RI-Vietnam Compete Strict catch China Garment Factory Relocation

Indonesia seems to have to work hard to match the aggressiveness of the Vietnamese government that aggressively attract foreign investors to invest into these countries. Because in the near future China’s garment business groups numbering tens of companies planning to relocate its factory from China, the choice is only two, namely Indonesia or Vietnam.

“Total company tens, ask them to ask, what is given Indonesia to me (the investor of China),” says Plt Chairman of Indonesian Textile Association (API) Ade Sudrajat when the encounter in JIExpo, Kemayoran, Jakarta, Wednesday (14 / 4 / 2010).

Unfortunately, Ade did not want anyone telling business groups such garments from China. However, Ade said, a group of garments from China that require a site area of 350 hectares of land with unclear status of land, electricity supply, adequate water supply, adequate infrastructure, and would not bother about the environment

“They were from the group, represented by the association, is making a study pilihanya Indonesia or Vietnam,” said Ade.

He said if the relocation is really happening then there is the potential development of China’s garment manufacturing companies as much as 8-9 in the short term. There is even the potential for labor absorption up to 200,000 people, with a potential investment per company is Rp 50 billion for the machine.

The plan is if the group had chosen Indonesia China garment, so it recommends the development of China’s factory is directed at the region of Central Java. It is with consideration of the Central Java regional government is very responsive to the investment license and road infrastructure that is supported by Semarang-Solo toll.

He said the desire of this relocation indicates that China tried to hold the market every related countries including Indonesia it has also been applied to Korean garment manufacturers during the past four years. In addition, the welfare of residents in China who began to make the competitiveness of high-wage labor in China is less competitive

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admin    Business     Adequate Infrastructure, Adequate Water Supply, Aggressiveness, Business Groups, Central Java, Electricity Supply, Factory Relocation, Foreign Investors, Garment Business, Garment Factory, Garment Manufacturers, Investment License, Jiexpo, Kemayoran, Manufacturing Companies, Potential Development, Regional Government, RI-Vietnam, Road Infrastructure, Textile Association, Vietnamese Government