Vietnam PM urges Indonesia firms to invest more in banking, finance, green growth

Vietnam is always happy to welcome Indonesian firms investing in the country’s banking, finance, green growth, property, and agriculture sectors, Prime Minister Pham Minh Chinh said on Tuesday.

The PM made the statement at a meeting in Jakarta with the Indonesia Chamber of Commerce and Industry (KADIN) as part of his working trip to Indonesia to attend the ASEAN Summit 43.

He affirmed Vietnam offers incentives for projects of high technology, innovation, research and development (R&D); projects capable of facilitating the country's accession to the global value chain; projects related to the digital, circular and green economies; sustainable growth, and strategic infrastructure development.

PM Chinh elaborated that the banking-finance sector offers huge potential for businesses from the two countries to cooperate, especially in smart finance. Meanwhile, for Vietnam’s target of net-zero emissions by 2050, the country aims to develop electric vehicles and and is looking for cooperation with Indonesia to achieve this goal.

Regarding the real estate market, he proposed Indonesian investors in Vietnam to focus more on corporate social responsibility, such as building houses for people with low and medium incomes.

In the agriculture sector, the government chief suggested the two nations sign deals to supply rice, rubber, and others in order to ensure input and output for these sectors.

On Monday, the Vietnamese prime minister had a meeting with executives of Ciputra, a major urban developer in Indonesia and the developer of Nam Thang Long urban area in Hanoi; Modena, an Indonesian home appliance and electronic goods manufacturer; and Traveloka, a major app-based tourism service in Southeast Asia. Chinh proposed that businesses further enhance their corporate social responsibility and make recommendations to improve Vietnam’s legal framework.

Also that day, PM Chinh had a working session with Indonesian President Joko Widodo. The two sides highlighted the 10 years of strategic ties towards an upgrade to a comprehensive strategic level soon.

As of June 20, Indonesia had invested $645.8 million in 113 projects in Vietnam, ranking 29th among the 143 countries with investments in Vietnam. Notable names are Ciputra, Traveloka, and Gojek. Indonesia is Vietnam’s third-biggest trade partner in Southeast Asia, with two-way trade turnover reaching $14.1 billion in 2022 and $7.9 billion in the first seven months of 2023. Bilateral trade is expected to exceed $15 billion this year.