The upcoming visit of Italian Prime Minister Giuseppe Conte to Vietnam is a good chance for both countries to enhance the economic relations thanks to good political ties and the complementarity of the two economies.Italy’s Prime Minister (PM) Giuseppe Conte will pay an official visit to Vietnam at the invitation of his Vietnamese counterpart Nguyen Xuan Phuc on June 5-6 and join in the third High-Level Dialogue on ASEAN-Italy Economic Relations in Hanoi.
Italian Prime Minister Giuseppe Conte. Photo: Alessandra Tarantino/AP
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The visit, the most high-ranking one by an Italian leader to Vietnam over the past five years, is considered a significant move to enhance the strategic partnership between the two countries, which was set up in January 2013 during Party General Secretary Nguyen Phu Trong’s visit to Rome.
During previous meetings, Italy’s high-ranking leaders affirmed their determination to promote multifaceted cooperation with Vietnam and prioritized enhancing the relationship with Vietnam in Southeast Asia.
Vietnam established diplomatic relations with Italy since March 23 in 1973 and the politic ties between the two countries have been reinforced since the 1990s. Italy was one of the first Western countries resuming and developing cooperation relationship with Vietnam after a standstill period from 1979 to 1989.
Italy was in the forefront of West Europe in actively promoting the cooperation between Vietnam and European Union (EU) in some significant international forums as well as prompting the normalization of relationship between Vietnam and other international trade, financial, currency organizations at the beginning of the 1990s.
Thriving trade
In terms of economy, trade exchange between the two countries has tripled over the past ten years, from US$1.5 billion in 2009 to over US$4.6 billion in 2018. Vietnam has enjoyed an increasing trade surplus with Italy, from US$158 million in 2010 to US$1.4 billion in 2015, then to US$1.1 billion in 2018 and US$449 million in the first three months of 2019.
Vietnam is the biggest trading partner of Italy in ASEAN, and Italy is the third trade partner of Vietnam in the EU. Vietnam’s export staples to Italy include telephones and parts, coffee, computers, electronic products and gadgets, and machinery.
There remains large room for economic ties to develop. Vietnam is an emerging economy in the dynamic economic region with a young population in Asia and a fast-growing middle-income class.
Vietnam is also a gateway for Italian businesses to access ASEAN markets via free trade agreements that Vietnam is a member.
Meanwhile, Italy, a member of the Group of Seven (G7), has proven its strength in technology, machinery, agriculture and food industry sectors that can meet the increasing demand of Vietnam.
With over 60 million inhabitants, Italy is a big market, an important gateway for Vietnamese goods to penetrate Europe.
During some dialogue on promoting bilateral economy and trade between Vietnam and Italy in Parma and Piacenza (Northern Italy), many delegates considered the upcoming European Union − Vietnam Free Trade Agreement (EVFTA) potential in creating more opportunities for Italian businesses, especially medium and small-sized ones in accessing a new market.
Once the trade agreement takes effect, up to 99% of tariffs will be eliminated in accordance with the roadmap, bringing more big chances to the Italian and Vietnamese businesses.
People-to-people ties
In addition, the exchange of the two countries in terms of culture, education and tourism has been steady, contributing to enhancing mutual understanding, bringing the two countries further closer and helping to promote cooperation on other aspects.
The relationship among local levels of the two countries is also increasingly better as there are a number of local exchanges such as the cooperation between Binh Duong and Emilia Romagna, Ba Ria – Vung Tau and Veneto, Hanoi and Lazio in various fields from education and training, environment management, urban, smart cities to high-tech agriculture, among others.
