Vietnam-Indonesia Strategic Partnership: Future Prospects and Opportunities

Vietnam-Indonesia Strategic Partnership: Future Prospects and Opportunities

Vietnam and Indonesia Forge Thorough Strategic Partnership

Vietnam and Indonesia have elevated their bilateral relationship to a Comprehensive Strategic Partnership,commemorating 70 years of diplomatic ties and signaling closer collaboration. The agreement aims to bolster cooperation and contribute to ASEAN’s advancement and prosperity.


Leaders Formalize Partnership

Vietnamese Party General Secretary To Lam and Indonesian President Prabowo Subianto formalized the decision in jakarta on March 10, 2025. Subianto emphasized Vietnam’s importance as a regional partner, expressing indonesia’s commitment to strengthening bilateral ties. To Lam affirmed the importance of the relationship with Indonesia to Vietnam, as well as the crucial role of Jakarta in the region.

Both leaders acknowledged the strong Vietnam-indonesia friendship, notably since the establishment of their Strategic Partnership in 2013.

Economic ties at the Forefront

A key aspect of the new partnership is the focus on enhancing economic relations. Both countries are committed to reducing trade barriers and supporting business operations, particularly in the import and export of agricultural and aquatic products.

Leaders agreed to create favorable conditions for investments in sectors like the digital economy, green economy, energy transition, electric vehicle development, e-commerce, smart delivery systems, digital payments, software design, AI-driven technology solutions, and halal-certified products.

Increased collaboration in science, technology, innovation, and facts technology aims to establish a digital partnership.Emerging areas like the green economy and digital change will also see enhanced cooperation.

Cooperation Agreements Signed

Following their discussions, several cooperation documents were signed:

  • Letter of Intent between the Vietnamese Ministry of Industry and Trade and the Indonesian Coordinating Ministry for Economic Affairs to enhance capacity in technical and digital economy sectors.
  • Letter of Intent on science, technology, and innovation cooperation between the Vietnamese Ministry of Science and technology and the Indonesian Ministry of Higher education, Science, and Technology.
  • Implementation Agreement on cooperation between the Directorate of Fisheries of Vietnam’s Ministry of Agriculture and environment and the Directorate General of aquaculture of Indonesia’s Ministry of Maritime Affairs and Fisheries in the field of aquaculture.

bilateral Trade Surges

The Vietnam Trade Office in Indonesia reported that bilateral trade doubled between 2020 and 2024, increasing from US$8.07 billion to over US$16 billion.

According to Vietnam’s General Department of Customs, the total trade volume between Vietnam and Indonesia in 2024 reached US$16.7 billion, a year-on-year growth of 21.1 percent. Vietnam’s exports to Indonesia totaled US$6.19 billion, a 22.2 percent increase, while imports from indonesia amounted to US$10.5 billion, up 20.5 percent.

Vietnam’s export growth rate has exceeded that of imports, leading to a gradual decrease in the country’s trade deficit with Indonesia between 2021 and 2024.

Key Exports from Vietnam to Indonesia

In 2024, Vietnam exported 34 key items to Indonesia, totaling US$5.1 billion. Seventeen items surpassed US$100 million in turnover, accounting for 83 percent of the total export value. The following table highlights some of Vietnam’s most meaningful exports:

Vietnam’s Key Exports to Indonesia,2024
Item Value (US$ Million) Year-on-Year Change (%)
Rice 746 +16.5
Machinery, equipment, tools, and other parts 491 +75.8
Iron and steel 410 -15.1
Transport vehicles and parts 394 +20.9
Chemicals 359 +145
Chemical products 139.7 +54
Plastic raw materials 389 +36.7

The upgraded Comprehensive Strategic Partnership between Vietnam and Indonesia marks a significant milestone in their bilateral relations. By focusing on economic cooperation, technological advancements, and enduring development, both nations are poised for mutual growth and prosperity. The strengthened ties are also expected to play a crucial role in fostering stability and development within the ASEAN region.As businesses explore new opportunities, staying informed and adaptable will be key to navigating this evolving landscape. Explore how our market entry services can definitely help you capitalize on these emerging opportunities.

