Indonesia Vietnam bilateral trade has reached a new milestone, hitting $16 billion (IDR 260.4 trillion) in 2024. This growth reflects the strengthening economic ties between the two nations. Indonesia now ranks as Vietnam’s third-largest ASEAN trading partner, while Vietnam holds the fourth position for Indonesia. The increase in trade is driven by dynamic economic growth, stronger cooperation, and expanding investment opportunities.
Indonesia Vietnam Bilateral Trade Sees Rapid Growth in 2024
Trade between Indonesia and Vietnam has grown significantly, fueled by key industries such as manufacturing, agriculture, and energy. The governments of both nations have played an essential role by implementing supportive trade policies and agreements. The Indonesia-Vietnam Friendship Association (IVFA) has also contributed to fostering closer business relations.
At the IVFA Gathering 2025: 70th Anniversary of Indonesia-Vietnam Diplomatic Relations event, at Hotel Raffles, Jakarta, on Monday (February 24, 2025), Budiarsa Sastrawinata, Chairman of IVFA and Managing Director of Ciputra Group, emphasized the robust economic ties. “Indonesia now ranks third as Vietnam’s largest ASEAN trading partner, while Vietnam holds the fourth position for Indonesia.” he said, as reported by Bisnis.com.
This rapid growth in trade is attributed to improved logistics, increased market demand, and the expansion of cross-border e-commerce. More Indonesian products, including agricultural commodities, processed foods, and manufactured goods, are making their way into the Vietnamese market.
Meanwhile, Vietnam is increasing its export of electronics, textiles, and machinery to Indonesia, further balancing trade relations between the two countries.
Vietnam Expands Investment in Indonesia’s EV Sector
Vietnamese businesses are increasing their presence in Indonesia, particularly in the electric vehicle (EV) sector. In July 2024, Winfast invested $1.2 billion to build an EV assembly plant in Indonesia. This was followed by the launch of Xanh SM’s electric taxi service in December 2024.
These investments align with both nations’ commitment to sustainable energy solutions and green technology. According to Budiarsa Sastrawinata, “Investment from Vietnam in Indonesia’s EV ecosystem signals both countries’ focus on sustainable sectors.”
In addition to EVs, Vietnam is also exploring investment opportunities in renewable energy projects such as solar and wind power in Indonesia. These initiatives aim to reduce carbon emissions and support Indonesia’s transition to a green economy. Vietnamese investors are also eyeing smart manufacturing and digital technology sectors, paving the way for greater industrial collaboration between the two nations.
Education, Green Energy, and AI Strengthen Economic Ties
Beyond trade and investment, Indonesia and Vietnam are strengthening partnerships in education, artificial intelligence (AI), green energy, and sustainability initiatives. Academic exchanges and research collaborations are increasing, supporting long-term cooperation.
Both countries are also working together on Just Energy Transition Partnership (JETP) initiatives, further emphasizing their commitment to a greener future. These efforts not only boost economic ties but also enhance cultural understanding between their people.
In education, universities in both countries are launching joint research programs and student exchange initiatives. These programs enable knowledge transfer in key areas such as technology, engineering, and environmental sciences.
At the same time, AI and digital transformation are becoming focal points in economic cooperation, with both countries aiming to develop smart cities and integrate AI-driven innovations into various industries.
What’s Next for Indonesia-Vietnam Economic Cooperation?
The future of Indonesia Vietnam bilateral trade looks promising, with both countries exploring new trade agreements and investment opportunities. Sectors such as digital economy, logistics, and renewable energy are expected to drive further growth.
Since formal diplomatic relations began in 1955, both nations have built a strong foundation for cooperation. This partnership reached a new level in 2013 when they established a strategic partnership. As trade and investment continue to expand, both governments remain committed to strengthening their economic ties for mutual prosperity.
In the coming years, experts predict a rise in technology-driven industries, including AI-powered manufacturing, automation, and fintech solutions. Meanwhile, the expansion of infrastructure projects and sustainable transportation networks will further enhance economic connectivity.
With both countries demonstrating a commitment to mutual growth, Indonesia-Vietnam bilateral trade is poised to reach even greater heights in the near future.
Source: ekonomi.bisnis.com
Image: NuwatPhotos / Canva
