Indonesia and Vietnam strengthen ties to advance ASEAN influence

As part of their current mission to Vietnam, the ASEAN-BAC chairmanship aims to encourage businesses and governments in Vietnam to share its priorities and participate in its legacy projects, which include regional trade cooperation, sustainable development, digital transformation, food security, and healthcare security.

During the visit, the delegation of ASEAN-BAC and KADIN representatives met with various stakeholders, including the Vietnam Central Bank, the Chairman of the People's Committee in Thu Duc City, along with the leaders of Vietjet and the Saigon Transportation Mechanical Corporation.

The discussions centred around collaborating on the legacies of ASEAN-BAC, such as the ASEAN QR Code and ASEAN Business Entity, to foster more investment in the region and in the future development of cities, including Thu Duc City, through high-tech innovation.

One concrete outcome from the meetings will be the hosting of a forum to promote trade between Indonesia and Vietnam as part of the build-up to the ASEAN Business Investment Summit and ASEAN Business Awards slated to take place in September.

The forum will serve as a platform to identify key sectors for cooperation between the two nations and promote green projects, with the hope of generating more interest from businesses to form concrete partnerships.

Indonesia and Vietnam are central players in expanding ASEAN's position as a key global economic player, given their combined GDP exceeds 60 per cent of the region's total.

Vietnam's success in the development of Southeast Asia's economy can be attributed to its business-friendly environment, strategic positioning, and domestic market expansion, resulted in an impressive average annual GDP growth rate of over 6 per cent since 1986.

Vietnam's proactive participation in ASEAN's economic initiatives, such as the Regional Comprehensive Economic Partnership, highlights the country's commitment to strengthening economic integration and cooperation in the region.

“As both countries play an imperative role in the region, our continued partnership in economic connectivity is instrumental to the region’s position as a key global economic player. With its strategic location on the Indo-Pacific map, ASEAN has the potential to become the next ‘magnet’ of global growth,” Rasjid noted.

Vietnam ranked 11^th among Indonesia's top trading partners last year, boasting a trading volume of $14 billion.

The two countries have established partnerships in various sectors such as rural development, coal and gas utilisation, and legal cooperation. Indonesian companies have invested significantly in Vietnam, with 106 different projects worth close to $640 million.

Moreover, more than 40 Indonesian companies are operating in Vietnam, producing goods and services for both the Vietnamese market and export.

Vietnamese companies have also invested $59 million in 17 projects in Indonesia in industry, IT, and agriculture.

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