President Phuc’s state visit to propel Vietnam-Indonesia relations forward

This will mark the first trip to the country by a key Vietnamese leader after the 13th National Congress of the Communist Party of Vietnam, with the occasion also being the first time a Vietnamese President has made the trip over the past nine years amid two sides preparing for the 10th founding anniversary of strategic partnership.

Both countries first established diplomatic relations in 1955 and then moved to set up the strategic partnership in 2013.

Most notably, the two nations have signed many agreements on co-operation in various fields, including an action programme to implement their strategic partnership for the 2019 to 2023 period. Currently, they have four pairs of twinned provinces and cities, including Hanoi and Jakarta, Ba Ria-Vung Tau and Padang, Hue and Yogyakarta, as well as Soc Trang and Lampung.

Indonesia is currently the country’s third largest trade partner in ASEAN, while Vietnam is Indonesia's fourth largest trade partner in the bloc. Their trade value reached US$8.2 billion in 2020 before climbing to US$11.5 billion in 2021, thereby exceeding the target of US$10 billion set by senior leaders for the first time, with US$11.6 billion being recorded in the first ten months of this year.

Vietnam mainly exports computers, electronic products, iron and steel of all kinds, apparel, plastic materials, mobile phones and components to Indonesia, while mainly importing coal, animal fats and vegetable oils, and CBU cars of all kinds from the Indonesian market.

As of September this year, Indonesia ranks fifth in ASEAN and 29th out of 141 countries investing in the Vietnamese market with 101 projects worth US$611.7 million, mostly in the processing and manufacturing industry, as well as accommodation and dining services. In contrast, the Vietnamese side has poured US$59 million into 17 projects in Indonesia in the fields of commerce, IT, agriculture, and industry.

The two countries have also signed a number of memoranda of understanding on co-operation in agriculture, fishery and marine affairs, energy, finance, education, justice and law, coal supply, rural development, and gas supply in the cross-border area.

A significant milestone was recorded in September, 2018, when the two sides signed a joint communiqué on voluntary participation in international co-operation to fight illegal, unreported and unregulated (IUU) fishing whilst simultaneously promoting sustainable fishery management.

President Phuc's state visit represents an important event marking strides in bilateral relations whilst helping to develop the strategic partnership in an increasingly practical and effective manner, according to Vietnamese Ambassador to Indonesia Ta Van Thong.

The Vietnamese policy on extensive international integration and Indonesia's Vision 2045 are therefore expected to provide a wealth of opportunities for further ties between the countries moving forward, he stated.