In a landmark development for South East Asian diplomacy, Vietnam and Indonesia have agreed to elevate their bilateral relationship to a Comprehensive Strategic Partnership, heralding a new chapter of deepened cooperation across political, economic, and security domains. The decision, announced during high-level talks in Jakarta on Monday, comes as both nations celebrate 70 years of diplomatic ties and share ambitions to become high-income economies by 2045. This upgrade, building on the Strategic Partnership established in 2013, reflects a mutual commitment to fostering peace, stability, and prosperity within ASEAN and beyond.
The talks between Vietnam’s Party General Secretary Tô Lâm and Indonesian President Prabowo Subianto, who also leads the Great Indonesia Movement Party (Gerindra), followed a formal welcome ceremony for the Vietnamese delegation. The visit, spanning 9-11 March, marks Tô Lâm’s first state visit to Indonesia in his current role, underscoring the importance both nations place on their evolving partnership.
President Subianto described the visit as holding “special significance,” highlighting the shared historical experiences and common values that bind the two countries. He reiterated Indonesia’s view of Vietnam as a vital regional partner, expressing a desire to strengthen ties further. In response, Tô Lâm affirmed Vietnam’s high regard for Indonesia, recognising its pivotal role in South East Asia and commending its recent achievements. He expressed optimism about Indonesia’s economic trajectory, predicting an annual growth rate of 8 per cent and developed-nation status by its centennial in 2045. 
A Broadening Partnership: Key Areas of Focus
The elevation to a Comprehensive Strategic Partnership signals an intent to expand collaboration across multiple sectors. Both leaders agreed to intensify high-level exchanges through party, government, and parliamentary channels, while committing to develop a detailed Action Plan to operationalise this enhanced relationship. The scope of cooperation is ambitious, encompassing traditional areas such as defence and security, as well as emerging fields like the digital and green economies.
On defence and security, the two nations pledged to bolster cooperation through intelligence sharing, joint search and rescue operations, and the exchange of expertise in tackling transnational crimes. Priority areas include combating online fraud networks, human trafficking, forced labour, and terrorism—challenges that have grown in complexity across the region. This focus on security collaboration reflects a shared understanding of the need to address non-traditional threats in a rapidly evolving global landscape.
Economic ties, a cornerstone of the partnership, received significant attention during the discussions. Both sides committed to removing trade barriers and facilitating business activities, with a particular emphasis on agricultural and aquatic product exports. They set an ambitious target of reaching US$18 billion in bilateral trade turnover in the near future—a goal that, if achieved, would mark a substantial increase from current levels. To support this, Vietnam and Indonesia agreed to create favourable conditions for mutual investments, especially in cutting-edge sectors such as e-commerce, digital payments, software design, and artificial intelligence (AI)-driven solutions.
The emphasis on emerging industries is particularly noteworthy. Both leaders highlighted the importance of collaboration in the digital economy, green economy, and energy transition, including the development of electric vehicle ecosystems and smart delivery systems. They also pledged to establish a digital partnership, alongside cooperation in science, technology, and innovation. These initiatives align with broader regional trends towards digital transformation and sustainability, positioning Vietnam and Indonesia as potential leaders in these fields within ASEAN.
A unique aspect of the economic agenda is the focus on halal-certified products, reflecting Indonesia’s significant Muslim population and Vietnam’s interest in tapping into this market. Such targeted cooperation demonstrates a nuanced approach to economic integration, tailored to the specific strengths and needs of each nation.
Regional and Global Implications
Beyond bilateral concerns, the talks addressed broader regional and international issues, with both leaders reaffirming their commitment to a stronger, more unified ASEAN. Central to this vision is the bloc’s role in maintaining peace and stability in South East Asia, particularly in contested areas such as the East Sea, internationally known as the South China Sea. Vietnam and Indonesia reiterated their support for peaceful dispute resolution, rejecting the use or threat of force and advocating adherence to international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
This stance is significant given ongoing tensions in the South China Sea, where overlapping territorial claims have long been a source of friction. By aligning their positions, Vietnam and Indonesia send a clear message about the importance of diplomacy and legal frameworks in managing regional disputes. Their joint emphasis on freedom of navigation and overflight also underscores the strategic importance of the area for global trade and security.
The leaders also stressed the value of people-to-people exchanges, particularly among younger generations, as a means of fostering long-term cultural and social bonds. Such initiatives, while less tangible than economic or security agreements, are crucial for building the trust and mutual understanding that underpin sustainable partnerships.
