Vietnam's nominal per capita GDP projected to surpass Indonesia's in 2026

Vietnam's nominal per capita GDP is projected to surpass Indonesia's in 2026, as the country attracts high-tech manufacturers seeking alternatives to China, including producers of semiconductors and electronic equipment, Nikkei Asia reported on Friday.

The IMF forecasts Vietnam's nominal per capita GDP at $5,259 in 2026, up 8.9 percent year on year.

The projected figure would exceed Indonesia's $5,153, placing Vietnam fifth among ASEAN member states, behind Thailand.

Vietnam has set a target of achieving economic growth of at least 10 percent in 2026, Nikkei Asia reported.

"Strong public investment by the government is supporting growth," said Mai Fujita, a senior researcher at Japan's Institute of Developing Economies.

Vietnam plans to allocate around VND1 quadrillion ($38.7 billion) to public investment in 2026.

The government is implementing road, airport, and other infrastructure projects across the country.

Taiwan-based electronics manufacturer Foxconn is among the companies expanding production in Vietnam.

Exports also recorded strong growth, reaching $434.3 billion in the first nine months of this year, up 25 percent year on year.

South Korean companies such as Samsung Electronics operate factories in Vietnam, manufacturing smartphones and other electronic products for export.

Indonesia's economic growth has remained at around five percent.

The country has attracted foreign investment in sectors such as electric vehicles, but these investments have yet to generate sufficient jobs and income for its population.

A weaker rupiah has also reduced the growth of Indonesia's nominal GDP measured in U.S. dollars.

Vietnam aims to raise its per capita GDP to $8,500 by 2030, matching Thailand's current level.

Fujita said Vietnam needs to develop human resources and technology to sustain long-term growth, alongside infrastructure investment to support short-term growth.