Indonesia and Vietnam wants to lifted the bilateral trade revenues to US$10 billion in 2020 from, local media reported on Thursday (11/14) - Photo by MoFA Office

JAKARTA (TheInsiderStories) – Indonesia and Vietnam wants to lifted the bilateral trade revenues to US$10 billion in 2020 from, local media reported on Thursday (11/14). Based on data from the general statistics office of Vietnam, in nine months of 2019, total trade between the two countries worth of $6.5 billion, up 8.20 percent compared to the previous year at $6 billion.

In 2018, Indonesian ambassador to Vietnam Ibnu Hadi noted that bilateral trade between the two countries rose by around 30 percent to $8.46 billion from last year worth of $6.5 billion. While, Vietnamese ambassador to Indonesia Pham Vinh Quang, underlined that both have nurtured a long-standing relationship and reaped outstanding results in economic and trade cooperation in recent years.

However, he pointed out that the results have yet to match potential of both sides. To rise the trade figures and reach the target of bilateral trade values in 2020, the Indonesian Embassy in Hanoi facilitated 29 Vietnamese companies to attend Trade Expo Indonesia 2019 which took place on Oct.16 – 20 of 2019.

The 29 companies are engaged in potential sectors such as fisheries, agriculture, pharmaceutical, manufacturing and industrial, garment and furniture. So far, Indonesia’ main export commodities to Vietnam include automotive and parts, coal, electrical machinery and equipment, vegetable fats as well as oils and paper.

Hadi revealed that the demand for information on Indonesian commodities and business opportunities continues to increase. This is a good indicator in the midst of global economic uncertainty.

“With this positive trend, we are optimistic that the value of bilateral trade can exceeds USD 10 billion by 2020,” he said.

Last September, Indonesian President Joko Widodo and Vietnam  President Tran Dai Quang stated that the two leaders committed to develop the economic cooperation between the two countries. Widodo and Quang also agreed to intensify the resolution of the discussion of the Exclusive Economic Zone of the two countries.

“In the past three years, our trading trend has been quite good and reached a value of US$6.8 billion. We want our trade to reach $10 billion later in 2020,” President Widodo said at the Presidential Palace in Hanoi on Sept. 12.

One of the efforts to be carried out by the two countries is to eliminate trade barriers that currently still occur. Including exports of Indonesian automotive products.

The head of state also expressed the desire of Indonesian investors to develop their investments in Vietnam. For information, Indonesian investors are one of the oldest and first investors in Vietnam.

Furthermore, he said, Indonesia and Vietnam will also increase cooperation in a number of other fields. Both of them agreed to work together on the eradication of illegal fishing in their respective waters.

“Therefore, the government signed a joint communique of IUU (illegal, unreported, and unregulated) fishing on this visit. This is very important,” said president.

In addition, in the field of peace, President Widodo also touched on the problem of the South China Sea. In this regard, Indonesia welcomes the progress of the process of negotiating the code of conduct in the LTS.

“I welcome the progress that has been achieved in the code of conduct negotiations. This will certainly contribute greatly to ensuring the South China Sea becomes a safe, fair and peaceful region,” said the President.

On that occasion, the two countries signed 2 memorandums of understanding witnessed directly by President Widodo and President Quang.

The two memorandums of understanding are the 2019-2023 Indonesia-Vietnam Strategic Partnership Action Plan and Joint Communique to combat illegal fishing and promote sustainable fisheries governance.

The stay of the Indonesian president in Vietnam, to be run until Wednesday (12/09), seeks to develop the economic potential between both nations. This is Widodo’s first visit to Vietnam after taking office in 2014 and, according to his agenda, he will attend the World Economic Forum meeting on the ‘ASEAN Priorities in the Fourth Industrial Revolution’, which will be held in this capital.

Ties between Vietnam and Indonesia, which diplomatic relations were established on Dec. 30, 1955, are in the process of expansion following the official visit to Jakarta of the general secretary of the Vietnamese Communist Party, Nguyen Phu Trong, in August 2017.

Earlier, in June 2013, both countries increased their bilateral relations to the strategic partnership level and since then, many progress have been registered. In 2017, the commercial exchange grew by 16 percent worth of $6.5 billion.

Written by Staff Editor, Email: theinsiderstories@gmail.com