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

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  • Willem THORBECKE
  • Atsuyuki KATO

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.

Suggested Citation

  • Willem THORBECKE & Atsuyuki KATO, 2022. "Indonesia and Vietnam in Global Supply Chains and the Age of COVID: A Tale of Two Countries," Discussion papers 22010, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:22010
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    References listed on IDEAS

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    3. Cali,Massimiliano & Montfaucon,Angella Faith Lapukeni, 2021. "Non-Tariff Measures, Import Competition, and Exports," Policy Research Working Paper Series 9801, The World Bank.
    4. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
    5. Plummer, Michael G., 1995. "An analytical survey of Vietnam's external policy challenges," Journal of Asian Economics, Elsevier, vol. 6(3), pages 327-349.
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