Indonesian President Visits Hanoi to Talk Trade and Investment

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The President of Indonesia was in Hanoi over the weekend meeting with high-level officials to talk trade and investment. Here’s how trade between Indonesia and Vietnam looks moving into the new year.

The President of Indonesia Joko Widodo met with Vietnam’s Prime Minister Pham Minh Chinh over the weekend in Hanoi where the two leaders discussed the two countries’ ongoing economic engagement.

Widodo told his counterpart that Indonesia was looking for investment from Vietnamese businesses, particularly in its new capital city. He also suggested greater engagement in electric vehicles, tourism, and banking and finance among several other industries.

Pham, on the other hand, pushed for Indonesia’s support in developing Vietnam’s halal foods industry. This has long been a goal for Vietnam with similar support sought from Malaysia and the United Arab Emirates last year (see also: Halal Food Market in Vietnam Small, but Huge Export Opportunity).

Furthermore, the two leaders discussed greater regional integration and collaboration. In particular, in terms of trade, they agreed to work toward reaching US$18 billion in two-way trade by 2028. It’s with this in mind, that the Vietnam Briefing provides this brief overview of the current state of trade between Indonesia and Vietnam.

Trade relations between Indonesia and Vietnam

Both members of the Association of Southeast Asian Nations (ASEAN) trade between Indonesia and Vietnam is covered by several free trade agreements. These include:

  • ASEAN Trade in Goods Agreement (ATIGA)
  • ASEAN-China Free Trade Area
  • ASEAN-Japan Comprehensive Economic Partnership
  • ASEAN-Korea Free Trade Area
  • ASEAN-Australia-New Zealand Free Trade Area
  • ASEAN-India Free Trade Area
  • ASEAN-Hong Kong, China Free Trade Area (AHKFTA)
  • Regional Comprehensive Economic Partnership

See also: Vietnam’s Free Trade Agreements – Opportunities for Your Business

Exports Indonesia to Vietnam

In 2023, Indonesia exported US$8.73 billion worth of goods to Vietnam. The biggest individual items were: coal; iron and steel; and animal and vegetable fats and oils. These three categories alone accounted for US$3.87 billion worth of exports from Indonesia to Vietnam.

Indonesia’s exports to Vietnam, 2022

Description Value US$
Coal 2,069,126,082
Iron and steel 1,116,215,818
Other products 819,288,037
Animal, vegetable fats and oils 682,174,523
Motor vehicles 607,546,733
Other base metals 517,783,905
Paper 282,824,646
Parts and accessories of motor vehicles 279,956,793
Computers, electrical products, spare parts, and components thereof 268,105,894
Machine, equipment, tools, and instruments 230,081,929
Fishery products 207,251,533
Plastics 166,013,367
Chemical products 143,800,406
Pastrycooks, sweets, and cereal products 141,772,480
Animal fodders and animal fodder materials 129,776,609
Chemicals 123,685,395
Tobacco materials 100,678,245
Yarn 99,871,305
Fabrics 82,613,269
Essential oils and resinoids; perfumery, cosmetic or toilet preparations 73,362,085
Textile, leather, and foot-wear materials and auxiliaries 68,301,335
Plastic products 65,015,713
Insulated wires and cables 61,992,556
Liquefied petroleum gases (LPG) 42,116,663
Rubber 41,728,425
Fertilizers 40,705,279
Other edible food preparations 34,267,644
Cashew nut 33,014,746
Wood and wooden products 30,459,422
Glass and glassware 29,034,917
Electric consumer products and parts thereof 24,006,670
Insecticides, rodenticides, and materials 23,022,686
Iron and steel products 20,192,506
Pharmaceutical products 16,038,557
Paper products 14,698,750
Other petroleum products 12,373,832
Cotton 10,733,143
Other base metal products 10,067,008
Rubber products 9,183,501
Total 8,728,882,407

Source: General Department of Customs

Exports Vietnam to Indonesia

In 2023, Vietnam exported US$5.07 billion worth of goods to Indonesia. The three biggest exports from Vietnam to Indonesia were: rice; iron and steel; and machine equipment, tools, and instruments. Collectively the dollar value of these three exports totaled US$1.5 billion.

Vietnam’s exports to Indonesia, 2022

Description Value US$
Rice 640,253,131
Other products 563,043,546
Iron and steel 483,485,063
Machine, equipment, tools, and instruments 379,631,886
Telephones, mobile phones, and parts thereof 368,215,341
Textiles and garments 364,317,047
Other means of transportation, parts, and auxiliaries 326,087,202
Textile, leather, and footwear materials and accessories thereof 306,405,953
Plastics 285,247,328
Computers, electrical products, spare parts, and accessories thereof 233,602,950
Chemicals 148,065,794
Coffee 132,695,935
Plastic products 121,481,366
Paper and paper products 120,107,944
Yarn 106,171,829
Footwear 99,542,473
Chemical products 90,692,947
Iron and steel products 62,232,624
Other base metals and other base metal products 29,013,503
Insulated wires and cables 27,497,312
Crude oil 27,066,532
Rubber 25,240,162
Rubber products 23,433,155
Pastrycooks, sweets, and cereals products 22,860,401
Tyre cord fabrics and other fabrics for technical 21,636,956
Fishery products 17,455,200
Ores and other minerals product 9,157,282
Fruits and vegetables 8,616,484
Animal fodders and animal fodder materials 7,381,608
Tea 7,310,681
Ceramic products 6,699,867
Furniture of other materials, other than wood 2,221,664
Coal 2,118,544
Petroleum products 1,450,644
Clinker and cement 1,296,750
Total 5,071,737,103

Source: General Department of Customs

Indonesia-Vietnam trade moving forward

With two-way trade in 2023 totaling more than US$13.8 billion, there is still a way to go for trade between Vietnam and Indonesia to reach the US$18 billion goal the two countries are aiming for. That said, as the ASEAN trading bloc becomes more heavily integrated and supply chains become increasingly more diversified, achieving this goal becomes increasingly more likely.

To find out more about building regional supply chains in Southeast Asia contact the business advisory experts at Dezan Shira and Associates.

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Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout the Vietnam and the Asian region. We maintain offices in Hanoi and Ho Chi Minh City, as well as throughout China, South-East Asia, India, and Russia. For assistance with investments into Vietnam please contact us at or visit us at