Italian export credit agency to invest US$1.3 billion in Vietnam

Michal Ron, Chief International Business Officer of SACE (middle), talks about investment in Vietnam - photo: SACE

The funding is expected to promote the trade and investment cooperation between Vietnam and Italy, focusing on the fields of food, renewable energy, automobile manufacturing and agriculture.

Michal Ron, Chief International Business Officer of SACE, said this investment plan marks the first destination in their expansion journey into the Southeast Asian market.

Vietnam is an attractive destination for Italian companies to seek investment opportunities. The capital package will enable both Italian and Vietnamese businesses to have easy access to technology and supplies from Italy in order to promote investment and development, she said.

The Chief International Business Officer of SACE revealed that more than US$500-600 million is being exchanged with Vietnamese state-owned enterprises. The company expects to reach financial agreements worth around US$370-380 million by the end of this year.

From 2018-2022, Vietnam experienced the fastest economic growth rate in the region, reaching an average of almost five percent per year. Its commitment to “openness” through bilateral and multilateral trade agreements has helped Vietnam become an ideal investment destination, increasingly attracting the attention of Italian businesses. A notable example is the bilateral trade value reaching more than six billion euros last year.

Italian Ambassador to Vietnam Marco Della Seta told the media that in 2023, Italy exported 1.7 billion euros worth of goods to Vietnam, while Vietnam exported 4.4 billion euros worth of commodities to Italy. “Italy aims to become Vietnam’s strategic trade and industrial partner; in the future, the bilateral trade will continue to increase, and with the investment strategy in Vietnam, as Vietnam’s exports grow, we will also benefit.”

With a transaction portfolio worth US$260 billion, SACE acts as a trade catalyst, providing comprehensive insurance and financial solutions to corporations and governments worldwide

With a transaction portfolio worth US$260 billion, SACE acts as a trade catalyst, providing comprehensive insurance and financial solutions to corporations and governments worldwide. This enables businesses to easily access advanced technology and products from Italy, promoting investment and development activities. In Vietnam, since 2021, several large corporations such as Nutifood (US$31 million) and PVPower (US$200 million) have also collaborated with SACE on important investment projects.

Michal Ron added, “The rapid economic development and significant role in the global industrial chain have made Vietnam become a promising partner of Italy. Through establishing a team in Ho Chi Minh City, we are considering investment worth more than US$1.3 billion in new challenging projects and are ready to support Italian companies. In the future, SACE will prioritize Vietnam’s strong export sectors such as food and beverages, particularly coffee and other agricultural products, as well as electricity, logistics, and healthcare, which are also under consideration for investment.”

Under the Push Strategy program, SACE provides international corporations with access to medium- and long-term financial resources to support their investment and growth plans. A fundamental and indispensable part of agreements with international clients is the commitment to considering “Made in Italy” supplies that align with their investment plans. This commitment is facilitated through a series of business matching events organized by SACE in coordination with international business associations and organizations.

SACE’s next destination will be Singapore. Leveraging the strategic positions of Vietnam and Singapore in the region, SACE aims to promote trade and investment, and enhance economic connectivity in these areas.