KOTRA Strengthens Supply Chain Cooperation in Shipbuilding and Maritime with ASEAN

'KOREA-ASEAN Maritime Week 2022' to be Held in Bali Starting from the 17th

[Asia Economy Reporter Han Yeju] KOTRA announced on the 19th that it will hold the 'KOREA-ASEAN Maritime Week 2022' in Bali, Indonesia, the host city of the G20, in collaboration with the Korea-Gyeongnam-Busan Shipbuilding and Marine Equipment Cooperative, the Korea-Indonesia Marine Plant Cooperation Center, and others to support Korean companies' entry into the ASEAN market until the 21st.

Utilizing the cooperation demand in the shipbuilding and marine plant industries of Indonesia and major ASEAN countries, this event, held by KOTRA as part of the 'Export Plus' project, features about 50 promising domestic shipbuilding and marine companies participating both online and offline. Through various channels such as one-on-one business export consultations, product and technology exhibitions, and buyer networking receptions, they will pioneer the ASEAN shipbuilding and marine market.

Indonesia has about 250 shipyards, with new shipbuilding reaching 1 million DWT annually and ship repairs about 12 million DWT annually. However, most domestically produced ships are under 500 tons deadweight, which is relatively low compared to neighboring countries, and the import dependency of shipbuilding equipment is high at 65%.

Vietnam owns 929 domestic vessels and 166 international vessels (as of 2021), but most ships are aging and of low quality, requiring cooperation with overseas shipbuilders to develop modern ships. Among shipbuilding equipment, purely Vietnamese products account for 10-15%, with a high proportion of foreign and imported equipment. Additionally, Singapore, along with Korea and China, occupies more than 90% of the global marine plant market and has a developed shipbuilding and marine industry, but to comply with International Maritime Organization (IMO) regulations, there is a trend of expanding shipbuilding equipment purchases for existing ships as a short-term measure.

In this business export consultation, more than 60 major ASEAN shipbuilding and marine plant buyers and cooperative organizations from Indonesia, Vietnam, Singapore, and others will participate to find Korean partners for close future cooperation in areas such as △ next-generation shipbuilding technologies including ESG and carbon reduction green ships △ shipbuilding and port infrastructure development to procure high-quality shipbuilding equipment.

The event will also promote the bid for the '2030 Busan Expo.' It will enhance efforts to attract the Expo by promoting the global city of Busan with various videos and images to ASEAN association company officials and visitors.

Kim Taeho, Head of KOTRA's Economic and Trade Cooperation Headquarters, said, "ASEAN, with a population of 600 million including Indonesia, is one of the fastest-growing block economies in the world, Korea's second-largest trading and investment target region, and a key partner for regional supply chain stability and energy and resource supply." He added, "This event was prepared to catch two rabbits at once: 'short-term export expansion' to respond to the trade deficit crisis and 'securing sustainable growth momentum' in response to supply chain restructuring."

This content was produced with the assistance of AI translation services.