Newsletter N.5/2014 in English

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NEWS ASEM 10 & AEBF Milan

N E W S L E T T E R N . 5 D E C E M B E R 2 0 1 4

Italian Business Mission

XXIII International Convention ICCA

to Vietnam

Italian Business Mission to Vietnam DOSSIE

Why Vietnam?

SUMMARY ASEM 10

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AEBF: Business Forum Asia-Europe

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XXIII International Convention ICCA

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Prospects of 5 cooperation between Italy and Viet Nam

AEBF

Italian Business Mission to Vietnam

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ICHAM Christmas Party

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Europe

Info market

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Business

Asia -

Ancona ICHAM XXIII Christmas World Conventio Party n

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ASEM 10 - Milan, 16 & 17 october On October 16th and 17th in Milan, the 10th Asia-Europe Meeting (ASEM), the official summit between leaders from the two regional areas, was held. For the first time in Italy, on the occasion of the Italian Presidency of the

Council of European Union for the year 2014, the meeting hosted delegations from 53 countries, namely European Union’s members, plus Switzerland, Norway and Kazakhstan, and 22 Asian countries.

“Responsible Partnership for Sustainable

The delegations of 53 participating countries

Growth and Security”

Italian Prime Minister Matteo Renzi, together with the President of European Commission José Manuel Barroso and the President of European Council Herman Von Rompuy, have chaired the 10th ASEM Summit.

Under the leading theme of “Responsible Partnership for Sustainable Growth

and Security”, the meeting aimed, as Von Rompuy said, at enhancing a relationship based not only on trade and development, but also on the promotion of peace and regional stability in both Asia and Europe.

Having been structured on a first day of political meeting and on a retreat session between members for the second day, ASEM 10th represented a key opportunity to strengthen ties between the two geographical areas, as Barroso said two of the most important stakeholders of global order, which share a common

responsibility in shaping a more prosperous, sustainable and fairer world. Along with this purpose, each meeting session between representatives from Asia and Europe moved towards the common goal of development, throughout what had been an encounter of projects, ideas and people.

DECEMBER 2014

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Asia – Europe Business Forum (AEBF) Prime Minister of Vietnam Nguyen Tan Dung

The 14th Asia-Europe Business Forum (AEBF) took place in Milan last October as part of the broader 10th Asia-

Vietnam, represented Michele D’Ercole.

Europe Meeting (ASEM).

Following as usual the agenda of ASEM’s summits, the official meeting of business

delegates from member countries has been hosted for the first time in Italy, entrusted with the Presidency of the Council of European Union for the year 2014. Attendees came from both European and Asian industrial organizations, and among the approximately 500 business managers there was also the Italian Chamber of Commerce in

by

President relationship in the economic field.

Under the overall theme of “Enhancing Business Relations to foster Economic The Summit occurred on October 16th Integration between Europe and Asia”, immediately after the Opening Ceremony the debate thus usefully focused on of ASEM, and became an important issues regarding the areas of Trade and chance of meeting between business Investments, Food Security, Energy and leaders from the two continents to further Sustainable Development, and discuss their shared economic goals. Cooperation in Infrastructures and Thanks to the AEBF and the give-and- Space Technology. take of ideas it represented, the AsiaEurope Meeting turned into an actual dialogue between enterprises, so as to build a deepened Euro-Asiatic

"Strengthening trade relationship to promote economic integration between Asia and Europe", the theme of AEBF 2014

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XXIII International Convention The Interior of the Mole Vanvitelliana, where the Convention was held

ICCA 18-21 October, Ancona 1"60 delegates from 75 ICCA and 270 companies for a total of 1000 companies"

It was Ancona, Marche’s regional state capital, the seat of successful 2014 edition of the International Convention of Italian Chambers of Commerce Abroad (ICCA). The event took place between the 18th and the 21st of October in the beautiful setting of the Mole Vanvitelliana, where 160 delegates coming from 75 Chambers of Commerce located all over the world, and 270 enterprises making a total of 1000 enterprises, met with entrepreneurs and businessmen, in a string of seminars and one-to-one meeting between Chambers’ members and enterprises. Coordinated by Assocamerestero and the Chamber of Commerce of Ancona, the XXIII International Convention drew particular attention to the leading role of the Made in Italy within the global economy as well as to the need of strengthening Italian enterprises’ efficiency in their pathway towards internationalisation. Icham was represented by President Michele D’Ercole and Executive Director Pham Hoang Hai who joined the other Chambers in the endeavour of defining the new models required by global competition to go on pursuing international economic goals, in addition to a constant improvement of quality services, in terms of both specialisation and competency.

