Business · Economy · 1 hr ago
Vietnam’s export-led growth outpaces Indonesia’s, raising pressure for change
Vietnam’s economy is growing faster than Indonesia’s, according to Indonesian officials and an economist.
Vietnam has attracted foreign investment into factories that make goods for export, especially in electronics and technology.
Indonesia relies more on domestic spending and commodities, and many investors focus on serving its large home market.
The economist says Indonesia also faces high logistics costs, uncertain regulations, complex permits and shortages of skilled workers and local suppliers.
He says Indonesia needs more technology and supporting industries, not just processing of raw materials, to build a stronger manufacturing base.
Indonesia’s economic affairs minister, Airlangga Hartarto, says the country should speed up digitalization and develop semiconductors and artificial intelligence to catch up.
The sources do not describe specific measures or a timeline for those changes.
Vietnam’s economy is growing faster than Indonesia’s, supported by manufacturing exports and foreign investment linked to global supply chains.
Indonesia’s economy relies more heavily on domestic consumption and commodities.
Economics Coordinating Minister Airlangga Hartarto said Indonesia needs to accelerate digitalisation and develop semiconductors and artificial intelligence to catch up.
An Andalas University economist said Vietnam has been more successful at turning investment into export production.
He cited Indonesia’s logistics costs, regulatory uncertainty, layered permits and shortages of skilled workers and local suppliers as obstacles.
- Who
- Vietnam and Indonesia. Indonesian officials and an economist discussed the growth gap.
- What
- Vietnam’s export-led economy is growing faster than Indonesia’s, prompting calls for Indonesia to speed up economic transformation.
- When
- The article was published on 13 October 2026. Airlangga spoke on 6 October, and Syafruddin Karimi spoke on 12 October.
- Where
- Vietnam and Indonesia; the article was published by CNN Indonesia.
- Why
- Vietnam has attracted foreign investment into export-oriented manufacturing linked to global supply chains, while Indonesia relies more on domestic consumption and commodities.
This story does not have two clearly opposing sides.
Airlangga Hartarto said Indonesia should pursue digitalisation, semiconductors and artificial intelligence to catch up with Vietnam.
Economist Syafruddin Karimi discussed the differences between the two economies with CNN Indonesia.
CNN Indonesia published its report on Vietnam’s faster growth and the pressure on Indonesia to change.
- Vietnam’s growth target cited by Airlangga
- 9 percent
- Indonesia’s average growth cited by Airlangga
- 5 percent
- Vietnam’s special economic zones
- About 2 million hectares
- Indonesia’s special economic zones
- About 24,000 hectares
- Publication date
- 13 October 2026
What people are saying
If we want to catch up with Vietnam, which can reach 9 percent, then we also have to run toward digitalisation, semiconductors, AI.
Vietnam turns investment into export production capacity, while Indonesia has not been strong enough at turning investment into a manufacturing leap.
Vietnam sells certainty of execution; Indonesia often sells potential. In investment, potential attracts attention, certainty closes the decision.
Sources
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