Vinh Phuc Increases Investment Flows from Italy into Priority Areas

10:04:21 AM | 9/10/2023

During the State visit of President Vo Van Thuong to the Italian Republic, the delegation of Vinh Phuc province, led by Secretary of the Provincial Party Committee Hoang Thi Thuy Lan, conducted investment promotion events in Italy. As part of these events, Vinh Phuc province and the Tuscany region signed a memorandum of understanding (MoU) on friendly cooperation.

Provincial Party Secretary Hoang Thi Thuy Lan awards the Project Expansion In

This marks a significant milestone in Vinh Phuc province’s external relations as it establishes friendship ties and builds a cooperation framework with a European region that has a lot of cultural differences. This move will open up long-term broad cooperation prospects between Vinh Phuc and European partners.

At the ceremony, witnessed by the two countries’ leaders, Secretary Hoang Thi Thuy Lan handed the investment certificate for project expansion to Piaggio Group in Vinh Phuc province. Wholly Italian-invested Piaggio Vietnam Co., Ltd, established in 2007 as the headquarters of the group in Asia Pacific, manufacturers of upmarket scooters. After more than 15 years of operation in Vinh Phuc, the company has made great progress, especially with its industrial complex that consists of an engine factory, a scooter factory and a regional product research and development center. This facility made the company a strategic market for Piaggio Group and the head office in the Asia-Pacific region.

To further expand investment, scale up manufacturing capacity and restructure its project, Piaggio Vietnam Co., Ltd merged two projects and increased its investment capital by US$75 million to US$165 million from US$90 million in Vinh Phuc province. This investment will boost the company’s annual output capacity to 400,000 vehicles from 250,000 products and to 400,000 engines from 300,000 products earlier, making the Vinh Phuc factory the most important base of the group in the world.

A representative of Piaggio Vietnam Co., Ltd said: “Over the past 15 years, Piaggio Vietnam has always received timely care and support from all-level authorities of Vinh Phuc province. Especially during the first outbreak of the COVID-19 pandemic, the provincial government regularly worked with businesses and promptly removed difficulties and obstacles for them. We appreciate and thank frequent government-business exchanges and meetings that help the company know and understand the development directions and strategies of Vietnam and Vinh Phuc. This is considered a magnet to attract investors to the province and boosts the confidence of investors and businesses present in Vinh Phuc." The business success of Piaggio Vietnam Co., Ltd demonstrates the close relationship and friendly cooperation between Vinh Phuc and Italian partners, localities and businesses.

Secretary Lan expressed her belief that the two sides would find a common voice to make Vinh Phuc a successful destination for Italian investors. She stated that with strong advantages of advanced technology and governance of Italian businesses, the province will facilitate them to come to study and invest in Vinh Phuc in the circular economy (using technology to recycle solid waste and wastewater), energy-efficient production projects, sustainable energy projects, and high-tech projects like semiconductor technology and new material technology.

Representatives of Vinh Phuc agencies gave more detailed information about investment incentives. They said that sustainable development projects relating to green energy, high technology, and environmental treatment, if qualified, will be entitled to investment incentives such as tax and land rent exemption and reduction. In addition, they will also be supported and prioritized to complete administrative procedures to start operations soon.

By Hoang Tham, Vietnam Business Forum