President Nguyen Xuan Phuc’s visit to Indonesia from December 21-23 is expected to create new opportunities for Vietnam-Indonesia relations, particularly bilateral trade which is expected to reach 15 billion USD by 2028.
According to the Asian-Africa Market Department under the Ministry of Trade and Industry, Vietnam-Indonesia trade revenue sees positive growth, from 5.5 billion USD in 2015 to 11.5 million USD in 2021. In the first 11 months of this year, it reached 12.8 billion USD, a year-on-year increase of 25%, and is expected to reach 14 billion USD by the end of this year.
The Vietnam-Indonesia Joint Committee on economic, scientific, and technological co-operation has effectively contributed to addressing issues of the two countries’ trade relations during the past time.
Notably, Vietnamese processed and manufactured goods exported to Indonesia see the highest export value which accounts for over 60% of Vietnam's total export turnover to Indonesia. Vietnam mainly exports to Indonesia machinery, equipment, tools, and spare parts; computers, electronic products, and components; phones and accessories; means of transport and spare parts; other common metals and products; and textiles. Other Vietnam's exports include construction materials, especially iron, steel, and products made of iron/steel.
Source: Vietnam Government News
All food, beverages, pharmaceuticals, cosmetics, chemicals, and organic items sold in Indonesia must have Halal certification.
Indonesia spent 220 billion USD on Halal products in 2018 and the figure is expected to top 330 billion in 2025, Lu said, adding that the country is a promising market for Vietnamese exporters, especially those with products granted Halal certificates.
The market is less demanding than the US, EU, or Japan. Vietnam and Indonesia share Asian cultural similarities and close geographical distance which helps reduce transportation costs and increase the competitiveness of goods.
Vietnamese enterprises are also urged to closely work with Vietnamese agencies if Indonesia launches trade remedies against their products.
By 2021, Indonesia has conducted 11 trade remedy cases against Vietnamese products.
Particularly in 2021, although Indonesia did not initiate any new cases, it issued a conclusion to impose taxes on four trade remedy cases. The items investigated by Indonesia are mainly steel products, BOPP wrapping film, cigarette rolls, EPS granules, and clothing./
VIETNAM MACRO AND INDUSTRY REPORT - DECEMBER 2022