Delegates’ visit drums up new trade
Delegates’ visit drums up new trade
Last week, a business delegation of nearly 100 Italian institutions and businessmen came to Vietnam in search of investment opportunities. Benedetto Della Vedova, leader of the delegation, and Italian Undersecretary of State at the Ministry of Foreign Affairs and International Co-operation, spoke to VIR’s Thanh Tung about the prospects for the two countries’ co-operation.
How has the Italy-Vietnam trade relationship developed?
Vietnam is one of the most important markets in Asia, thanks to a favourable geographical location and big population. Through Vietnam, we can easily enter other Southeast Asian markets. The economic and political links between Italy and Vietnam have gone from strength to strength over the last 40 years. Italy remains the 18th largest export market and the 15th largest import market for Vietnam, with the growth of 19 per cent per year during 2005-2011. Italy has become Vietnam’s third largest trading partner in the EU with two-way trade turnover approximating €3 billion ($3.9 billion) in 2013. This figure is expected to reach €3.5 billion ($4.55 billion) this year and is projected to hit €5 billion ($6.5 billion) by 2016, reflecting the potential for double-digit annual growth.
However in order to reach this target, Italian firms want to see a favourable investment and financial market in Vietnam. Vietnam needs to have a very predictable and transparent business climate. Additionally, Vietnam must do better in protecting intellectual property rights for foreign investors.
The Italian government is planning to shift its official development assistance (ODA) to Vietnam in the coming years from the public to the private sector. What’s your view on this?
Yes, the shift would be very important as it would help spur Vietnam’s development. We will shift from providing financial support to technical support for Vietnam. Vietnam is in critical need of improving its labour productivity and skills. We want to establish many Italian-Vietnamese joint venture companies so that Italian firms can transfer high technology to Vietnamese partners. Clusters of Italian firms of the same sectors will co-operate with Vietnamese firms, particularly small and medium-d enterprises. The two governments support this model. Many Vietnamese students are also studying new technologies in Italy.
Why have Italian firms chosen this time to visit Vietnam?
During his official visit to Vietnam in June 2014, Prime Minister Matteo Renzi met with Vietnamese leaders. The two sides agreed to further facilitate co-operation between businesses in scores of sectors, particularly mechanisation, textiles and garments, footwear, wood processing, supporting industries, construction materials, energy and food processing. Italy considers Vietnam one of its top priority emerging markets for expanding trade and investment links.
Our mission’s prime goal here is to turn the strategic partnership forged in 2013 into a reality by cementing bilateral political, trade, and investment co-operation. Also under the partnership, the two countries have committed to boosting the number of high-level visits. Industry leaders and government officials from both sides are optimistic that the results of this visit will create further prosperity and forge stronger ties between both countries.
The delegation represented the fields of engineering, medical and medical equipment, energy and renewable energies, infrastructure and connectivity. Activities covered official discussions, bilateral governmental meetings and an Italy-Vietnam business forum. Additionally, the two sides also discussed investment possibilities and co-operation opportunities offered by the 119 industrial zones throughout Vietnam. This has been a valuable opportunity for Italian companies to build and strengthen relations and economic co-operation with Vietnamese partners. The meeting of the Vietnam-Italy joint commission on economics and trade was also organised on this occasion.
How important is Vietnam to Italian firms?
The Italian government has a system of agencies in charge of supporting Italian firms to do business overseas including Vietnam. As I have said, Vietnam is a very important market for Italian firms as it boasts a stable political and macro-economic situation and big population with big consumption. Vietnam is also a key gate for Italian firms to enter other regional markets.
A financial agreement between the Italian export credit agency SACE and VietinBank, has been signed at the margins of the business meetings, that will create more favourable financial conditions for bilateral trade exchanges.
How has the strategic partnership been implemented?
I feel quite satisfied with what we have done so far in implementing the partnership. A two-year action plan has been implemented fully and timely and the two sides will continue having meetings to further boost bilateral co-operation. Vietnam and Italy inked a number of inter-governmental agreements on economic, industrial and military co-operation, investment encouragement and protection, culture, double tax avoidance, tourism, aviation, and exemption of visas for diplomatic passport holders.
