Indonesia and Vietnam have agreed to jointly advance the Association of Southeast Asian Nations (ASEAN) as the center of growth in the Asia Pacific region. The commitment came during the two countries’ recent high-level talks in Jakarta, which focused on boosting economic relations and cooperation within ASEAN. With their strategic locations and dynamic economies, Indonesia and Vietnam have emerged as key players in the region and are working to strengthen ASEAN’s role in shaping the future of the Asia Pacific. In this article, we will explore the significance of this agreement and the implications it may have for the ASEAN bloc and beyond.
Indonesia and Vietnam Aim to Boost ASEAN Economic Cooperation
Indonesia and Vietnam have pledged to increase their efforts to enhance regional economic cooperation and strengthen ASEAN Centrality. This statement was made by an ASEAN Business Advisory Council delegation during its visit to Vietnam on March 12–14, 2023, led by Arsjad Rasjid, chair of the Indonesian Chamber of Commerce and Industry (Kadin).
As part of their roadshow mission to Vietnam, the ASEAN–BAC chairmanship aims to encourage Vietnamese businesses and the government to participate in the five priority and eight legacy projects. The eight legacy projects focus on regional trade cooperation, sustainable development, digital transformation, food security, health security, and the newest ASEAN Business Entity. This entity aims to promote investment within ASEAN by providing incentives to companies operating in the region, thereby creating an integrated business ecosystem for ASEAN countries.
During the roadshow, Rasjid and Kadin’s business delegation for ASEAN–BAC met with representatives from Vietnam’s Central Bank, Ministry of Natural Resources and Environment, Thu Duc City’s Chair of the People’s Committee, Ho Chi Minh City, Chair of Vietjet, Saigon Transportation Mechanical Corporation (SAMCO), and Chamber of Commerce. The discussion focused on ASEAN–BAC’s legacy collaborations, such as the ASEAN QR Code and Inclusive Closed Loop, as well as accelerating key sector development highlighted by Indonesian President Joko Widodo, such as the development of infrastructure, renewable energy, high technology, and digital transformation.
The roadshow also yielded tangible results, including the holding of the Indonesia–Vietnam business and trade promotion forum for the ASEAN Business Investment Summit and ASEAN Business Awards. “This forum will serve as a platform to identify key sectors for cooperation between the two countries and promote green projects, in the hope of attracting more business interests and resulting in real partnerships,” Rasjid said.
Indonesia and Vietnam have an important role to play in expanding ASEAN’s position as a key hub of the global economy since their combined gross domestic product (GDP) exceeds 60 percent of the region’s total GDP. The proactive participation of Vietnam in some ASEAN economic initiatives such as the Regional Comprehensive Economic Partnership (RCEP) highlights the country’s commitment to strengthening economic integration and cooperation in the region.
Overall, the visit to Vietnam by the ASEAN Business Advisory Council delegation was productive, with both sides exchanging ideas on boosting regional economic cooperation and strengthening ASEAN Centrality. This cooperation will be necessary to increase the contribution of ASEAN’s economies to the global economy, particularly in the post-pandemic period.
