonesian manufacturing out put is very close India one

To understand more: Fact : Most ASEAN countries (except Indonesia) are export driven economy since their domestic market are not huge, thats why in 2008 all ASEAN economy get hit by the crisis, except Indonesia (and maybe also Philippines ) which was still growing at that time around 4 % until 4,5 %

From World Bank data

Manufacturing, value added (current US$) | Data | Table

Manufacturing, value added (current US$)

Manufacturing refers to industries belonging to ISIC divisions 15-37. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3. Data are in current U.S. dollars.
World Bank national accounts data, and OECD National Accounts data files.
Catalog Sources World Development Indicators


Country name 2013

1. China 2,941,337,347,299

2. United States 1,966,495,000,000

3. Japan 1,073,277,493,560

4. Germany 745,240,864,784

5. Korea, Rep. 370,393,593,514

6. Italy 287,482,387,812

7. Brazil 250,149,717,252

8. France 285,590,357,502

9. India 298,892,275,348

10.United Kingdom 231,189,798,427

11.Russian Federation 267,591,226,274

12.Indonesia 205,768,427,070

Mexico 215,689,694,253

Canada 162,080,209,810

Turkey ,169,232,482

Thailand 127,569,680,401

Switzerland 123,855,109,928

Australia 104,170,239,125

Netherlands 93,050,714,496

Sweden 84,367,422,538

Poland 88,003,543,631

Argentina

Belgium

Austria

Malaysia 74,895,426,703

Saudi Arabia 75,536,266,667

Venezuela, RB 50,891,378,335
South Africa

Singapore 52,577,079,837

Puerto Rico
Ireland
Czech Republic
Philippines
Finland

Colombia
Egypt, Arab Rep.
Denmark
Norway
Portugal
United Arab Emirates
Hungary
Nigeria
Chile
Pakistan 31,274,076,599
Ukraine
Vietnam 29,981,829,397
Bangladesh 24,661,461,494

I think Indonesia is doing fine and to depend mainly on the internal market has a lot of advantages also.

 

[East or West India Best]

Vietnam mera jan <3<3<3<3<3<3<3<3<3<3<3

 

[Huan]

View attachment 228691 View attachment 228692

I think Indonesia is doing better as a whole.

China's GDP shown there is outdated. It is around $10 Trillion now. Do you have a more updated chart?

 

[xunzi]

Vietnam has become the sweatshop now. My underwear is made by Vietnam. LOL

 

[Indos]

I think Indonesia is doing fine and to depend mainly on the internal market has a lot of advantages also.

Thanks, Vietnam has many opportunity as well. In order to speed up Vietnam development, I believe Vietnamese living abroad must go back to their mainland after accumulating some expertise and capital there to develop their own nation further. Indonesian in other part has better nationalism I guest, most of our white color worker will go back, not many brain drain in our part.

That writer is not a good one I guest........ He/She should focus his writing on the ability of Vietnamese industry in penetrating the US market than talking about the overall industrialization between two nations, even he/she doesnt know about ASEAN manufacturing out put data.

Talking about Vietnam industry, as far as I know, Vietnam has a very good steel industry and this industry export many steel abroad and USA steel industry can be seen as going down (loosing its competitiveness already).

 

[Huan]

Vietnam has become the sweatshop now. My underwear is made by Vietnam. LOL

LOL, that would sound insulting. "You are only good for making our underwear."

 

[Viet]

Vietnam has become the sweatshop now. My underwear is made by Vietnam. LOL

I don´t believe it, unless you make a photo of it, and post here. with your a.s.

 

[xunzi]

LOL, that would sound insulting. "You are only good for making our underwear."

It is real. I was shock to know most of the clothes are made with a "Made in Vietnam" tag, including underwear. The Vietnamese are taking over our clothing now.

I don´t believe it, unless you make a photo of it, and post here. with your a.s.

That's so ridiculous. LOL

 

[Bussard Ramjet]

Im for sure he is not Indian. It is sure being close to Korea and Japanese is advantage but not sure about China. The trade between Vietnam and China where Vietnam trade deficit is huge around $44 billions where Chinese gain much more. China investment in Vietnam is minimal. Location does play a role but the people is bigger role, Vietnam isnot the only country close to China, there are North Korea, Pakistan, Myanmar, Lao, Mongolia.

Dude! You have no idea! It is not manufacturing of Korea or Japan that is migrating to Vietnam, it is manufacturing of China, the low end one, that is migrating to Vietnam.

Also, you are a downsteam person in the supply chain, and hence you are supposed to have a deficit. Let me explain.

Korea and Taiwan, are the most upstream suppliers in electronic manufacturing, supplying LCD panels, ICs, memory, etc.

These are then sent to China to add value, and further components.

These are further sent to VIetnam to assemble.

So Korea and Taiwan have a trade surplus with China.

And China has that with Vietnam.

It is all due to the nature of supply chain. Vietnam is at the bottom of the supply chain, and hence it will just receive, not give to the above parts of supply chain.

Also, for other countries:

North Korea: Yes, if fat Kim opens up the economy, North Korea, due to its strategic location, and as the only wilderness in that region, will grow at astonishing rates.

Pakistan- While, Pakistan may have a border with China, it is not close to the industrial heart land, aka coast of China.

Myanmar- Again, it is very far from coast of China, and there is no good connectivity.

 

[Shotgunner51]

Dear Indonesian and Vietnamese bros,

Why bother in putting each other down ? I think both Indonesia and Vietnam are developing their manufacturing sector , both are developing economies with positive indicators for sustained growth. By emphasizing who is faster than who is such a short term and near sighted aspect, don't be like that, guys. Focus on long term goals , long term developmental aspirations, and encourage each other as competition is always a plus in a free and open market system.

So I say: Congratulations to both Indonesia and Vietnam !

Well said, both Vietnam and Indonesia are doing very well, with strength in different areas.

View attachment 228691 View attachment 228692

I think Indonesia is doing better as a whole.

That stats from OP says that Vietnam is bigger in penetrating the US market, I suppose it gotta do with low-cost merchandise (can compare the export/import treemaps of US/VN), while stats also show that Indonesia is larger in overall industrial size, which I suppose industrial goods and processed commodities (to be consumed by integrated supply chain in Asia including Vietnam) play a relatively heavier roles in her portfolio.

If people are interested in digging deeper into the subject, let's check export/import treemap stats.

Vietnam Export:

Indonesia Export:

Even Indonesian manufacturing out put is very close India one

Yes, Indonesia and India are about in the same bracket in terms of overall industrial value. Given Indonesia has a lot less population, it is far more industrialized and developed.

The whole of ASEAN (~0.7 billion people), Indonesia & Vietnam included, is undergoing rapid industrialization and modernization (except Singapore which is already advanced). Good luck all ASEAN guys!