Indonesia-Vietnam trade to reach US$10 billion

08:13 | 03/09/2014 Cooperation

(VEN) - On the occasion of the 69th anniversary of Indonesia’s Independence Day, Indonesian Ambassador to Vietnam Mayerfas said that a year had passed since the two countries agreed to raise the relationship to strategic partnership. Cooperation between the two countries has become closer and brought practical results, especially the signing of a number of key agreements.

Indonesian Ambassador to Vietnam Mayerfas (sixth from the left) attends the ceremony

For nearly 60 years, the relationship between the two countries has strongly grown. Since the two countries established strategic partnership and signed action plan in the 2014-2018 period, Vietnam has become Indonesia’s only strategic partner in the region, creating premise to close ties between the two countries.

In the last 10 years, Indonesia and Vietnam have successfully built and strengthened bilateral cooperation in the fields of economics, trade, investment and tourism. The ambassador said that trade turnover between the two countries exceeded set target for 2015 with a total value of US$5 billion and would reach US$10 billion in 2018.

Indonesia mainly imports rice, mobile phones, iron and steel, crude oil, coffee, auto parts, textiles and garments from Vietnam while it exports paper, vegetable oil, machinery, tools, computers, chemicals, electronics and electronic equipment.

According to statistics, in the first seven months of this year, trade turnover between the two countries reached US$2.93 billion, an increase of 14.9 percent compared to the same period last year. Vietnam’s export turnover to Indonesia reached US$1.54 billion while its import turnover totaled US$1.38 billion in its period.

In terms of investment, a series of Indonesian businesses have actively cooperated with Vietnamese companies. Indonesia has 39 investment projects in Vietnam with a total capital of about US$650 million, mainly focusing on such fields of processing industry, accommodation, food, mining, transport, agriculture, fisheries and construction. Vietnam currently has eight investment projects in Indonesia with a total capital of US$49.66 million in the fields of oil and gas, retail, export-import, communications, motorcycle and car parts.

Thanks to a home of 340 million people in the two countries, dynamic and potential market, increasing purchasing power, favorable geographical distance, abundant natural resources and strategic partnership, Indonesia-Vietnam trade would strongly increase in the                        coming time./.

       By Nguyen Huong