Vietnam, Italy aim to effectively utilise EVFTA

Two-way trade exchanges between Vietnam and Italy have achieved positive outcomes following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in 2020, with bilateral turnover reaching US$5.6 billion in 2021, up 20% compared to 2020.

According to the Ministry of Industry and Trade, Italy remains Vietnam’s fourth largest trading partner in the EU, behind only the Netherlands, Germany, and France.

Vietnam’s key export items to the Italian market include computers, electronic products and components, phones and components, machinery, tools and spare parts, aquatic products, coffee, garments and textiles, and footwear.

Furthermore, Italy is the largest consumer of Vietnamese shelled cashew nuts, accounting for between 60% and 70% of its cashew imports.

Besides cashew nuts, other Vietnamese export items have also enjoyed a sharp increase in value thanks to tariff reduction under the EVFTA. The export value of tuna to the Italian market, for instance, skyrocketed by 130% in the first half of 2021 to reach roughly US$22.5 million.

Under the terms of the trade pact, 100% of tariff lines placed on tea and coffee products, as well as some other farm produce such as cinnamon, pepper, cashew nuts. and fruit, have been slashed to 0%.

The commitments set out in the EVFTA sees the EU give the Vietnamese side an export quota of 80,000 tonnes of rice annually, including 30,000 tonnes of milled rice, 20,000 tonnes of unmilled rice, along with 30,000 tonnes of fragrant rice. Meanwhile, the EU will not apply a quota for broken rice exported from the country.

During April 2022 phone talks with Italian Prime Minister Mario Draghi, Prime Minister Pham Minh Chinh spoke highly of Italy’s inclusion of Vietnam on its list of priority countries for trade and investment co-operation moving into the post-2020 period. This affirms that the Vietnamese side will create the optimal conditions possible for Italian businesses to expand their investment in the Southeast Asian country.

Moreover, PM Draghi called on Italy to quickly ratify the EU - Vietnam Investment Protection Agreement (EVIPA), adding that Italian businesses are keen to continue investing in the Vietnamese market in spheres such as renewable energy, infrastructure, water resource management, and innovation.

Along with commitments relating to opening the market for goods, services, and investment under the EVIPA, the implementation of the trade pact will contribute to attracting greater investment in Vietnam, with a specific focus on a number of spheres that the EU have great strengths in.

Source: VOV