Strategies to Strengthen Vietnam-Indonesia Economic and Technological Cooperation

On March 27 in Hanoi, the Vietnam - Indonesia Friendship Association, in collaboration with the Indonesian Embassy in Vietnam, organized a discussion titled "Vietnam - Indonesia Towards 2045: Strengthening Partnership, Expanding Cooperation, and Deepening Friendship." The event provided updates on the economic cooperation between the two countries, assessed potential areas for growth, and proposed measures to enhance bilateral economic and trade collaboration.
March 31, 2025 | 16:49
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Shared vision

At the event, Tran Minh Hung, chairman of the Vietnam-Indonesia Friendship Association, emphasized the long-standing friendship between the two nations, nurtured by generations of leaders. Indonesia was the first Southeast Asian country to establish diplomatic relations with Vietnam in 1955. The historic visits of President Ho Chi Minh and President Sukarno in 1959 laid a solid foundation for bilateral ties.

Strategies to Strengthen Vietnam-Indonesia Economic and Technological Cooperation
Tran Minh Hung, chairman of the Vietnam-Indonesia Friendship Association speaks at the event. Photo: Dinh Hoa

Over the past 70 years, Vietnam-Indonesia relations have grown significantly across various fields, from politics and economy to defense and people-to-people exchanges. Vietnam is currently Indonesia’s only strategic partner within ASEAN. The two high-level visits in 2024—by Indonesian President Joko Widodo in January and President-elect Prabowo Subianto in September—underscore the strong ties between the two countries.

A historic milestone was marked on March 10, 2025, when General Secretary To Lam made a state visit to Indonesia. During the visit, both sides agreed to elevate their relationship to a Comprehensive Strategic Partnership, making Vietnam the first ASEAN country to achieve this status with Indonesia. This move is expected to unlock extensive cooperation opportunities across all sectors.

Indonesian Ambassador to Vietnam Denny Abdi highlighted that both nations share a common vision of becoming developed countries by 2045, coinciding with the centennial anniversaries of their independence.

Strategies to Strengthen Vietnam-Indonesia Economic and Technological Cooperation
Indonesian Ambassador to Vietnam Denny Abdi speaks at the event. Photo: Dinh Hoa

"At present, various economic indicators show that the two countries are on the right track in their cooperation, with bilateral trade reaching US$16.7 billion in 2024. Two-way investment amounted to US$91.1 million in 2024, accompanied by a rapid growth trend in investment in strategic sectors such as the development of the electric vehicle ecosystem, digital technology, and high-tech industries."

Indonesian Ambassador to Vietnam, Denny Abdi

To realize this shared vision, Ambassador Abdi stressed the need for mutually beneficial cooperation, particularly in economic growth and development. He urged both governments to review tariff and non-tariff regulations to facilitate trade and fair competition.

Businesses should enhance interactions and market exploration, especially in research, development, and technology. Universities and research institutions should promote joint programs, expert exchanges, and industry collaborations to drive innovation and competitiveness. Additionally, cultural understanding must be deepened to serve as a foundation for stronger bilateral cooperation.

Targeting US$18 billion in trade

Phan Thi Dieu Linh, deputy head of the Southeast Asia-South Asia and Regional Cooperation Division at the Ministry of Industry and Trade, highlighted the similarities in Vietnam-Indonesia economic and trade relations. Both are rapidly growing ASEAN economies with stable GDP growth, and key roles in regional and international organizations.

Both nations emphasize exports of raw materials and agricultural products, creating a complementary trade structure that fosters collaboration. However, despite significant growth in bilateral trade, the current volume remains below potential. Vietnam-Indonesia trade accounts for only 2.1% of Vietnam’s total global trade and 3.4% of Indonesia’s. Given their combined population of approximately 350-360 million, there is substantial room for expansion.

Strategies to Strengthen Vietnam-Indonesia Economic and Technological Cooperation
Phan Thi Dieu Linh, deputy head of the Southeast Asia-South Asia and Regional Cooperation Division at the Ministry of Industry and Trade speaks at the event. Photo: Dinh Hoa

"Economic and trade cooperation will continue to flourish, making the goal of US$18 billion in bilateral trade by 2025, as set by senior leaders, entirely achievable," Linh stated.

Associate Professor Dr. Pham Van Thuy, head of the World History Department at the University of Social Sciences and Humanities, emphasized the role of education and cultural cooperation in strengthening bilateral relations. He proposed various initiatives, including cultural exchanges, joint art exhibitions, digital platforms for outreach, student and faculty exchange programs, dual-degree initiatives, and expanded language training in Vietnamese and Bahasa Indonesia. People-to-people connections should also be strengthened through tourism, sports, and youth exchanges.

Representatives from Vietnamese and Indonesian businesses discussed opportunities and proposed initiatives to enhance trade ties.

Nguyen Quy Linh, CEO of F&G Vietnam, highlighted the long-term potential for sustainable cooperation, particularly in agricultural processing and exports. She expressed optimism that with government support, businesses from both nations could leverage technology and market advantages to expand, particularly in the global Halal food industry.

Strategies to Strengthen Vietnam-Indonesia Economic and Technological Cooperation
Tommy Manawan, country financial controller of Japfa Comfeed Vietnam.

Le Phu Toan, chairman of THT Investment Holdings, underscored the role of e-commerce and digital transformation in boosting bilateral trade. He pointed out that both Vietnam and Indonesia have young, tech-savvy populations, leading e-commerce growth in Southeast Asia, with strong governmental support for digital transformation. These factors provide a solid foundation for building a transparent and efficient e-commerce ecosystem.

Toan proposed several areas for cooperation, including developing bilateral e-commerce platforms, integrating logistics, payment, and quality inspection systems, creating OEM/ODM products tailored for each market, and organizing regular virtual business networking events.

Nguyen Dinh Chien, investment director at VinFast, recognized Indonesia’s large population, stable economic growth, and supportive policies as key drivers for electric vehicle adoption. As a strategic market, Indonesia is a major focus for VinFast, which has established an extensive distribution network and is currently constructing a 50,000-unit-per-year assembly plant in Subang, East Java, set to open in 2025.

Besides VinFast, other companies, including Ciputra Group and Japfa Comfeed Vietnam, showcased their products and explored cooperation opportunities at the event.

Strategies to Strengthen Vietnam-Indonesia Economic and Technological Cooperation
Delegates at the event. Photo: Dinh Hoa

In his closing remarks, Tran Minh Hung praised the insights shared by policymakers, business leaders, and scholars. He noted that the seven key presentations at the event provided in-depth analyses of Vietnam-Indonesia cooperation potential and outlined practical solutions for expanding economic, trade, and technological partnerships.

Hung emphasized that the initiatives proposed during the discussion would serve as a strong foundation for deepening bilateral relations. With a shared goal of achieving high-income status by 2045, both nations are set to strengthen their partnership for a prosperous future.

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