Vietnam, Indonesia set sights on bilateral trade target of US$15 billion

The two leaders therefore affirmed that they held hugely successful talks and agreed on many important co-operation contents as part of efforts to elevate the strategic partnership between the two countries to a higher level.

Both State leaders affirmed that the joint strategic partnership has overcome numerous challenges and is increasingly trusted, with economic co-operation becoming increasingly stronger.

President Phuc said that with bilateral trade turnover reaching US$11.6 billion in 2021, a figure which is two years ahead of schedule, year two-way trade could reach US$13 billion this year.

Both sides consented to swiftly bringing bilateral trade turnover to US$15 billion in the time ahead, with the two countries set to celebrate 10 years of a strategic partnership next year, thereby opening a new page in bilateral relations.

The two sides also agreed to strengthen the exchange of high-level visits, effectively implement co-operation mechanisms and the joint committee on bilateral ties.

Furthermore, they also concurred to implement signed co-operation agreements, outline an action plan to realise the 2024 to 2028 strategic partnership fully and comprehensively.

They will seek to promote the two countries' trade ties in a bid to ensure steady growth, reaching the target of US$15 billion and more by 2028 in order to achieve a more balanced and sustainable direction.

They consented to create favourable conditions in which businesses of the two countries can diversify investment fields and develop digital economy, digital transformation, green economy, renewable energy, tourism, services, and increase flights.

The two sides will augment co-operation in national defence, security, maritime issues, people-to-people exchanges, and connections between localities and businesses.

Indonesian President Widodo proposed that Vietnam create optimal conditions for Indonesian goods to be exported to the Vietnamese market, especially agricultural products, as well as agreeing to promote investment linkages between the two nations.

The Indonesian President went on to express great appreciation for Vietnamese trust and confidence in Indonesian businesses based in Vietnam across multiple fields. Indonesia has so far poured roughly US$600 million in 101 projects throughout the country.

He also applauded the Vietnamese Government’s commitments aimed at solving problems faced by Indonesian financiers, thereby helping intensifying new investment in the future.

The two leaders also agreed to ramp up co-operation in the field of clean energy and renewable energy, as well as signing an agreement between the two countries on co-operation in energy and minerals.

This will help promote the development of solar power, hydrogen technology, and smart grids, he said, while welcoming businesses of the two countries for effective co-operation, including in the field of electric motorcycles and electric vehicle batteries.

President Widodo also said that the two sides were of the same mind regarding augmenting tourism co-operation, striving to return to the same level as before the pandemic. The two countries will finalise their plans to open new routes between Da Nang and Java, while also increasing flights between Ho Chi Minh City and Jakarta.

On international and regional issues, President Phuc and his Indonesian counterpart agreed to bolster co-operation at regional and international forums, especially those of ASEAN and the UN, as well as sharing views on a number of regional and international issues of shared concern, including the East Sea.

Vietnam and Indonesia will work together to promote a united and self-reliant ASEAN, enhance the regional bloc's central role, and maintain ASEAN's common stance on the East Sea. This will be part of wider efforts to ensure peace, safety, security, and freedom of navigation and overflight on the basis of International Law and the UN Convention on the Law of the Sea 1982 (UNCLOS).

The two leaders also said they discussed Indonesia's priorities ahead for the ASEAN Chairmanship Year 2023.

President Phuc congratulated Indonesia on successfully completing the role of G20 Chair in 2022 and pledged to strongly support Indonesia to successfully assume the role of ASEAN Chair next year with the theme "ASEAN Matters: Epicentrum of Growth".

During the earlier talks with President Nguyen Xuan Phuc, Indonesian President Joko Widodo warmly welcomed and greatly appreciated the important significance of the visit to Indonesia by Vietnamese counterpart Nguyen Xuan Phuc ahead of the 10th anniversary of bilateral strategic partnership next year.

President Widodo said the visit will create fresh impetus for the extensive and practical development of the bilateral ties. Congratulating Vietnam on its achievements in controlling the COVID-19 pandemic, maintaining economic growth and ensuring social security, he affirmed that Vietnam is a partner of strategic importance of Indonesia in the region.

President Phuc, in turn, congratulated Indonesia on its post-pandemic recovery and development, fulfillment of its role as Chair of G20 in 2022 and a higher stature on the international arena.

Vietnam always treasures its strategic partnership with Indonesia, he stressed, wishing that the two countries would realise their goals of becoming developed nations by 2045 on the occasion of their 100th founding anniversaries.

Both leaders showed their elgation at the rapid and effective development of the bilateral strategic partnership in all key spheres, from politics, security, defence, to economy, trade, investment, tourism, transportation, education-training and culture. In particular, two-way trade in the first 11 months of this year reached a all-time high of nearly US$13 billion.

They pledged to continue facilitating all-level visits and exchanges and effectively implement cooperation mechanisms, especially the Joint Commission for Bilateral Cooperation and Joint Commission for Economic, Scientific, and Technical Cooperation, as well as signed cooperation agreements, especially the 2019-2023 action plan to realise the bilateral strategic partnership, towards building the 2024-2028 action plan.

The Vietnamese President suggested Indonesia consider reducing trade barriers, providing technical support and facilitating the import of goods from Vietnam, including Halal-standard products suitable for Muslim market.

Both sides affirmed their determination to propel investment ties to be on par with their potential and strategic partnership by creating favourable conditions for enterprises to diversity investments, including in new fields such as digital economy and transformation, green economy and renewable energy.

President Widodo said that more and more Indonesian businesses are interested in investing in Vietnam and hoped that more Vietnamese enterprises will expand their operations in Indonesia.

Host and guest also agreed to enhance cooperation in other important fields such as national defence-security, including jointly dealing with common security challenges at sea, fighting transnational crimes, ensuring energy and food security while tightening bonds in education-training, tourism, increasing the frequency of direct commercial flights as well as people-to-people and locality-to-locality exchanges.

The two countries will increase consultations and work closely together at region and global forums, and uphold ASEAN’s solidarity and central role, they said.

The Vietnamese side affirmed support for Indonesia’s role as ASEAN Chair in 2023. Meanwhile, Indonesia also agreed to back Vietnam’s efforts to fulfill its role as a member of the United Nations Human Rights Council for the 2023-2025 tenure.

Concluding the talks, the two leaders witnessed the signing and exchange of cooperation agreements, including a Memorandum of Understanding (MoU) on cooperation in terrorism prevention and combat, a MoU on cooperation in fighting the illegal trafficking and transportation of narcotic drugs, psychotropic substances and precursors, and another on cooperation in energy and mineral resources.

Earlier the same day, President Phuc and the Vietnamese delegation laid wreaths at a monument dedicated to Indonesian national heroes in Kalibata Heroes Cemetery where 7,000 fallen combatants, national heroes, leaders and well-known persons of Indonesia are resting in peace.