Jakarta (VNA) – As two major economies with important political and strategic positions in the region, Vietnam and Indonesia are not only key bilateral partners but also central drivers of ASEAN economic integration, according to an article published in a special edition of Indonesia’s Centre for Southeast Asian Studies (CSEAS).
According to the article entitled “Vietnam and Indonesia’s Contributions to the ASEAN Economic Community”, published in the Policy Brief Special Edition of CSEAS, both Indonesia and Vietnam are among ASEAN’s largest economies, contributing significantly to the bloc’s GDP while playing key roles in intra-bloc trade, investment attraction, and regional supply chain integration.
With the largest population in the Southeast Asia, Indonesia is seen as a consumption powerhouse and a strategic domestic market. Meanwhile, Vietnam has emerged as a dynamic manufacturing and export hub, deeply integrated into global value chains (GVCs), particularly in electronics, textiles, machinery, and processing industries.
This complementarity — one side being a large and resource-rich market and the other a highly competitive manufacturing hub — has created favorable conditions for realising core objectives of the ASEAN Economic Community (AEC), including the free flow of goods, services, investment, and skilled labourers within the region.
The article highlighted that both Vietnam and Indonesia have been proactive in fulfilling commitments to reduce tariffs and non-tariff barriers under the AEC roadmap.
Since joining the World Trade Organisation (WTO) and participating in a series of next-generation free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU–Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), Vietnam has accelerated institutional reforms, improved its investment environment, and expanded connections with global markets.
Meanwhile, Indonesia has played a key role in shaping regional economic policies, particularly in discussions on strengthening ASEAN’s economic resilience and reducing dependence on external markets. As the largest economy in ASEAN, Indonesia not only joins but also wields significant influence in regional trade cooperation frameworks such as the ASEAN–China Free Trade Area (ACFTA) and the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA).
The article stressed that Vietnam and Indonesia regularly coordinate their positions at ASEAN economic forums, promoting an open yet balanced integration model that taps globalisation opportunities while safeguarding the region’s long-term development interests.
It spotlighted the role played by Vietnam and Indonesia in strengthening the ASEAN Economic Community’s resilience against global crises, ranging from financial shocks and the COVID-19 pandemic to geopolitical tensions and supply chain disruptions.
Both Vietnam and Indonesia have implemented relatively flexible fiscal, monetary, and business support policies, while also promoting intra-ASEAN economic cooperation and supply chain diversification, the article said, adding that these efforts have helped ASEAN maintain stability and recover growth amid increasing global uncertainties.
It affirmed that contributions made by Vietnam and Indonesia to the AEC extend beyond purely economic significance, providing a solid foundation to elevate their bilateral relationship to a strategic partnership. Their shared vision for ASEAN’s development vision, along with strong commitments to multilateralism, regional integration, and international law, has positioned the two countries as natural partners within Southeast Asia’s economic and political framework.
Enhanced policy coordination between Vietnam and Indonesia will be crucial for the successful implementation of the e AEC Strategic Plan 2026–2030, toward building a deeply integrated, sustainable, and globally competitive ASEAN.
On the occasion of the 70th anniversary of Vietnam – Indonesia relations, the article not only reviews past achievements but also sets a forward-looking orientation, highlighting that close cooperation between these two pillar countries is key for ASEAN to become one of the world’s major economic hubs in the coming decades. It serves as a vivid testament to the depth and strategic significance, and enduring vitality of the Vietnam–Indonesia relationship in their shared journey accompanying ASEAN./.
VNA