DECEMBER 2014

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ICHAM President Michele D’Ercole

new models necessary to achieve international standards of economic competitiveness and the constant improvement of quality of services, both in terms of expertise and professionalism.

Collaboration perspectives between Vietnam and Italy Hanoi University of Science and Technology hosted on November 12th the University - Industry Linkage Forum on Human Resource Training and Innovation Research. Aiming at fostering cooperation opportunities on technical training and innovation research in Vietnam for both companies and education institutions, the event gathered about 80 participants coming from Vietnam as well as Asia and Europe. Vietnam’s Policy Makers (MOST, MOET, MOF), European agencies from France, Germany, Italy, UK, and Asian Universities representatives all took part to each of the three parts the Forum was composed of, sharing each other’s experiences, collaboration models and issues related to the current status of University – Industry Linkage of their institutions.

Executive Director Pham Hoang Hai represented Italian Chamber of Commerce during the event, which has become a real opportunity to discuss possible ideas for future cooperation, and the perspectives envisaged to succeed in doing so.

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Italian Business Mission to Vietnam: 22-27th November 2014

Icham President Michele D’Ercole & General Secretary Pham Hoang Hai

"Renewable energy and mechanical engineering, infrastructure and medical equipment": the future of collaboration

The Italian Government led Business Mission to Vietnam in last November 2014, from 22nd to 27th . The delegation was composed of official representatives from ICE, Confindustria, Italian Minister of Foreign Affairs, International Cooperation and Economic Development, Abi, Rete Impresa Italia, Conferenza delle Regioni and Unioncamere ER, witnessing also the participation of Icham as partner of the latter. Started on November 22nd with a gathering in Hanoi arranged by Italian Ambassador to Vietnam Lorenzo Angeloni, the mission has unfolded through sector-based and B2B meetings between the Vietnamese Capital and Ho Chi Minh City, engaging more than 65 enterprises, associations and bank groups, thus making a total of 120 participants. Among the main business goals the mission was conceived for, there are those of developing cooperation in the field of energy, renewables, and mechanics, as well as in those of infrastructures and medical devices. In general, the business mission led by Italian Vice Minister of Foreign Affairs Benedetto Della Vedova aimed at deepening the knowledge Italian enterprises had of Vietnam’s opportunities to invest in one of the 119 industrial parks present locally, potentially attractive also for their favourable tax breaks.

DECEMBER 2014

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“Deepening the investment opportunities in 119 industrial parks in Vietnam”

Official visit to Binh Duong province In order to display some of the Vietnam’s industrial parks appeal, province of Binh Duong offered the businessmen attending the Vietnam Business Mission of last November 2014 the chance to visit its own district area. As one of the most industrialized zones of the country, Binh Duong province is constantly burgeoning its economic potential to the point that in 2013 grabbed the first place as for fastest growth rate

and strongest industrial development in overall Vietnam. President of Province, Mr. Le Thanh Cung headed the delegation through what had been the last and conclusive chapter of the business mission, in the course of which companies could deepen the cooperation opportunities existing between the two countries.

The event helped province officials to show the resources of such a powerful technological park, which previews also a lot from

about 100 to 300 hectares to be assigned to Italian enterprises, especially those coming from the Emilia – Romagna regional district. On the other side, it helped the Italian firms engaged in one of the enterprise partnerships already signed to deeply know the place they are investing in, and to continue the strategic dialogue between partners through an enhancement of bilateral relations.

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ICHAM CHRISTMAS PARTY Taking place on December 3rd, the 2014 edition of Icham Christmas Party was a great success. In the amazing location of Park Hyatt Hotel in HCMC, the party gathered members of the Italian Chamber of Commerce as well as friends and other partner European Chambers, all joining the Icham’s team in the fascinating setting of one

of the Rooms.

Ballet

As all of the more than 70 participants arrived, the event opened with the Signing Ceremony of the Memorandum of Understanding between Icham and VDAS (Vietnam Design Association), followed by the welcome remarks of Icham’s President Michele D’Ercole , and

ICHAM Christmas Party 2014 at Park Hyatt Hotel in HCMC

ICHAM Sponsors

Hotel’s

the summary of the activities the Chamber did in 2014.

During the event, a particular moment was dedicated to the memorial of Paolo Fornari, who the Chamber wants to thank one more time for friendship and for the unparalleled work done for Icham.

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Winners of Lucky Draws

Since the event was also conceived as an occasion for charity fund-raising, guests had the chance to meet the institution the funds would have been directed to through the presentation of the Pho Cap School and its own

mission. The party went on with the delicious buffet dinner prepared by the Park Hyatt chefs, and with a lucky draw and its precious gifts, kindly offered by Icham sponsors.

ICHAM wants to heartily thank all the guests for having come to what had been a wonderful night, and wish everyone a very Merry Christmas.

