12-1-2024 (HANOI) Indonesian President Joko Widodo and his Vietnamese counterpart, President Vo Van Thuong, emphasized security in the South China Sea and corporate investments during a meeting in Hanoi. The visit underscores the growing cooperation between the two Southeast Asian nations, including increased trade and collaborative efforts to address security concerns in the disputed South China Sea amid tensions with Beijing.
President Thuong emphasized the importance of peace and stability in the South China Sea after meeting with President Widodo. Both leaders signed a memorandum of understanding (MOU) on fisheries cooperation, the details of which remain undisclosed but may address issues related to Vietnamese fishermen’s activities in disputed waters.
Ahead of the visit, Indonesia’s Foreign Minister Retno Marsudi expressed the country’s readiness to collaborate with other Southeast Asian nations to finalize a long-pending code of conduct for the South China Sea, a critical waterway for trade and energy. The matter is expected to be discussed during President Widodo’s visit and the establishment of a Southeast Asian code of conduct would be perceived as a challenge to China.
In 2022, Indonesia and Vietnam agreed to recognize the boundaries of their Exclusive Economic Zones in the South China Sea, a move seen as a direct challenge to China’s expansive territorial claims in the region. Indonesia also expressed plans to export gas to Vietnam from gas fields in the South China Sea.
During the visit, President Widodo praised Vietnamese electric vehicle (EV) maker VinFast’s plans to invest $1.2 billion in a plant and other operations in Indonesia. The leaders signed an MOU on information technology and communication cooperation, aiming to enhance bilateral collaboration in these sectors.
Bilateral trade between Indonesia and Vietnam rose by 23% to $14.1 billion last year, with a target to reach $15 billion soon, as stated by President Thuong. President Widodo’s visit is part of a larger Southeast Asian tour, which included stops in the Philippines and is expected to conclude with a visit to Brunei this weekend, just ahead of the upcoming Indonesian elections next month.
While in Vietnam, President Widodo is scheduled to visit VinFast’s EV factory, underlining the significance of corporate investments in strengthening regional partnerships. Despite a busy itinerary, concerns about the health of Vietnam’s Communist Party General Secretary Nguyen Phu Trong led to the exclusion of a meeting with President Jokowi during this visit. Vietnam’s recent strategy of improving ties with global powers aligns with the country’s efforts to enhance formal relations with Indonesia.
