Over 60 years of established diplomatic relations, Vietnam and Indonesia have enjoyed sound and fruitful cooperation across a variety of fields. “The close relationship of our founding father has been continuously nurtured by the subsequent generations of leaders and peoples of the two countries. Hence over the years, the cooperation between Indonesia and Vietnam is mutually beneficial. Politically, both countries continue to show support, respect and common vision towards a stable region.,” said Indonesian Ambassador Mayerfas at the interview with Vietnam Business Forum. Thu Ha reports.
2015 marks 60 years of diplomatic relations between Vietnam and Indonesia. How do you assess the cooperation between two countries over the six decades?
Indonesia and Vietnam have always been close friends; both countries have shared common experiences and histories. During the fight for independence, our leaders President Ho Chi Minh and President Soekarno shared common vision to bring both nations advancing towards better and prosperous future. From then on, the close relationship of our founding father has been continuously nurtured by the subsequent generations of leaders and peoples of the two countries. Hence over the years, the cooperation between Indonesia and Vietnam is mutually beneficial. Politically, both countries continue to show support, respect and common vision towards a stable region.
Further, the cooperation between Indonesia and Vietnam is continuously increasing over the years. Both countries’ leaders signed the Comprehensive Partnership in 2003 which then elevated into a Strategic Partnership in 2013 which is one of milestones in the two countries’ relation. Further, a Plan of Action 2014-2018 comprising of detailed and concrete action to implement Partnership was also signed in 2013.
Sectors covered by the PoA are politics and defence, economic and development, investment, agriculture, forestry, marine and fishery, tourism, transportation, energy, information and technology, education, health, technical cooperation, anti-corruption, consular cooperation as well as to enhance cooperation at regional and global stage. With various sectors covered by the plan of action, it is expected that cooperation will continue to be fruitful and beneficial.
Indonesia and Vietnam have also continued to support each other on regional and global stage, specifically in the nomination of respective countries representatives in regional and international organization, based on friendship and reciprocity.
ASEAN Economic Community (AEC) is established by the end of this year. How does this impact the investment and trade relations between two countries?
In its core, AEC will create a single regional common market of ASEAN countries, which comprises five core elements: free flow of goods; free flow of services; free flow of investment; free flow of capital; and free flow of skilled labour. Regionally, there will be a competitive market of over 600 million people.
A single market for goods and services will also facilitate the development of production networks in the region and enhance ASEAN’s capacity to serve as a global production centre or as a part of the global supply chain. Through AEC, there will be greater capital and people mobility among the ASEAN countries, which benefit the economic growth of its member countries.
Now, bilaterally speaking, such improvement and dynamic will be beneficial to strengthen our economic cooperation because the AEC will urge member states to raise the standard and competitiveness, and in that essence the trade and investment will only enhance between Indonesia and Vietnam.
With regard to trade value, Indonesia and Vietnam have agreed to reach US$10 billion trade value by 2018, and in 2013 the trade value has reached US$5.12 billion which has exceeded the target set in 2011 of US$5 billion by 2015. In 2014, trade value increased by 5.2 percent or reached US$5.38 billion. With steady increase, I believe we will reach the trade value in 2018 as targeted.
Vietnam Chamber of Commerce and Industry (VCCI) and Indonesian Embassy in Vietnam will co-organize the Vietnam-Indonesia Business Forum on December 11 in Hanoi. What does the Vietnamese and Indonesia business community look to gain and what does Embassy expect from this forum?
On the occasion of the 60th anniversary of diplomatic relations of our two countries (1955-2015) and to reach the target of US$10 billion trade value as set by our leaders, Indonesian Embassy will hold “Indonesia Trade Fair and Indonesia-Vietnam Business Forum” in Hanoi, 10-12 December 2015.
The Trade Fair will showcase Indonesian products from 100 Indonesian companies coming from various sectors, among others are manufacturing, strategic industry, mining, textile, chemical/cosmetics/herbal/, automotive spare parts and accessories, food and beverages, service/industry area/construction, education, and marine and fisheries as well as Small Medium Enterprises.
The Fair will take place at the International Centre for Exhibition (I.C.E), Hanoi from 10-12 December 2015.
The Business Forum, which is held on collaboration with the VCCI, is an excellent opportunity for our business communities to meet up and explore the possibilities for their mutual benefits. The Forum will be held at Melia Hotel on 11 December 2015, and will be participated by the officials in charge of trade and investment sector of Indonesia and Vietnam and by the business communities. It also will feature business-to-business meeting so that companies from Indonesia can meet and have a discussion with their Vietnamese counterpart for potential cooperation.
Further, a panel discussion will be held at the Business Forum, with speakers from the Indonesian and Vietnamese officials responsible to trade and investment as speakers. They will give insight on the development, progress, climate, policy on trade and investment. In addition, there will also be prominent businessmen of Indonesia and Vietnam that will share their experiences in doing business in Indonesia and Vietnam.
This Forum indeed offers big opportunities for our business communities to expand cooperation, to make them know each other and understand each other and find potential cooperation that can be developed. We are hoping that the Forum will be a stepping stone for our business communities to have better understanding on how to do business in Indonesia and Vietnam.
What are the specific economic sectors that Indonesia will focus on to develop with Vietnam in the longer term?
As the two economies are expanding and growing, every sector has big potential, so we don’t emphasize on specific sector to develop. Indonesia with 250 million people and Vietnam with more than 90 million with fast expanding economy, we need to explore all of the prospects for cooperation in every possible way for the benefit of both sides.
Could you share the plan of the Embassy of Indonesia in Vietnam to promote cooperation between two countries?
We will intensify cooperation between business communities of Indonesia and Vietnam, as well as state-owned enterprises. Joint activities such as trade promotion and forum business alike will be important in bringing closer business communities of Indonesia and Vietnam.
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