Major competitors of Vietnamese goods in Indonesia

  • Indonesia's largest import partners

Due to proximity and favorable trading conditions, Asian countries and territories are the source of most of Indonesia's imports. In 2025, total imports from countries in the region accounted for more than 73% of Indonesia's total import value. Notably, among Indonesia's top 10 import partners, as many as eight are Asian economies, accounting for nearly 65% of the country's total imports.

China is Indonesia's largest import partner, accounting for more than 36.2% of total imports, followed by Singapore with a 7.9% share. Indonesia also imports significantly from Japan, the United States, Malaysia, Australia, and other sources. Viet Nam is also included in Indonesia's top 10 import partners, ranking ninth with a 2.5% market share.

At present, the major import partners dominate the Indonesian market in many key product categories such as machinery, electrical equipment, and industrial raw materials. Notably, countries such as China, Japan, the Republic of Korea, and Singapore - all strong economies in the region - not only possess outstanding competitive advantages but also have export structures similar to Viet Nam’s. This reality shows that Vietnamese goods will face very strong competitive pressure when seeking to enter and expand their presence in the Indonesian market, especially in the current context of tariff tensions and global trade diversion.

Table: Top 10 import partners of Indonesia in 2025

No.

Import partner

Indonesia's import value in 2025 (billion USD)

Share in Indonesia's total imports

1

China

87.53

36.2%

2

Singapore

19.16

7.9%

3

Japan

14.46

6%

4

United States

12.87

5.3%

5

Malaysia

11.12

4.6%

6

Australia

9.35

3.9%

7

Thailand

8.90

3.7%

8

Republic of Korea

7.89

3.3%

9

Viet Nam

6.14

2.5%

10

India

4.83

2%

Source: ITC Trade Map, 2026

  • FTA Partners

Indonesia is considered one of the most open economies in ASEAN, having signed and implemented a wide range of free trade agreements. As of the end of 2023, Indonesia had implemented and was implementing a total of 16 FTAs with 42 economies worldwide, including many major economies such as the EU, EFTA, the Republic of Korea, and Japan. In addition, Indonesia is also accelerating negotiations and the conclusion of additional FTAs with new partners, including Canada, Morocco, Tunisia, and Turkiye, in order to further deepen its integration process.

Table - Summary of Indonesia's FTAs as of the end of 2023

No

FTA

FTA partners

In effect

1

AANZFTA

ASEAN, Australia, New Zealand

2

AHKFTA

ASEAN, Hong Kong (China)

3

AIFTA

ASEAN, India

4

AJCEP

ASEAN, Japan

5

ACFTA

ASEAN, China

6

AKFTA

ASEAN, Republic of Korea

7

Australia-Indonesia CEPA

Indonesia, Australia

8

ICFTA

Indonesia, Chile

9

IEFTA FTA

Indonesia, EFTA (Switzerland, Iceland, Norway, Liechtenstein)

10

Indonesia-EU CEPA

Indonesia, EU (27 members)

11

IJFTA

Indonesia, Japan

12

IPFTA

Indonesia, Pakistan

13

RCEP

ASEAN, China, Japan, Republic of Korea, Australia, New Zealand

14

Indonesia-Mozambique FTA

Indonesia, Mozambique

15

IKFTA

Indonesia, Republic of Korea

16

Indonesia-UAE CEPA

Indonesia, United Arab Emirates (UAE)

Signed but not yet in force

17

Canada-Indonesia CEPA

Indonesia, Canada

Under negotiation

18

ASEAN-Canada FTA

ASEAN, Canada

19

India-Indonesia CECA

Indonesia, India

20

Indonesia-Morocco PTA

Indonesia, Morocco

21

Indonesia-Tunisia PTA

Indonesia, Tunisia

22

Indonesia-Turkey CEPA

Indonesia, Turkey

Source: ASEAN Briefing

It can be seen that Indonesia's network of FTA partners spans almost all continents around the world. Therefore, Vietnamese exports must compete intensely in this market not only with regional economies but also with many other countries globally. Indonesia's active push to sign and implement additional new FTAs is also expected to create further significant competitive pressure on Viet Nam’s exports.

Source: Center for WTO and International Trade - VCCI