Indonesia, Vietnam promote development cooperation

Despite the complicated developments of Covid-19, trade turnover between Indonesia and Vietnam increased by 49.2 percent in the first eight months of 2021, reaching US$7.45 billion.

Indonesia, Vietnam promote development cooperation

Agro-fishery products are Vietnam’s main exports to Indonesia

Trade growth

Indonesia was the first Southeast Asian country with which Vietnam established diplomatic relations and multifaceted cooperation. Bilateral trade turnover increased strongly from US$5 billion in 2013 to more than US$9 billion in 2019. Although the figure decreased in 2020 due to the impact of the pandemic, there was a strong recovery in the first eight months of 2021, reaching US$7.45 billion.

Marolop Nainggolan, director of Export Development Cooperation at the Indonesian Ministry of Trade, said Vietnam is Indonesia’s 10th largest import partner, accounting for 5.41 percent of Indonesia’s total export turnover. Indonesia’s exports to Vietnam mainly focus on coal, palm oil, cars, stainless steel, and motorcycles. The two countries aim to bring bilateral trade to US$10 billion by limiting barriers and facilitating trade, investment, connectivity, and import-export activities.

According to the Ministry of Planning and Investment, as of September 2021, Indonesia poured US$611.57 million into 99 projects in Vietnam, ranking 29th among the countries and territories investing in the country. Indonesia invested in 55 projects worth US$39.6 million in Ho Chi Minh City, ranking 33rd among the countries and territories investing in the city.

Promoting development cooperation

Indonesian Consul General in Ho Chi Minh City Agustaviano Sofjan said that to promote relations, the two countries will strengthen exchanges and effectively implement signed bilateral cooperation agreements and mechanisms, especially in economics and trade; enhance coordination to overcome difficulties and create favorable conditions for businesses; restart flight routes; and resolve problems in the spirit of strategic partnership and mutual benefit.

Digital transformation is having a strong impact on mitigating the economic downturn caused by the pandemic. Therefore, Indonesia and Vietnam need to strengthen cooperation through the digital economy.

The two countries also need to pay attention to regional cooperation. The Regional Comprehensive Economic Partnership (RCEP) creates favorable conditions for all signatories to strengthen economic ties and support participation in regional and global supply chains, Agustaviano Sofjan said.

Tran Phu Lu, deputy director of the Ho Chi Minh City Investment and Trade Promotion Center, said the city has developed many online methods in administration, working and training of state management agencies, enterprises, trade and production facilities, schools and hospitals. He also said the city wants to mobilize all resources to become a smart city in the future. The city will promote cooperation with the Consulate General of Indonesia in Ho Chi Minh City to continue to serve as a bridge in support of the two countries’ businesses.

Indonesia and Vietnam continue to effectively implement bilateral cooperation mechanisms and step up the implementation of the action program for the 2019-2023 period to promote strategic partnership.

VietNam Economic News

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