digitalbinosComparing Vietnam’s Economy with India and Indonesia
Economic Strengths, Growth Trajectories, and Investment Potential
As emerging economies compete for foreign investment, supply chain relocation, and tech innovation, Vietnam, India, and Indonesia have stood out as key players in Asia. These three nations offer large labor pools, expanding middle classes, and ambitious economic development agendas. But how do they compare?
This article examines the economic landscapes of Vietnam, India, and Indonesia, highlighting their strengths, challenges, and opportunities for investors and global businesses.
1. GDP and Economic Growth: Vietnam’s Consistency vs. India’s Scale vs. Indonesia’s Stability
Vietnam
Vietnam’s GDP reached $430 billion in 2023, with a projected growth of 6%–6.5% in 2025, making it one of Asia’s most consistently growing economies. Key sectors include manufacturing, agriculture, electronics exports, and a burgeoning digital economy.
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Notable Advantage: Strong export-oriented manufacturing, especially in electronics, textiles, and footwear.
India
India’s economy surpassed $3.7 trillion in 2024, becoming the fifth-largest globally. Driven by IT services, pharmaceuticals, manufacturing, and consumer markets, India projects 6.8%–7% growth in 2025.
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Notable Advantage: Massive domestic market and global tech outsourcing leader.
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Source: IMF India Economic Outlook
Indonesia
Indonesia, Southeast Asia’s largest economy, boasts a GDP of $1.4 trillion and stable growth of 5.2% in 2025. The economy is diverse—mining, agriculture, digital services, and tourism play key roles.
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Notable Advantage: Political stability and a strong domestic market of 275+ million.
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Source: OECD Indonesia Economic Snapshot
2. Demographics and Labor Force: Youth and Urbanization Trends
| Category | Vietnam | India | Indonesia |
|---|---|---|---|
| Population | ~100 million | ~1.43 billion | ~280 million |
| Median Age | 32.5 years | 28.4 years | 30.2 years |
| Urbanization | 38% | 35% | 57% |
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Vietnam: Smaller but agile workforce, fast tech adoption.
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India: Largest youth workforce globally.
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Indonesia: Urban growth supporting consumption and logistics.
3. Export Power and Global Trade Integration
Vietnam
Heavily export-driven, Vietnam’s trade-to-GDP ratio exceeds 200%. Key exports include:
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Electronics (Samsung, Intel plants)
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Garments & textiles
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Agricultural products (coffee, seafood)
Trade agreements:
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RCEP, CPTPP, and EVFTA have boosted Vietnam’s global trade footprint.
India
India exports IT services, pharmaceuticals, jewelry, and textiles. However, its economy is less export-dependent (about 20% of GDP), focusing more on domestic growth.
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Trade strategy: “Make in India” and production-linked incentives (PLIs) attract manufacturing FDI.
Indonesia
Indonesia’s exports are centered on natural resources: coal, palm oil, rubber, and increasingly, EV battery materials (nickel).
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Trade initiatives: RCEP, ASEAN, and ongoing bilateral agreements.
4. Infrastructure and Logistics: Progress in Ports and Connectivity
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Vietnam: Significant investments in highways, deep-sea ports (like Cai Mep), and rail. Rising as a logistics hub.
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India: Rapid infrastructure rollout—dedicated freight corridors, industrial parks, and smart cities are expanding.
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Indonesia: Archipelagic geography creates logistics complexity, but projects like “Nusantara” (new capital) aim to redistribute economic activity.
Vietnam is more integrated into regional supply chains, while India has broader infrastructure needs but greater future capacity. Indonesia requires archipelago-specific logistics innovation.
5. Startup Ecosystems and Digital Growth
| Metric | Vietnam | India | Indonesia |
|---|---|---|---|
| Internet Penetration | ~78% | ~70% | ~77% |
| Notable Startups | MoMo, Sky Mavis | Paytm, Zomato | Gojek, Tokopedia |
| Government Support | NIC, Project 844 | Startup India | 100 Smart Cities |
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Vietnam is known for cost-efficient tech development and a supportive government.
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India dominates in scale and global venture capital access.
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Indonesia leads Southeast Asia in “super apps” and mobile-first innovation.
6. Ease of Doing Business and Regulatory Environments
| World Bank (2020 data) | Vietnam | India | Indonesia |
|---|---|---|---|
| Ease of Doing Business Rank | #70 | #63 | #73 |
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Vietnam continues to improve business registration, customs clearance, and digitization.
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India made major reforms in taxation (GST), insolvency law, and digital identity (Aadhaar).
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Indonesia passed the Omnibus Law to simplify labor and investment laws.
Still, bureaucracy, corruption, and unclear regulatory frameworks remain challenges across all three.
7. Investor Sentiment and FDI Inflows
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Vietnam: FDI magnet for electronics and textiles; over $36 billion in FDI in 2023, primarily from Korea, Japan, and Singapore.
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India: Received $71 billion in FDI (2023)—mainly tech, fintech, and telecom (e.g., Google, Meta in Jio).
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Indonesia: Around $47 billion in FDI, focused on green energy and resource extraction.
Vietnam offers fast entry, lower costs, and solid infrastructure, while India offers scale, and Indonesia offers natural resource-driven industrial potential.
Final Thoughts: Which Economy Wins?
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Vietnam: Best for export-focused businesses and those entering supply chains. Ideal for manufacturers, digital services, and logistics players looking for cost efficiency.
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India: A long-term giant with unmatched scale. Perfect for tech, services, and brands targeting large domestic markets.
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Indonesia: Excellent for resource-based industries and regional consumer product expansion.
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