RI, Vietnam improve overall relationship in 2005<\/p>\n
Veeramalla Anjaiah
\nThe Jakarta Post\/Jakarta<\/p>\n
The year 2005 witnessed immense activity in the relations between
\ntwo Southeast Asian giants -- Indonesia and Vietnam.<\/p>\n
In May, President Susilo Bambang Yudhoyono visited Hanoi and
\nhis Vietnamese counterpart, Tran Duc Luaong, paid back the favor
\nin April to enhance cooperation between the two countries.<\/p>\n
With its impressive economic growth at an average of 7 percent
\nduring the last decade, Vietnam has gradually emerged as an
\nimportant country in Southeast Asia both strategically and
\neconomically. It is also on the verge of becoming a new economic
\nhub in Asia.<\/p>\n
Indonesia, meanwhile, which lost most of its economic strength
\nin the late 1990s due to 1997 Asian financial crisis, has made
\nlarge improvements democratically, holding its first-ever direct
\npresidential elections in 2004 and making some serious efforts to
\nreform its investment climate.<\/p>\n
There is also another dimension to the increased activity in
\nthe two countries' bilateral relations this year.<\/p>\n
Both Indonesia and Vietnam are celebrating 60 years of
\nindependence in 2005 and they are also commemorating 50 years of
\ndiplomatic relations.<\/p>\n
On Dec. 30, 1955, Vietnam and Indonesia established consular
\nrelations and subsequently upgraded them to full diplomatic
\nstatus in August 1964.<\/p>\n
\"With the passage of time, the deep-rooted sympathy,
\nfriendship, mutual respect and understanding, and the desire for
\ncooperation have always been treasured by our governments and
\npeoples and are a dominating theme in our bilateral relations,\"
\nVietnamese Ambassador to Indonesia Nguyen Hoang An said recently
\nin Jakarta.<\/p>\n
Indonesia has Southeast Asia's largest economy, and Vietnam --
\nthe third-biggest nation in the region in terms of population --
\nenjoy a convergence of strategic interests, which could provide
\nthe basis for building cooperation between the two countries.<\/p>\n
This was reflected in the several high-level visits between
\nthe two countries this year and the increasing bilateral trade.<\/p>\n
Both presidents' visits in 2005 also opened new chapters in
\nthe history of both countries' relations.<\/p>\n
Prior to this in June 2003, during the visit of then president
\nMegawati Soekarnoputri to Vietnam, the two countries signed
\nvarious documents, including the historic Declaration on the
\nFramework of a Friendly and Comprehensive Partnership, an
\nAgreement on the Delimitation of the Continental Shelf and an
\nAgreement on Visa Exemptions for Both Countries' Citizens.<\/p>\n
Both these agreements and high-level visits have contributed
\nto the strengthening of areas like trade, tourism and people-to-
\npeople exchange programs.<\/p>\n
Bilateral trade, a key element in the relations, has surpassed
\nthe US$1 billion-mark for the first time in 2004, from $883.70
\nmillion in 2004, and is predicted to increase further this year.<\/p>\n
This is in part thanks to a memorandum of understanding signed
\nby both countries' chambers of commerce and industry in 2005.<\/p>\n
However, Indonesia and Vietnam are not only friends, they are
\nalso fierce competitors. They produce many of the same products
\n-- rubber, rice, coffee, tea, crude oil and manufactured goods --
\nand compete for foreign direct investment from the same group of
\ninvestor countries.<\/p>\n
While there is obviously little interest in trading these
\ncommodities, there is still room to trade in sectors like oil and
\ngas, tourism, energy and mining and others.<\/p>\n
The competition for investment has caused some disappointment
\non the Indonesian side, as several Japanese and South Korean
\ncompanies have recently shifted their manufacturing plants from
\nIndonesia to Vietnam, whose attractions are cheap-but-skilled
\nlabor, low production costs and less red tape.<\/p>\n
In order to woo foreign investors, Indonesia must improve its
\ninvestment climate. With its recent successes, Indonesia could
\nalso learn from Vietnam on how to attract and reap more benefits
\nfrom investors.<\/p>\n
With its 83 million population and as the second-fastest
\ngrowing economy in Asia after China, Vietnam has much to offer to
\nIndonesia.<\/p>\n
\"Thanks to the Doi Moi (Renovation) policy, from 1991 to 2000,
\nour country doubled its GDP (Gross Domestic Product) with an
\nannual growth rate of 7.5 percent. Since 2001, average GDP growth
\nhas been sustained at over 7 percent. In 2004, it was 7.6
\npercent,\" Hoang An said.<\/p>\n
The Doi Moi policy's main aim is to transform Vietnam's
\ncentrally planned, closed and import-substitute economy into an
\nopen, socialist-oriented, multi-sector market and an export-
\noriented trader; to integrate its national economy into that of
\nthe Southeast Asia and the world. Another objective is to achieve
\nrapid economic growth, while ensuring social progress and justice
\nfor the sake of human development; to ensure sustainable
\ndevelopment.<\/p>\n
On the security front, both countries have agreed to increased
\ncooperation in the forms of official visits, exchanges of
\ninformation and by sharing experiences in dealing with terrorism
\nand transnational crimes.<\/p>\n
Impressive bilateral progress has already been made in
\nfisheries, science and technology, education and training,
\ntourism, sports, health, agriculture, transport, the postal
\nsystem and telecommunications, natural resources and civil
\naviation sectors.<\/p>\n
Around 15,000 Indonesian tourists visited Vietnam last year,
\nhowever, there is no information on how many Vietnamese visited
\nIndonesia recently.<\/p>\n
Several Vietnamese students have also received scholarships to
\nstudy in various educational institutions in Indonesia.
\nPeople-to-people exchanges, especially involving businesspeople,
\nare also on the rise.<\/p>\n
From the geographical as well as the ASEAN point of view,
\nofficials believe Indonesia and Vietnam need each other. Both
\ncountries' close partnerships in economic, political and defense
\nsectors will not only strengthen ASEAN but also provide a
\ncounterbalance to China's increasing influence in the region.<\/p>\n
Vietnam, a highly proud and nationalistic state, has the
\ndistinction of having defeated three major powers -- France, U.S.
\nand China -- during the last century.<\/p>\n
Susilo is expected to visit Vietnam again in 2006 to attend
\nthe APEC (Asia Pacific Economic Cooperation) Summit in Hanoi.
\nThis could give a big boost to the relations between both
\ncountries and Hoang An is optimistic about future relations.<\/p>\n
\"I do believe that these relations will be further
\nstrengthened and developed (next year) to serve our two
\ncountries' interests, as well as to contribute to the stability
\nand development of the whole region.\" Hoang An said.<\/p>",
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