ASEAN, Rising as a Promising Export Market for New Industries, Parts, and Materials

https://korean-machinery.com///inquiryASEAN has a population of 640 million, 12.5 times the population of Korea. The GDP growth rate of ASEAN from 2009 to 2017 is almost 5%. The proportion of the Korean exports to the Big 4 markets (China, U.S., EU and Japan) was 50.8% in 2017, decreased from 56.6% of 2007. On the other hand, the proportion of export to ASEAN increased from 10.4% to 16.6%.
ASEAN countries are rising as promising areas for export of new industrial products and parts/materials as they are intensively fostering the high-tech products, and the parts and materials industry of Korea.
In ‘Export Opportunities and Promising Items for ASEAN,’ which was presented by the Institute for International Trade of the Korea International Trade Association, electrical machines and parts in the field of new industry, machines and parts in the field of optical instruments, and parts, copper and aluminum materials, etc. are items expected to be exported to the ASEAN may be significantly more.
Increase of the local market share and stabilization of import demand, especially focusing on electric condensers, telephones, microphones, and printed circuits in the field of electrical equipment, reflectors, liquid crystal devices and laser equipment among optical instruments, and processing/crafting machines, machining centers for metal processing, and cold- formed processing machines in the machinery field are expected to help exports.
This report said that
“while the entire exports of Korea in the last year increased 1.6 times from 2009, the entire exports of ASEAN increased almost 2.3 times. Among them, exports to Vietnam, Indonesia, Myanmar (VIM), and Philippines (VIP) which have strong growth potentials increased 4.2 times and 3.8 times, respectively.”
It also added that “looking at it by item, exports of the new industry, including next-generation semiconductors, displays, high-tech new materials, etc., to ASEAN, VIM and VIP increased 3 times, 15 times, and 6.4 times, respectively. Korean companies evaluated Vietnam and Indonesia most highly in terms of export potential and investment advancement in the survey of the Korea International Trade Association.”
Jung, Gwi-il, a researcher of the Trend Analysis Center of the Korea International Trade Association emphasized that “the major countries of ASEAN have huge potential for the population and economic growth rate and are expanding political support for the industry of high-tech and parts and materials. Korean companies should realize ASEAN as a promising market for export of higher value-added items and accordingly, aggressively attack their markets based on the new industry and the field of parts and materials.”

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Emerging as a Global Leader in Air Compressor Energy-saving Controllers

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Maekyung Buyers Guide conducted a personal interview with Dotech’s CEO Duk-Nam Choi who outlined the ongoing active expansion of the company in global markets.

 

Please tell us about your company and its driving force of growth

Dotech Inc. specializes in manufacturing refrigeration and airconditioning equipment, controllers and sensors for environment measurement equipment including refrigerators, thermo-hygrostats, air conditioners, air compressors, heat pumps and clean rooms. Dotech exports to more than 40 countries across the world as well as the domestic market while supplying around 200 kinds of products to related companies at home and abroad.

 

Please explain your main products

Dotech seeks to provide a fine-grained product lineup based on its built-up specialty areas. Dotech’s exceptional advantages include specialized product groups such as HUVAC & R equipment, air compressors, clean room facilities, and differential pressure sensors with temperature and humidity. In particular, the customization service of Dotech developing and providing tailor-made products to reflect consumers’ requests further enhances the our competitiveness.
Dotech’s products comprise a number of series, as it aims to produce exclusive products optimized for the equipment to be applied rather than products for general purposes with run-of-the-mill performance. The increase in the number of its products reflects the increased manpower and costs in all areas including development, production, and management. Still, Dotech sticks to small quantity batch production for the benefit of its customers through segmentation of the product lineup to address the customers’ various requirements as a strategy to react to market conditions to provide efficient and stable products for various business environments.
In addition, Dotech is currently dedicating itself to developing products by focusing not only on performances but on other factors such as designs in consideration of consumers’ preferences. As a result, Dotech has successfully launched products differentiated from existing domestic counterparts, such as HTX500, a high-performance explosion-proof transmitter, and HPX1000, and flush-type differential pressure transmitter with temperature, humidity, and dew point. Concentrating also on the development of energy-saving product lines that emerged as a part of government policy, Dotech has developed VSD +, an energy-saving control device for air compressors, receiving positive response from the manufacturing industry as well as gaining international acknowledgment for its technological contribution.

 

What are your major export markets and emerging markets?

As the manufacturing industry becomes more sophisticated, the demand from global markets for highperformance control- and measuring-equipment is exploding. In line with this trend, Dotech has invested heavily in expansion into overseas markets based on its technology accumulated in the domestic market and has been supplying products to more than 40 countries around the world. As a result, around 20% of annual sales amounting to KRW4 billion are achieved in overseas markets. Dotech plans to increase its global sales by 50% in the future by strengthening its international marketing. To this end, the company is engaged in various marketing activities such as participating in major international exhibitions and utilizing online marketplaces around the globe.

 

Do you have any future plan and one last message for your foreign buyers and customers?

Dotech’s products attract affl uent foreign buyers at various international exhibitions. Therefore, Dotech is actively engaged in overseas marketing, while developing exclusive products for global markets that are equipped with only core functions at reduced prices.

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