Sunday, 20 June 2021 | 22:39 WIB

Indonesia-Vietnam to Strengthen Industrial Supply Chain at Regional Level

Industry Minister Airlangga Hartarto

JAKARTA, NETRALNEWS.COM - Indonesia is going to use Vietnam's potential to become a regional export market and supply-chain destination for the national industry. Moreover, Vietnam is a country that already has cooperation agreements with Europe and the United States.

"For Indonesia, Vietnam is a good market potential with a population of nearly 95 million and there are several Indonesian companies already operating in Vietnam. About 50 companies, including food and beverage, plastics, cement and lubricants sector," said Minister of Industry Airlangga Hartarto in a press release on Tuesday (11/14/2017).

Industry Minister hoped this collaboration can encourage economic growth of both countries. In addition, each party can complement each other to meet its needs, especially in the industrial sector.

The Minister Airlangga saw in the middle of Indonesia's improving economy, domestic industry players began to intend to expand to the regional level. One of the goals is Thailand and Vietnam.

"With the combination of investment and emerging markets, Indonesia can take advantage of the potential that exists in Vietnam. Moreover, Indonesia is the fourth largest country in the contribution of manufacturing value added to GDP. It's an opportunity to grow together," he explained.

Airlangga believed that Indonesia and Vietnam's strategic partnership can be done well because it has many similarities. Therefore, both countries need to maintain momentum to reach global markets and fill the APEC market.

"We have a common goal within ASEAN in 2025, as well as the Pacific market in 2020. And hopefully, we have an open opportunity for us, not just for each country," he explained.

According to Airlangga, the synergy will also be conducted in the small and medium industry sector (SMI). This sector could be the backbone for the country's economy. In addition, with the development of the digital economy, both countries need to cooperate in the implementation of Industry 4.0.

Vietnam is a country with the highest economic growth in Southeast Asia, which also has a fairly high trading rate with Indonesia.

Last year, trade between the two countries reached $6.2 billion. Indonesia has investments in Vietnam in the property, pharmaceuticals, food and chemicals sector totaling $2 billion.

Indonesia's exports to Vietnam in January-May 2017 amounted to $1.40 billion, up 35.32 percent from the same period the previous year. In the first half of 2017, it was also seen that automotive products from Indonesia began to enter the Vietnamese market in greater numbers compared to the same period in 2016.