Vietnam - Indonesia: Comprehensive Strategic Partnership Toward New Era of Cooperation

Vietnam and Indonesia’s agreement to elevate their relationship to the Comprehensive Strategic Partnership in early 2025 has further strengthened the 70-year traditional friendship between the two countries, opening a new chapter of cooperation that is broader, more comprehensive, and more substantive, aimed at a sustainable future for both nations.

Seven decades of cultivation

Historically, Indonesia was the first Southeast Asian country with which Vietnam officially established diplomatic relations. The two countries established ties on December 30, 1955. The Vietnam-Indonesia traditional friendship has been built on a solid foundation laid by President Ho Chi Minh and President Sukarno, and nurtured and developed by successive generations of leaders and peoples of both countries.

The personal bond between President Ho Chi Minh and President Sukarno stemmed from a simple and close friendship. During President Ho Chi Minh’s visit to Indonesia and President Sukarno’s visit to Vietnam in the same year, 1959, the Indonesian people affectionately called Ho Chi Minh “Paman Ho,” while President Ho Chi Minh referred to Sukarno warmly as “Bung Karno.”

Since then, the Vietnam-Indonesia friendship has been continuously strengthened by successive generations of leaders and peoples of both countries.

From 1990 onward, the two sides have conducted numerous reciprocal visits between high-level state, government and parliamentary delegations, as well as exchanges among ministries, sectors, businesses and mass organizations, alongside cultural exchanges. Relations entered a new phase with the historic visit of President Suharto in November 1990.

Vietnam and Indonesia’s agreement to upgrade their relationship to the Comprehensive Strategic Partnership in early 2025 has strengthened the 70-year traditional friendship between the two countries, opening a new chapter of broader, more comprehensive, and more substantive cooperation for a sustainable future for both countries.

Indonesian President Joko Widodo, as part of his state visit to Vietnam, visits the VinFast electric automobile and motorcycle manufacturing complex in Hai Phong, January 2024

In June 2003, during Indonesian President Megawati Sukarnoputri’s visit to Vietnam, the two countries signed the Joint Declaration on the Framework for Friendly and Comprehensive Cooperation in the 21st Century and the Agreement on the Delimitation of the Continental Shelf Boundary.

In June 2013, during Vietnamese President Truong Tan Sang’s state visit to Indonesia, the two countries issued the Joint Declaration officially establishing the Strategic Partnership. This marked a milestone in their diplomatic history. Since then, the Vietnam-Indonesia Strategic Partnership has grown strongly, comprehensively, and steadily.

Notably, during the visit in March 2025 to Indonesia by General Secretary To Lam and the Vietnamese high-level delegation, the two countries agreed to elevate their bilateral relations to a Comprehensive Strategic Partnership, committing to strengthen political trust, cooperation, and coordination in addressing global challenges while respecting international law, sovereignty, territorial integrity, and political independence.

Vietnam is Indonesia’s first Comprehensive Strategic Partner within ASEAN, marking a historic milestone that ushers Vietnam-Indonesia relations into a new era of deeper, more comprehensive, and substantive cooperation for the benefit of the peoples of both countries and for peace, development, and prosperity in ASEAN and globally. This milestone reflects the culmination of 70 years of diplomatic relations and over a decade of Strategic Partnership.

Promoting cooperation across many fields

Over the past 70 years, Vietnam and Indonesia have maintained regular and flexible exchanges, achieving significant cooperation, especially in the economic sector. Indonesia is currently Vietnam’s second-largest trade partner, while Vietnam ranks as Indonesia’s fourth-largest trade partner within ASEAN. Bilateral trade in 2024 reached US$16.7 billion, up 21.6% compared with 2023. Both countries aim to reach US$18 billion in trade by 2028.

Vietnam and Indonesia are key trade partners within ASEAN and are members of the ASEAN Free Trade Area (AFTA) and the Regional Comprehensive Economic Partnership (RCEP), providing strong advantages for expanding bilateral trade.

Regarding investment, Indonesia has more than 120 active projects with cumulative registered capital of US$682 million. Vietnamese enterprises are increasingly investing in Indonesia, including: VinFast expanding operations in electric vehicle production, electric taxi services and charging station development; Dien May Xanh opening more than 100 stores; Saigon Coffee operating a chain of 40 restaurants with plans to increase to 200 restaurants in Indonesia within 2 to 3 years. These results reflect the growing depth of Vietnam-Indonesia relations.

At the high-level business forum themed “Vietnam and Indonesia: Partnership for Progress and Prosperity,” held during General Secretary To Lam’s visit to Indonesia in March 2025, General Secretary To Lam commended the effective investment and trade cooperation achieved between the two countries and expressed the desire to continue receiving the trust, support and engagement of the Indonesian government, agencies and business community. He encouraged investors from both countries to explore and expand investments in sectors such as science and technology, innovation, research and development, semiconductor industry, artificial intelligence (AI), Internet of Things (IOT), new energy including hydrogen, renewable energy, finance and financial centers, biotechnology and healthcare. These are sectors where both countries have strong development potential and demand for investment.

In discussions with business leaders, General Secretary To Lam emphasized that significant opportunities for cooperation remain, driven by the strengths of each country, and expressed hope that Indonesian businesses will continue efforts to become among the largest investors in Vietnam, reflecting the depth of bilateral relations.

Indonesian President Prabowo Subianto noted that Vietnam and Indonesia share many historical similarities, common values of independence, sovereignty, and the well-being of their people, as well as a shared vision of becoming advanced, high-income countries by 2045. Indonesia considers Vietnam an important regional partner and seeks to further deepen relations.

In addition to economic, trade and investment cooperation, cultural exchange, people-to-people contact, and tourism have also been actively promoted. Given shared cultural similarities, strengthening exchanges in education, culture, and tourism is particularly important.

Another prominent global trend is enhanced cooperation to address climate change. Both Vietnam and Indonesia have made strong commitments to carbon emission reductions, reflecting responsibility in contributing to global efforts to mitigate and adapt to climate change. In implementing these international commitments, the two countries can cooperate closely in energy transition, carbon storage, renewable energy, green energy, and sustainable green economic development.

Defense and security cooperation between Vietnam and Indonesia has also been strengthened through dialogue mechanisms, exchanges and joint training. Both countries have signed and effectively implemented multiple agreements on areas such as transnational crime prevention, counterterrorism, and maritime cooperation.

It can be affirmed that the substantial and sustainable values in the traditional Vietnam-Indonesia relationship cultivated over time have opened a new chapter of cooperation with broader, more comprehensive and substantive dimensions, for a sustainable future for both nations.

Quynh Chi (Vietnam Business Forum)