Vietnam - Indonesia: Potential for economic cooperation

At Halim Perdanakusuma military airport yesterday, March 9, Indonesia fired seven cannon salutes - a ritual expressing respect for the General Secretary's visit.

The two countries with complementary potential are facing opportunities to exploit advantages and overcome difficulties, according to the assessment of Vietnamese Ambassador to Indonesia Ta Van Thong to the press before the important visit of the General Secretary.

Elevating cooperation

Vietnam and Indonesia have had 70 years of diplomatic relations since 1955, one of the oldest relationships in modern times. However, economic and trade cooperation is still not commensurate with the potential and strengths of each country.

The visit of General Secretary To Lam is expected to be the necessary catalyst to create new momentum.

Immediately after arriving in Jakarta on March 9, General Secretary To Lam received a number of Indonesian businesses and attended the announcement ceremony of the direct flight route from Ho Chi Minh City to Denpasar (the capital of the tourist paradise of Bali).

Ambassador Ta Van Thong said: "Vietnamese corporations such as FPT, VinFast, Era Blue, and Sunhouse are actively implementing investment and business projects in Indonesia.

In particular, 2024 has witnessed significant achievements in trade and investment between the two countries, such as VietJet launching a direct flight connecting Hanoi and Jakarta; VinFast establishing a $200 million factory in Subang, opening 20 showrooms and launching the SM Green taxi brand in Indonesia."

Vietnamese people are no longer unfamiliar with the Indomie noodle brand, Ciputra urban area, or Traveloka travel application. These are all brands and corporations from Indonesia.

In recent years, Vietnam has also begun to invest, entering the largest market in Southeast Asia and the 16th largest economy in the world.

Indonesians started driving VinFast cars, drinking Vietnamese coffee or buying household appliances in the Mobile World supermarket chain.

Indonesian Ambassador to Vietnam Denny Abdi revealed that during this visit, in addition to the welcoming ceremonies of a state visit, the two sides are expected to hold a meeting focusing on trade, investment and business cooperation.

Business expectations

Mr. Budiarsa Sastrawinata, president of the Indonesia - Vietnam Friendship Association and CEO of Ciputra, sees much potential from the strengthened relationship.

"Vietnam and Indonesia are both among the fastest growing economies in ASEAN and deep cooperation allows for the opening of new areas of mutual benefit," he told Vietnamese press.

On trade, the two sides can aim to optimize supply chains, reduce trade barriers and expand market access for key commodities such as agricultural products, seafood and manufactured goods.

On investment, the elevation of bilateral relations will encourage greater capital flows into priority areas such as infrastructure, energy transition, digital economy and industrial development.

One of the most promising areas is logistics and green transportation, of which VinFast is an example.

This cooperation is expected to become a model for regional cooperation in the fields of green transportation, battery manufacturing and sustainable charging infrastructure.

In the field of infrastructure, Indonesia is building a new capital city where Vietnamese enterprises can fully participate and gain experience for large projects.

Mr. Budiarsa Sastrawinata highly appreciated Vietnam's policy of streamlining the administrative apparatus, saying that this facilitates businesses and investors by reducing the number of state agencies, making procedures simpler and faster.