Capital Support for Vietnam-Italian Joint Ventures

The capital support programme for Vietnam-Italian joint ventures is a part of the Italian programme of credit support to mixed enterprises. The programme aims at meeting the credit demand of projects relating to human development and poverty reduction, improving living conditions and sustainable development as well as other profit-making projects. Recipient areas are agriculture, animal husbandry, aquaculture and processing, handicraft, public service, micro-financing, services for micro-enterprises, local trade, commercial equality, sustainable tourism, protection and development of culture and environment.

 

The programme provides credits to Italian mixed enterprises in compliance with Law 49/87 of the Italian government. Recipients are Italian enterprises that establish new joint ventures (or expand existing enterprises) in developing countries. The joint ventures will develop agriculture, public service, micro-financing, environment and others. Since November, 2009, Article 7 of the law has been expanded to more areas with favourable access to credits, to encourage public-private partnership promoting comprehensive and sustainable development including poverty reduction, generating jobs and local added value, mobilizing financial resources for the development of Italian companies. According to Article 7, budget for 2010-2013 is Euro100 million. The programme requires concerned enterprises to apply to Department of Development Cooperation, Italian Ministry of External Affairs (MAE – DGCS). MAE – DGCS will assess technical-economic value and forward the documents to Italian Agent Bank (Artigiancassa Joint Stock Company). In turn, Artigiancassa will evaluate financial capacity and provide credit with the approval of inter-sector committee (Italian Development Management Board).

 

Mr Bertollo, Coordinator of the programme for Vietnam-Italian joint ventures, disclosed that recent amendments permit the Italian government to improve credits for mixed enterprises in developing countries regarding formalities, initial survey, financing and evaluating of credits. Vietnam is among countries of priority and Vietnam-Italian joint ventures will get direct support (in cash) to new and existing joint ventures engaging in agriculture, animal husbandry, aquaculture and processing, handicraft, etc., with the condition that Vietnamese partners contribute at least 25 percent of capital. Credit support for Italian partners can be up to 70 percent or Euro5 million, with equivalent commercial interest rate of 15 percent a year for maximum period of 10 years. The programme will also help Vietnam-Italian joint ventures in sustainable development and bio-sphere protection.

 

Mr Bertollo also emphasized those Vietnamese businesses developing joint ventures with Italian enterprises will benefit from preferential treatment in the programme. Furthermore, Vietnamese businesses can also expand markets in Italy and other EU member countries. In return, Italian businesses can expand markets in Vietnam and ASEAN with joint ventures.

 

For his part, Italian Ambassador to Vietnam Mr Lorenzo Angeloni, said that as credit access remains difficult due to credit control and high interest rates, joint ventures with Italian enterprises can get preferential capital resources from Italian government for mixed enterprises. Accordingly, Vietnamese enterprises can increase business cooperation with Italian partners, expanding business activities, expanding markets and promoting cooperation in various sectors and areas.

 

VCCI President Vu Tien Loc said that Italy is a leading partner with Vietnam in public-private cooperation, including capital support for Vietnam-Italian joint ventures. VCCI stands ready to cooperate with the Italian Embassy to develop the programme in Vietnam, especially in energy, environment, tourism, transport, trade and agriculture. In this programme, Vietnamese enterprises can benefit not only with capital, but also with knowledge, management skill and modern technology from Italy.