Vietnam's appeal to Italian businesses

Mr. Duong Hai Hung, the Vietnamese Ambassador to Italy

>> Vietnam seeks stronger partnership with Italy’s Campania region

Economic ties between the two nations are expanding in an exciting way. Currently, Vietnam is Italy's fourth-largest trading partner in the EU, while Italy is Vietnam's largest trading partner in ASEAN.

- One of the top ten emerging markets for trade and investment that the Italian government has identified is Vietnam. What are your thoughts on this assertion?

I believe there are five reasons why the Italian government and business community see Vietnam as a more desirable market.

First of all, Vietnam has a market of around 100 million people, with a young population and an expanding middle class.

Second, through FTAs to which Vietnam is a party, Vietnam serves as a gateway for Italian companies to reach ASEAN and other markets.

Third, there is potential for numerous collaborations given Vietnam's socioeconomic strategy for 2021–2030's top targets.

Fourth, financial assistance programs offered by the Italian government to help companies, particularly small and medium-sized ones, promote "Made in Italy" goods and expand into international markets.

Fifth, there are many commonalities between the two nations, and the long-standing ties of friendship and solidarity between them are considered a strong foundation for fostering intercultural dialogue.

-How are the two nations' relations in terms of trade and investment progressing, sir?

The volume of two-way trade has been steadily rising over time, reaching USD 5.6 billion in 2021, the highest level ever, up 21% from 2020.

In the first eight months of 2022, import and export turnover between the two nations totaled 4.2 billion USD, up 13.9%; of this amount, Vietnam's exports to Italy totaled 3 billion USD, up 20.8%, and its imports from Italy totaled 1.19 billion USD, down 0.7%.

At the end of June 2022, Italy ranked 34th out of 139 nations and territories investing in Vietnam, with 138 legitimate investment projects and a total commitment of more than 409.46 million USD.

>> Room remains for Vietnam's exports to Italy 0

-How would you rate the potential for business partnerships between Vietnamese and Italian companies?

The fact that the EVFTA entered into force on August 1, 2020, and the EVIPA has been signed and is being ratified, in my opinion, represents the most significant benefit for the two countries' businesses.

With the EVFTA, certain industries can export goods to Italy, including: phones, components (98% of tariffs will be immediately eliminated), footwear (43% of tariffs will be immediately reduced to 0%), tax breaks for aquatic products, agricultural products like tea and coffee (100% of tariffs are eliminated to 0%), cinnamon, star anise, pepper, cashew nuts, fruits, and vegetables.

Italy doesn't grow much coffee, so it imports raw coffee to process for both internal and international use. Data shows that 14% of all coffee imported into Italy from around the world is Vietnamese coffee. Therefore, there is still a lot of space for Vietnamese coffee products to become the market leader in Italy.

In the meantime, Italy has greater potential to export goods like wine, bags, trendy footwear, and machinery to the Vietnamese market. Many Italian-made products are highly favored in Vietnam with their gorgeous, distinctive, and high-quality designs.

More than 110 Italian companies are now making investments in 18 Vietnamese provinces and cities. I think that in the near future, successful Italian companies like Piaggio, Ariston, Bonfiglioli, and Esanastri will expand their operations in Vietnam. This fact is in line with both countries' potential and objectives.

-What recommendations do you have for Vietnamese companies looking to export to the Italian market?

I believe that in order to improve productivity and product quality to meet European standards, Vietnamese businesses need to encourage the spirit of initiative, actively explore the market, develop a long-term strategy, innovate technology, and plan to attend fairs, conferences, and seminars to network with potential partners.

The Trade Office of the Vietnamese Embassy in Italy, which serves as its focal point, may provide enterprises with information, guidance, verification, and support.

-The 50th anniversary of diplomatic ties between Italy and Vietnam will be commemorated in 2023. Could you describe your contributions to this celebration?

On March 23, 1973, the two nations formally established diplomatic ties. The 50th anniversary of diplomatic ties will be done in 2023. The Vietnamese Embassy in Italy is now putting various plans and initiatives into place in order to get ready for the commemoration events.

In order to promote the image of the nation, people, and high-quality products of Vietnam and to connect business, investment, and trade between the two countries, such activities will take place in many fields, including politics, economy, cultural exchanges, art performances, cuisine, and tourism in Rome and many other Italian localities.

Thank you so much!