Strategic partners widen co-operation

Italy and Vietnam commonly share a bright prospect for enhanced ties-Photo: VNA

During his November 6-8 state visit to Vietnam – the first visit of its kind by an Italian president since the two countries established diplomatic ties in 1973 – Italy’s President Sergio Mattarella held several meetings with Vietnamese leaders.

In addition to setting a two-way trade target of $5 billion by 2016, up from $4.1 billion last year, the two sides discussed measures to boost their strategic partnership across politics, foreign affairs, economics, security-defence, culture, education, science-technology, and tourism.

During the bilateral talks with Vietnam’s President Truong Tan Sang, Mattarella said that the two countries had bright co-operation prospects. Italy had recognised Vietnam as one of its 10 priority emerging markets to develop trade and investment with. He proposed that Vietnam create more favourable conditions for Italian firms and agreed that the two countries need to implement policies to boost co-operation in businesses involved in mechanics, textiles and garments, woodwork, supporting industries, construction materials, energy, agriculture, food processing, and oil and gas exploration.

On this occasion, several co-operation deals were clinched, including three education agreements between Louis University and Can Tho University, the Foreign Trade University, and the Ho Chi Minh City National Economics University.

Highlighting the importance of this visit for the two countries, Cecilia Piccioni, Italian Ambassador to Vietnam, said that “Vietnam was the first destination in the president’s Asian trip from November 5-11. This proved that the Italian government considers Vietnam a leading strategic partner in Asia”.

She said the visit would help open more doors for Italian investment to Vietnam and enhance bilateral co-operation between the two sides at multilateral forums and through international organisations.

In September 2013, the two countries approved an action plan for the implementation of the strategic partnership from 2013-2014. The two sides’ leaders are currently discussing another action plan for 2015-2016.

Italy is now a pivotal trade partner of Vietnam’s within the European Union, standing third in terms of imports and fifth in exports. Two-way trade hit $4.1 billion last year, and $2.89 billion in this year’s first eight months, up 6 per cent on year.

Moreover, Vietnam has become an attractive destination to Italian investors. According to Natalia Sanginiti, first secretary of the Italian Embassy in Vietnam, a number of businesses from Italy are planning to expand their business operations in Vietnam as they see the export potential coming from free trade agreements signed by Vietnam, as well as measures to boost incentives for investors, as adopted by Vietnamese authorities.

To date, Italy has invested in 17 out of 64 cities and provinces in Vietnam, with Vinh Phuc being the top destination, making up 29.9 per cent of Italy’s total investment in Vietnam, according to the Ministry of Planning and Investment.

As of September 20, Italian firms have invested $391.66 million in 66 projects in Vietnam, ranking 29th among countries and territories with investments here.