Vietnam, Indonesia expect trade to reach $10b in 2020

11-Sep-2018 Intellasia | The Saigon Times | 6:00 AM Print This Post

Although Indonesia has seen a slowdown in auto exports to Vietnam due to Vietnam’s tougher regulations, bilateral trade may rise to $10 billion in 2020.

Indonesian Ambassador to Vietnam Ibnu Hadi said Vietnam and Indonesia had set a target of obtaining some $10 billion in bilateral trade in 2018 for phase one, between 2014 and 2018. The scheme, however, was not successful.

On Party general Secretary Nguyen Phu Trong’s visit to Indonesia in 2017, the two countries lengthened the term of the scheme to allow bilateral trade to meet the $10 billion target in 2020.

Speaking at a press conference held in Hanoi City on September 5, Hadi insisted that the figure be practical.

Trade revenue between Vietnam and Indonesia in 2018 has grown more strongly than in 2017. The number was expected to rise from $6.8 billion to over $8 billion.

Indonesia’s exports to Vietnam mainly include coal and automobiles, while Vietnam mainly exports electronic components and rice to Indonesia.

Statistics from the Indonesian Embassy show that Indonesia’s auto exports to Vietnam were interrupted by the Vietnamese government’s Decree 116 on auto manufacturing, assembly, import, maintenance and warranty services over the first half of 2018.

The two-way trade is expected to reach $9.2-9.3 billion in 2019 and to exceed $10 billion in 2020.

The ambassador said both countries will continue the scheme in the second phase over the next five years, from January 2019 to 2023.

Mutual goals for this period are still being decided. A signing ceremony is scheduled to take place on September 11 on the occasion of the Vietnam visit by Indonesian President Joko Widodo and his wife.

Besides this, the delimitation of the two countries’ Exclusive Economic Zone boundary will also be resolved in the coming period.

To date, Indonesia and Vietnam have organised 10 meetings to negotiate the delimitation and signed memoranda of understanding on cooperation in terms of fishery and sea issues in 2010.

“The economy and the sea are top priorities for both countries,” the Indonesian ambassador stressed.

The Indonesian president will attend the World Economy Forum 2018, set to start on September 11 and end on September 13, under theme, “Asean 4.0: Enterprises’ Spirit and The Fourth Industrial Revolution,” according to the ambassador.$10b-in-2020.html


Category: Economy, Vietnam

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