Memorandum of Understanding between ICHAM and VDAS Also on the occasion of Icham Christmas Party, a Memorandum of Understanding was signed between VDAS (Vietnam Design Association) and the Italian Chamber of Commerce in Vietnam. The agreement aims at promoting an independent and aware development of Vietnam’s visual arts through the sharing of techniques ICHAM Sponsors

and acknowledgments of Icham on topics like fashion, design and deco.

Moreover, in the consideration of the country’s enduring tradition of artisans and textile workers, the Memorandum of Understanding hopes to help Vietnam’s design to assume more personal and distinctive patterns, which should be able

to reflect its ancient past customs instead of being tied, as often happened, to foreign models far from local culture.

Italian Consul General Carlotta Colli and ICHAM President celebrate the MOU signing with VDAS representatives

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Festival Italiano RMIT (From the left) Italian Consul General Carlotta Colli, ICHAM President Michele D’Ercole and Ducati Manager Bradley Lalonde

A good occasion to celebrare the different nuances that Italian beauty can be conveyed through”

On December 2nd in Ho Chi Minh City the Italian Festival of RMIT University, the Australian University in Vietnam, was inaugurated.

The Festival took place between December 4th and 8th , and has been organised by RMIT International Club as an opportunity to celebrate the different nuances Italian beauty can be conveyed through.

Formally represent-

ing Italy in Vietnam, Italian Consul General Carlotta Colli as well as Icham President Michele D’Ercole, and Ducati General Manager in Vietnam Bradley Lalonde joined the opening ceremony: The Consul General successfully aroused RMIT students’ curiosity describing the Italian cultural variety and wealth, while Icham President illustrated the audience the econom-

ic and commercial counterpart through his life experience’s account. The ceremony ended with an Italian style buffet, a perfect chance for informal meetings between students and official representatives of Italy to Vietnam.

DECEMBER 2014

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INFO MARKET

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TEXTILES CONTINUE TO GROW: THE FIRST VIETNAM INTERNATIONAL FASHION WEEK From 1st to 6th of December 2014, Ho Chi Minh City hosted and witnessed the first edition of the Vietnam International Fash“An important ion Week.

Co-organised by reward on the FIDĂŠ Fashion Weeks and Multimedia JSC, the Vietnamese Fashpart of the ion Week was opened on Deceminternational ber 1st by the Ceremony Gala market, which at the GEM Center in HCMC and represented a further sign of could be the recognition of the already wellstarting point to known Vietnamese textile field. further develop Vietnam International Fashion Week was attended by some of business the very best national and reopportunities gional fashion designers, as the multi-awarded Nguyen Cong Tri

ICHAM President Michele D'ercole with Italian designer Antonio Grumaldi

or the Asian Couture Federation, and also by European federations like the Italian AltaRoma and the French La Chambre Syndacale de la Haute Couture, thus coming to symbolize the growing economic role of the country. A runway to actually display the quickly spreading out of Asian creativity and experimental innovation, especially in the field of visual arts and design; and at the same time an important reward on the part of the international market, which could be the starting point to further develop business opportunities in the same area.

DECEMBER 2014

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FINANCIAL CONFIDENCE REWARDS VIETNAM’S ECONOMY sharper. Yet, financial confidence started to grow already in June, when it registered an increase of 7,7 points Consumers compared to the confidence levels in average of 2014, Vietnam have reached eventually reaching 102 points after the the threshold of 135,5 dip registered in May points in August as tensions with China (ANZ Banking on South China Sea’s Group; Roy Morgan). territories became The latest results

released by Nielsen show a stable positive trend, encouraging the concentration of FDI which, according to the Ministry of Planning and Investment’s Foreign Investment Agency, reached the amount of USD 13,7 billion in the first 10 months of 2014, with a likely

The progress in bilateral relations with the

The map of Nations involved

U.S.A. will support the

in negotiati ons of Tran Pacific

integration of Viet Nam in

Partners hip

the global marketplace

increase of 6,16% from 2013 levels expected for November. FDI are crucial for Vietnam’s economy, accounting for a quarter of total investments in the country and for the 60% of export

revenue: the positive trend will remain a stable factor as the country continues to keep open the doors of its economy to international business, and improvements in TPP negotiations as well as in bilateral

relations with U.S. seem to potentially foster a deeper integration of Vietnam’s economy into the global market.

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Why Vietnam? A Guide for U.S. Investors

By: Op-Ed Commentary: Andrew Salzman, Dezan Shira & Associates, North American Desk Dezan Shira & Associates

As recently reported by Vietnam Briefing, Vietnam is on track to become the largest supplier in ASEAN to the United States. With its growing role in supplying goods to the U.S., it’s time to take a look at why American companies should be interested in investing in Vietnam, if they’re not already there.

