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AMBASSADOR TALK

Partners not limited to climate change, food
security, and water security?
Our two countries already cooperate
for the planet in addressing climate change, especially in
water management-related issues. Among
many, I would like to mention a project
aimed at developing a platform for the
management of the Red River basin and a
On the occasion of the 78th Republic remote sensing technology project for estab-
lishing and implementing geographical
Day of Italy on June 2, H.E. Marco della
information on vulnerability to climate
Seta, Ambassador of Italy to Vietnam, change, risk assessments, and environmental
spoke with VET’s Linh Tong about monitoring systems for Vietnam.
enhancing the bilateral relationship Italy’s expertise in sustainable agri-
between the two countries. culture, water management, and climate-
resilient technologies can complement
Vietnam’s efforts to enhance food security
and water security. By sharing knowledge,
technology, and best practices, the two
INTERVIEW countries can improve agricultural pro-
ductivity, promote sustainable farming
practices, and mitigate the impact of cli-
mate change on food production and
water resources. Collaborative projects
in renewable energy deployment, energy
efficiency, and climate-resilient infra-
structure can accelerate the transition to
a low-carbon economy and reduce green-
house gas emissions, thus contributing
to global efforts to combat climate change.

% What are your thoughts on the cur- sectors towards higher-value segments % How would you evaluate investments
rent status of economic relations in value chains. Today, Vietnam is no undertaken by Italian enterprises in
between Vietnam and Italy, especially longer solely a destination for investment Vietnam, and Vietnam’s investment cli-
in terms of trade and investment? in low value-added manufacturing. mate for Italian businesses? What sec-
Italy and Vietnam have developed For these reasons, I believe there are tors are prioritized by Italian enter-
strong economic ties, characterized by many opportunities in sectors where Italy prises for investment in Vietnam, and
significant growth in trade and investment. already excels in Vietnam, such as machinery how can Vietnam facilitate the expan-
Bilateral trade has seen a steady increase, and the pharmaceutical industry. Because sion of Italian investment?
with Italy being one of Vietnam’s top 3 of Vietnam’s economic and social develop- Italian enterprises have been actively
trading partners within the EU. Vietnam, ment, these sectors offer significant potential investing in Vietnam for almost three
meanwhile, is Italy’s leading economic for growth. Undoubtedly, there are also decades, with a focus on manufacturing
partner in the ASEAN region. Bilateral considerable opportunities in renewable and consumer goods. Vietnam’s investment
trade in 2023 reached $6.1 billion. energies and smart agriculture; fields where climate has proven, over the years, to be
A crucial factor has been the entry Italy has expertise, companies, and experi- attractive due to its stable social and polit-
into force of the EU-Vietnam Free Trade ence. The full entry into force of the EU- ical system, economic growth, young work-
Agreement (EUVFTA), in 2020, which Vietnam Investment Protection Agreement force, and favorable investment policies.
boosted bilateral trade. Despite the pan- (EUVIPA) will certainly help in this regard. Over 150 Italian enterprises currently
demic, bilateral trade between Italy and Lastly, the two governments should operate in Vietnam through production
Vietnam increased by over 14 per cent facilitate business-to-business contacts. plants, commercial branches, exclusive dis-
between 2019, before the EUVFTA came A good example of such support is the tribution agreements, and agency deals.
into effect, and 2023. three technological centers financed by Italian investments in Vietnam are note-
Key sectors include machinery, phar- the Italian Trade Agency: one in southern worthy, particularly in manufacturing, with
maceuticals, chemicals, steel, textiles, leather Binh Duong province for leather and a presence in the infrastructure, pharma-
and footwear materials, coffee, mobile footwear, another in Ho Chi Minh City ceutical, mechanical, digital, and insurance
phones, and other electronic devices. for the textile industry, and a third for sectors. Italy’s investment in Vietnam exceeds
the stone sector, established in the summer €1 billion ($1.08 billion), and some Italian
% Despite the advancements made by of 2022 in northern Yen Bai province. enterprises have chosen Vietnam to host
both countries, what sectors remain These technological centers are the result their Asian headquarters or to establish
underexplored for collaboration? of cooperation between national business research and development (R&D) centers.
What strategies would further enhance associations on both sides. Of many, I would mention Ariston
bilateral ties? Thermo, one of the first Italian investors
Vietnam has set ambitious goals for % In what ways could enhanced col- in Vietnam, 35 years ago, and currently
development and ecological transition in laboration between the two countries operating in northern Bac Ninh province;
the coming decades. The country is deter- bolster collective efforts to address and Piaggio, with its largest Asian production
mined to shift its industrial and service resolve global challenges, including but plant, in northern Vinh Phuc province;

10 Vietnam Economic Times May 27, 2024 en.vneconomy.vn