ASIATODAY.ID, JAKARTA – Amid rising U.S. tariffs and growing global uncertainty, Indonesia and Vietnam are stepping up their strategic partnership to safeguard trade, investments, and millions of jobs. This collaboration between two key ASEAN economies is becoming increasingly vital as the region navigates economic disruption and geopolitical tension.
Indonesia’s economy has shown remarkable resilience, posting a GDP growth of 4.87% in Q1 2025, with inflation remaining low at 2.37% as of July 2025. This performance is underpinned by a stable BBB credit rating from S&P, reflecting strong macroeconomic fundamentals.
U.S. Tariff Reduction to Protect Jobs
A major recent achievement is Indonesia’s successful trade negotiation with the United States, which resulted in a tariff reduction from 32% to 19%. This move is expected to help protect around 5 million jobs, particularly in labor-intensive sectors such as manufacturing and textiles.
Vietnam has also taken an active role in ongoing tariff talks with the U.S., recognizing the urgency of maintaining a stable flow of trade and investment amidst intensifying global trade disputes.
Indonesia–Vietnam Forum Highlights Regional Cooperation
At the Indonesia–Vietnam Friendship Association (IVFA) Members’ Gathering and Forum, themed “Resilience & Partnership: Navigating Regional Growth Amid Global Uncertainty”, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized the importance of deepening regional collaboration.
“Vietnam plays a key role in ASEAN’s strategic agenda, particularly in the ASEAN Digital Economy Framework Agreement (DEFA), which is projected to grow ASEAN’s digital economy to USD 2 trillion by 2030, with Indonesia contributing an estimated USD 600 billion,” Airlangga stated.
He also highlighted ASEAN’s increasing commitment to sustainability through frameworks such as the ASEAN Carbon Neutrality Goals, Blue Economy, and Circular Economy. Meanwhile, the ongoing ASEAN Trade in Goods Agreement (ATIGA) aims to simplify intra-regional trade amidst global disruptions.
VinFast to Invest USD 1.2 Billion in Indonesia
In the investment landscape, Indonesia–Vietnam ties are also gaining momentum. A major highlight is VinFast, Vietnam’s leading electric vehicle manufacturer, which has pledged USD 1.2 billion to establish Indonesia as its EV hub in Southeast Asia.
Both countries have signed a Letter of Intent (LoI) to collaborate on digital economy development and technical capacity building, aiming to foster infrastructure improvements, drive innovation, and promote inclusive, sustainable growth.
Future opportunities for strategic cooperation span multiple sectors, including industrial equipment, trade, electricity, fisheries, hospitality, and services.
Strengthening Intra-ASEAN Economic Resilience
Airlangga called for greater regional value chain integration across ASEAN to withstand external shocks. “With a population of 600 million and a combined economy exceeding USD 3 trillion, ASEAN has the potential to build internal strength and lead a resilient multilateral trading system,” he asserted.
The forum concluded with a call for optimism and solidarity.
“In uncertain times, we have shown genuine friendship. Today’s event is proof that Vietnam and Indonesia can work together to reduce global risks. Our region must remain united, integrated, and competitive—committed to an open, resilient, forward-looking multilateral trade order that fosters deeper investment and people-to-people collaboration,” Airlangga concluded.
Among the key attendees were Indonesia’s Vice Minister of Foreign Affairs Arrmanatha Nasir, Indonesian Ambassador to Vietnam Adam M. Tugio, Vietnamese Ambassador to Indonesia Ta Van Thong, and Budiarsa Sastrawinata, Managing Director of Ciputra Group and IVFA Executive Committee Member. (AT Network)
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