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Indonesia and Vietnam in Global Supply Chains and the Age of COVID: A Tale of Two Countries

Willem Thorbecke and Atsuyuki Kato

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Indonesia's economic performance since 2000 has been respectable. It has not succeeded, however, at joining global value chains (GVC). Vietnam on the other hand is a key link in GVCs for electronics, textiles, and other sectors. This paper recounts the experiences of Indonesia and Vietnam at attracting foreign direct invest, exporting, and coping with the COVID-19 pandemic. It considers why Indonesia has been less successful than Vietnam at joining GVCs. It then concludes with several recommendations for how Indonesia could attract FDI and avoid scarring from the pandemic.

Pages: 34 pages
Date: 2022-02
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https://www.rieti.go.jp/jp/publications/dp/22e010.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:22010

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