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| General Secretary To Lam (L) and Indonesian President Prabowo Subianto, Chairman of the Great Indonesia Movement Party (Gerindra), announce the elevation of Vietnam–Indonesia relations to a Comprehensive Strategic Partnership in Jakarta on March 10, 2025__Photo: VNA |
Seventy years ago, amid Asia’s post-colonial shocks, Indonesian President Sukarno and Vietnamese President Ho Chi Minh laid the foundations for a bilateral relationship built not only on national interests, but also on mutual trust, shared ideals and a common aspiration for independence. Today, Indonesia - Vietnam relations are entering a new phase, with expectations for deeper and more substantive cooperation amid intensifying global competition.
According to Indonesian Vice Minister of Foreign Affairs Armanatha Kristiawan Nasir, 2025 is of special significance as the two countries mark the 70th anniversary of diplomatic relations (December 30, 1955 – 2025).
He stressed that the bilateral ties are deeply rooted in the political philosophies and legacies of the two leaders, creating a rare and durable foundation in international relations. Over the years, both sides have seized opportunities to elevate their relationship to higher levels.
New economic drivers and space for cooperation
If diplomacy provides the framework, economic cooperation has become the main driving force of Indonesia–Vietnam relations. Indonesian Deputy Minister of Investment Nurul Ichwan noted that the bilateral ties are increasingly supported not only by the two governments but also by the private sector and business communities.
Trade between the two countries has expanded steadily, with Indonesia’s exports to Vietnam doubling over the past five years. Meanwhile, Vietnamese investment in Indonesia has grown strongly over the past decade. From 2014 to 2024, Vietnam's total realized investment in Indonesia reached USD 66.3 billion, reflecting rising confidence among Vietnamese investors in Southeast Asia’s largest economy.
A notable example of next-generation cooperation is VinFast’s investment project in Indonesia. As the global energy transition is accelerating, Indonesia is opening its renewable energy sector as a pillar of long-term development.
According to Nurul Ichwan, Vietnam’s experience in renewable energy development creates significant potential for cooperation, not only in green energy but also in related industries.
Beyond renewable energy, the two countries also see growing opportunities in emissions reduction, decarbonization, and carbon capture, storage and utilization (CCS/CCUS), aligning with climate commitments within ASEAN and globally. As members of the Regional Comprehensive Economic Partnership (RCEP), Indonesia and Vietnam also benefit from improved market access and broader regional connectivity.
In addition, similarities in legal frameworks, public services and economic governance provide a favorable basis for closer economic coordination built on shared values and objectives.
Challenges in the new context
Despite positive prospects, experts caution that challenges remain. Associate Professor Dr Dinna Prapto Raharja, Senior Policy Advisor at the Synergy Policies Institute, emphasized the importance of strong legal coordination, noting that sustainable economic cooperation requires closer collaboration between lawmakers.
She highlighted Vietnam’s recent administrative reforms as valuable lessons for Indonesia and a source of mutual inspiration in science, technology and innovation.
Meanwhile, Beni Sukadis, Senior Coordinator at the Indonesian Institute for Defense and Strategic Studies, pointed to trade imbalances, regulatory differences and competition in key sectors as potential obstacles, stressing the need to address them through cooperation.
Seven decades after diplomatic ties were established, Indonesia and Vietnam are linked not only by history but also by a shared aspiration for sustainable development. As Vice Minister of Foreign Affairs Armanatha Kristiawan Nasir noted, bilateral success extends beyond economy to cultural exchanges, people-to-people ties and tourism, which have grown rapidly in recent years.
The comprehensive strategic partnership between Indonesia and Vietnam thus reflects not only expanded bilateral cooperation, but also the synergistic potential of two dynamic ASEAN economies working towards a more stable, prosperous and resilient region.- (VNA/VLLF)
