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

[Carlosa]

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

That's normal for him.

 

[Huan]

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.


That's so ridiculous. LOL

I haven't gotten any clothes made in Vietnam yet.

 

[Carlosa]

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).

Each model of development has its own pros and cons.

The export model such as in Vietnam gets a lot of foreign capital, technology and lots of foreign currency. That tech creates qualified workers that later also go to work in other sectors of the economy. The downside is that depends too much on exports and the foreign / international economy; if they go down, then exports and the economy also go down.

The model based on the internal market doesn't get as much of those other advantages, but its much more insulated from external factors, so its inherently more stable.

 

[Carlosa]

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..

Not just low end, that's just a stereotype, Samsung, Nokia and Intel (and many others like them) are not low end, are they?

The simple truth is that China is not only becoming too expensive, but the conditions for foreign companies are becoming not good at all.

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).

Actually, many overseas vietnamese are coming back to Vietnam and setting up high tech companies and all sort of business. That makes a big difference. They bring with them a different mind set about how to do things and that's very important for a developing country.

I think for Indonesia the key is to reduce corruption, bureaucracy and red tape and at the same time to give tax incentives, etc to attract foreign investors.
I know a German doing business in Indonesia and those are the things that he always complains about.

 

[Indos]

Actually, many overseas vietnamese are coming back to Vietnam and setting up high tech companies and all sort of business. That makes a big difference. They bring with them a different mind set about how to do things and that's very important for a developing country.

I think for Indonesia the key is to reduce corruption, bureaucracy and red tape and at the same time to give tax incentives, etc to attract foreign investors.
I know a German doing business in Indonesia and those are the things that he always complains about.

Corruption is our biggest problem, thats why we assume that many big corporation in Indonesia need to bribe some one to get any project, even my brother who has won a tender (bidding) need to bribe as well, and as a good Muslim he then give up his entrepreneurship ( even though has already set up a company) and go back again working as an employee. Hard task to do business for a practicing Muslim in Indonesia. If any thing is clean, so business will be played in a fair way, some thing that we are still working on.

 

[Carlosa]

Corruption is our biggest problem, thats why we assume that many big corporation in Indonesia need to bribe some one to get any project, even my brother who has won a tender (bidding) need to bribe as well, and as a good Muslim he then give up his entrepreneurship ( even though has already set up a company) and go back again working as an employee. Hard task to do business for a practicing Muslim in Indonesia. If any thing is clean, so business will be played in a fair way, some thing that we are still working on.

Corruption is also the biggest problem in Vietnam and in the whole of southeast Asia except Singapore and to a lesser extent Malaysia.

For most people religion means to go to church on Sunday morning or to the mosque on Friday or to go to the Buddhist temple to pray when they have some problem.
They don't live it, its just a label that they have.

 

[Bhayangkara]

Not really, its about the same. The article actually portraits the vietnamese government in a better light than what it really deserves, but the simple truth is that Indonesia is more corrupted and bureaucratic than Vietnam and in the end, foreign investing is like water..

I agree if the Indonesia's licensing issues is more bureaucratic than Vietnam, that's why this bureaucratic obstacles is been one focus improvement under Jokowi's governance which on earlier this year has issued a one stop service policy to facilitate the entry of foreign investment to Indonesia..
But is Indonesia is more corrupted than Vietnam?? I don't think so. If we are referring to the data CPI-2013: Indonesia's position-114 with 32 points is light better than Vietnam's - 116 with 31 points., But then is, whether I have the right's to do say that Vietnam is more corrupt than Indonesia?? Nope !! Because I assume that Indonesia and Vietnam have the same magnitude problems of corruptions, and they are equally on struggling to improve their systems and form a clean governance to prevent more massive corruptions in both countries..
So as a fellow developing countries, let us compete with positive way without having to be accompanied by disfigure and open the ugliness of each others..

Trully as personally, I'm also happy with the revival of the economic of Vietnam, hopefully this can be a good momentum to make Vietnamese society more prosperous in the future..

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 !

Very well said, sir.. And actually, the majority of Indonesian people here is put respect and sympathy to the struggle of Vietnamese people, and strongly supports for the economic progress in Vietnam which has previously been suffered by the prolonged conflict..

Hope the economic growth is getting better for both countries..

 

[Aepsilons]

Corruption is our biggest problem, thats why we assume that many big corporation in Indonesia need to bribe some one to get any project, even my brother who has won a tender (bidding) need to bribe as well, and as a good Muslim he then give up his entrepreneurship ( even though has already set up a company) and go back again working as an employee. Hard task to do business for a practicing Muslim in Indonesia. If any thing is clean, so business will be played in a fair way, some thing that we are still working on.

