Vietnam and Indonesia Enter Strategic Partnership, Sign MoUs

Jul. 9 – Vietnamese President Truong Tan Sang and a delegation of high-level officials visited Indonesia last month in a diplomatic trip to strengthen economic and political ties between the two countries.

During the meeting, Vietnam signed the following Memoranda of Understanding (MoUs) on bilateral trade and energy investment with Indonesian president Susilo Bambang Yudhoyono and representatives from Indonesia’s Ministries of Finance and Commerce:

  • MoU on Financial Cooperation;
  • MoU on Energy and Mineral Resources Cooperation; and
  • MoU of Cooperation between the Chambers of Commerce and Industry.

The MoU on Financial Cooperation created a working group to discuss bilateral economic issues such as trade, fiscal policy and joint macroeconomic management between the countries. The group will meet annually to assess the progress of bilateral economic relations.

The MoU on Energy and Mineral Resources will increase cooperation over coal and energy resources.

“The leaders were committed to elevating the long-standing bilateral relationship to a new height and decided to establish the Strategic Partnership between Vietnam and Indonesia,” said a joint-statement released by the two countries.

In addition, as a part of the Strategic Partnership, Vietnamese and Indonesian leaders will increase the number of high-level visits they make each year, and will “further enhance mutually beneficial cooperation in all fields.”

The partnership also establishes a Joint Commission on Bilateral Cooperation and a Joint Commission on Economic, Scientific and Technical Cooperation.

“We have a training and education department that trains and educates thousands of our workers. [Vietnamese companies] may send their staff to learn in Indonesia,” noted Susilo Siswoutomo, Indonesia’s Deputy Minister of Energy and Mineral Resources.

Vietnam and Indonesia have both expressed optimism in their bilateral trade efforts. They expect to surpass US$5 billion in bilateral trade by 2015, with a new goal set of US$10 billion by 2018. Trade between the nations stood at US$4.6 billion in 2012.

Indonesia is one of the largest investors in the Vietnamese economy and is currently funding 35 projects in the country worth US$282 million.

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