The Embassy of the Republic of Indonesia (KBRI) in Hanoi and the Viet Nam Federation of Civil Engineering Association (VFCA) organized a business forum "Indonesia-Viet Nam Cooperation on Construction and Property" at Melia Hanoi Hotel.
Indonesian Ambassador to Vietnam Ibnu Hadi said the forum aims to promote opportunities and establish cooperation in achieving the bilateral trade target of Indonesia-Vietnam, amounting to 10 billion US dollars in 2020.
The total bilateral trade between Indonesia and Vietnam in 2017 rose by 16.36 percent to 6.5 million US dollars, compared with 5.58 million US dollars in 2016.
With a population of more than 260 million people and 96 million people by 2017, Indonesia and Vietnam, respectively, are the fastest growing economies in the world. Indonesia`s and Vietnam`s gross domestic product (GDP) growth stood at 5.17 percent and 6.81 percent respectively.
For Indonesia, the growth of the construction sector depends on infrastructure that is expected to grow 5.9 percent annually from 2017 to 2026. Growth in the bourse sector outperformed the overall growth projections for the construction industry by 3.9 percent.
Both the housing and non-residential sectors will benefit from Indonesia`s strong demography and a high level of urbanization by 53 percent.
The Indonesian government`s project with regard to infrastructure development is worth 436 billion US dollars. The project consists of building roads, railways, power plants and water systems that will be key to residential, commercial and industrial development in urban areas.
Indonesia`s investment in Vietnam in 2017 reached 45.84 million US dollars. Until the end of December 2017, Indonesia`s total investment in Vietnam was 69 projects with a value of 477.02 million US dollars, of which Indonesia is ranked 30th from the list of investor countries in Vietnam.
Meanwhile, Vietnam has eight investment projects in Indonesia, worth 51 million US dollars, in the mining, media and manufacturing industries.
Although Indonesia`s investment cooperation with Vietnam is still relatively not as big as that of South Korea, Japan and Singapore, the inflow of Indonesian investment in Vietnam continues to increase. Indonesian investors are beginning to capitalize on the potential and market opportunities offered by Vietnam.
Reporter: Yuni Arisandy
Editor: Yosep Hariyadi
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