Your brother has a noble spirit...!

 

[Echo_419]

All I know is Vietnam make a lot of shoes，witch doesnt involve a long supply chain. And distance from supply chain isn’t that much of a big deal in mass manufacturing

Also by your own logic， “make in India” doesn‘t look very promising，do you even care?

This Indian member cares & debates more about China & Russia then India

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

The list you just posted clearly shows that their is a massive difference BTW our manufacturing output(in India's favor)

 

[Indos]

Your brother has a noble spirit...!

Yes, I am really glad that he has taken that step.......he can be really rich if he gives that bribe in my opinion, since he has good skill at that industry (plus skillful partners as well I think).

But Indonesia has made many good achievement also in combating corruption using independent body. Ruling party (Democrat party) Chairman (Anas Urbaningrum), Chairman of Justice Party (quite big as well/ Lutfi Hasan Ishaq), Central Bank Governor, Central Bank Deputy (Miranda Gultom), many ministers under Megawati and Susilo Bambang Yudhoyono administration, including Chairman of our respected Constitution Court (Akil Muchtar) have been busted and sent to jail by our (Independent) Anti Corruption Commission (KPK/ Komisi Pemberantas Korupsi). I bet it is the most successful Anti Corruption Body in the world between 2004-2014 era.

 

[Indos]

The list you just posted clearly shows that their is a massive difference BTW our manufacturing output(in India's favor)

No problemo my friend, beside that, India also has a very good service industry. Indonesia needs to improve its service industry more, just like the way India does (big portion of your GDP comes from that). Australia is another example in term of this, it has huge service industry so they can compensate their lacking in manufacturing base (by seeing Australia population, it makes Australia nominal GDP becomes something amazing)

 

[Carlosa]

I agree if the Indonesia's licensing issues is more bureaucratic than Vietnam, that's why this bureaucratic obstacles is been one focus improvement under Jokowi's governance which on earlier this year has issued a one stop service policy to facilitate the entry of foreign investment to Indonesia..
But is Indonesia is more corrupted than Vietnam?? I don't think so. If we are referring to the data CPI-2013: Indonesia's position-114 with 32 points is light better then Vietnam's - 116 with 31 points., But then, is whether I have the right's to do say that Vietnam is more corrupt then Indonesia?? Nope !! Because I assume that Indonesia and Vietnam have the same magnitude problems of corruptions, and they are equally on struggling to improve their systems and form a clean governance to prevent more massive corruptions in both countries..
So as a fellow developing countries, let us compete with positive way without having to be accompanied by disfigure and open the ugliness of each others..

Trully as personally, I'm also happy with the revival of the economic of Vietnam, hopefully this can be a good momentum to make Vietnamese society more prosperous in the future..
.

My friend, what I said was not about competition or to put anybody down. I wrote based on what I think its true. Both countries are very corrupted, that's the simple truth, but when it comes to how it affects foreign investment, I'm pretty sure Indonesia has more of a problem in that area. Anyway, no big deal, its a big enough of a problem for both countries. Lets hope Jokowi can improve that.

 

[Carlosa]

Hello my friend long time no see.

Yeah Viet Nam is rotten currupt to the core. !

Without any doubt !!!!!!!!

I'm actually having high expectation that joining the TPP will change things around.

Hopefully the TPP will IMPOSE significant structural changes that can help improve these redtape bureaucratic nonsense and become more transparent. Haters keep saying TPP will allow foreign MNC to exploit VN but the truth is, VN was already going down hill even without any foreign exploitation due to redtape and corruptions. The Viet military would be in much better shape if it weren't for these hideous economic mismanagement!!!

It is true that the TTP is a Troyan horse for the benefit of the big US corporations, but that being said, anything that can help control the incompetent, corrupted Vietnamese bureaucrats, its welcome.

I'm actually having high expectation that joining the TPP will change things around.

Don't hold your breath.

 

[Bhayangkara]

My friend, what I said was not about competition or to put anybody down. I wrote based on what I think its true. Both countries are very corrupted, that's the simple truth, but when it comes to how it affects foreign investment, I'm pretty sure Indonesia has more of a problem in that area. Anyway, no big deal, its a big enough of a problem for both countries. Lets hope Jokowi can improve that.

Yeah, its no big deal. And let's hope that both countries were able to resolve those problems in order to achieve better economic growth..

 

[DaiViet]

There may be a reason why nobody likes Chinese. In their post full of superiority complex, boasting of their achievment while putting down others though they forgot they were shiit hole and just got better, not the best just decades ago. Maybe this sets the different betwen them and Vietnamese, Japanese though countries has similarity in cultures. Chinese in here, government, Chinese papers speak talk and act the same.