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엔화강세하의 대동, 서남아 플랜트수출시장분석(Analysis of the Southeast/Southwest Asian export market for plants with the strengthening Yen)

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Title 엔화강세하의 대동, 서남아 플랜트수출시장분석(Analysis of the Southeast/Southwest Asian export market for plants with the strengthening Yen)
Similar Titles
Material Type Reports
Author(Korean)

김도형; 신용대; 이공래; 윤우진; 온기운; 남장근

Publisher

[서울]:산업연구원

Date 1987
Pages 177
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Economy < Trade
Holding 산업연구원; KDI 국제정책대학원

Abstract

The aim of this study is to select possible export items for the Southeast/Southwest Asian markets which have high potential demands on plants. Furthermore, the study seeks to develop plans to increase export in order to devise a road map to increasing exports in the changing local and foreign economies.

Since the 1980s, world demand for plants has faced a long stagnation while the Asian plant market maintained its continuous growth. While the Yen-Dollar exchange rates in late September 1985 was 217.00 Yen-Dollar, it was revalued a year and a half later, recording at a value of 145.80 Yen-Dollar in late March 1987. With the Yen surging, the Korean plant industry’s competitive price is strengthening over the Japanese as a result.

Southeast and Southwest Asian plant markets are evaluated to be the largest in terms of volume. Between January 1985 and October 1986, countries placing the most number of orders for plants rank as: India with 56 plants (28%), Indonesia with 51 plants (26%), Thailand with 37 plants (19%), and Malaysia with 19 plants (10%). The Southeast and Southwestern markets are also known for their distinct traits as “buyers’ markets.” Armed with various measures including governmental loans, Japan was able to enter the markets much earlier, already advancing in the plant markets.

In the case of Korea, the export volume of plants in 1980 recorded at $522.33 million, which increased by 21.6% in 1985 at $1.38771 billion. However, the following year showed a disappointing performance at $600.27 million, recording only 45.2% of the previous year. This study provided an explanation behind the drastic decrease and analyzed the export records of 1986 by region, contract volume and industry. The study also provided detailed information on the engineering capabilities of major facilities and the domestic supplying capability of equipment in an effort to evaluate the country’s capability of winning contracts. Based on these data, a comprehensive evaluation on the country’s capability of winning contracts was conducted. Along the procedure, major issues on contracting were identified, including those regarding foreign bidding, engineering and equipment production.

This study attempted to reflect the visits to local, foreign plant industries and relevant organizations, conducting surveys instead of the traditional method of literature research. In addition, the study identified Japan’s loss of competitiveness in exporting plants along with Korea’s capability on winning contracts. Based on the data given along with additional insights from experts, the study selected feasible areas for export.

The results of a thorough comparison on the capacity to win contracts and competitiveness against the Japanese show that the following are feasible plants that can be exported to Southeast and Southwest Asia: electric power and distribution equipment, substation equipment, harbor equipment and dams are strongly competitive against the Japanese and are promising areas of export. Meanwhile, those that share similar competitiveness with Japan but are promising for exports include the areas of hydropower equipment, rolling equipment, fertilizer equipment, wired communication equipment, and railway electrical equipment. Finally, areas that are weak against Japanese competitiveness but are nevertheless promising under the goal of resource development include the areas of nonferrous metals, natural gas, and liquefaction equipment. Based on the given analyses, this study organized the development methods of plant export for Southeast and Southwest Asian markets in terms of ‘response measures from governments, reinforced support from relevant organizations, and response measures from plant industries.