Indonesia'S New Target Of Expanding Garment Industry In Thailand

Thailand Kai Tai Research Center recently released a report that, at present, Thailand Clothing Competition has intensified, expanding trade channels and investing overseas have become one of the magic weapons for enterprises to survive. Kai Tai Research Center believes that Indonesia is one of the investment destinations worth the attention of Thailand garment enterprises in ASEAN countries. Spin The clothing industry's investment advantages lie in the following four aspects:

In terms of trade, Indonesia's economy grew strongly, its national income continued to rise, and the purchasing power of clothing products further enhanced. Indonesia in recent 4~5 years Clothing import The value of Thailand's clothing exports to Indonesia also keeps growing. In terms of investment, the total foreign direct investment in the Indonesian textile and garment industry will continue to grow. Moreover, the establishment of ASEAN Economic Community in 2015 will surely attract more foreign capital to Indonesia. Because Indonesia has the advantage of abundant labor force and low wage level, its manufacturing industry has a high competitiveness in ASEAN.

In terms of market, Indonesia's clothing retailing industry has considerable business opportunities. The support factor is the sustained growth of clothing consumption demand brought about by the development of urbanization in Indonesia. In addition, because Indonesian consumers are close to Thailand in terms of their taste in clothing and continue to increase their purchasing power, Thailand garment operators should seize the opportunity to set up Thailand clothing brand discount stores in Indonesia's cities with higher per capita incomes.

Kai Tai Research Center predicted that the above favorable factors will stimulate Thailand's total export value of clothing to Indonesia in 2012 reached 8 million US dollars, an increase of 43% over the same period last year. In the process of ASEAN integration in 2013~2015, Thailand's clothing exports to Indonesia are also expected to continue to grow. Besides the Indonesian economic growth, the support factors also come from more and more Thailand businesses, including retail operators and garment exporters, to trade and invest in Indonesia.

Thailand clothing has great potential in the Indonesian market with a total retail sales of 11 billion US dollars. The reason is that Thailand's products are of good quality. Thailand brand has a very good reputation among local consumers. It has become a passport for Thailand apparel operators to enter Indonesia, making it easier to launch marketing. However, Thailand is also facing challenges in the Indonesian market: as foreign enterprises are trying to expand the Indonesian market and make use of Indonesia as a production base, Indonesia Garment industry Competition will further intensify, which may become an obstacle for Thailand enterprises to expand their markets in Indonesia and export to Thailand from Indonesia.

Investors wishing to build production bases in Indonesia must be aware that various regulations in Indonesia are constantly changing and labour laws are quite strict. If we do not follow closely the changes in laws and regulations, trade and investment will be affected and can not be carried out smoothly. In addition, although Indonesian workers are highly efficient in sewing, they are not competent enough for skilled work and become the soft spot of Indonesia's labor force. In addition, the increase in foreign manufacturers to invest in Indonesia may lead to a shortage of labor in the future and the phenomenon of competing for labor by enterprises.

Therefore, in the 2~3 years before the establishment of the ASEAN Economic Community in 2015, there will still be more business opportunities for Thailand operators to enter the Indonesian market. After the establishment of ASEAN economic community, competition will become more intense. Thailand dealers will also face more severe challenges.