Indonesia looks to boost trade with VN

Agricultural machines are produced at Vietnamese engineering firm Vinappro for exports to Indonesia, Thailand and Malaysia. Bilateral trade between Indonesia and Viet Nam reached US$3.3 billion last year. — VNA/VNS Photo Van Khanh

HCM CITY — Indonesia yesterday urged Vietnamese enterprises to invest more in the country to boost bilateral trade to US$5 billion by 2015, as planned recently by the two countries.

Last year, bilateral trade amounted to US$3.3 billion. Trade between the two countries has a great deal of potential, as Viet Nam's market is growing rapidly and Indonesia has abundant natural resources.

Indonesia, which has the world's richest biodiversity, has encouraged Vietnamese enterprises to invest in its growing industrial sectors, including agriculture and food processing, textiles and apparel, electronics, and others.

Speaking at a seminar yesterday in HCM City, Bambang Tarsanto, the Consul General of Indonesia, told businesspeople that they should improve the prosperity of their people by seeking more trade opportunities.

"The Indonesian government continues to reform its bureaucracy, making it clean, transparent and accountable," he said. "This gives more advantages and provides more incentives for foreign investors who invest in Indonesia."

Oliver Oehms, head of Indonesia's Chamber of Industry and Trade's business development, said the country's economy was very positive.

Its economy grew during the global recession, and 50 percent of all international shipments transit through the country's waters.

Indonesia is one of the world's largest emerging economies, with a $800 billion economy. It is on track to hit $1 trillion in GDP by 2014, and GDP per capita of $3,200, according to the chamber.

Foreign direct investment reached $5.25 billion in the second quarter this year, a second source of growth. Its domestic economy is expected to grow at 6.5 per cent by the end of 2011.

The country, which is the current chair of ASEAN, ranks 46th of 160 in the Global Competitiveness World Report.

According to the World Trade Organisation, Indonesia was the 27th largest exporting country in the world in 2010.

Indonesia's foreign exchange reserves are also growing strongly, with $114,500 billion reached as of September.

The inflation rate in the country until the end of September was 4.61 per cent. Foreign direct investment rose to $5.25 billion in the second quarter.

With a large population and strong purchasing power, Indonesia is a promising market as well as a great investment opportunity for Viet Nam.

It is a major market for consumer products from Viet Nam, especially rice, coffee and other food items. — VNS