GROWING BILATERAL TRADE BETWEEN VIETNAM AND INDONESIA IN RECENT YEARS

 ABSTRACT

Indonesia and Vietnam came into their first-ever trade or bilateral trade relation in the year 1955. Both nations have their respective embassies in each other’s territories like Vietnam has its embassy established in Jakarta and Indonesia has its embassy in Hanoi. Both nations share their territorial boundaries with the South China Sea and are the most active members of the ASEAN and the APEC group of countries.

TRADE RELATIONS AND TRENDS BETWEEN VIETNAM AND INDONESIA

Imports and exports between Vietnam and Indonesia are rising every year. In fact, both countries are aiming to take their bilateral trade to a value of USD 15 billion by 2028. Vietnam, as well as Indonesia, both nations, are really excited and optimistic to take this trade to that level by the year 2028.

In a recent meeting between the president of Indonesia, Jokowi, and the Prime Minister of Vietnam, Labuan Bajo, new plans, and strategies are set up that would surely help bilateral trade to grow between these two nations. The meeting concluded on a positive note that if all trade barriers can at least reduce if can’t get removed, then the bilateral trade can easily touch USD 15 billion mark by the end of 2028.

Recently, Indonesia and Vietnam both were called for certain negotiations on a treaty related to bilateral investment. That meeting was also concluded with a positive mutual understanding. Below mentioned is a trend that is followed by the bilateral trade since last 5 years between Indonesia and Vietnam.

BILATERAL TRADE TREND BETWEEN INDONESIA AND VIETNAM (2017-2021)
YEAR	VIETNAM > INDONESIA	INDONESIA > VIETNAM	TOTAL BILATERAL TRADE
2017	USD 2.85 billion	USD 3.65 billion	USD 6.50 billion
2018	USD 3.53 billion	USD 4.93 billion	USD 8.46 billion
2019	USD 3.36 billion	USD 5.70 billion	USD 9.06 billion
2020	USD 2.82 billion	USD 5.38 billion	USD 8.20 billion
2021	USD 3.91 billion	USD 7.60 billion	USD 11.51 billion

As per the table above, it is observed that considerable growth has been observed in Vietnam Import Data as well as Vietnam Export Data in the last 5 years.

The bilateral trade has also been rising continuously every year with a good growth percentage. If this trend continues for more years to come, then the aim of both countries would be successful.

TOP ITEMS IMPORTED BY VIETNAM FROM INDONESIA

Although numerous products and services are imported by Vietnam from Indonesia, but as per Vietnam Import data for the year 2021, the major contribution of these items was the most in the imports of Vietnam from Indonesia.

·        Mineral fuels and oils (USD 1.44 billion)

·        Automobiles (USD 931.27 million)

·        Animal or vegetable oils and fats (USD 719.75 million)

·        Iron and steel (USD 582.70 million)

·        Electric machinery and appliances (USD 475.11 million)

·        Copper products (USD 313.96 million)

Other crucial items that were imported by Vietnam from Indonesia were paper products, sugar, organic chemicals, and plastic items.

TOP ITEMS EXPORTED BY VIETNAM TO INDONESIA

Just like Vietnam imports various items from Indonesia, in a similar manner, it also exports multiple items to Indonesia throughout the year. So, based on Vietnam Export Data for the year 2021, the top products that were exported from Vietnam to Indonesia were as follows:

·        Electrical machines (USD 914.24 million)

·        Iron and steel items (USD 480.96 million)

·        Plastic products (USD 436.61 million)

·        Knitted fabrics (USD 226.7 million)

·        Mechanical appliances (USD 149.85 million)

·        footwear (USD 129.24 million)

other crucial exports from Vietnam to Indonesia were light automobiles, paper products, cotton, and raw skins.

CONCLUSION

Plans are set, strategies are made, and meetings are done. Now it’s the time for Vietnam and Indonesia to get into play and achieve the benchmark by 2028. As all the officials of both countries are optimistic and excited for it to happen, the plans and estimates should fall in place now. As per our estimates too, the bilateral trade between Vietnam and Indonesia will surely touch USD 15 billion mark without doubt.

Now, if you need some detailed Export Import Data reports of any of these nations, then contact us today and get the most detailed form of reports from Tradeimex. Along with these two countries, we also deal in providing Export Import Data for 70+ other small and big countries that are creating records.

 

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