Indonesia, Vietnam discuss South China Sea security, EVs as Jokowi visits

HANOI – The leaders of Indonesia and Vietnam highlighted security in the South China Sea and investments in Indonesia by

electric vehicle (EV) maker VinFast

in joint statements after a meeting on Jan 12, as President Joko Widodo visited Hanoi.

The two South-east Asian countries are strengthening their ties with corporate investments, more trade and closer cooperation on boosting security in the

contested South China Sea amid tensions with Beijing.

Vietnam’s President Vo Van Thuong stressed the importance of maintaining peace and stability in the South China Sea in a statement after he met Mr Widodo, widely known as Jokowi.

The two countries signed a memorandum of understanding (MOU) on fisheries cooperation. The text is not public, but it may address Vietnamese fishermen’s encroachments in other countries’ waters, which is a regular source of tension in the region.

Ahead of Mr Widodo’s trip, Indonesia’s Foreign Minister Retno Marsudi said the country was ready to work with other South-east Asian nations to finalise a long-delayed code of conduct for the South China Sea, a strategic waterway for trade and energy.

A Vietnamese official confirmed the matter would be discussed in Hanoi during Mr Widodo’s visit.

A South-east Asian code of conduct would be seen as a blow to China.

Beijing and South-east Asian nations have been trying since 2002 to set up a framework to negotiate the code of conduct, but progress has been slow despite commitments by all parties to advance and expedite the process.

Indonesia and Vietnam agreed in 2022 to recognise the boundaries of their exclusive economic zones in the South China Sea, a move that was seen as a challenge to Beijing, which claims almost the entire strategic trade route.

Indonesia had previously said it planned to export gas to Vietnam from gas fields in the South China Sea.

“We agreed to cooperate on energy transition,” Mr Widodo said in his statement alongside Mr Thuong.

VinFast

Mr Widodo, who will visit VinFast’s EV factory in northern Vietnam on Jan 13, praised the company’s plans to invest US$1.2 billion (S$1.6 billion) in a plant and other operations over the longer term in Indonesia.

Mr Thuong encouraged Indonesian firms to invest more in Vietnam, including in the banking sector.

The two nations also signed an MOU on information technology and communication cooperation.

Bilateral trade between the nations rose by 23 per cent to US$14.1 billion in 2023 and the goal is for that to soon reach US$15 billion, the Vietnamese President said.

Mr Widodo’s visit to Hanoi is part of a larger South-east Asian trip including

a prior stop in the Philippines

and an expected visit to Brunei this weekend, before Indonesian elections in February.

He is expected to meet other Vietnamese leaders on Jan 12, but contrary to normal practice, Mr Widodo is not scheduled to meet

Communist Party general secretary Nguyen Phu Trong

, amid concerns about the elderly leader’s health.

Since 2022, Vietnam has pursued a strategy of improving ties with global powers and partners, and Mr Thuong said he was confident formal relations could be boosted with Indonesia as well. REUTERS