According to statistics from Vietnam Customs, in the first 11 months of 2024, the total bilateral trade turnover between Vietnam and Indonesia reached 15.15 billion USD, an increase of 19.99% over the same period last year.

Of which, Vietnam’s exports to Indonesia reached 5.69 billion USD, an increase of 21.7%. It is estimated that in the whole year of 2024, the total bilateral trade turnover will reach at least 16 billion USD; of which, Vietnam’s exports to this market are estimated to reach more than 6 billion USD – the highest level ever.

According to the Vietnam Trade Office in Indonesia, bilateral trade turnover has recorded rapid growth in the past 4 years, from 8.07 billion USD in 2020 to 16 billion in 2024. Notably, Vietnam’s export growth is higher than that of imports, gradually contributing to narrowing the trade deficit between the two countries.

The 2021-2024 period recorded a narrowing shift in the trade deficit due to higher export growth than import growth, especially in 2023 and 2024.

Specifically, the average export growth in these two years was recorded at 16.9%/year while import growth was 4.8%/year. The deficit decreased from 5.12 billion USD in 2022 to about 3.76 billion USD in 11 months of 2024.

Statistics show that the total export value of Vietnam’s key agricultural products to Indonesia in the period reached 917.69 million USD, up 20.4% and accounting for 17.1% of total export turnover.

Of which, rice is the agricultural product group with the highest export value in the period. Vietnam’s total rice export volume to the Indonesian market in the first 11 months of 2024 reached 1,130,339 tons, worth 679 million USD, up 6.2% in volume and 10.4% in value.

With the value and quantity of rice exported during the period, Indonesia continues to be Vietnam’s second largest rice export market in 2024. Indonesia is also a major coffee production and export center in the world, however, the country’s demand for Vietnamese coffee imports in the first 11 months of 2024 increased by 74%, with an export turnover value of 203.34 million USD, contributing significantly to the increase in export turnover of agricultural products.

Vietnam’s textile and garment products maintain a growth rate despite Indonesia’s trade defense measures, the export turnover of the textile and garment group still achieves a fairly high growth rate.

Total export turnover of textiles, raw materials and accessories in the 11 months of 2024 reached 887.48 million USD, up 21% over the same period in 2023, accounting for 15.6% of total export turnover in the period.

The double-digit growth of the textile and garment group in the context of being subject to trade defense measures shows the high competitiveness of textile and garment products in the Indonesian market.

Another item is Vietnam’s electric cars (Vinfast) exported to the Indonesian market for the first time, contributing to increasing the sustainability of Vietnam’s export turnover, reducing the trade deficit in the automobile and spare parts group.

The export value of the means of transport and spare parts group in the 11 months of 2024 reached 379 million USD, an increase of 21.8% over the same period in 2023.

The Vietnam Trade Office in Indonesia commented that the positive growth of Vietnam’s exports to the Indonesian market in 2024 was contributed by the efforts and perseverance of Vietnamese export enterprises and industry associations despite many non-tariff barriers from this largest market in Southeast Asia.

In addition, it is proactive in promoting and penetrating the Indonesian market through effective trade promotion programs such as: Vietnam Sourcing 2024, organizing information seminars to introduce the Indonesian market, Indonesian Halal regulations, coordinating with associations to organize trade and investment connection sessions in the Indonesian market…

Support from functional units of the Ministry of Industry and Trade such as the Asia-Africa Market Department, the Vietnam Trade Office in Indonesia in bringing export enterprises to participate, organize booths to introduce products at a number of major specialized fairs and exhibitions in Indonesia in 2024, supporting investment enterprises, and seeking investment and business cooperation opportunities in the Indonesian market…

The work of protecting Vietnam’s export goods against Indonesia’s trade defense measures is also of interest to functional units of the Ministry of Industry and Trade. At the same time, there is close coordination to ensure timely information on the incident, remote warnings to the business community, helping businesses minimize risks from trade defense measures.

In particular, the Vietnam Trade Office in Indonesia believes that the bilateral economic and trade relations between the two countries have continuously grown strongly, with the bilateral trade turnover value increasing 4 times in the past 10 years thanks to the leadership, direction and attention of our country’s senior leaders.

Most recently, at the meetings and talks between General Secretary To Lam, Prime Minister Pham Minh Chinh and the President-elect of Indonesia during his visit to Vietnam in September 2024, the leaders of the two countries affirmed their determination to bring bilateral trade turnover to 18 billion USD by 2028. This figure is achieved through trade promotion activities and supporting businesses to connect and trade; removing difficulties and trade barriers to facilitate access to each other’s commodity markets.

The two sides agreed to continue to encourage and facilitate businesses from both countries to invest in each other’s markets, especially in new areas such as digital economy, green economy, energy transition, and electric vehicle ecosystem development.

Vietnam is ready to strengthen cooperation in ensuring food security with Indonesia and proposes that Indonesia facilitate Vietnam’s agricultural products and Halal products to access the Indonesian market. “These are important guidelines to promote and realize the target of bilateral trade turnover of 18 billion USD by 2028,” the Vietnam Trade Office in Indonesia emphasized.

Source: VNECONOMY.VN