Indonesia - Viet Nam enhance cooperation on construction and property
- Vietnam, Indonesia step up cooperation in coffee sector
- Vietnam, Indonesia seek to promote all-round cooperation
- Việt Nam-Indonesia thống nhất tăng cường hợp tác nhiều lĩnh vực
In his remarks, the Ambassador of the Republic of Indonesia to Viet Nam, Mr. Ibnu Hadi, stated that the forum aims to improve cooperation between Indonesia and Vietnam in the construction and property business. As an effort to promote wide opportunities and to establish cooperation which will beneficial in achieving the target of bilateral trade USD10 billion by 2020.
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| Indonesia - Viet Nam enhance cooperation on construction and property |
In 2017, total trade of Indonesia and Viet Nam reached an increase of 16.36% to USD6.50 million from USD5.58 million (2016), consisting of USD3.63 million of Indonesian export to Viet Nam (increase of 22.51%) and Indonesian imports amounted to USD2.61 million (increase of 9.37%). With more than 260 million people and 96 million people in 2017, Indonesia and Vietnam are among the fastest growing economies in the world, with GDP of 5.17% of Indonesia and 6.81% of Vietnam and income per capita in year 2017 have reached USD3,859 and USD2,385, respectively”.
Indonesia's investment in Vietnam during 2017 valued of USD45.84 million with 69 projects with a value of USD477.02 million, where Indonesia ranked 30th among investor countries in Vietnam. Meanwhile Vietnam's has 8 recorded investment projects in Indonesia which is worth USD51 million in mining, media and manufacture processing industry.
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| Indonesia - Viet Nam enhance cooperation on construction and property |
Although the investment cooperation between the two countries is still relatively not as big as South Korea, Japan, and Singapore, the inflow of Indonesian investment to Vietnam continues to increase. Indonesian investors are starting to capitalize on the potential and market opportunities offered by Vietnam.
For Indonesia, building sector growth is co-dependent on that of infrastructure, which is forecast to grow 5.9% each year from 2017-2026, outperforming the overall construction industry’s projected annual growth rate of 3.9%. Both the residential and non-residential sectors will benefit from Indonesia’s strong demographics and a high urbanisation rate of 53%.
The project is supported by President Joko Widodo’s USD436 billion infrastructure improvement plan. The programmes such as new roads, railways, power plants, and water systems that will be key in paving the way for residential, commercial, and industrial developments in urban and rural areas.
The Forum attended by the Deputy General Secretary of Viet Nam Federation of Civil Engineering Association, representatives distinguished companies from Indonesia and Vietnam.
