Indonesia VS Vietnam Information
The majority of Indonesia is Muslim, infused with a few animisms, and some islands practice Hinduism and Catholicism. This country is a dynamic melting pot that has over 1700 islands, making it the largest archipelago. Aside from being a secular state, Indonesia has seas and island clusters. It is a relatively inexpensive country with beautiful beaches, teeming wildlife, and big urban areas, mostly culture and markets. Those who visit Indonesia are normally surprised at how many activities they can do and places to visit.
Vietnam has a history of having affiliations with the dominant civilization that adapts to Vietnamese technology’s ideas, institutions, and purpose. This affiliation pattern and adaptation were obvious in the historical relations of China with Vietnam. It reappeared mandarin descendants that answered to the challenges from the West because they refused tradition and became communists. They did this to battle colonialism. These two countries are both in Asia, and you will know more about them here.
Vietnam has developed tremendously in the last 30 years. The political and economic reforms that were launched in 1986 have caused rapid economic growth. This turned Vietnam from being a poor nation to a middle-income nation. The GDP per capita had an increase of 2.7 times between 2002 and 2018, which reaches more than $2,700 in 2019. This removed more than 45 million people out of poverty. The rates of poverty went down from 70% to less than 6%. The majority of Vietnam is still poor, and they belong to ethnic minorities.
Vietnam’s population is young, with a stable political system, sustainable growth commitment, stable currency, low inflation, strong inflows of FDI, and a strong manufacturing sector. To continue its economic growth, the government recognizes the necessity to have new reforms. They include red tape reduction, reforming the state-owned companies, improved business transparency, less non-performing loans, and a more transparent financial sector. The public debt ratio to GDP is close to the mandated government ceiling of 65%.
The economy of Indonesia most relies on oil and agriculture. About 90% of their population is into agriculture. In this sector, Indonesia became self-sufficient in rice, and there is no need to import this.
In the past, oil and gas were a foreign exchange earner. However, the increase in domestic consumption and stagnant product of oil made Indonesia an oil importer.
Indonesia promotes itself as a main halal destination by developing areas like Aceh Besar, Banda Aceh, Lake Laut Tawar, and Sabang. Aside from attracting Muslim tourists, it also wants to develop international tourism for medical purposes.
Indonesia has an objective of more equitable development gains distribution; the government’s high priority to expand. They also want more employment opportunities for the growing labour force of the country. To draw in foreign capital, there are incentives, and several sectors are for foreign investment.
Vietnam’s Main Sectors
Textiles ranks among one of the top sectors in Vietnam. There are over 6000 garments and textile companies that employ more than 2.5 million workers. The garment industry growth is excellent, and the exports increased significantly.
Vietnam is now a significant exporter of electronics because electronic products have overtaken textiles, coffee, and rice. It is now their top item for export, and Samsung is the largest exporter in Vietnam. It has helped them achieve a better trade surplus after so many years. Exporting computer and smartphone parts now ears more from export than garments and oil.
Vietnam is starting to become a significant market for selling automotive. Their automobile market is projected to sell 1.7 to 1.85 million units by 2035. In the future, their estimation is to sell 750,0000 to 800,000 units by 2025. Even if car sales recently declined, the government has new regulations to fix the issue and improve production.
Why Open a Business in Indonesia
Even if Vietnam has some advantages, Indonesia still has the upside for international investors who want a long-term commitment. Since it is the largest economy in ASEAN, it can offer excellent growth potential for foreign investors.
Indonesia has a big labour pool, rich in natural resources, and a thriving middle class. Indonesia offers a huge market with enough room for growth. The overview of the business landscape of foreigners explores a one plus solution to China.
If you are interested in setting up a business in Indonesia, talk to 3E Accounting because they give legal advice in Indonesia aside from business set up services. Regardless of where you are from, they can assist you in the entire process. In addition, they are experts in this with years of experience.