Italy boasts advanced textile technology and high product quality, while Vietnam offers abundant labor resources, competitive costs, and a strong spirit of innovation. Despite the substantial potential for collaboration, businesses face challenges such as differing business cultures, quality standards, and stringent international requirements.
Mr. Marco Della Seta, the Italian Ambassador to Vietnam, highlighted that textiles and garments are a key area of strategic cooperation between the two nations, significantly contributing to bilateral trade. In 2023, Italy exported textiles and garments worth $309 million to Vietnam, representing 17.3% of its total exports, while imports from Vietnam totaled $335 million. Ongoing initiatives and cooperation projects focus on technology transfer and production standardization, particularly in sustainable production to protect the environment.
Ms. Tran Thi Lan Anh, General Secretary of the Vietnam Confederation of Commerce and Industry (VCCI), noted the burgeoning relationship between Vietnam and Italy. Italy is now Vietnam’s fourth-largest trading partner in the EU, while Vietnam is Italy’s largest trading partner in ASEAN. The EU’s new textile and garment regulations and the Vietnam-EU Free Trade Agreement’s “fabric forward” rule require Vietnamese enterprises to stay informed about new regulations, adopt new technologies, and continuously improve quality to meet export standards.
Example of success for Italian Textile Business in Vietnam
Mr. Andrea Galante, Chairman of Madex Company, affirmed that Vietnam’s business environment is very conducive for Italian investments, highlighting factors such as stable institutions, efficient customs processes, transparent supply chains, a flexible and productive workforce, and competitive product quality. He noted that Madex is currently the only Italian garment company with a factory in Vietnam, and expressed hope that more Italian companies would establish production facilities in the country.
Ms. Sara Pelizzoli, a representative from Hung Yen Textile and Dyeing Company, emphasized that her company benefits from high-end Italian textile techniques and strict standards for sustainable development. She pointed out that adhering to these standards is crucial for Vietnamese textile and garment enterprises aiming to enter the international market.
The collaboration between Italian and Vietnamese businesses can take various forms. With the rapidly growing middle-upper class in Vietnam and an increasing demand for higher-quality consumer goods, Italian textile companies have a significant opportunity to leverage their brand and narrative to sell their products in the Vietnamese market. Other than that, Italian companies could leverage Vietnam’s low-cost yet high-quality labor to reduce production costs by outsourcing part of their manufacturing to reliable partners in Vietnam. Alternatively, they could establish joint ventures with Vietnamese partners to expand their operations in the Asian market, particularly given the current challenges in China. Another option is for Italian businesses to collaborate with Vietnamese manufacturers by providing design expertise or Italian manufacturing technology, an area where Vietnamese companies are still looking to improve.
Kelmer Vietnam, has established a wide range of local partners that are prepared to satisfy the needs and the qualifications of Italian businesses, as well as they are in need of an Italian touch to their current design and production in order to be more competitive in the International market. So, if you are a textile business with a mission to extend your business endeavors, please do not hesitate to contact us, and we will certainly be your reliable partner to accompany you with your journey to success.
Note: According to the EVFTA, import-export tariffs for textile products between Vietnam and the EU (including Italy) currently range from 0% to 7.5%, and will gradually decrease to 0% in the coming years. Now is an opportune time for Italian businesses to take initial steps to enhance their long-term competitiveness in the International landscape.