A Surplus of Trade Agreements Vietnam is one of the few countries that is involved in every major trade pact currently in existence, or presently being negotiated, in the region (ex. ASEAN, RCEP, TPP, and APEC), along with Singapore, Malaysia, and Brunei. If all the trade deals are enacted, Vietnam would be in the enviable position of being a low-cost manufacturer with free trade access to some of the world’s largest economies.These agreements are advantageous for investors because they take down barriers to trade between countries by removing protections for local industries. Depending on the terms of the agreement, they can reduce, or completely remove, tariffs and quotas. Removing these trade restrictions enables more foreign investment because entry into the market becomes easier and potentially less costly.

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Vietnam is one of the few countries that is involved in every major trade pact currently in existence, or presently being negotiated, in the region (ex. ASEAN, RCEP, TPP, and APEC), along with Singapore, Malaysia, and Brunei. If all the trade deals are enacted, Vietnam would be in the enviable position of being a low-cost manufacturer with free trade access to some of the world’s largest economies.

These agreements are advantageous for investors because they take down barriers to trade between countries by removing protections for local industries. Depending on the terms of the agreement, they can reduce, or completely remove, tariffs and quotas. Removing these trade restrictions enables more foreign investment because entry into the market becomes easier and potentially less costly.

The Regional Comprehensive Economic Partnership (RCEP) would cover the Asia/Oceania portion of the Pacific coast. If enacted, this free trade agreement (FTA) would provide Vietnam with tariff free access to China, India, Australia, Japan, and South Korea – this "At the beginning of would make Vietnam a key sourcing destination for foreign this year, Viet Nam investors. Any manufacturer setting up in Vietnam with an eye discussed towards exporting into other Asian countries should be tempted by the reach of the RCEP. amendments to the If the RCEP is not enough to convince investors to enter the region, Investment Law to the Trans-Pacific Partnership (TPP) is another potential FTA that is simplify procedures scheduled to be ratified next year. However, the TPP focuses more on the Western Hemisphere. The major players on that side of the and aim for the Pacific Ocean would be the United States, Canada, and highest quality Mexico. However, ratification of the TPP is by no means a certainty, investments." it remains to be seen whether the newly controlled Republican Congress in the U.S. will put aside their antipathy towards President Obama and push forward with their free trade principles and support the TPP. If the above trade agreements come to fruition, as well as the EU-Vietnam FTA deal currently in negotiation, then Vietnam would have free trade agreements in place with the world’s three largest economies, as well as five more economies within the top fifteen in GDP. And of course, Vietnam is currently a member of the Association of Southeast Asian Nations (ASEAN), which has a GDP of US$2.1 trillion, and a population almost double the size of the United States.

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A Business Friendly Enviroment

"Viet Nam is one of the few countries involved in all

A plethora of trade deals is not the only enticement for foreign investors to come to Vietnam. Access to a large supply of low-cost, skilled labor is another key feature that is attracting foreign investment into the country. As companies struggle to cover their rising costs in China, there is an increasing trend of investors looking to Vietnam in order to diversify their holdings and reduce costs. Labor costs in Vietnam are currently 50 percent less than those in China. Companies already in Vietnam cite low-cost labor as one of the chief reasons that they have invested into the country.

major existing trade agreements in the region or in the course of discussion"

The Vietnamese government is continuing its efforts to make the country more inviting for foreign businesses. Earlier this year, Vietnam discussed amending its Investment Law to simplify procedures and target higher quality investments. Examples include new high-tech parks, the growing coffee industry, as well as textiles. The government also realizes that current infrastructure needs are not adequate for the level of foreign investment it is trying to achieve, thus it is spending to improve roads, rail links and airports.

DECEMBER 2014

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RELATED: Betting on Vietnam: The Future of Southeast Asian

Lastly, unlike other countries in the region, Vietnam has a stable government and political system. Companies investing into the country can count on a supportive government that is keen to expand foreign investment. They don’t need to worry about destabilizing influences that may put their investments at peril.

It would be wise for each basic American company

Any United States based company would be wise to consider investing into Vietnam as either a first step into Asia, or as a means of diversifying their Asian holdings.

There is significant growth potential in the country, both for exporting as well as domestically. Domestic consumption is predicted to increase at a rate of 20 percent per year – with a population of over 90 million and Southeast Asia’s fastest growing middle class, Vietnam clearly represents an important market for foreign goods. And if the proposed free trade agreements are ratified, then global free tariff access will only make Vietnam more attractive.

considering investing in Viet Nam, as a first step in Asia, and as a means to diversify their holdings in Asia.