Vietnam - Indonesia: For the Development of the Private Sector

The purpose of the talk is to further promote cooperation on investment and business between the two countries’ business communities in the fields of infrastructure, real estate, supporting industries, agro- forestry and seafood, and together to discuss the potential and strengths of markets and investment policy of each country.

According to Deputy Minister Dao Quang Thu, that the Indonesian Embassy and Indonesia Investment Coordinating Board held this talk is a good opportunity for the business communities of the two countries to meet to exchange and seek opportunities on investment and cooperation for mutual benefit. Deputy Minister Thu also appreciated the political, economic, social and cultural cooperation relations between Vietnam and Indonesia in recent years. Currently, Vietnam and Indonesia have many potential advantages to cooperate and complement each other. Thanks to those favourable cooperation premises, two state leaders agreed to lift the Vietnam - Indonesia relations to a new level of strategic partnership to further strengthen trade and investment activities and especially extend the private economic sector of the two countries.

 

Deputy Minister Thu said that Indonesia's investment into Vietnam ranked 26th out of 101 countries and territories investing in Vietnam with 38 valid projects and total registered capital of US$320.5 million. Indonesia has invested in 11 of 21 industries, focusing primarily on the fields of processing, manufacturing and service. Most Indonesian projects have made important contributions in the process of socio-economic development of Vietnam. Besides, Vietnam also has four projects being implemented in Indonesia with a total investment capital of US$21.9 million, primarily in the mining, media and manufacturing sectors.

 

Chairman Mahendra Siregar of the Indonesia Investment Coordinating Board appreciated the investment environment in Vietnam. Mr Mahendra Siregar also predicted that the difficult situation and stagnation of the global economy would take place in the next 5 years. However, leading economists in the world have the same idea that Asia, especially Southeast Asia and East Asia, is now among the areas having the most powerful economic growth. Vietnam and Indonesia had better capture the large advantage of their favourable location. The two countries need to open the doors to welcome all investors from all over the world to promote economic growth as well as to benefit the local economy in particular and in Southeast Asia and Asia in general.

 

On the basis of the good diplomatic and political relations, the two sides have identified the need to further strengthen trade promotion activities and hold exchanges for investors to learn from one another’s experience. Particularly in investment cooperation, the two countries have also adopted the ASEAN Comprehensive Investment Agreement (ACIA) which came into force on 29^th March 2012. This is considered a major turning point in investment cooperation among ASEAN countries in general and between Vietnam and Indonesia in particular.

 

"The signing of the MoU on investment promotion cooperation between the Vietnamese Ministry of Planning and Investment and the Indonesia Investment Coordinating Board will create a lot of opportunities, boost further investment and business relations between the two countries and set up regular communication channels between management agencies. To further promote the development of trade, economy and investment between the private sectors of Vietnam’s and Indonesia's, it is essential to pay due attention to and create conditions for this sector to contribute to the economy of each country. In addition, the two countries should have more channels to exchange and gain experiences to develop the private sector, supplement and help each other," said Mr Mahendra Siregar.