Promoting Vietnam - Indonesia Trade Cooperation

 

Indonesia is rich in natural resources, including oil, natural gas, tin, nickel and bauxite. Nearly 40 percent of labour force lives on agriculture. Rice is the staple food crop but domestic production fails to meet the consumption demand. Indonesia exports rubber, tea, coffee and spices. Industries mainly relate to oil and gas, mineral extraction and agriculture.

 

Vietnam and Indonesia have signed many agreements, including the Trade Agreement; the Agreement on Economic, Scientific and Technological Cooperation; the Agreement on the Establishment of Joint Committee; the Agreement on Investment Encouragement and Assurance; the Agreement on Maritime Transport; the Agreement on Civil Air Transport; the Agreement on Forestry Cooperation; and the Agreement on Double-tax Avoidance. Besides, the two sides signed the Memorandum of Understanding on the Third Meeting of Joint Committee and the Additional Protocol to the Agreement on Economic, Scientific and Technological Cooperation; the Memorandum of Understanding on Fisheries Cooperation (January 8, 2003); the Agreement on the Demarcation of Continental Shelf; the Agreement on Visa Exemption for Ordinary Passport Holders; the Memorandum of Understanding on Commodity Exchange Cooperation; and the Memorandum of Understanding on Oil and Gas Cooperation.

 

The two-way trade turnover reached US$4.8 billion in 2013. Vietnam mainly exports telephones, iron and steel, rice, apparels, fibres, yarns, plastic products, fruits and vegetables to Indonesia.

 

Meanwhile, it imports paper, chemicals, computers, electronic products, oil and grease, auto parts, motorbike parts and other items from Indonesia.

 

Indonesia invested US$320.5 million in 38 projects in Vietnam as of end-2013, ranking 26^th among more than 100 countries and territories investing in Vietnam. In 2013 alone, Indonesia added four new projects with a combined registered capital of US$31.4 million.