Jakarta. Indonesia and Vietnam are aiming for a $15 billion annual bilateral trade by 2028, and both nations are feeling confident about meeting this target as long as the trade barriers ease.

President Joko “Jokowi” Widodo on Tuesday held bilateral talks with Vietnamese Prime Minister Pham Minh Chinh ahead of the 42nd ASEAN Summit in Labuan Bajo. The meeting puts emphasis on boosting trade ties.

“The two leaders discussed the efforts to meet the target of $15 billion in trade by 2028. Both are optimistic about achieving that goal as long as all trade restrictions or barriers get lowered if not completely removed,” senior diplomat Retno Marsudi said in a press statement. 

Indonesia and Vietnam also called for negotiations on a bilateral investment treaty. The two leaders found such a pact to be crucial as investment from both sides continued to grow. 

“They also agreed to enhance cooperation in the renewable energy sector,” Retno said.

Government data shows that Indonesia-Vietnam trade totaled $13.1 billion throughout 2022, marking an increase from around $11.1 billion the previous year. In the first two months of 2023, Indonesia-Vietnam trade reached $1.9 billion.

Jokowi in late-2022 met with then Vietnamese President Nguyễn Xuân Phúc in Bogor’s Presidential Palace. At the time, Jokowi said that Indonesia had invested over $600 million in 101 projects in Vietnam.

Pham Minh Chinh, including other ASEAN leaders, is now in Labuan Bajo to attend the 42nd ASEAN Summit. Indonesia is this year’s rotating chair of ASEAN.