ENVOY VOWS TO INCREASE INDONESIAN, VIETNAMESE OFFICIALS' MUTUAL VISITS

Jakarta, Feb 7 (ANTARA) - Indonesian Ambassador to Vietnam Pitono Purnomo has vowed to increase the frequency of mutual visits by the two countries' government and non-government officials to forge bilateral ties.

In March, the chief of the Vietnamese parliament will lead a 80-strong business mission to Indonesia, he said here on Saturday.

The visit will have the potentials to boost economic ties between the two ASEAN member states, he said.

Two-way trade between Indonesia and Vietnam reached US$2.5 billion in 2007 with the former enjoying a surplus, but the figure has not yet reflected the real potentials, he said.

Indonesia's exports to Vietnam include chemicals, iron, steel and rubber.

Pitono said both countries produce a number of similar goods and therefore, Vietnam has sometimes become Indonesia's competitor in the global market.

"To be honest, Vietnam produces (a number of) goods which are similar to ours. Even Vietnam sells such manufactured goods as textiles and footwear at lower prices so they become our competitor in the international market," he said.

But this does not mean that Indonesia cannot invest in Vietnam or the other way around, he said.

"Indonesian investment (in Vietnam) has actually given added value because on average Indonesian investors use raw materials and skilled workers from Indonesia," he said.