Concrete Steps Forward
The talks were not merely symbolic; they resulted in the exchange of several cooperation documents, witnessed by both leaders. These included a Letter of Intent between Vietnam’s Ministry of Industry and Trade and Indonesia’s Coordinating Ministry for Economic Affairs on capacity-building in technical and digital economy sectors. Another agreement focused on science, technology, and innovation, signed between Vietnam’s Ministry of Science and Technology and its Indonesian counterpart. Additionally, a fisheries cooperation agreement was formalised between the respective ministries, highlighting the practical steps being taken to translate high-level commitments into actionable outcomes.
Following the discussions, Tô Lâm extended an invitation to President Subianto to visit Vietnam, alongside a request for Indonesian leaders to attend the fourth Partnering for Green Growth and the Global Goals (P4G) Summit in Hanoi this April. Subianto’s acceptance of both invitations suggests a continuation of this diplomatic momentum in the coming months.
At a joint press briefing, the leaders officially announced the upgrade of Vietnam-Indonesia relations to a Comprehensive Strategic Partnership, framing it as a historic milestone. The announcement was met with optimism from observers, who see the partnership as a potential model for intra-ASEAN cooperation at a time when the region faces complex geopolitical and economic challenges.
Analysis: Strategic Motivations and Future Prospects
The elevation of Vietnam-Indonesia ties to a Comprehensive Strategic Partnership is not merely a diplomatic formality; it reflects deeper strategic calculations on both sides. For Vietnam, strengthening ties with Indonesia—a key player in ASEAN and the world’s fourth most populous nation—enhances its regional influence and provides a counterbalance to other major powers in South East Asia. Indonesia, with its vast market and strategic maritime position, offers Vietnam opportunities for economic diversification and access to new technologies and investment.
For Indonesia, the partnership with Vietnam reinforces its leadership role within ASEAN, particularly as it seeks to navigate its own path amid global power rivalries. Vietnam’s rapid economic growth and political stability make it an attractive partner, especially in areas like agriculture, manufacturing, and digital innovation. Moreover, the alignment on South China Sea issues strengthens Indonesia’s position in advocating for a rules-based regional order, even as it maintains a non-aligned stance in broader geopolitical disputes.
Looking ahead, the success of this partnership will hinge on the effective implementation of agreed-upon initiatives. The target of US$18 billion in trade turnover, while ambitious, is achievable if both nations can streamline regulatory frameworks and incentivise private sector engagement. Similarly, collaboration in emerging sectors like the digital economy and energy transition could position Vietnam and Indonesia at the forefront of regional innovation—if they can overcome challenges such as infrastructure gaps and regulatory harmonisation.
However, potential obstacles remain. Economic cooperation, while promising, may face hurdles due to differing national priorities and competitive industries. Security cooperation, particularly on transnational crime, will require sustained coordination and trust-building, especially given the sensitive nature of intelligence sharing. Additionally, while both nations share a commitment to ASEAN unity, divergent approaches to specific regional issues could test the partnership’s resilience.
Speculative projections, such as Indonesia achieving an 8 per cent annual growth rate, must be treated with caution. While Tô Lâm’s optimism reflects confidence in Indonesia’s potential, such estimates remain unconfirmed and depend on numerous external factors, including global economic conditions and domestic policy reforms. Similarly, the broader impact of this partnership on ASEAN’s geopolitical dynamics—particularly in relation to the South China Sea—will only become clear over time, as other regional actors respond to this strengthened bilateral axis.
A Milestone with ASEAN Resonance
The upgrade of Vietnam-Indonesia relations to a Comprehensive Strategic Partnership marks a significant moment in South East Asian diplomacy. By deepening cooperation across political, economic, and security spheres, both nations are laying the groundwork for a relationship that could shape regional dynamics for decades to come. Their shared commitment to peace, stability, and sustainable development—evident in their aligned positions on issues like the South China Sea and green growth—offers a hopeful vision for ASEAN’s future.
As Vietnam and Indonesia move forward with implementing their ambitious Action Plan, the eyes of the region will be on Jakarta and Hanoi. If successful, this partnership could serve as a blueprint for how ASEAN member states can collaborate to address shared challenges while advancing their individual aspirations. For now, the historic talks of 11 March 2025 stand as a testament to the power of dialogue and mutual ambition in building a more interconnected and resilient South East Asia.
