In recent years, the relationship between Vietnam and Indonesia has developed strongly in all fields from trade cooperation to investment. Photo: congthuong

Optimistic with target of US$15 billion

From January 11th to 13th, at the invitation of President Vo Van Thuong, President of the Republic of Indonesia Joko Widodo visits Vietnam. This is the second time President Joko Widodo paid a state-level visit to Vietnam (after his visit in September 2018).

The visit is an opportunity for the two sides to continue discussing measures to promote cooperation and deepen the strategic partnership, thereby tightening the traditional friendship that has been cultivated for nearly 70 years.

Since the establishment of diplomatic relations in 1955, the relationship between Vietnam and Indonesia has developed strongly in all fields.

Regarding bilateral trade, in recent years, import-export turnover between the two countries recorded positive growth. The average trade growth rate of Vietnam-Indonesia in the period 2010-2022 reached an average of 12% per year.

In 2022, Vietnam-Indonesia bilateral trade reached over US$14.1 billion, up 23% compared to 2021, of which Vietnam's exports to Indonesia reached US$4.5 billion (up 15.7%), imports from Indonesia reached US$9.6 billion (up 26.8%).

By the end of November 2023, bilateral trade turnover reached about US$12.6 billion (export about US$4.7 billion, import about US$7.9 billion). The two countries aim to achieve a bilateral trade turnover of US$15 billion, towards a more balanced direction by 2028.

In addition, the field of investment cooperation between the two countries has also prospered.

By the end of November 2023, Indonesia's total investment capital in Vietnam reached US$651.21 million, with 120 valid projects (an increase of two projects with an additional capital of US$4.71 million in 2023), and ranked 29/143 territories with investment capital in Vietnam.

Sharing his views on the bilateral trade turnover target of US$15 billion, Vietnamese Ambassador to Indonesia Ta Van Thong said that this target is set based on the determination of the two governments, and the potential of the two countries.

Indonesia has the 17th largest economy in the world, the first largest in ASEAN with about 270 million consumers, of which the middle class is growing in size. ASEAN is a market with a lot of room for Vietnamese products and goods.

Room for cooperation

Currently, Indonesia is Vietnam's 3rd largest trading partner in ASEAN, and Vietnam is Indonesia's 4th largest trading partner in the region.

Although there are similarities in the structure of import and export products, the two countries still have products that can complement each other well.

Vietnam is a reputable and quality supplier of many products to the Indonesian market such as rice, coffee, rubber, seafood, textiles, footwear, mobile phones and components.

On the other hand, many of Indonesia's strong products such as coal, auto parts, palm oil, animal feed and raw materials, chemicals, and also imported by Vietnamese enterprises to serve production and business activities.

Vietnam and Indonesia also have a lot of potential for cooperation, especially in the fields of fisheries and the electric car industry. Photo: congthuong

Indonesian Minister of Trade Zulkifli Hasan said that Vietnam and Indonesia still have a lot of potential for cooperation, especially in the fields of fisheries and the electric car industry.

Regarding the fisheries sector, Minister Zulkifli Hasan said that Vietnam has many large enterprises with experience in farming, producing, and exporting seafood, and operating in the fisheries sector. Indonesia wants to learn from Vietnam's experience.

Regarding the field of electric vehicle manufacturing, Minister Zulkifli Hasan shared that currently there are many large foreign automobile manufacturers from Korea, Japan, and China, that have been investing, in and producing electric vehicles in Indonesia.

"There are many Vietnamese businesses opening car factories in the US. Therefore, with existing potential and strengths, Indonesia hopes that Vietnamese businesses will pay attention, invest, and cooperate with Indonesian businesses in the coming time to develop the electric car industry in Indonesia," Minister Zulkifli Hasan said.

In the context of the world and regional economies continuing to undergo many profound changes, both Vietnam and Indonesia are facing great opportunities to improve efficiency and deepen economic and trade cooperation activities.

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