Italy top-4 EU trade partner of Vietnam

Data from the General Department of Vietnam Customs show that the Vietnamese-Italian trade value hit US$2.3 billion in the first four months of 2024, a year-on-year increase of 14 percent.

Growing bilateral trade

In the first four months of this year, Vietnam exported goods worth US$1.75 billion to Italy, up 16 percent year-on-year, while importing commodities worth US$554 million from this market, up 7.1 percent.

Italy remains the fourth largest EU trade partner of Vietnam, after the Netherlands, Germany and France. Vietnam has become Italy’s biggest ASEAN (Association of Southeast Asian Nations) trade partner. The bilateral trade value has continuously increased in recent years.

Italy is among top-20 foreign trade partners of Vietnam globally, while Vietnam is one of the 20 countries with which the Italian government prioritizes promotion of trade and investment cooperation.

In late April 2024, Italy ranked 33rd among 146 countries and territories investing in Vietnam, with 151 valid investment projects totaling more than US$535.8 million in registered capital. Successful Italian investors in Vietnam include ENI, Fincantieri, Piaggio, Bonfiglioli, Datalogic, and Ariston, among others.

Statistics from the International Trade Center (ITC) show that Vietnam exported fruits and nuts, including durian, fresh coconut, mango, mangosteen, passion fruit, and cashews, among other produce, worth US$39.9 million to Italy in 2023, accounting for only 1.2 percent of Italy’s total fruit import value in the same year. Sixty percent of cashews consumed in Italy come from Vietnam.

The EU-Vietnam Free Trade Agreement (EVFTA), taking effect on August 1, 2020, has zeroed out up to 84 percent of tariff lines subject to fruit exports to the EU (the previous average Most Favored Nation or MFN tariff was 10 percent).

Recommendations for exporters

According to the Vietnam Trade Office in Italy, although Italy is a potential market, Vietnamese businesses still finds it difficult to access this market.

The Trade Office has been connecting businesses with Italian partners and promoting Vietnamese products.

It recommends businesses to diversify products to make their lists of goods not only include fresh fruits but also dried ones, fruit juices and fruit powders.

The Trade Office will attend the World Chili Pepper Trade Fair in the city of Rieti, Italy from August 28 to September 1 to introduce Vietnamese coffee, pepper, cinnamon, star anise and other farm produce; and the Vietnam Coffee Day event in October 2024 in Italy.

Many leading Italian credit and credit guarantee institutions, including CDP/Simest and Sace, among others, have increased their presence in Vietnam and see Vietnam as one of the fast-growing markets. A number of Vietnamese enterprises, Nutrifood and PVGas, for example, have accessed capital under the guarantee of Sace. Simest has established a platform to connect Italian businesses with potential Vietnamese partners. These efforts have helped and will help Vietnamese enterprises to access Italian technology, equipment and goods for production.

Source: Vietnam Economic News