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President Susilo Bambang Yudhoyono held meetings with Vietnamese officials and businessmen on Monday morning as part of drive to increase trade between the two countries.

Following the meetings at the presidential office, the Indonesian Chamber of Commerce and Industry (Kadin) signed a memorandum of understanding with the Vietnam Chamber of Commerce and Industry to boost bilateral investment and trade.

VCCI chairman Vu Tien Loc told reporters that businesses in both countries were looking to increase cooperation in sectors such as oil and gas, coal mining, agriculture, property and tourism.

“I think this is a vital step for Indonesia, as I think in order for Asean to thrive against China in its free-trade agreement, we have to cooperate well,” said Juan Gondokusumo, Kadin’s committee chairman for Cambodia, Laos, Myanmar and Vietnam.

Trade volume between the two countries in January-November 2009 totaled $1.8 billion.

Juan added that the MoU would help Indonesian businesses take advantage of the expected increase in trade in the border area between Vietnam and the Chinese city of Nanning, following the implementation of the Asean-China Free Trade Agreement at the start of the year.

“The city of Nanning, with its two industrial zones, can be deemed as China’s gateway to Southeast Asia, so for us to have closer ties with Vietnam is somewhat crucial,” Juan added.

Adi Tahir, Kadin’s acting chairman, said Indonesia’s relationship with Vietnam is mutually beneficial.

“Trade volume in 2008 reached $2.4 billion between the two countries,” Adi said, adding that it could bounce back up to $2.5 billion this year.

Adi hopes that more Vietnamese investors will invest in downstream industries to create value-added products, thus increasing benefits for Indonesia.