Strategies to Strengthen Industrial Cooperation with Major Emerging Countries in Southeast Asia

Taeyoon Kim, Jae Wan Cheong, Jaeho Lee, Mingeum Shin, Na Ri Park and Yoomi Kim

This research studies on industrial cooperation between Korea and Indonesia, Philippines and Vietnam focusing on textiles / textile articles (Section 11), base metals / articles of base metal (Section 15), mineral products (Section 5), and electronic products (Chapter 85). It analyzes a trade structure between Korea / China / Japan and three Southeast Asian countries focusing on production process. Also, a survey is done to understand production networks of foreign manufacturing firms in the three Southeast Asian countries, originated from Korea, China and Japan.
Regarding the trade structure, global production networks have been strengthening because of the continuous increase of intermediate goods trade. Korea’s exports of final goods in the manufacturing sector have also increased, which indicates Korea’s competitiveness in the production of final goods compared to other firms.

More specifically, Korea imports both intermediate goods and final consumer goods in textiles / textile articles sector while exporting most of the intermediate goods. Primary goods and intermediate goods in base metals / articles of base metal sector are imported while intermediate goods are mainly exported. In electronic products, the trade is focused on that of parts & components and capital goods. We have a pattern of importing primary goods while exporting intermediates goods in the mineral products sector.

This study thus proposes the following measures for industrial cooperation, with respect to creating Korea’s comprehensive strategy towards Southeast Asia.
First, Korean government should reinforce current inter-governmental consultative body to create business-friendly environments, and strengthen Korea’s soft power by utilizing development cooperation. To this end, ODA tailored to each industrial sector should be expanded and contribute to enhancing the industrial competitiveness of Indonesia, the Philippines, and Vietnam. Strategies to reduce service link costs should be prepared to help Korean manufacturing firms build global production networks. AEO-MRAs (Authorized Economic Operator-Mutual Recognition Agreement) should be signed with emerging Southeast Asian countries.

Second, it is necessary to formulate strategies to strengthen the competitiveness of Korean enterprises in Southeast Asia by industrial sector. Given that Vietnam will join TPP, in the case of the textiles / textile articles companies, government should support companies to enter the local market from the initial stage of yarn production to satisfy the US’s rules of origin for textiles (e.g. yarn forward). The ongoing initiative of "Korea-Indonesia industrial cooperation" should include technology cooperation in the area of textiles / textile articles as a representative example of industry-related ODA. In the case of base metals / articles of base metal and electronics, the Korean government should make an effort to improve the inadequate system of the local governments (e.g. standardization, reinforcement of safety standards, etc).

Third, to compete with the rivals such as China and Japan, systems that can obtain and exchange necessary information with the local governments should be reinforced. The biannual meetings held between Korea and Vietnam’s Ministries of Finance, National Tax Services, and Customs Services should also be initiated with Indonesia and the Philippines, and provincial governments should also be involved.

Fourth, Korean government should develop successful cases of cooperation and fully utilize them when it comes to industrial cooperation with the three countries. Public-private partnership projects should be backed by strategies that combine Korean government’s financing and private sector’s technology. It is necessary to seek measures that encourage private companies to participate in industrial cluster projects.

서언

국문요약

제1장 서 론
1. 연구 배경 및 필요
2. 연구 목적
3. 기존 연구 검토
4. 연구방법 및 구성

제2장 인도네시아, 필리핀, 베트남의 산업 정책 및 구조
1. 주요국별 산업 정책과 전략
가. 인도네시아
나. 필리핀
다. 베트남
2. 주요국별 산업구조
가. 인도네시아
나. 필리핀
다. 베트남
3. 산업 정책 및 구조의 국별 비교

제3장 한국과의 생산공정별 교역구조 및 생산네트워크
1. 주요국별 교역 및 투자 구조 변화
가. 주요국별 교역 추이
나. 주요국에 대한 산업별 교역구조 변화
다. 해외직접투자구조 변화
2. 각국 주요 산업과의 생산공정별 교역구조
가. 생산공정별 분류
나. 인도네시아: 광물성 연료 및 에너지, 섬유·봉제, 철강 및 금속
다. 필리핀: 전자제품, 광물성 연료 및 에너지, 철강 및 금속 제품
라. 베트남: 섬유·봉제, 철강 및 금속, 전자 제품
3. 주요 업종에 대한 한국과 동남아 국가 간 생산네트워크
가. 광물성 연료 및 에너지
나. 섬유·봉제
다. 철강 및 금속
라. 전자산업
4. 소결

제4장 중국 및 일본과의 생산공정별 교역구조와 생산네트워크
1. 주요국별 교역 추이 및 구조 변화
가. 주요국별 교역 추이
나. 주요국별 및 산업별 교역구조 변화
2. 주요 산업에 대한 중·일의 생산공정별 수출구조
가. 광물성 연료 및 에너지
나. 섬유·봉제
다. 철강 및 금속
라. 전자
3. 주요 업종에 대한 중·일과 동남아 국가 간 생산네트워크
가. 광물성 연료 및 에너지
나. 섬유·봉제
다. 철강 및 금속
라. 전자
4. 한국과의 비교

제5장 결론: 동남아 신흥국가와의 산업협력 강화 전략
1. 기본 방향
2. 산업별 협력 강화 전략
가. 섬유·봉제산업
나. 광물성 연료 및 에너지
다. 철강 및 금속 산업
라. 전자산업
3. 요약 및 시사점

부 록
부록 1. 주요 업종에 대한 한국과 동남아 국가간 생산네트워크 관련 설문조사지 예시
부록 2. 주요 업종에 대한 중국 및 일본과 동남아 국가간 생산네트워크 관련 설문조사지 예시

Executive Summary