Indonesia and Vietnam Forge Industrial Partnership for Electric Vehicle Advancements and Economic Growth

Indonesia’s Ministry of Industry (Kemenperin) is actively exploring collaborative opportunities with Vietnam in the industrial sector, with a particular focus on advancing the electric vehicle (EV) ecosystem. This strategic cooperation is envisioned to catalyze increased investments and foster mutual growth for both nations.

Agus Gumiwang Kartasasmita, Minister of Industry, emphasizes the multifaceted potential of Indonesia-Vietnam collaboration, spanning the development of electric vehicles, green industries, ensuring food security, and bolstering crucial sectors.

“In recognizing the need for synergy in developing the industrial ecosystem, we advocate for collaborative efforts, whether through bilateral engagements or within the ASEAN framework,” articulated Minister Agus in an official statement released on Friday (12/1/2024).

The dynamic growth potential lies in the development of the electric vehicle ecosystem, leveraging the abundant natural resources available in both nations. Indonesia, with its rich nickel deposits, and Vietnam, endowed with rare earth metals, are strategically positioned for collaborative efforts in advancing EV technology.

Agus highlights Indonesia’s significant market presence in the automotive sector, boasting ownership of 19.1 million cars and a staggering 128 million motorcycles. Furthermore, the anticipated surge in demand for electric vehicle batteries in Indonesia adds to the promising landscape.

“We extend an invitation to the Ministry of Industry and Trade of Vietnam to engage in ongoing discussions, fostering a robust partnership and collaboration,” added Minister Agus.

Nguyen Hong Dien, Vietnam’s Minister of Industry and Trade, warmly welcomed the proposal for industrial collaboration, acknowledging the potential for mutual learning and growth.

“Our aim is to establish bilateral industrial cooperation, with the prospect of expanding these collaborations to the ASEAN level,” expressed Nguyen Hong Dien.

Vietnam, being one of Indonesia’s key trading partners, witnessed bilateral trade growing to US$13.3 billion in 2022. Indonesia’s investment in Vietnam, totaling US$651.21 million across 120 projects until November 2023, ranks fifth among ASEAN nations investing in Vietnam.

Conversely, Indonesia remains an attractive destination for Vietnamese investors. In 2023, there was a notable increase in Vietnamese investment realization, reaching US$1.5 million—a 6.1% upturn from the previous year. These investments encompass various industrial sectors, including paper and printing industries, basic metal industries, non-machinery metal goods, and related equipment.

This collaborative momentum signifies a strategic alliance between two nations, paving the way for shared advancements, economic resilience, and sustained growth in the ever-evolving industrial landscape. The ongoing dialogue and partnership between Indonesia and Vietnam underscore the shared commitment to mutual prosperity and development.