Vietnam and Indonesia aim to reach $18 billion in trade by 2028, focusing on securing food supplies
In a significant move towards bolstering their relationship, Vietnam and Indonesia have upgraded their partnership to a Comprehensive Strategic Partnership (2025-2030). This decision, made in March 2025, focuses on food security and the development of sustainable agricultural supply chains.
Trade and Food Industry Ties
The strategic partnership aims to increase bilateral trade from $16.7 billion in 2024 to a target of $18 billion by 2028. This ambitious goal emphasizes food security cooperation and mutual agricultural trade. Vietnamese exports of rice, coffee, fruits, vegetables, tea, and seafood, and Indonesian exports such as palm oil, coffee, seafood, animal feed ingredients, and raw agricultural products used in food processing in Vietnam are at the heart of this initiative.
Complementary Agricultural Strengths
Vietnam, a leading rice exporter, and Indonesia, a major palm oil and coffee producer progressing towards rice self-sufficiency, leverage their complementary agricultural strengths. This foundation provides a strong basis for collaborative initiatives in agriculture and food security.
Sustainable Agricultural Supply Chains
Both countries are focusing on developing sustainable supply chains by leveraging innovations in agricultural science and technology. Efforts to digitize supply chains through blockchain and enhanced traceability platforms, such as Vietnam’s AgriChain Solutions, and Indonesia’s investments in digital infrastructure like e-commerce and smart ports to improve logistics efficiency and reduce waste, are key components of this approach.
Aquaculture and Fisheries Collaboration
Aquaculture is a major area of growth, with Vietnam and Indonesia collaborating on shrimp, tuna, and seaweed production. Vietnamese and Indonesian firms are targeting premium export markets in the EU and Middle East, enhancing quality differentiation and expanding aquaculture infrastructure.
Investment and Economic Integration
Vietnam holds over 120 projects in Indonesia, spanning retail to automotive ventures, reflecting deepening economic ties beyond trade into investment and strategic sectors under the partnership framework.
Challenges and Adaptive Strategies
While bilateral ties strengthen, both countries face external trade challenges such as new tariffs impacting exports. For instance, Vietnamese seafood and fruit face hurdles in US markets. These challenges encourage diversification and value-added collaboration.
In conclusion, the Vietnam-Indonesia partnership is leveraging their large population and resource complementarities to build resilient, innovative food industry networks that enhance food security and sustainability within ASEAN.
Summary of Opportunities
| Area | Description | |-------------------------|----------------------------------------------------------------------------------------------| | Trade Expansion | Targeting $18B bilateral trade by 2028, focusing on food products like rice, coffee, seafood | | Food Security | Coordinated agricultural production improving rice self-sufficiency and supply resilience | | Sustainable Supply Chains| Use of blockchain and digital supply chain tech to enhance traceability and reduce waste | | Aquaculture & Fisheries | Joint shrimp, tuna, seaweed production targeting premium export markets | | Investment & Innovation | Cross-border investment projects and cooperation in agricultural science and infrastructure |
These efforts collectively aim to ensure long-term food security and sustainable agricultural growth through collaboration that optimizes each country’s strengths and enhances regional resilience.
- The strategic partnership between Vietnam and Indonesia aims to increase their bilateral trade, focusing on food security cooperation and mutual agricultural trade, with a goal of reaching $18 billion by 2028.
- Leveraging their complementary agricultural strengths, Vietnam (a leading rice exporter) and Indonesia (a major palm oil and coffee producer progressing towards rice self-sufficiency) have a strong foundation for collaborative initiatives in agriculture and food security.
- Both countries are focusing on developing sustainable supply chains by utilizing innovations in agricultural science and technology and digitizing supply chains through platforms like blockchain and traceability systems.
- Aquaculture is a major area of growth for both Vietnam and Indonesia, with joint production of shrimp, tuna, and seaweed targeting premium export markets in the EU and Middle East.
- Vietnam has over 120 projects in Indonesia, spanning various sectors, reflecting deepening economic ties beyond trade into investment and strategic sectors under the partnership framework.
- Both countries face external trade challenges like new tariffs impacting exports, which encourage diversification and value-added collaboration, such as Vietnamese firms enhancing quality differentiation and expanding aquaculture infrastructure.
