EVFTA implementation

Vietnam and Italy officially established diplomatic relations on March 23, 1973. A new milestone in Vietnam-Italy relations was marked in January 2013 when the two countries signed a Joint Declaration establishing a Strategic Partnership on the occasion of General Secretary Nguyen Phu Trong's state visit to Italy.

In 2023, the two countries celebrated 50 years of establishing diplomatic relations (1973-2023) and 10 years of strategic partnership (2013-2023).

Italy is currently Vietnam's third largest trading partner in the European Union. Photo: congthuong.vn

Italy is one of the first Western European countries to support increased cooperation between Vietnam and the European Union at major international forums as well as the normalization of relations between Vietnam and international financial, trade and monetary organizations in the early 90s.

During meetings, Italian senior leaders affirmed their determination to promote multifaceted cooperation with Vietnam, considering Vietnam a priority country for developing relations in Southeast Asia.

According to a report by the Vietnam Trade Office in Italy, Italy is currently Vietnam's third largest trading partner in the European Union.

On the contrary, Vietnam is also Italy's largest trading partner in ASEAN with positive growth in bilateral trade turnover.

Notably, since the Vietnam-EU Free Trade Agreement (EVFTA) officially took effect, it has created an important turning point to strongly promote economic and trade cooperation between Vietnam-EU in general, and Vietnam-Italy in particular.

According to statistics from the General Department of Vietnam Customs, in the period 2017-2023, trade exchange between Vietnam and Italy recorded positive growth.

The export speed of Vietnamese goods to Italy reached an average of 9%/year, Vietnam's trade surplus with Italy has continuously increased in recent times.

In the first 5 months of 2024, total import-export turnover between Vietnam and Italy reached US$2.85 billion, an increase of 9.2% over the same period in 2023.

Exports to Italy reached US$2.14 billion , up 10.3%, imports from Italy reached US$0.71 billion, up 6.0%. The trade surplus with Italy reached US$1.43 billion, higher than US$1.27 billion in the same period in 2023. The two countries are striving to soon bring two-way turnover to US$7 billion.

Regarding investment cooperation, data from the Foreign Investment Agency (Ministry of Planning and Investment) also shows that, as of May 2024, Italy currently ranks 33rd among 146 countries and territories investing in Vietnam with 153 projects, with a total capital of more than US$536 million.

Despite achieving many positive results, during the meeting between Minister of Industry and Trade Nguyen Hong Dien and Italian Ambassador to Vietnam Marco della Seta in March 2024, Minister Nguyen Hong Dien said that this is a modest number considering the potential of the two countries.

Meeting between Minister of Industry and Trade Nguyen Hong Dien and Italian Ambassador to Vietnam Marco della Seta in March 2024. Photo: congthuong.vn

The two sides need to further promote strong areas of cooperation, especially implementing the EVFTA with specific action programs, to create new impulses in economic, and trade cooperation between the two countries.

Focusing on market information and removing trade barriers

Vietnam and Italy have similarities in economic structure when there are many small and medium-sized enterprises, and the two countries' economies also complement each other in terms of products.

Currently, the products that Vietnam has a competitive advantage when exporting to Italy are coffee, pepper, phones, components, and shoes.

In particular, Vietnam and Italy cooperate closely in the fields of textiles, footwear, and energy. Vietnamese businesses promote cooperation with Italy in the fields of silk production, textiles, fashion production, and garment accessories, making practical and effective contributions to the development of the industries of both sides.

Contributing to bilateral cooperation between the two countries, recently, in addition to promoting information for businesses, the Vietnam Trade Office in Italy has published a monthly Newsletter and coordinated with the Torino Chamber of Commerce to translate it into Italian.

The Newsletter covers trade and investment activities, providing useful information for businesses about regulations in the EVFTA, specific industries and trade cooperation opportunities between businesses.

The Vietnam Trade Office in Italy also conducted research on each market segment and industry, publishing research books on the Italian, Cyprus, Malta, Sanmarino and Vatican markets to introduce to the Vietnamese business community.

Thanks to the close cooperation between the two Trade Departments, businesses had the opportunity to participate in many conferences, forums, fairs, promote business contacts, and visit manufacturing plants and offices of companies, thereby increasing opportunities for contact and trade between the two countries.