Global production is currently shifting from basic goods to higher value-added goods, reflecting the change in the nature of worldwide trade; and the trend is also taking place in Indonesia at present, a report from British bank HSBC reveals.
The shift in production of basic goods toward higher value goods has taken place, particularly in Asia, with China leading the export growth of information and communications technology (ICT)-based products and industrial machinery, the latest HSBC Commercial Banking Trade Forecast says. This will give an opportunity to other countries like Bangladesh and Vietnam to enter industrial sectors, such as textiles, that are heavily dependent on low labor costs, it says.
A similar trend was also starting to be seen in Indonesia, one of the largest producers of key commodities like coal and palm oil. Several sectors, such as the garment industry, had started to apply new designs and techniques to produce higher-value goods with higher prices, HSBC’s head of corporate banking, Amanda Murphy, said.
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