In the next 2.5 decades, Indonesia and Vietnam want to prosper together. One way is to combine and collaborate each other’s assets. With this collaboration, Jakarta-Hanoi is stronger in the global market.
Indonesian Ambassador to Vietnam Denny Abdi in Hanoi said that Indonesia and Vietnam do not have obstacles to political relations. “The relationship between the two countries has been very good since its inception,” he said, Tuesday (1/16/2023), in Hanoi.
Vietnam is Indonesia’s only strategic partner in Southeast Asia. Through President Joko Widodo’s visit to Vietnam on January 11-13, 2024, Jakarta-Hanoi will further strengthen relations.
Indonesia and Vietnam, according to Denny, both want to become high-income countries. From the Indonesian side, the target is gross domestic product (GDP) per capita to reach 23,000 US dollars. “To achieve that, it needs a leap. Can’t rely on ordinary trade,” he said.
The economic impact will be enormous. Road research, the supplier industry moves, can ultimately boost the economy.
He said, Vietnam had long expected the visit of the President of Indonesia. Moreover, practically all Vietnamese leaders will come to Indonesia in 2023.
New industries
Denny said, one of President Jokowi’s agendas in Vietnam is to meet businessmen. They are engaged in the renewable energy, electric vehicles, and digital sectors.
In the meeting, there was something new in RI-Vietnam relations. Jakarta-Hanoi agreed to combine their respective strengths and assets in these sectors. Through this collaboration, Jakarta-Hanoi is optimistic that it can be stronger in taking part in the global market.
“In the past, in bilateral meetings, trade barriers were discussed. Because, the focus is export (bilateral). In the future, the focus is together to penetrate the global market,” said Denny.
The collaboration is part of efforts to present supply chains in both countries. “If this moves, the economic impact will be huge. Road research, mobile supplier industries, in the end can improve the economy,” he said.
When it comes to electric vehicles, for example, Vietnam already has VinFast. While Indonesia has a number of important minerals for the production of electric vehicles.
“If combined, the competitiveness of the products will increase. This is because production is close to the supply chain and raw material prices are more competitive,” he said.
Future
Denny said, Indonesia and Vietnam are both involved in the Just Energy Transition Partnership (JETP). It shows that both countries are trusted by the international community to achieve a cleaner and more sustainable future.
The core goal of JETP is to help countries transition to clean and renewable energy. “Now, major companies will definitely check first before investment. Is the source of electricity still from unclean energy? Is the investment in accordance with sustainability principles? All of that is a form of ESG implementation which has become a global standard,” he said.
He referred to a new standard in global business. Investors urged business practices that pay attention to the environment, implement sustainability, and implement good governance. Companies that do not implement ESG tend to be left behind by investors and consumers.
Regional impact
As fellow ASEAN members, of course, Jakarta-Hanoi cooperation considers the region. In Southeast Asia, there is relatively no political tension. This is because ASEAN members are always committed to implementing dialogue and avoiding conflict.
Denny said, the dynamics of ASEAN depend on the relations of its members.
