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Italian investors keen on exporting agri machinery to Vietnam

Released at: 16:30, 25/07/2017

Italian investors keen on exporting agri machinery to Vietnam

Photo: Quynh Nguyen

Pharmaceuticals also an area of potential, according to Italian Chamber Commerce in Vietnam.

by Quynh Nguyen

Agricultural machinery and pharmaceuticals will be two attractive areas for Italian investors seeking investment opportunities in Vietnam in the years to come, Mr. Pham Hoang Hai, Secretary Generale and Executive Director of the Italian Chamber Commerce in Vietnam (ICHAM), told VET.

Many Italian businesses are looking for opportunities to boost their exports of machinery, especially agricultural machinery, to Vietnam because demand for agricultural technology is on the increase in the country.

The importation of Italian machinery by Vietnamese enterprises has been limited in the past because of their rather high prices. “Though the price of Italian machinery is cheaper than German machinery, support policies for enterprises to buy machinery remains weak,” Mr. Hai said. “Therefore, ICHAM is coordinating with agencies and banks to offer financial products to help Vietnamese businesses borrow money to buy machinery from Italy.”

Pharmaceuticals is also an attractive sector that Italian companies hope to boost. There is no direct competition between Vietnamese and Italian pharmaceutical companies, Mr. Hai explained, as Vietnam’s products are mass produced while those from Italy are specialized. But there remain many issues relating to technical barriers that the two sides cannot fully agree on.

ICHAM and customs authorities in Vietnam and Italy are busy establishing a one-stop clearance program, meaning that goods cleared in Vietnam will then be cleared in Italy, saving three days on container costs.

“Despite the long-term cooperative relations between the two countries, investments from Italy in Vietnam have been limited in the past,” Mr. Michele D’Ercole, Chairman of ICHAM, told VET. The first reason is knowledge, as due to the geographical distance, information about Vietnam in Italy remains quite low.

Regardless, many Italian investors have invested more strongly in Vietnam over recent years. “I hope that in the future, with the EU-Vietnam Free Trade Agreement taking effect in 2018, that Italian investments in Vietnam will be higher,” Mr. D’Ercole said.

Figures from Vietnam Customs reveal that Italy is the EU’s second-largest exporter to Vietnam. Bilateral trade has increased ten-fold in the past decade, to more than $4.6 billion in 2016.

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