Industrial Export to Asia Has Risen in the First Half of 2006 by 12.5%
David Artzi - Chairman of the Israel Export Institute
Industrial export to Asia (not including diamonds) has risen in the first half of 2006 by about 12.5% compared to the same period of the preceding year and totaled about $2 billion, according to Chairman of the Israel Export Institute Mr. David Artzi. The figures are based on the analysis performed at the Institute's Economic Unit.
The Export Institute's estimate is that in the whole of 2006 the Israeli export to Asia (not including diamonds) will grow by about 10% and arrive to about $4.4 billion. Such a rise owes mainly to the increasing demand for Israeli goods in Asian countries and to the Export Institute's efforts concentrating on aiding Israeli exporters to penetrate this market.
It follows from the Export Institute analysis of the Asian trade that the 2006 half-year export to Hong Kong has increased by 16.5% compared to the same period in the previous year and amounted to almost $140 million. Most of the sales were in the fields of machinery, equipment, measuring, control and navigation instruments. The export to Singapore has seen a half-year boost of close to 22% against the 2005 half-year figure, totaling $183 million. The major exported items were electronic components and measuring, control and navigation instruments.
The export to China has increased by about 24% in comparison to the 2005 half-year results and achieved near $370 million, mainly in the electronic components and telecommunication equipment sectors. The rise in export to Japan was, in the first six months of 2006, close to 22% compared to the same period in 2005, while the volume increased to $334 million, mostly in the fields of measuring, control and navigation instruments, as well as chemicals.
Another impressive result of the analysis is the 42% jump of exports to S. Korea, now amounting to about $268 million per half a year and comprising mainly electronic parts and measuring, control and navigation instruments. The Israeli export to Taiwan has increased by 4% and arrived to close to $325 million. Most of the sales were electronic parts and measuring, control and navigation instruments.
The increase in export to Uzbekistan in the first half of 2006 was about 349% which yielded a total of $7 million, mainly telecommunication equipment and agricultural produce. The export to Azerbaijan has risen by almost 992% compared to the same period in the preceding year and amounted to about $10 million. The principal export items were telecommunication equipment and means of transportation.
The reported figures for Vietnam show a boost of about 18% against the same period in 2005 and the export volume of approximately $18 million, comprising mostly mining and mineral products and telecommunication equipment. The export to Sri Lanka has seen an increase of about 45% compared to the first half of 2005, while the sales totaled near $8 million, mainly telecommunication equipment. In the first six months of 2006, Israeli export to Kazakhstan was worth about $23 million, or an almost 32% rise in comparison with the preceding year. The major export sectors were telecommunication equipment, food, drinks and tobacco goods.
At the same time, the export to the Philippines has decreased in the first half of 2006 by approximately 2% against the first half of 2005 and amounted to about $70 million, primarily electronic components and telecommunication equipment. Over the same period, a drop of near 7.5% has been recorded in Israeli export to Thailand, the volume of which was close to $63 million and consisted mainly of chemicals and petrochemicals.
The report cites the export to India to have decreased by 14% compared to the first six months of 2005. The $184 million volume comprised largely telecommunication equipment and chemicals.
Other Asian nations that imported less from Israel over the reported period were Malaysia (drop by 59.5% to about $35 million, mainly chemicals, petrochemicals, machinery and equipment) and Indonesia, the export to which has decreased by near 21%, totaled about $5.5 million and included primarily chemicals, petrochemicals, machinery and equipment.
The analysis report emphasizes that over the year 2005 the number of Israeli exporters to Asia increased, compared to the previous year, by 8% and stands now at 8,105 (including exporters of diamonds).
The Israel Export Institute and the Ministry of Industry, Trade and Employment have set up an Israeli business center in China and a marketing support center in India, aimed at aiding Israeli companies in realizing their latent commercial potential in those giant countries. The centers will provide marketing and managerial services and thus help the Israeli companies' setting foot on the Chinese and Indian markets by reducing time and costs.
This year, says David Artzi, the Export Institute initiates and organizes the participation of almost 80 exporters in 10 different exhibitions and fairs in Asian countries, in such diversified fields as environmental technologies, telecommunications, jewelry, cosmetics, aviation, electronics, security and agriculture. Besides that, 12 Israeli delegations numbering about 120 exporters are going to visit various Asian countries, mainly China and India, to develop business ties in the fields of aviation, telecommunications, jewelry, cinematography, electronics, start-up and projects, environmental technologies and agriculture.
According to the data, 12 Israeli companies currently have export relations with Saudi Arabia, compared to only four companies which exported to the kingdom in 2004. Some of the companies export directly and some indirectly. The Israeli companies export to Saudi Arabia medical equipment, fertilizers, minerals, metals, machines, mechanical appliances, and more.