Indonesia Actively Boosting Vietnam-Indonesia Trade Relations

Indonesia Actively Boosting Vietnam-Indonesia Trade Relations

Seeing that Vietnamese Business People are a potential source to increased trade relations between Vietnam and Indonesia, a meeting was held recently by the Indonesian Embassy to give a brief introduction to Indonesian trade promotion and get feedback from Vietnamese entrepreneurs regarding doing business with Indonesian partners. VIB forum had an interview with the Ambassador of the Republic of Indonesia to the Socialist Republic of Vietnam H.E. Mrs. Artauli Tobing about some subjects relating to trade promotion.

Can you comment on the trade potential between Vietnam and Indonesia?

The commercial value between Indonesia and Vietnam will increase in the coming years as an inevitable trend in the framework of the ASEAN Economic Community by 2020 along with the CEPT/AFTA implementation. In 2003, the bilateral trade relation value increased by 31.93 per cent compared with that of the previous year, reaching USS 1.018 billion. In the whole year of 2004, the two-way trade value between Indonesia-Vietnam was worth of USUS$ 1.1 billion, of which exports from Indonesia to Vietnam amounted USUS$ 662 million and Vietnam’s USUS$ 438 million vice versa.

Vietnamese entrepreneurs are regarded as a potential source to increase bilateral trade relations based on the fact that there is an increasing demand in goods and services between the two countries. For example, Indonesia could offer to Vietnam a variety of products such as plywood, palm oil, paper and pulp, petroleum products, electrical equipments and spare parts as well as consultancy in building and highways; whereas, Vietnam is able to provide among others crude oil and fruit and vegetables. 

Taking into account that such huge potentials have not been thouroughly exploited, the trade level between the two countries can be elevated and therefore the commercial value of the relations would increase.

Marine shipping is an area under consideration by Vietnamese business men who import and export to Indonesia. Is the Indonesian Government considering the expansion of marine shipping? 

Indonesia is a large archipelago surrounded by sea. Most of its territory is water. Therefore, the question is a core issue as a matter of fact that the circulation of goods between Indonesia-Vietnam is done through a third country. In Indonesia, the Ministry of Transportation and Fisheries in responsible for regulating marine shipping. The Embassy will consult with the Ministry for solution. Moreover, concerning airway, GARUDA has run its routine Jakarta-HCMC and will open the new route Hanoi-Jakarta. All entrepreneurs should work closely with the Embassy tocontribute ideas and solutions to their pending problems.

Some businesses are in need of importing products from Indonesia, however, it is difficult to contact providers. Does the Embassy support Vietnamese importers in providing an Indonesian Exhibition Schedule concerning oil based products?

The organ in charge of exhibition is NAFED (Ministry of Trade). The Embassy will add and update the guidebook on “Doing Business with Indonesia”. Still, in the current book on page 29, importers themselves may find it useful with Exports Exhibition to be held in Oct 2005 in Jakarta. The Exhibition offers a perfect opportunity for them to discover their desired partners and products.

The problems in doing business with Indonesia will be forwarded to relevant authorities in Indonesia. If Vietnamese business people themselves find it difficult to get in touch with Indonesian exporters, the Embassy will help them or direct them to another one.

In fact, this gathering has been held since Ambassador first came to Vietnam, and it will be held more often to get feedback and work to solve any difficulties. It is a way for Vietnamese enterprises to start their new experience and to discover new products. As Vietnam and Indonesia have lots of similar products, businesses should explore new potential products/services. Both countries should cooperate in tourism and training in the services sector, which are namely some potential areas.

Vietnam is finding ways and means to upgrade projects for Vietnamese roads and the capacity of Vietnam’s rail networks. Is there any possibility of assistance from the Indonesian Government in terms of ODA or technical assistance at a Governmental level?

In the framework of ASEAN, Indonesia provides two or three scholarships to Vietnamese students. Taking into account the poor conditions of Vietnam’s rail network and the advantages of the abundant provision of infrastructure building companies in Indonesia, apart from training, Vietnam may receive technical assistance from Indonesia.

The scholarship offered to Vietnamese students is the in the overall scheme of developing countries. Regarding other needs, we can have further discussions. The Embassy will contact with Ministry of Transportation for consultancy.

• Giang Tu