Relations between Vietnam and Italy are strengthened by the complementary nature of the two economies.

Italy is recognized
as one of the most advanced economies in the EU, characterized by a dynamic network
of small and medium-sized enterprises (SMEs) equipped with advanced technologies
and innovative capabilities – assets that align closely with Vietnam’s industrial
development priorities.

It currently stands
as one of Vietnam’s most important partners in Europe. Over many years, Italian
enterprises have proactively broadened their market presence in Vietnam, intensified
investment activities, and deepened cooperation.

Drawing attention

Vietnam offers a
stable and increasingly transparent investment environment, a large and skilled
workforce, and a strategic location in the heart of Southeast Asia, making it an
attractive destination for Italian businesses seeking to expand markets, optimize
production networks, and benefit from preferential access provided by free trade
agreements, particularly the EU-Vietnam Free Trade Agreement (EUVFTA).

Data from the Foreign
Investment Agency (FIA) at the Ministry of Finance (MoF) shows that, as of October,
Italian investors had 163 active projects in Vietnam with total registered capital
of some $629.25 million. Several major Italian companies, such as Piaggio, Ariston
Thermo, and Mapei, have chosen Vietnam as their primary manufacturing base for the
entire Asian region. The activities of Italian investors reflect Italy’s steady
and long-term presence in Vietnam’s investment landscape, demonstrating not only
the interest of Italian businesses in the market but also the growing confidence
they place in Vietnam’s economic prospects, reform efforts, and investment environment.

Bilateral trade
reached more than $6.91 billion in 2024, an increase of 13.1 per cent compared to
2023, and surpassed $6.08 billion in the first ten months of this year; maintaining
a stable upwards trend. These figures demonstrate that economic relations between
Vietnam and Italy are developing steadily and hold significant potential for further
expansion in the years ahead.

Beyond economic
cooperation, the relationship is also enriched by shared cultural and historical
values, as well as a mutual aspiration for peace, stability, and sustainable prosperity.
These common foundations help foster deeper understanding between the two peoples
and create a favorable environment for long-term collaboration across multiple fields.

Notably, bilateral
relations between the two have posted a host of remarkable accomplishments, becoming
one of the most prominent examples of Vietnam’s cooperation with European countries.
These factors serve as an important foundation for the two to continue elevating
their partnership to new heights. “The Vietnam-Italy relationship is strengthened
by four complementary similarities: mutual trust; economic structures that support
and promote each other’s development; a warm and sincere friendship; and a shared
desire for peace and strong advancement,” Deputy Minister of Finance Ho Sy Hung
emphasized.

Beyond appreciating
the strong political ties, Italian businesses also view Vietnam as a market full
of potential. Mr. Fabio De Cillis, Director of the Italian Trade Agency (ITA) in
Vietnam, noted that Vietnam has been emerging as an attractive destination in the
internationalization strategies of Italian enterprises thanks to its dynamic growth,
skilled workforce, and continually-improving investment environment.

Economic cooperation
between the two countries, particularly in machinery and equipment, has also
been expanding rapidly. Italy not only exports complete machinery but also collaborates
with Vietnam in supplying components and semi-finished products and in technology
transfer, thereby fostering a mutually-beneficial cooperative model and enabling
Vietnam to gradually integrate more deeply into global supply chains. “In addition
to traditional strengths such as food and fashion, Italy is also interested in developing
cooperation with Vietnam in new sectors of potential such as high technology, including
medical technology, space technology, and AI,” Mr. De Cillis added.

Untapped potential

In addition to the
positive results achieved over many years of cooperation, ties in economics, trade,
and investment between Vietnam and Italy still hold tremendous untapped potential
for further development. The two countries possess a wide range of complementary
advantages, from economic structures and sectoral strengths to geopolitical positions,
which open numerous opportunities for businesses on both sides to strengthen connections,
expand investment projects, boost import-export activities, and promote technology
transfer.

In order to more
strongly and effectively harness this potential, Deputy Minister Hung noted that
Vietnam hopes Italian enterprises, drawing on their experience, resources, and reputation,
will support Vietnam in accessing shifting investment flows, green and sustainable
finance, and capital for science, technology, and innovation. “In particular, to
realize Vietnam’s commitment to achieving net-zero emissions by 2050, Vietnam looks
forward to learning from Italy’s experience and cooperating in the development of
renewable energy and the green economy,” he stressed.

Beyond cooperation
at the national level, collaborative opportunities between localities in
Vietnam and Italy are also more promising than ever. As regional authorities and
localities on both sides strengthen exchanges and seek practical partnership models,
new avenues for cooperation in areas such as investment, tourism, education, culture,
and urban development are rapidly emerging. These growing local-to-local ties add
depth and vitality to the overall bilateral relationship.

One significant
turning point was the inauguration of direct Hanoi – Milan flights earlier this
July, shortening travel times and facilitating trade, tourism, and business connections.
As a result, opportunities for economic cooperation, investment, and exchanges between
localities in both countries expanded markedly, increasing the likelihood of forming
new partnership projects across multiple sectors.

Furthermore, the
effective utilization of the EUVFTA has been creating an important driving force
for the strong and continued growth of Vietnam-Italy economic cooperation. Extensive
tariff-reduction commitments offer major opportunities for Vietnamese goods to access
the European market, while enabling Italian companies to more easily reach Vietnam’s
highly promising market.

The EUVFTA also
enhances the harmonization of standards and technical regulations, improves the
investment and business environment, and enables firms from both sides to expand
production, strengthen supply chain links, and promote projects of high complementarity.
Consequently, Vietnam-Italy trade and investment relations are not only increasing
in scale but also improving significantly in quality, moving towards long-term sustainability
and effectiveness.

Mr. Valentino Valentini,
Deputy Minister for Enterprises and Made in Italy, said that in a rapidly-changing
global landscape, both Italy and Vietnam need to focus on key areas such as digital
technology, green technology, energy, and AI, while addressing challenges related
to energy balance, particularly the imperative to “advance economic development
while minimizing environmental impacts.”

Therefore, the two
countries’ cooperation and mutual support in overcoming these challenges will open
up numerous opportunities to boost trade, attract high-quality investment, accelerate
technology transfer, and develop high value added supply chains. “Italian businesses
are increasingly interested in the Vietnamese market and stand ready to share their
experience to help address these challenges,” Mr. Valentini affirmed.

VET-Bao Tram