Since upgrading to a Strategic Partnership in 2013, cooperation has expanded in trade, investment, security, defence, cultural exchange, and policy coordination at multilateral forums.
These collaborations have deepened through regular high-level visits and exchanges, reinforcing political trust and shared strategic perspectives on regional and global issues, particularly within ASEAN and the United Nations.
Economic ties between Vietnam and Indonesia have significantly progressed, with bilateral trade quadrupling in the last decade, reaching 16.7 billion USD in 2024. Indonesia is Vietnam’s second-largest trading partner in ASEAN, while Vietnam is Indonesia’s fourth-largest.
Leaders from both nations have agreed to remove obstacles, reduce trade barriers, and facilitate business promotion and market access, with a target of 18 billion USD in bilateral trade by 2028.
Indonesia has over 120 investment projects in Vietnam, with a cumulative registered capital of approximately 680 million USD. At the same time, Vietnamese businesses are increasingly investing and expanding operations in Indonesia, particularly in manufacturing, consumer goods, and the food industry. Over the past decade (2014-2024), Vietnamese investment in Indonesia has surged to over 66 billion USD, marking a record growth rate.
Recognising the economic potential of both countries, Indonesia’s Deputy Minister of Investment, Nurul Ichwan, affirmed that Vietnam and Indonesia share strong commitments to strengthening bilateral economic ties. This commitment is driven not only at the government level but also by businesses and private sectors, which actively support deeper economic integration. As signatories of the Regional Comprehensive Economic Partnership (RCEP), Vietnam and Indonesia gain better access to each other’s markets and expand opportunities to trade with ASEAN partners and global markets.
The two countries have signed numerous agreements and MOUs across various fields, including defence, security, transnational crime prevention, agriculture, fisheries, energy, justice, education, media, tourism, and people-to-people exchanges.
Vietnam and Indonesia aim to further enhance friendship through cultural exchange programmes, joint research initiatives, and cooperation in preserving and promoting traditional heritage in arts, music, and cuisine. These initiatives not only strengthen mutual understanding but also create opportunities for future generations to build lasting relationships.
Cooperation at the local level has also flourished, with four sister-city partnerships established between Hanoi-Jakarta, Hue-Yogyakarta, Ba Ria-Vung Tau-Padang, and Soc Trang-Lampung.
Key bilateral mechanisms, such as the Foreign Ministers’ Bilateral Cooperation Committee and the Joint Committee on Economic, Scientific, and Technical Cooperation, serve as essential frameworks for advancing broader collaboration.
As Vietnam and Indonesia celebrate 70 years of diplomatic relations, both nations are well-positioned to deepen their partnership in a new phase of cooperation. With strong economic growth, shared regional goals, and a deep-rooted friendship, Vietnam and Indonesia will continue to move forward side by side, fostering mutual prosperity and stability in the region.
