Vietnam and Indonesia likely to soon meet US$18 billion trade target

Delegates attend a workshop in Hanoi on March 27, seeking measures to strengthen friendship and cooperation toward 2045 in line with the newly established Comprehensive Strategic Partnership between the two countries.

Senior leaders of Vietnam and Indonesia have set the target of raising their two-way trade to US$18 billion by 2028. However, the target is likely to be achieved soon as bilateral trade hit a record high last year at more than US$16 billion.

Currently, many economic indicators show that the two economies are on the right track in their cooperation, as bilateral trade turnover reached US$16.7 billion in 2024, doubling the 2020 amount, said Indonesian Ambassador Denny Abdi at the workshop.

He went on to say that two-way investment reached US$$91.1 million last year, with a rapid growth trend seen in strategic sectors such as electric vehicle manufacturing, digital technology, and high-tech industries.

Indonesian Ambassador Denny Abdi speaks at the workshop

The diplomat noted that bilateral cooperative relations have developed dynamically in recent years, and the upgrading of their ties to a Comprehensive Strategic Partnership during Party General Secretary To Lam’s visit to Indonesia in early March 2025 is expected to open up opportunities for close, strategic cooperation between the two countries.

However, to truly realize the shared vision, Abdi hoped that all relevant parties would encourage mutually beneficial cooperation, especially in economics and development. He emphasized that government officials from both countries must thoroughly assess existing regulations, both tariff and non-tariff measures, to ensure that these regulations do not create obstacles but rather facilitate cooperation and fair competition.

Assessing trade and investment opportunities, Phan Thi Dieu Linh, an official from the Ministry of Industry and Trade, reminded that bilateral trade is yet on part with their cooperation potential.

She pointed out that the current share of bilateral trade accounts for only 2.1% of Vietnam’s total trade with the world and 3.4% of Indonesia’s total global trade, despite the fact that the combined population of the two countries could reach 350–360 million.

Both Vietnam and Indonesia have immense potential for trade cooperation, especially after the recent establishment of the new partnership framework, and they are certain to soon achieve the US$18 billion trade target, Linh emphasized.

Dr. Tran Minh Hung, chairman of the Vietnam-Indonesia Friendship Association, says there is ample room for the two countries to realise their US$18 billion trade target

Taking the floor, Dr. Tran Minh Hung, chairman of the Vietnam-Indonesia Friendship Association, affirmed Vietnam’s consistent policy of valuing relations with neighbouring countries in ASEAN, including Indonesia.

The official, who is also vice president of Voice of Vietnam, highlighted the remarkable growth in bilateral trade in recent years, saying currently, Indonesia is Vietnam’s second largest trading partner in ASEAN, while Vietnam is Indonesia’s fourth largest trading partner.

Their two-way trade turnover has quadrupled over the past decade, and the US$18 billion trade target will be achieved soon, he emphasized.

To meet the target, Dr. Hung stressed that the insights shared at the workshop provide valuable information and data on economic cooperation potential, further boosting economic cooperation between the two countries.

Following this event, he said, relevant agencies will focus on facilitating connections between Vietnamese and Indonesian small and medium-sized enterprises (SMEs), helping them explore trade cooperation opportunities.