The two Southeast Asian economies are targeting US$20 billion in bilateral trade by 2028, underscoring their growing economic partnership amid shifting regional supply chains.
Indonesia and Vietnam have set an ambitious target of increasing bilateral trade to US$20 billion (around Rp325 trillion) by 2028, signaling a deeper economic partnership between two of Southeast Asia’s fastest-growing economies. The commitment reflects both countries’ efforts to capitalize on expanding intra-ASEAN trade as global manufacturers diversify supply chains and regional economic integration gathers pace.
The new target was announced following high-level bilateral discussions aimed at strengthening cooperation in trade, investment, agriculture, fisheries, food security, and the digital economy. Officials from both countries emphasized that stronger economic ties would create new opportunities for businesses while enhancing the resilience of regional supply chains.
Key Facts
- Bilateral trade target: US$20 billion (Rp325 trillion) by 2028.
- Current bilateral trade (2024): Approximately US$16.7 billion.
- Target growth: Around 20% from current levels.
Indonesia and Vietnam have emerged as two of ASEAN’s most dynamic manufacturing and export economies. While Vietnam has established itself as a major electronics and export manufacturing hub, Indonesia offers abundant natural resources, a large domestic market, and expanding downstream industries. Their economic structures are increasingly complementary rather than directly competitive, creating opportunities for deeper commercial cooperation.
Trade expansion is expected to focus on agricultural commodities, processed foods, automotive products, fisheries, renewable energy, and digital services. Greater collaboration could also encourage cross-border investment as companies seek to diversify production networks within Southeast Asia instead of relying heavily on a single manufacturing base.
The agreement comes as ASEAN continues to strengthen its position in global supply chains. Rising geopolitical tensions, evolving trade policies, and supply-chain diversification have encouraged multinational companies to increase investment across the region. Closer economic cooperation between Indonesia and Vietnam could further enhance ASEAN’s attractiveness as an integrated production and investment destination.
The higher trade target signals expanding commercial opportunities in two markets with a combined population of more than 380 million people. Achieving the goal, however, will require continued efforts to reduce non-tariff barriers, improve logistics connectivity, and facilitate customs procedures. If successfully implemented, stronger Indonesia-Vietnam economic ties could become an important driver of regional trade and investment over the remainder of the decade.