Italian Businesses Getting More Interested in the Vietnam Market

Speaking at the forum, Mr H.E. Lorenzo Angeloni, Ambassador of Italy to Vietnam, reaffirmed that Vietnam and Italy have developed a close diplomatic and economic relationship over 40 years. That relationship has been developing in many aspects, reflected through the continuously increasing trade and investment between the two countries. Vietnam has great potential and advantages for businesses to invest. Italian businessmen have a great interest in the Vietnam market, particularly in areas such as textile, leather & footwear, and infrastructure. Not only focusing on increasing trade between the two countries, Italian firms also hope through cooperation to exchange and transfer technology to Vietnamese enterprises to increase the value of cooperation.

 

Ambassador Angeloni stressed that the Italian economic delegation coming to Vietnam this time aimed to perform two tasks related to both economic and political aspects. Official discussions would take place according to the Strategic Partnership Agreement signed by the governments of Vietnam and Italy. Companies from Italy hoped this would be a valuable opportunity to build and strengthen economic relations and cooperation with partners in Vietnam.

 

According to Vietnamese Deputy Minister of Industry and Trade Tran Quoc Khanh, Italy was one of the first European countries which had recovered and developed economic relations and cooperation with Vietnam. This market is currently the 18th largest export market and the 15th largest importer of Vietnam, with 19 percent growth/year over the period 2005-2011. Italy also became the third largest trade partner of Vietnam in the EU with bilateral trade of around EUR 3 billion in 2013. This number is expected to reach EUR 3.5 billion this year and EUR 5 billion by 2016. Those figures demonstrate the strong potential for economic cooperation between the two countries.

 

Vietnam exports to Italy mainly garments, footwear, seafood, coffee, mobile phones and accessories. Meanwhile, goods imported from Italy to Vietnam are mainly industrial machinery and spare parts, raw food, raw materials and pharmaceuticals.

 

On investment, Italy ranks ninth among European countries and 31st among countries investing in Vietnam, with 22 projects with the total investment of up to US$55.9 million. Some Italian corporations have gained notable results after joining the Vietnam market, such as Technip Italy with the construction project of Phu My Fertiliser Plant; Danieli Officina with a steel plant project; Fiat Iveco with the Mekong automotive joint venture company project; and Piaggio with scooters. Italy also has invested heavily in projects of footwear, construction, sanitary ware, water heaters and steel manufacturing industry. Examples of companies with effective investment include Perfetti and Merloni Termo Sanitari.

 

According to Deputy Minister Tran Quoc Khanh, the signing of a free trade agreement (FTA) between Vietnam and the EU would open a new chapter for the European investment in Vietnam. The increasing investment of Italy into Vietnam was also a positive example for this potential. On November 25, a government level meeting of the Vietnam-Italy Joint Committee took place in the Ministry of Industry and Trade. Important seminars were held in the morning discussing areas such as Engineering, medical and biomedical devices, energy and renewable energy. Each workshop began with an overview of national strategies, plans of development and benefits for investors in each specific field.

 

Dr Pham Thi Thu Hang, Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI) confirmed that economic and trade cooperation between Vietnam and Italy has increased steadily over recent years. Some cooperation agreements have been signed between VCCI and Italian organisations such as: the cooperation agreement between VCCI and Rome Chamber of Trade and Industry (26/05/1997); with the Regional Council of Sicily (07/06/2005), the Trapani Chamber of Commerce, Industry, Handicrafts and Agriculture, Sicily (31/10/2005); On 08/11/2010, VCCI signed a cooperation agreement with the Chamber of Commerce of Siena, active in the central area of the country, northern Tuscany with key economic sectors include tourism and services, arts and crafts, along with agriculture with world-renowned products such as wine and oil.

 

Ms Hang stressed that Vietnam enterprises were eager to participate further in the value chain of global production. Italian business delegation visiting Vietnam this time would help to expand opportunities for cooperation and investment, motivating and attracting Vietnamese enterprises to enhance their value. Through the application of the most advanced technology, Vietnamese enterprises could gain much practical benefit by studying projects successfully implemented in Italy and the EU.

 

Also at the forum, there were meetings between businesses (B2B), a brief presentation on EXPO 2015 and a presentation on financial instruments supporting small and medium enterprises in Italy. In the evening, delegates attended the opening ceremony of the art exhibition called “Raffaella Curiel tra arte, musica e viaggi”.

 

The presence of Italy in Vietnam is expanding. Vietnam has become an ideal gateway for Italian entrepreneurs to penetrate the ASEAN and Asian markets. A survey conducted by EuroCham in the first quarter of 2013 showed that 51 percent of European companies had high expectations for Vietnam's business environment and wished to expand their business in Vietnam market. Vietnam also has become an attractive destination for Italian companies to invest and export.

 

By creating an ideal environment for entrepreneurs from Italy, the two countries could enhance investment opportunities between the parties. The Italian government has always actively promoted Vietnam as a promising market for Italian businesses; at the same time, the government of Vietnam has been promoting free trade in both the public and private sectors.

 

Vietnam currently is in the phase of crisis recovery and strong reform. For over two years, macroeconomic indicators have been getting stable; inflation has gradually come under control. This has created an opportunity for Italian companies that want to export to Vietnam. Vietnam is accelerating the reform of tax, customs and administrative procedures to create the most favourable conditions for businesses and investors. Italian firms have advantages that Vietnam is currently in need of, such as engineering, renewable energy and infrastructure. Vietnam is committed to creating the most favourable conditions for Italian enterprises who wish to make long-term investment in Vietnam.

 

Italian companies are getting more and more interested in the Vietnam market and considering this as an emerging market in the region full of promising potential for investment and business development. Recent visits of the leaders of the two countries have created conditions for enterprises of both sides to increase cooperation and investment opportunities.

 

The Vietnam market has large amount of consumers, therefore Italian investors hoped we could bring high technology and high quality goods of our advantage to compete in the Vietnam market. Additionally, we will strengthen the transfer of experience of Italian enterprises to Vietnamese businesses, promoting mutual benefit.

Italian firms have a strong belief in the investment environment, the policies, the legal framework and the institutional reform for foreign investors in Vietnam. The Italian government also pledges support for Vietnam enterprises who want to invest in Italy.

 

The Italian economic delegation coming to Vietnam this time will be a great opportunity for Italian companies to better understand the advantages of Vietnam market, and provide an opportunity for Vietnamese companies to meet business partners.

 

Recent years, we have witnessed tremendous growth in Vietnam-Italy trade. This visit is a great opportunity to promote relations of bilateral economic cooperation between Vietnam and Italy to new heights; highlighting all achievements that the two countries have accomplished in our partnership and provide a new impetus to this relationship.

 

Vietnam is a dynamic market, so there is potential for the development of industries such as energy, technology, biology and especially agricultural automation. This is one of the strengths of Italian businesses. We are eager to cooperate with Vietnam enterprises in this field.

 

In the B2B meetings in Hanoi and Ho Chi Minh City this time, companies will have the opportunity to meet with representatives from the industry to discuss the details of accessing those areas as well as available incentives.