Vietnam is now Italy's largest partner in ASEAN and is on the way of steady growth. In August 2020, the EU-Vietnam Free Trade Agreement (EVFTA) officially came into effect, which is expected to be a boost to two-way trade exchange. The reporter of the Industry and Trade Newspaper had the opportunity to talk with Mr. Antonio Alessandro - the Italian Ambassador to Vietnam - about the trade exchange between the two countries.

How do you evaluate the trade exchange between Italy and Vietnam this year? 

This year has been a bad year, a year to forget. We all know that the pandemic situation in the world has had a strong impact on the global economy, including Italy in Vietnam. In 2019, trade exchange between Vietnam and Italy has prospered. Two-way trade turnover of the two countries reached 5.34 billion euros, of which, Vietnam's export value to the Italian market reached 3.44 billion euros and vice versa, the export value of Italy to Vietnam reached 1.9 billion euros.
But, in 2020, everything seems to slow down due to the global crisis effect. However, we are also seeing a positive economic recovery. The numbers in the last 3 months (September, October and November) all prove that this crisis is coming to an end. I hope 2021 will be a better year for global trade including Italy and Vietnam.

EVFTA Agreement between Vietnam and Europe has just come into effect in August, what do you think about the impact of this agreement on trade exchange between the two countries?
The numbers we have collected over the past 4 months are not sufficient for evaluation. The agreement has only just come into effect, so it is difficult to see the clear effects of EVFTA on Italy-Vietnam trade. But I can be confident that this agreement will spike the two countries' trade not just the numbers but the quality of the goods. The EVFTA is a trade agreement that focuses not only on tariff reductions but also an agreement on standards. Therefore, to adapt to the new environment both Vietnamese and Italian products have to improve quality. This is arguably the most positive aspect of this agreement.

What are the potential products of Vietnam in the Italian market, sir? 

Vietnamese goods have great potential in the Italian market. For Italians, Vietnamese goods are of good quality and highly appreciated. The Italians especially love Vietnamese seafood, coffee and other agricultural products. Currently, the export value of Vietnamese agricultural products in Italy is very high, about 2 billion euros, 4 times higher than the opposite direction. This proves the attraction of Vietnamese goods in this market.
How about the opposite direction? Are there any difficulties or barriers for Italian goods to access the Vietnamese market, sir? Currently, there are no special barriers for Italian goods imported into the Vietnamese market. Thanks to EVFTA, customs costs will be cut to 0% over the next 7 years. This has special significance for Italian agricultural products. These products have long been known to be of high quality compared to other countries in the world but at the same time cost is high. Thanks to the incentives from EVFTA, the price reduction of our products is an advantage for us to compete in the Vietnamese market. Our biggest difficulty today is that Italian culture and cuisine are not widely known in Vietnam. Therefore, we need to actively carry out promotional and marketing activities to bring Italian products closer to Vietnamese consumers.

What plans do you have to improve this situation?

Previously, Italian cuisine was known mainly through the restaurant system around the world. Currently, with the desire of our agricultural products to reach the Vietnamese public in a more friendly way, we are currently hosting the Italian Food and Beverage Week from July 7. December 13, at AEON mall Long Bien. This is also our annual event with a variety of activities in 7 major cities in Vietnam. We hope visitors at the mall will stop by and learn about Italian cuisine and culture.