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Vietnam and Indonesia sign agreements on security and cooperation amidst South China Sea tensions
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The meeting aimed to solidify security and economic ties between the two nations amidst China's growing influence in the South China Sea.

Vietnamese President Vo Van Thuong, after meeting with President Widodo, highlighted the importance of stability in the South China Sea. The two nations aimed to bolster ties, and their delegations signed documents to enhance cooperation in fisheries, along with memorandums of understanding in information technology and communications.

As Vietnam defends its territorial interests against China in the South China Sea, the meeting addressed concerns about Beijing's encroachment on Indonesia's exclusive economic zone. While Indonesia and China maintain generally positive relations, Jakarta has expressed worries about territorial waters' infringement.

Last year, trade between Indonesia and Vietnam surged by 23% to $14.1 billion, with a target to reach $15 billion, according to the Vietnamese president. Both leaders agreed to cooperate on energy transition and digital economy initiatives for the prosperity of their people and the region.

An agreement on cooperation between the fishing industries of both countries was also signed, although the text remains undisclosed. Vietnam, with the region's second-largest fishing industry after China, faces challenges related to territorial waters and illegal fishing.

Gregory B. Poling, from the Center for Strategic and International Studies, emphasized the potential significance of a well-implemented fishing agreement. This follows the December 2022 demarcation of nautical boundaries and exclusive economic zones between Indonesia and Vietnam.

Both nations have received significant pledges from the Group of Seven to transition away from fossil fuels as part of a Just Energy Transition Partnership. Vietnam leads the region in clean energy, while Indonesia, with only about 1% of energy from renewables, is seeking to expand its clean energy initiatives.

President Widodo's visit included a tour of VinFast's electric vehicle factory in northern Vietnam. He praised the multinational company's plans to expand operations into Indonesia, where it aims to build a $400 million electric vehicle factory.

Widodo, in his second and final term, is on a broader Southeast Asia tour, having visited the Philippines and set to visit Brunei later this weekend. (ILKHA)



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