Indonesia and Vietnam are enhancing their bilateral cooperation, particularly in the industrial sector, aiming to attract new investments and drive economic growth. This commitment was formalized during a meeting between Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, and Vietnam's Minister of Industry and Trade, Nguyen Hong Dien, in Hanoi on Thursday (1/11). Minister Agus highlighted Vietnam's significance as a major trading partner, with the bilateral trade reaching USD13.3 billion in 2022. The ministers discussed successful initiatives, including Indonesia's hosting of the 2023 ASEAN Chairmanship under the theme "Epicentrum of Growth," resulting in agreements such as forming a task force for carbon reduction and good regulatory practices. Collaborative efforts for industrial ecosystem development were proposed, both bilaterally and within ASEAN. Vietnam was invited to join the ASEAN Industrial Project Based Initiative (AIPBI), focusing on private sector involvement.
As of November 2023, Indonesia's investment in Vietnam amounted to USD651.21 million across 120 projects, ranking fifth among ASEAN countries with investments in Vietnam. Conversely, Vietnam's investment in Indonesia's industrial sector increased by 6.1% in 2023, totaling USD1.5 million. Minister Agus outlined potential areas of cooperation, such as electric vehicle development, green industries, food security, and support for the industrial sector through research and development and human resources. He invited the Vietnamese Ministry of Industry and Trade to continue discussions to strengthen this collaboration. Highlighting Indonesia's substantial automotive market with 19.1 million cars and 128 million motorcycles, Minister Agus anticipated a growing demand for electric vehicle batteries. He expressed hope for mutual support in organizing the annual ASEAN Ministerial Meeting on Industry, recognizing the increasing visibility of opportunities and challenges in the industrial sector. With Indonesia ranking 10th globally in manufacturing output (1.4% of global manufacturing output) and Vietnam holding the 23rd position, both nations are strategically positioned to leverage their manufacturing strengths for mutual benefit.
