Is Indonesia Richer Than Vietnam? A Closer Look At Economic Growth

Indonesia’s economy is slightly larger than Vietnam’s, based on gross domestic product (GDP) per capita. According to the International Monetary Fund (IMF), Indonesia’s GDP per capita was $5,110 in 2023, compared to Vietnam’s GDP per capita of $4,320 during the same year.

GDP per capita is a common measure used to compare the economic output of different countries. However, it’s important to remember that this number doesn’t tell the whole story. GDP per capita only reflects the average income of a country’s population, and doesn’t account for income inequality or the cost of living in different locations. For example, although Indonesia’s GDP per capita is higher than Vietnam’s, the cost of living in Jakarta, Indonesia, is significantly higher than in Ho Chi Minh City, Vietnam.

It’s also important to note that economic growth can fluctuate from year to year. GDP per capita can be influenced by factors such as natural disasters, political instability, and global economic trends. Therefore, comparing GDP per capita figures for a single year can be misleading. To get a more accurate picture of a country’s economic performance, it’s essential to consider long-term trends and other economic indicators, such as inflation, unemployment, and poverty rates.