Econ
Boosting Vietnam-Italy trade cooperation
On February 24, Italian Ambassador to Vietnam Cecilia Picciono said at a press conference in Hanoi that Vietnam has become one of Italy’s most important ASEAN trade partners.
Lastly, she revealed that an Italian business delegation recently made fact-finding tours of Vinh Phuc, Hue and Danang seeking investment and economic opportunities and their initial reports are very positive. Official figures show that Vietnam’s total trade with Italy for 2015 was US$4 billion, with exports reaching a record high US$2.851 billion resulting in a favourable trade surplus of US$1.15 billion.
In another effort, Italian government will help Vietnam establish and run two hi-tech centers for textile and footwear next year, news website Saigon Times Online quoted Bruna Santarelli, chief of the Italian Trade Commission in Vietnam.
The centers will be established at two universities, including Ho Chi Minh City's University of Technology, and equipped with Italian-imported machines and technologies. Italy will also send experts to train Vietnamese students to make sure that new technologies can be applied on a large scale, according to the report.
Trade volume between Vietnam and Italy was estimated at US$4 billion last year, up 33.3% year on year, and is expected to hit US$5 billion next year. Vietnam is now hosting 66 Italian-invested projects with a total capital of nearly US$392 million, according to figures from the Foreign Investment Agency.
Textile and footwear are among sectors expected to enjoy the most benefits when Vietnam's key free trade agreements with EU and 11 Pacific Rim nations come into effect. However, local businesses and economists express concerns that, with their current dependence on imported materials from China, Vietnamese textile businesses will possibly fail the rule of origin, thus missing tariff benefits under the Trans-Pacific deal.
They are also worried that Vietnamese footwear businesses will not be able to make best use of tax cuts under the EU trade deal, slated to be signed later this year, as foreign-invested manufacturers account for more than 70% of the country's footwear exports.
Last year, the Prime Minister has approved the content of a draft cooperation agreement on mutual administrative assistance in customs between the Governments of Vietnam and Italy. The PM authorizes the Finance Ministry leader to sign the agreement with Italy’s competent representative.
Italy is currently Vietnam’s 18th largest export market and 15th biggest import market. Two-way trade reached over US$4 billion in 2014, of which US$2.7 billion came from Vietnam’s exports. Italian investors run 64 projects totaling US$386.2 million, ranking 28th among 101 nations and territories investing in Vietnam.
Signing the agreement will improve the efficiency of collaboration between the two Governments, while creating favourable conditions for their customs agencies to exchange information and technical assistance, and detect and address any violations of customs regulations during the enforcement of State management on customs.
