Seven decades ago, amidst the post-colonial upheavals in Asia, President Sukarno and President Ho Chi Minh laid the first bricks for a relationship based not only on shared interests, but also on the beliefs, ideals, and aspirations for independence of both nations. Today, Indonesia and Viet Nam stand at a new threshold; building on this solid historical foundation, bilateral relations are expected to break through, entering a phase of deeper and more substantive cooperation in the era of global competition.

According to Indonesian Deputy Foreign Minister Armanatha Kristiawan Nasir, 2025 holds special significance as the two countries celebrate the 70th anniversary of the establishment of diplomatic relations (December 30, 1955 - December 30, 2025). He emphasized that the Indonesia-Viet Nam relationship is built on the philosophy and political legacy of their two predecessors, creating a rare and solid foundation in international relations. Both Indonesia and Viet Nam have taken advantage of opportunities to elevate their bilateral relationship to new heights.

New economic drivers and opportunities for cooperation

While diplomacy provides the framework, economics is the driving force behind the robust functioning of Indonesia-Viet Nam relations. Speaking to a Viet Nam News Agency (VNA) reporter in Jakarta, Indonesian Deputy Minister of Investment Nurul Ichwan emphasized that the relationship between the two countries is not only fostered at the government level but also receives increasingly effective support from the business community and the private sector.

Notably, Indonesia's total trade value with Viet Nam has doubled in the past five years, with an average growth rate of approximately 2.4% per year.

Conversely, Vietnamese investment in Indonesia has recorded impressive growth over the past decade. Between 2014 and 2024, the total realized investment value from Viet Nam in Indonesia reached US$66.3 billion, reflecting the growing confidence of Vietnamese investors in the business environment of Southeast Asia's largest economy.

A prime example of the new generation of bilateral cooperation between the two countries is VinFast's investment project in Indonesia. In the context of the global energy transition, Indonesia is actively opening up its renewable energy sector and considers it a pillar for long-term development.

He stated, "This investment not only contributes to Indonesia's economic development but also opens up opportunities for sustainable cooperation in the green energy sector." According to his assessment, Viet Nam is ahead of Indonesia in its ability to access and deploy renewable energy, thus opening up significant potential for cooperation. He affirmed, "Viet Nam can fully leverage this advantage to invest in Indonesia, not only in renewable energy but also in many related fields."

Furthermore, the two countries have the potential for extensive cooperation in areas such as emission reduction, decarbonization, and carbon capture, storage, and utilization technologies (CCS, CCUS). These are considered new pillars of bilateral investment cooperation, closely linked to climate commitments within the framework of the Association of Southeast Asian Nations (ASEAN) and globally.

Indonesia and Viet Nam are both members of the Regional Comprehensive Economic Partnership (RCEP) – a framework considered to create a vast market space for ASEAN. According to Deputy Minister Nurul Ichwan, RCEP not only helps the two countries access each other's markets more easily, but also opens doors to major partner markets in the region.

Besides market advantages, the two countries also share many similarities in legal frameworks, public services, and economic operational efficiency. Identifying these commonalities correctly will help Indonesia and Viet Nam strengthen economic cooperation based on shared values ​​and goals.

Challenges in the new context

Despite the vast prospects for cooperation, experts frankly pointed out existing challenges in discussions with VNA reporters.

From a policy research perspective, Associate Professor Dr. Dinna Prapto Raharja – Senior Policy Advisor at the Synergy Policies Institute – noted that comprehensive strategic partnerships open up broader avenues for cooperation, not only in "hot" areas like artificial intelligence, semiconductors, or energy, but also in many other fields.

She emphasized the role of the legal framework, arguing that economic cooperation cannot develop sustainably without coordination between the legislators of the two countries. She noted that Viet Nam's recent administrative reforms are valuable lessons for Indonesia to learn from. Based on this foundation, the two countries can inspire each other in the development of science, technology, and innovation.

Meanwhile, according to Beni Sukadis, senior coordinator of the Indonesian Institute for Defence and Strategic Studies, trade imbalances, regulatory differences, and competition in key sectors such as manufacturing and energy could still hinder economic partnerships.

He argued that the two countries should approach these issues from a cooperative rather than a competitive perspective, thereby leveraging their shared strengths to create common power.
Seventy years after establishing diplomatic relations, Indonesia and Viet Nam share not only a common history but also a shared aspiration for sustainable development in a volatile world. When these similarities are properly identified and effectively connected, they will become a strategic resource for a new phase of cooperation in this new context.

As Indonesian Deputy Foreign Minister Armanatha Kristiawan Nasir noted, the success of relations between the two countries is not only reflected in trade or economics, but also strongly extends to cultural fields, people-to-people exchanges, and tourism. The rapid increase in two-way tourism in recent years has become an effective connecting channel, contributing to deepening understanding and ties between the two societies.

The comprehensive strategic partnership between Indonesia and Viet Nam, therefore, is not only an expansion of bilateral cooperation, but also a testament to the synergistic potential of two large and dynamic economies in ASEAN – working together towards a more stable, prosperous, and resilient future for the region.

Source: Tin Tuc News

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