Jakarta (VNA) – The upcoming statevisit to Indonesia by Vietnamese President Nguyen Xuan Phuc is very crucial forthe two countries to continue their discussion on how the two countries cansubstantially create synergy and cooperate with one another to become economicgenerators in the region, according to President of the Indonesia-VietnamFriendship Association (IVFA)'s President Budiarsa Sastrawinata.

Sastrawinata, who is also Director of Ciputra Group,told the Vietnam News Agency (VNA) ahead of President Phuc’s visit fromDecember 21-23, that many of Indonesian firms have come to Vietnam to exploreinvestment opportunities, noting that Indonesia has remained one of the largest ASEANcountries investing in Vietnam, mostly in oil and gas exploration andexploitation, coal mining, banking, hotel industry, wood processing and exporting,and garment.

He recalled that at a recent meeting between Indonesian PresidentJoko Widodo and PM Chinh, Widodo emphasised that Indonesia is committed tocontinue the establishment of mutually beneficial bilateral partnerships tobenefit the people of both countries such as strengthening cooperation in thehealth sector which is crucial since the pandemic has yet to end.

Sastrawinata stressed that since Vietnam and Indonesiaestablished diplomatic relations on December 30, 1955, the bilateraltraditional friendship have been built on the firm foundation laid by PresidentHo Chi Minh and President Sukarno and nurtured and developed by generations ofleaders and peoples of the two countries.

The two countries share many similarities, he said, explaining that both aremembers of the ASEAN, APEC and many other regional and international organisationsand forums.

Indonesia is Vietnam's important partner with greatpotential, and it highly values Vietnam's role and position as one of thecountries with great influence in ASEAN. Vietnam and Indonesia have signed manycooperation agreements and treaties in various fields. Many bilateral cooperationmechanisms have also been established. Since Vietnam and Indonesia agreed tostrengthen cooperation on economy, trade, and investment, they have intensifiedtheir bilateral cooperation in recent times, he said.

“This reflects in the high intensity of bilateralrelations based on the Strategic Partnership of Indonesia and Vietnam in theSoutheast Asia region, increasing bilateral trade, strengthening cooperation ina number of other fields such as negotiations on the exclusive economic zonesof each country, eradicating illegal fishing, and cooperation to advance ASEAN,and enhance cooperation in both countries maritime sectors.” he noted.

On the other side, Indonesian entrepreneurs shouldoptimise new Vietnamese markets, he suggested, adding that in the next 10 to 20years, the increasing bilateral economic trade and investment relations betweenthe two countries will benefit both parties in the future.

Sastrawinata said the two nations share severalconditions that can support the enhancement of the relationship, including a hugepopulation, increasing economic achievements, rising purchasing power parity,and geographical closeness to other member states in ASEAN.

He suggested that more high-level government visitsfrom both countries are necessary to create better understanding betweenVietnam and Indonesia and to solve any issues arise as soon as possible.

“Indonesia will continue to encourage its businessesto capitalise on Vietnam's economic development,” he said. “Indonesia has alsoinvited a number of Vietnamese business groups to invest in Indonesia in variousfields such as fisheries, agriculture, and other export commodities.”

Nevertheless, the countries have not been able tomaximise their traditional relations and closeness towards concrete cooperation,especially in the economy and commerce, he pointed out.

More promotional activities are needed, heemphasised, adding that Vietnam's investment and tourism flows to Indonesia also need to be promoted. Meanwhile, Indonesian entrepreneurs have notyet fully taken advantage of the economic potential, market, and investmentopportunities offered by Vietnam and its government.

“The cooperation between the two countries shouldnot be limited to only big corporations but it also needs to involve SME's andstart-up companies which can take advantage of the current advancement ofdigital technology where cross-border cooperation has been made easier thesedays,” he proposed.

Culturally, both sides need to intensify theexchange of their national heritage by having more joint events that can helpthe tourism sector between the two countries to blossom.

People-to-people contact between Vietnam andIndonesia is very crucial, he said, pledging that his association will assistin promoting the people to people and government to government relationship.

Even during the COVID-19 pandemic, the bilateralstrategic partnership relationship was maintained and it is ensured that itwill develop faster and stronger for the sake of the national interests of thetwo countries, as well as maintaining regional peace, stability, and prosperityin the Southeast Asia region, Sastrawinata believed.

He held that as one of the fastest-growing economiesin the region, driven by export-oriented manufacturing, foreign directinvestment, and increasingly strong domestic demand, Vietnam is attracting theattention of investors worldwide.

Despite the disruptions over the past couple ofyears, many Indonesian companies are still eager to expand their footprint inVietnam, primarily through mergers and acquisitions, he said./.