Given the focus on emerging technologies and digital transformation, how can Vietnam and Indonesia ensure equitable access too these opportunities for businesses of all sizes?

Vietnam-Indonesia Complete Strategic Partnership: An Expert’s Outlook

Vietnam and Indonesia recently elevated their relationship to a Comprehensive Strategic Partnership. To delve deeper into the implications of this agreement, we spoke with Dr. Anya sharma, a leading expert in Southeast Asian economic growth and a Senior Fellow at the Institute for Regional Studies in Singapore.

Understanding the partnership: A Conversation with Dr. Anya Sharma

Archyde: Dr. Sharma, thanks for joining us. Could you briefly explain the meaning of this Comprehensive Strategic Partnership between Vietnam and Indonesia?

Dr. Sharma: certainly. This partnership signifies a deepening commitment between Vietnam and Indonesia beyond their existing strategic partnership established in 2013. it’s a formal acknowledgment of their shared interests and a roadmap for increased collaboration across various sectors, primarily focusing on economic growth, technological advancement, and contributing to a stronger ASEAN.

Economic Impact and Opportunities

Archyde: The agreement emphasizes enhanced economic relations. what specific areas do you see offering the most potential for growth?

Dr. sharma: We can anticipate significant activity in digital economies, including e-commerce, smart delivery systems and digital payments. These are key for modernizing infrastructure and connecting dispersed populations. This partnership is also intended to support the development of both green and digital economies in both countries,and these have very high economic promise. Furthermore, the elimination of trade barriers affecting agricultural and aquatic products should fuel growth in import and export for these products which both nations depend on heavily.

Archyde: The agreement also mentions specific sectors for investment, such as the digital economy and green energy. Which of these sectors is the most likely for immediate success?

Dr. Sharma: While both sectors hold immense potential, the digital economy might see more immediate traction. The rise of e-commerce and digital finance and AI-driven technology solutions in Southeast Asia provides a ready market. The letter of Intent between the vietnamese Ministry of Industry and Trade and the Indonesian Coordinating Ministry for Economic Affairs is one example of this cooperation that is poised to enhance capacity in the technical and digital economy sectors, driving this growth.

Trade Dynamics and Future Projections

Archyde: Bilateral trade has seen impressive growth. Where do you see trade relations heading in the next few years?

Dr. Sharma: Given the current trajectory and the commitment outlined in the partnership, I expect continued growth in bilateral trade. Vietnam’s focus on diversifying its exports, combined with Indonesia’s growing consumer market, will be a key driver. The reduction of trade barriers and the promotion of mutual investment will only accelerate this trend. As we can see in the Vietnam exports to Indonesia, rice, machinery and iron all contribute to the high trading volumes already, and are likely to continue booming.

ASEAN and Regional Stability

Archyde: How do you see this partnership impacting the broader ASEAN region?

Dr. Sharma: A stronger Vietnam-Indonesia relationship contributes significantly to ASEAN’s stability and economic progress. Both nations are influential members, and their collaboration sets a positive example for regional cooperation which is key in establishing ASEAN as a global leader. The joint efforts in areas like renewable energy and digital transformation can also serve as a model for other member states.

Challenges and Considerations

Archyde: what potential challenges might this partnership face?

Dr. Sharma: As with any international partnership, there will be hurdles. Navigating bureaucratic processes, ensuring regulatory alignment, and addressing potential trade imbalances will be crucial. Sustaining political will and maintaining open communication channels will also be crucial for long-term success.

A Thought-Provoking Question

Archyde: Dr. Sharma,considering the focus on emerging technologies and digital transformation,what advice would you give to small and medium-sized enterprises (SMEs) in both Vietnam and Indonesia looking to capitalize on this partnership?

Dr. Sharma: my advice would be to be proactive in developing their digital literacy and infrastructure, and to seek opportunities for collaboration with larger corporations. These large and international corporations can provide SMEs with the support and expertise needed to scale their operations. The partnership opens doors, but it’s up to individual businesses to step through them.

Archyde: dr. Sharma, thank you for your insights.

Dr. Sharma: My pleasure.

What are your thoughts on the Vietnam-Indonesia Comprehensive Strategic Partnership and its likelihood of success? Share your views in the comments below!

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