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In his working trip to Ho Chi Minh City on March 14 and 15, Mr. Arsjad Rasjid had an interview with SGGP Newspaper about economic relations between the two countries, as well as ASEAN connectivity goals in the year Indonesia holds the rotating ASEAN Chairmanship 2023.
Mr. Arsjad Rasjid said more and more Indonesian businesses look to expand investment in Vietnam and vice versa. With the newly strengthened cooperation between Indonesia and Vietnam in the fields of minerals and renewable energy, the prospect of green projects from Indonesia and Vietnam is very attractive.
ASEAN strives to build a peaceful and stable community that leaves no one behind, as stated in its motto ‘One Vision, One Identity, One Community’. The motto is the call to action that promotes economic integration and cooperation in order to promote ASEAN centrality through the economic synergy, vitality and diversity of the 10 member economies. For Vietnam and Indonesia, both sides play an important role in the region, which is essential to achieve this goal through participation and dynamics to promote peace, intra-regional cooperation and economic development, said Mr. Arsjad Rasjid.
Vietnam has lately emerged as one of the world's fastest-growing economies with growing middle-class population which is boosting consumption and attracting foreign investment. Vietnam's participation in regional economic integration efforts, such as the ASEAN Economic Community and the Regional Comprehensive Economic Partnership (RCEP), is important. On the other hand, Indonesia is the largest economy in ASEAN with rich natural resources, a large and growing domestic market, with a young and expanding workforce.
The long-standing economic partnership between Vietnam and Indonesia, built on cooperation and mutual respect, has resulted in strong economic and trade ties. Vietnam ranks 11th among Indonesia's top trading partners, with trade turnover reaching US$14 billion by 2022.
Importantly, the two countries have established partnerships in many fields, including rural development, coal and gas use as well as legal cooperation. The partnership between Vietnam and Indonesia is a testament to the power of diplomacy and cooperation in promoting peace, stability and prosperity in the region. Indonesia wishes to promote cooperation with Vietnam in priority areas such as infrastructure, renewable energy, high technology, and digital transformation.
Vietnam and Indonesia have many cooperation opportunities in the fields of tourism, trade and investment. Indonesia's investment in Vietnam in areas such as fisheries, infrastructure construction, renewable energy, high technology, and digital transformation is in line with Vietnam's priorities.
In January, the two countries agreed to strengthen cooperation in the development of energy and mineral resources, including solar power plants, hydropower plants, and smart grids. This partnership also offers the opportunity to co-develop electric vehicles. The electric vehicle market in Vietnam is expected to grow rapidly, and Indonesia's electric vehicle manufacturing industry can meet this demand.
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A garment factory in Indonesia |
In terms of digital transformation, according to a report by Google, Temasek, and Bain & Company; Indonesia and Vietnam are among the fastest-growing digital economies in the region. Indonesia's digital economy is expected to triple in value to US$133 billion by 2025, and Vietnam's digital economy is expected to reach $52 billion by the same year. Therefore, it is crucial in building an investment partnership between the two countries in the field of digital transformation for the further development of the digital economy and startup ecosystem in the region.
Vietnam's hotel sector is very attractive for FDI because it is expected to grow by $2.12 billion between 2022-2026 with an annual growth rate of 14.43 percent. Therefore, KADIN aims to boost investment cooperation in green projects with Vietnam. With the newly strengthened cooperation between Indonesia and Vietnam in the fields of minerals and renewable energy, the prospect of green projects from Indonesia and Vietnam is very huge.
