Vietnam, Indonesia sign action plan, target $18bn in two-way trade by 2028

The action plan was signed in Jakarta on Tuesday by Vietnamese Minister of Foreign Affairs Le Hoai Trung and his Indonesian counterpart Sugiono on behalf of their governments during the former's working visit to Indonesia.

Speaking at a joint press briefing after the signing ceremony, Foreign Minister Sugiono described the five-year plan as the main framework for bilateral cooperation through 2030.

The two ministers said the document marks a new milestone in bilateral relations by setting out strategic priorities in emerging sectors, particularly high technology, innovation, energy, and cross-border payments.

They said it also reflects the strong commitment of both governments to deepening ties following the elevation of bilateral relations to a comprehensive strategic partnership, making Vietnam the first ASEAN member state to establish that level of ties with Indonesia.

They agreed to make full use of existing cooperation mechanisms and convene the Joint Committee on Economic, Scientific and Technical Cooperation at an early date to deepen economic connectivity, unlock new cooperation opportunities, and support the long-term development of both countries.

Alongside the signing ceremony, the two ministers co-chaired the sixth meeting of the Vietnam-Indonesia Bilateral Cooperation Committee, where they reviewed progress in bilateral cooperation and discussed priorities for the coming years.

Sugiono described the committee as an important mechanism for the two countries to exchange views and coordinate efforts to deepen practical and effective cooperation across a wide range of sectors.

He noted that bilateral cooperation has continued to expand since the committee's fifth meeting despite global uncertainties and a challenging international economic environment.

Two-way trade reached $17.2 billion in 2025, up 3.2 percent from the previous year.

In the first four months of 2026, trade exceeded $6 billion, up seven percent year on year.

Based on this momentum, both sides expressed confidence that two-way trade would reach the $18 billion target by 2028 and continue growing thereafter.

The ministers also agreed to strengthen cooperation in defense and security while enhancing coordination in combating transnational crime, including cybercrime, high-tech crime, and human trafficking.

They also agreed to deepen cooperation in agriculture, fisheries, education, tourism, and people-to-people exchanges, while promoting stronger air connectivity.

Expressing confidence in Vietnam's economic prospects, Sugiono said Indonesian businesses are increasingly interested in expanding investment in Vietnam.

He added that the Indonesian government welcomes Vietnamese companies investing and doing business in Indonesia.

In response, Minister Trung called for creating more favorable conditions for businesses from both countries to expand and diversify investment, particularly in renewable energy, semiconductors, the digital economy, electric vehicles, and halal-related industries.

Economic and investment ties between the two countries have continued to deepen in recent years.

Many Vietnamese companies, including technology firm FPT, electric vehicle manufacturer VinFast, and home appliance maker Sunhouse, have expanded their presence in Indonesia, Southeast Asia's largest economy and the world's 16th-largest economy.

VietJet Air launched a direct Hanoi-Jakarta route in 2024, while VinFast established a US$200 million manufacturing plant in Subang, opened 20 showrooms, and introduced its Xanh SM electric taxi service in the country.

Indonesian consumers are increasingly driving VinFast electric vehicles and purchasing household appliances through EraBlue, a retail joint venture between Vietnam's Mobile World Investment Corporation and Indonesia's Erajaya Group.

Meanwhile, many Indonesian companies and brands, including Indomie, Ciputra and Traveloka, have also established a strong presence in Vietnam.

Vietnam and Indonesia established diplomatic relations in 1955, making theirs one of the region's longest-standing diplomatic partnerships.

During the state visit of Vietnamese Party General Secretary and State President To Lam to Indonesia in March 2025, the two countries elevated their relationship to a comprehensive strategic partnership.