Recommendations for Companies Extending to Italy

DNHN - Although there are several prospects to grow exports, the Vietnam Trade Office in Italy advises firms to be aware of frauds, which have been more prevalent in recent years.

According to Vietnam Customs, import and export turnover between Vietnam and Italy reached 3.18 billion USD in the first half of 2022, rising 14.8% from the same period in 2021. Vietnam exported $ 2.32 billion to Italy, up 26.6%, and imported $ 861 million, down 8.2%.

Vietnam primarily exports machinery, equipment, telephones and components, computers and components, transportation and spare parts, iron and steel, coffee, textiles and garments, aquatic products, and so on; and imports mechanical machinery and equipment, plastic and plastic products, pharmaceuticals, furniture, textile accessories, beverages, and alcohol.

According to the Vietnam Trade Office in Italy, the problems Vietnamese enterprises experience while selling to the Italian market are identical to those faced when exporting to the EU. Technical standards, certification rules, packaging, and so forth are examples.

Furthermore, when collaborating with Italian businesses, Vietnamese enterprises face some challenges, such as the legal environment is complex, sometimes lacking transparency, clarity, and efficiency; products related to health, safety, or the environment are subject to strict technical regulations and standards, sometimes exceeding the basic EU requirements.

The Italian economic heritage is familiar with partners in Europe, South America, and Africa, where many Europeans and Italians do business... accepting new partners is tough. However, the EU-Vietnam Free Trade Agreement (EVFTA) provides various incentives for Vietnamese commodities and firms to compete and enter the supply chain of Italian partners.

Although there are several prospects to grow exports, the Vietnam Trade Office in Italy advises firms to be aware of frauds, which have been more prevalent in recent years.

The Vietnam Trade Office in Italy is dealing with several fraudulent instances involving Italian and Vietnamese firms. Some types of fraud include Italian partners failing to pay for leftover items or failing to deliver, using forged addresses, and so on.

As a result, domestic businesses must exercise extreme caution when signing contracts and employ secure payment methods. Contact the Vietnam Trade Office in the host nation regularly to collaborate in confirming the authenticity of partner information and avoiding fraud.

Furthermore, to make the best use of the EVFTA to grow exports to Italy, local enterprises should be aware that Italian is the official language and is spoken in all parts of the country. Correspondence with Italian businesses, particularly early interactions, should be prioritized in Italian.

When planning a business trip to Italy or scheduling work with a partner, firms should research the holidays ahead of time to proactively organize a suitable period. Furthermore, based on the customs of each region, each community will have holy days.

The Euro is the official currency of Italy; the US dollar is not generally recognized. Although the bank permits you to create an account in USD, you must convert it to Euro before using it. Foreign exchange transactions are permitted by all commercial institutions.

Doing business in Italy requires cultivating and sustaining personal ties. As a result, choosing the correct Italian agent, distributor, or business partner is critical. Even though there is a shared EU market, relying on agents in nearby countries such as France and Germany is typically ineffective.

The "golden key" of ordinary commercial etiquette, particularly timely response to requests for bids and orders, is the finest way to success, according to the Vietnam Trade Office in Italy. Italian businesspeople value timely replies to their questions and want every correspondence to be acknowledged.

The Vietnam Trade Office in Italy may assist and support Vietnamese enterprises with payment methods, contract conditions, commercial information exchange while negotiating, and effective risk-aversion strategies.

P.V