Vietnam and Indonesia target $18B trade by 2028
5 min read
Vietnam and Indonesia strengthened their economic partnership during a high-level business forum held yesterday in Banten, Indonesia, as both nations work toward achieving $18 billion in bilateral trade by 2028.
The forum, organized within the framework of Trade Expo Indonesia 2025, focused on expanding cooperation in pharmaceuticals, medical equipment, and other high-value sectors.
Here are three key summary points about Vietnam and Indonesia's economic cooperation in 2025:
- Vietnam and Indonesia have elevated their relationship to a Comprehensive Strategic Partnership, marking their 70th year of diplomatic relations and targeting $18 billion in bilateral trade by 2028, with a strong emphasis on cross-sector economic and technological collaboration.
- Medical technology and pharmaceutical partnership are a central focus, with both nations prioritizing co-production, innovation, and digital transformation—offering opportunities for advanced medical equipment, research, and technology transfer.
- The solid foundation for growth includes mutual benefits from ASEAN and regional free trade frameworks, robust legal support, and aligned national goals in green economy and digitalisation, supporting expanded investment and sustainable development.
Medical Technology Partnership Takes Center Stage
Dr. Nguyen Phuc Nam, Deputy Director of Vietnam's Ministry of Industry and Trade's Department of International Market Development, outlined four key directions for deepening bilateral cooperation during the October 16 forum. The initiatives include enhancing policy dialogue, promoting digitalisation of import-export procedures toward building an ASEAN Smart Customs System, and encouraging production partnerships in pharmaceuticals, medical devices, and green energy.[1][2]
Febie Yoenza, Vice President of the Indonesian Association of Medical Device Manufacturers, highlighted significant collaboration potential, noting that Indonesia could increase exports to Vietnam while benefiting from Vietnam's innovative medical technology industries, including cardiac stent manufacturing and advanced medical software. She emphasized Vietnam's strong capabilities for technology transfer to Indonesia's medical equipment industry and opportunities for research and development cooperation between businesses, universities, and research institutes.[2][1]
Strong Foundation for Growth
The cooperation builds on the countries' March 2025 decision to upgrade their relationship to a Comprehensive Strategic Partnership, marking 70 years of diplomatic relations. Bilateral trade has shown robust growth, doubling from $8.07 billion in 2020 to over $16.7 billion in 2024, representing a 21.1 percent year-on-year increase. Vietnam serves as Indonesia's fourth-largest ASEAN trade partner, while Indonesia ranks as Vietnam's second-largest trading partner within the bloc.[1][2][3][4][5]
Both nations benefit from strong legal frameworks as members of the ASEAN Trade in Goods Agreement, various ASEAN free trade agreements, and the Regional Comprehensive Economic Partnership, providing fertile ground for expanding trade and investment ties. The countries are pursuing aligned goals in green growth, circular economy, and digital transformation, creating additional opportunities for business collaboration across multiple sectors.[6][7]
Reference sources:
[1](https://www.vietnam-briefing.com/news/vietnam-indonesia-upgrade-ties-comprehensive-strategic-partnership-prospects-economic-collaborations.html/)[2](https://business-indonesia.org/news/indonesia-and-vietnam-set-idr-294-trillion-cooperation-target-including-the-automotive-sector)[3](https://en.sggp.org.vn/vietnam-indonesia-elevate-ties-to-comprehensive-strategic-partnership-post116233.html)[4](https://en.vneconomy.vn/vietnam-indonesia-pledge-to-raise-bilateral-trade-to-18-bln-by-2028.htm)[5](https://en.mae.gov.vn/vietnam-and-indonesia-enhance-cooperation-in-the-fields-of-agriculture-and-environment-8816.htm)[6](https://en.vietnamplus.vn/vietnam-indonesia-seek-to-tap-multi-sector-economic-cooperation-potential-post330632.vnp)[7](https://vietnamnet.vn/en/vietnam-indonesia-seek-to-tap-multi-sector-economic-cooperation-potential-2453682.html)[1](https://en.vietnamplus.vn/vietnam-indonesia-seek-to-tap-multi-sector-economic-cooperation-potential-post330632.vnp)[2](https://vietnamnet.vn/en/vietnam-indonesia-seek-to-tap-multi-sector-economic-cooperation-potential-2453682.html)